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

I thank Senator Hurley for her question. The government’s responsible economic and fiscal policy has helped chart Australia through very difficult economic circumstances. The stimulus package has helped ensure Australia has the strongest performing advanced economy in the developed world, growing over the past year when every other advanced economy has gone backwards. If it were not for the fiscal stimulus, Australia would be in a recession and hundreds of thousands more Australians would be out of work.

The government’s fiscal stimulus was carefully designed to phase down as the economy strengthens. The impact of stimulus on growth has already peaked and it is already tapering away. As stimulus is increasingly withdrawn it will detract from growth through 2010, making room for the recovery in the private sector. That means fiscal and monetary stimulus will both be withdrawing as the private sector recovers. The Governor of the Reserve Bank has said he is comfortable with the level of fiscal stimulus and its gradual withdrawal means monetary and fiscal policy would be acting consistently.

While the government is focused on the tough policy decisions and responsible economic management in Australia’s long-term national interest, those opposite are all over the place. They are a policy-free zone.