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

My question is to the Treasurer. In June when the Treasurer was talking about 0.9 per cent growth in the Australian economy, he said people warning about slow growth and about economic clouds were 'clowns'. Can the Treasurer confirm the most recent figure is 0.2 per cent growth? Treasurer, aren't you the real clown, and one with a massive credibility deficit?

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

The member for McMahon will withdraw the last part of that reference.

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

I withdraw.

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

The Treasurer has the call.

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

The economic growth, as we forecast in the budget, is 2½ per cent for the last financial year. That is what we forecast in the budget and that is what it turned out to be. I can say to the honourable member: as he knows—as every credible economist knows—there can be variations from quarter to quarter. The 0.9 per cent, at a time when people were suggesting that somehow we were in recession, was one of the fastest levels of growth in the developed world.

Opposition Members:

Opposition members interjecting—

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

It was. That is right. It was one of the fastest levels of growth in the developed world, and 0.2 per cent in the last quarter, whilst below market expectations of 0.4 per cent, was still above other comparable nations, including Canada, which has been running negative growth with a similar economy—a commodity based economy. The challenge has been that I wish I had iron ore prices of $120 a tonne, which Labor had, instead of the $50 a tonne we have today. I wish we had that. And I tell you what: if we had that then the budget would be in a better position and we would be able to do a whole lot of things, but we do not. We accept the circumstances, and whilst there are commodity based economies right around the world that are in recession, like Canada or Brazil or a number of emerging economies that are commodity based—those economies are in recession—Australia still has robust growth and we should be proud of the diversity of our nation's economy. We should be proud of the fact that we do not rely on any single area of effort.

The mining industry is hugely important for Australia. It is around 10 per cent of our economy but 55 per cent of our exports. It is around two per cent of direct jobs. Agriculture is also hugely important for Australia. It also is a huge export, but the fundamental point is that 70 per cent of the Australian economy is services and it represents just 17 per cent of our exports. If we want to grow our opportunities as China moves from an investment based economy to a consumption based economy, where that massive emerging middle class in China wants better health care, better education, better financial services and better tourism experiences, Australia is well positioned. We are well positioned. That is why we have driven a free trade agreement that opens the door for Australians to get into the market on aged care, on education services and on financial services and at the same time remove all the taxes that are holding us back in agriculture and minerals, because at the end of the day our prosperity into the future is greater than the past, and we are about building a better future.