Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sherry, in his capacity and as Minister representing the Treasurer. Can the Assistant Treasurer update the Senate of what important and decisive actions the Rudd Labor government has taken to stimulate Australia’s economy during the global financial crisis and to set a path of nation building for recovery? Can the Assistant Treasurer explain to the Senate how these important measures are working to protect jobs and growth and whether there are any alternatives to the Rudd government’s strategy of recovery?

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

We know, against the background of the worst turmoil in financial and economic markets the world has seen in the last 75 years, the Rudd Labor government have acted decisively to protect Australia’s economic interests and the national interests. We have acted decisively in a range of ways to cushion the impact of the world recession, which has now become very, very deep. We have announced the $42 billion nation-building plan to stimulate Australia’s economy and protect all Australians from the impacts of this global financial and economic crisis. The government have stepped in to fill the gap left by the private sector during this global recession to stimulate the economy and support jobs. We make no apologies for this approach.

We already know, from the March national accounts, that the Australian economy has outperformed the other advanced economies in the March quarter. Let me repeat that for the opposition’s benefit: the Australian economy has outperformed every comparable economy right around the world. That is the record. In the clearest possible sign that the government’s efforts to stimulate the economy are working to support jobs and growth, gross domestic product rose by 0.4 per cent in the March quarter and was 0.4 per cent higher over the year. During the same time that the Australian economy grew, comparable economies—the G7—contracted. They reduced in size by some 2.1 per cent. Despite the worst global recession in 75 years, we are weathering this storm better than most countries, in the face of reckless opposition from the Liberal-National Party, who say no to everything. (Time expired)

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the Assistant Treasurer update the Senate on any new information that shows how the Rudd government’s nation-building stimulus package is supporting the economy, jobs and small businesses during these turbulent economic times?

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

As I have been saying, this Rudd Labor government has acted decisively to cushion and stimulate the economy in the face of this deep world recession. I can inform the Senate today that the gains from the government’s $42 billion stimulus package will be much greater than previously set out in the budget. According to new Treasury figures, total employee incomes over the next decade will be around some $100 billion higher as a result of our actions. Liberal Party approach: do nothing. Rudd Labor government decisive approach: there will be $100 billion in higher incomes for employees as a consequence. That is $100 billion that the opportunistic and divided Liberal-National Party say no to. They always say no to vital measures to cushion and underpin the growth of our economy. That is the Liberal Party’s attitude: sit on your hands and do nothing. (Time expired)

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the Assistant Treasurer also update the Senate on the value of other decisive actions taken by the Rudd government to provide stability to Australia’s financial system, such as the deposit and wholesale funding guarantees? Is the Assistant Treasurer aware of any alternative views?

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

I am glad that the question has raised the important issue of the bank guarantee, because this is another example of the decisive action taken by the Rudd Labor government: in the face of collapsing world financial markets, to ensure a guarantee not only for the banks themselves but in respect of wholesale funding. We have had much criticism from Liberal-National Party members such as Mr Turnbull, Senator Coonan and Mr Hockey, but they have now been joined by a new economic critic. A new economic critic has come out and received extensive media coverage today: Senator McGauran. Senator McGauran has made an economic foray. I notice in today’s media Senator McGauran has been referred to as a ‘key member’ of the coalition economics committee. (Time expired)