Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. Can the Treasurer confirm that today's Westpac-Melbourne Institute consumer sentiment data for September is down 5.6 per cent, which represents a 15 per cent decline since the election?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

There is no doubt, as identified by Westpac, that market volatility around the world has had an impact on confidence, and Westpac said that.

Opposition Members:

Opposition members interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

Members on my left will cease interjecting. The Treasurer will resume his seat.

Ms Plibersek interjecting—

The member for Sydney will cease interjecting. The Treasurer has the call.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

As identified by Westpac in their associated statement, there is no doubt that the volatility, particularly in the Chinese stock market, has had an impact on consumer confidence and business confidence right around the world, not just—

Mr Champion interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Wakefield will withdraw that comment. The Treasurer will resume his seat. The member for Wakefield will withdraw.

Nick Champion (Wakefield, Australian Labor Party) Share this | Link to this | Hansard source

I withdraw.

Tony Smith (Speaker) Share this | Link to this | Hansard source

And the member for Wakefield is warned.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

That was recognised in discussions with G20 finance ministers in Turkey last week. As the Governor of the PBOC, the central bank of China, identified in our discussions in Ankara, the Chinese stock market has had three significant corrections in the last quarter, which covers the same period as the Westpac survey: they had a significant correction at the end of June and in early July, they had a significant correction again in late July, and they had another correction in August. In all the Chinese stock market increased by 70 per cent in a six-month period in the last year, completely dislocated from the Chinese economy. Even though the market has had rapid gyrations, that has left the market 35 per cent higher than it was 12 months ago, which has created alarm in global equities markets. It is also the case that there is significant speculation about the United States Federal Reserve increasing interest rates, which has dislocated some of the capital flows around the world, particularly out of emerging economies. This all flows through to market volatility here in Australia. It also affects the currencies—you have seen the Australian dollar move significantly over the last three months—and, importantly, that flows through to households because every night on TV they are seeing this external news.

Mr Conroy interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Charlton.

Ms Butler interjecting—

The member for Griffith will cease interjecting.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

There is no doubt that the continuing downgrades in world economic growth and volatilities in equity markets, currency markets and commodity markets have had an impact on business and consumer confidence. But I say this: our economic plan is the best friend of Australian consumers because we get rid of Labor taxes. We got rid of the carbon tax, the mining tax, the bank deposit tax. We got rid of the Leader of the Opposition's piggybank tax. We have gotten rid of the taxes. We have given Australians tax cuts. But most importantly, we are seeing four times the number of jobs created every month as occurred in the last year of Labor.