Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

I thank Senator Hutchins for his very important question. There is no doubt that the government’s stimulus strategy has shielded and cushioned this economy from the worst of the global recession. The Rudd Labor government recognised the dangers that the world financial and economic disaster presented for Australia and we acted decisively to implement a three-stage stimulus program.

The first stage stimulus payments to consumers have had an immediate impact by increasing consumer spending. For example, retail sales in Australia are 5.2 per cent higher than the levels of last November, whilst in comparison in most other counties of the world they have fallen—they will fall by an average of 1.4 per cent. In comparable economies retail sales have collapsed. In Australia, that has not occurred, and I would point out that there are well over one million workers in the retail sector in Australia.

The immediate part of the stimulus totals some $27 billion. In the medium term we will spend some $35 billion on vital infrastructure—local community projects, the largest school modernisation in our history and social housing. The long-term stimulus will concentrate on major rail, road, port, education, clean energy and broadband. All up, these stages represent a $77 billion investment in Australia’s future and they will protect Australia from the present danger of the global recession, the worst in some 75 years. These important investments also underpin long-term productivity growth.

The stimulus sustained growth of 0.4 per cent in the Australian economy in March. The consequence is that there will be some 200,000 Australians kept in jobs who would otherwise have lost them. (Time expired)