Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

I thank Senator Sterle for his interest in this issue. The Rudd government is committed to laying the foundations for Australia’s future. We recognise that investment in key infrastructure is critical—unlike the neglect of 11½ years from those opposite. It is critical to expand Australia’s productive capacity, to address supply bottlenecks and to support future economic growth. Investment in key infrastructure is inherently linked with productivity. Growth in productivity means we can produce more goods and services with the same resources. It is the key to improving living standards. Benchmarked against our international competitors, Australia’s productivity performance has deteriorated. Productivity growth over the last five years has averaged 1.4 per cent—the lowest in 17 years. Those opposite delivered the lowest productivity growth in 17 years. The previous government let Australia fall behind in this area. It failed to invest adequately in the productive capacity of the economy to ensure Australia’s long-term prosperity.

The former government neglected our infrastructure across such areas as railways, ports, roads and communications infrastructure—neglected. Your team was not in the market, and you are still not. It squandered the proceeds from the mining boom—squandered and neglected it on short-term political bribes. That is all those on the other side actually are capable of: short-term political bribes and ignoring the growing bottlenecks.

For too long our national budgets have been short-sighted. The previous government failed to focus on the big challenges facing our country in the next decade and beyond. The budget begins a new era of responsible investing in Australia’s long-term future needs. This budget includes three new national funds that will provide more than $40 billion in capital investment in infrastructure, education and health.