David Feeney (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Conroy, the Minister representing the Treasurer. Given the current global economic challenges, can the minister outline the strategies the Rudd government is implementing to ensure the Australian economy will grow and prosper into the future?

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

I thank Senator Feeney for his question. Every economy in the world is facing tough economic conditions. The global credit crunch and the global oil price shock have buffeted confidence and share markets around the world. Countries like Germany, Japan, France, Italy and Canada have all recorded negative growth in their most recently reported quarters. We are not immune to these developments. We are confident, however, that with the right policy settings we will come through these difficult global times in a stronger position than other economies. A key part of our plan is focusing on nation-building initiatives that will underpin and enhance Australia’s long-term economic prosperity. We recognise that investment in key infrastructure and skills is critical. Investment in infrastructure and skills is the key to unlocking the productivity potential of the economy.

Benchmarked against other developed economies, Australia’s productivity has slipped below par in the past years. Productivity growth over the three years to 2006-07 was 1.1 per cent compared to 3.3 per cent a year over the five years to 1998-99. For 12 years those opposite neglected the big, long-term challenges facing the Australian economy. They ignored them. That included our infrastructure needs across a range of areas such as roads, communications and railways. Instead, they squandered the proceeds of the mining boom, playing short-term politics. They were more focused on ripping away the entitlements of workers with Work Choices than investing in the future capacity of the economy.

Genuine nation building means lifting the productive capacity of the economy. It means boosting productivity, lifting international competitiveness and investing in our human capital. That is how we will deliver a new generation of growth with low inflation. The previous government ignored 20 warnings from its expert advisers about the impact of skills shortages and capacity constraints on inflation and interest rates. Twenty warnings from the Reserve Bank were ignored by those fiscal vandals opposite.

Unlike those opposite, the Rudd government has a national building plan backed up with real dollars, including $41 billion for responsible investment in the future infrastructure, education and health needs of the nation. Those opposite, when it came to infrastructure, were happy to dredge Tumbi Creek. They were not interested in any serious nation building or infrastructure building in this country. (Time expired)