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 international cooperation to address the global economic downturn? Will the minister outline the role Australia played in the recent G20 discussions?

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 the question. We are facing the most serious global economic downturn since the Great Depression. The Rudd government understands this is a global problem, so we must do all we can internationally to contribute to a global solution. Last weekend G20 finance ministers met in London in preparation for the G20 leaders meeting early next month. Importantly, G20 finance ministers and central bank governors pledged to take whatever action is necessary until growth is restored and stated that they are committed to deliver the scale of sustained effort necessary to restore growth.

They also endorsed a framework for dealing with the toxic assets that infect so many banks in the US and Europe. Toxic assets on the balance sheets of large international banks are poisoning global credit flows and global growth. This framework has been put forward by Prime Minister Rudd and also the British government and we very much welcome its adoption by the international community. In addition, ministers agreed to substantial reform of the IMF to ensure its effectiveness to respond to this crisis and help avoid crises in the future. I am pleased to say that Australia was co-chair of the G20 working group on IMF reform. The Financial Stability Forum has been expanded to all G20 members with Australia now holding two seats in this forum. Australia will also become a member of the Basel Committee on Banking Supervision, the primary global financial system rule-setting body. (Time expired)

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

Mr President, I ask a supplementary question. Can the minister advise whether there is international recognition of the need for fiscal stimulus? Can the minister outline additional measures that the government is taking to protect jobs given the global economic downturn?

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

The IMF, global leaders, industry groups and economists the world over all recognise the need for strong and decisive action to support growth. On 6 March, the IMF stated:

… given the depth of the crisis, avoiding or postponing action is not a viable option …

On 3 March, the Federal Reserve chairman, Ben Bernanke, stated that ‘aggressive action’ was required to avoid a prolonged episode of stagnation. The government has acted decisively to support economic activity through the $10.4 billion Economic Security Strategy last October and the $42 billion Nation Building and Jobs Plan announced last month. Our action has been endorsed by the IMF, central banks, business groups and business economists. Most recently the US President, Barack Obama, has emphasised just how important it is. (Time expired)

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

Mr President, I ask a further supplementary question: is the minister aware of claims that the government’s industrial relations reforms should not be pursued given the global economic downturn? Can the minister explain how the government’s Fair Work legislation will improve the job security of Australian workers?

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

The government’s new workplace relations system has been designed to serve Australia well in the good as well as the difficult economic times. The Fair Work Bill has been designed as a stable, simple, fair, flexible and productive workplace relations system for business. Working Australians do not want a return to Work Choices and they certainly do not want a return to Work Choices in the middle of a global recession. Work Choices allowed basic pay and conditions to be stripped away and meant that an employee could be sacked for no reason and without any entitlement to redundancy. That is what those opposite deliver and hanker after and are still championing to this day. This is not the kind of workplace relations system that would give Australians confidence in these difficult global times. (Time expired)