Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the minister representing the Treasurer, Senator Conroy. Can the minister update the Senate on the state of global financial markets and how the government’s approach to economic policy will help protect the Australian economy?

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

I thank Senator Hutchins for his question. As I have said on repeated occasions in this chamber, we are operating in almost unprecedented global economic times, the likes of which we have not seen since the Great Depression. To put the global challenges that we face into context, let me quote from sections of the Reserve Bank’s November Statement on monetary policy released yesterday:

World financial markets have come under severe stress in the period since the last Statement. Strains in credit markets escalated in early September, and the period since then has been marked by further large declines in equity prices and exceptional volatility across a range of markets.

Let me be clear: we have been honest and upfront that deteriorating global economic conditions will have an impact on growth and unemployment. Yesterday I updated the chamber on the recently released MYEFO forecasts, which demonstrate that the budget has felt the full force of the crisis. The MYEFO figures confirm that, while we are not immune, the Australian economy is sound and in a better position than most to weather the global conditions. But it is also important that we act to protect the Australian economy. In light of the global circumstances, the Rudd government has taken decisive and early action to protect the Australian economy. We make no apologies with this. We injected $10.4 billion as part of the economic security strategy to stimulate economic activity and protect vulnerable groups in our society. This builds on our decision to guarantee bank deposits for all Australians. Our Economic Security Strategy is expected to boost the level of GDP by around one-half a percentage point to one percentage point and will help create up to 75,000 additional jobs over the coming year. It has been delivered at the right time, to the right people and with the right amount of strength. It is targeted at those parts of the economy that need it the most. It means that fiscal policy and monetary policy are working in tandem to help strengthen the economy and protect households during the financial crisis.

In times like these, you need a decisive government that will stay ahead of the game and act consistently in the best interests of the Australian economy. Mr Turnbull—the opposition leader, the member for Wentworth—is a very clever politician who spends all his time telling people what they want to hear rather than what he really believes. So do not judge him on what he says; judge him on his actions.

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, address your comments to the chair.

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

Do not judge him on what he says; judge him on his actions. Mr Turnbull says the global financial crisis is all hype while, at the same time, he transfers part of his fortune out of a property trust to protect his wealth from the crisis. He says it is all hype but, just on the quiet, he says, ‘I’ll just move my money out of there.’

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Conroy, resume your seat. When the Senate comes to order we will proceed with question time.

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

Mr Turnbull says, ‘Let’s be bipartisan on the global financial crisis’—(Time expired)