Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Finance and Deregulation, Senator Conroy. Can the minister explain to the Senate why it would be reckless and irresponsible to wind back stimulus spending? Can the minister outline the effectiveness of the government’s stimulus spending?

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

I thank Senator Wortley for her question. Despite the opportunistic politics being practised by those opposite, the job of the economic stimulus in the Australian economy has been critical and is far from finished. The government’s stimulus packages were carefully designed to provide appropriate, staged support to the economy while providing a plan for the renewal of Australia’s long-neglected infrastructure. Economic stimulus has been absolutely critical to the strong economic performance of Australia, compared to the other major advanced economies, in the face of the worst global recession in 75 years.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Not to mention zero debt!

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

Those opposite, including Senator Brandis, who is now interjecting, should just apologise. They should apologise to the 200,000 Australians who would be unemployed if it had not—

Honourable Senators:

Honourable senators interjecting—

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

Order, Senator Conroy! Resume your seat. When we have silence we will proceed.

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

As I was saying, those opposite should just apologise for setting out to put 200,000 Australians on the dole by opposing the stimulus package. You should just come clean and apologise. You can laugh about it, Senator Brandis, but, through you, Mr President—

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

Senator Conroy, address your comments to the chair. Order, on both sides!

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

The national accounts figures released last week show that Australia is growing while other major advanced economies are going backwards. However, it is still much too early to withdraw our stimulus efforts now, just as the recovery starts to gather momentum.

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Just because there’s an election around the corner!

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

Those opposite have just got to come clean. Senator Brandis is interjecting again because he just cannot face the fact that you got it wrong. Just apologise. (Time expired)

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise the Senate whether the government’s fiscal stimulus is backed by leading Australian economists? Is there support for the government’s position that the stimulus is vitally important to the Australian economy?

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

A range of experts and commentators have recognise the importance of the government’s stimulus measures in sustaining economic activity in Australia during the worst global economic crisis in 75 years. They have also recognised the importance of these measures being allowed to run their course in order to support a sustainable recovery. Bob Cunneen, a senior economist from AMP Capital Investors, said on 2 September:

Compared to the deep recessions in America, Europe and Japan over the past year, Australia has sailed through the global financial storm given the benefit of assertive and timely policy stimulus in late 2008 ...

Honourable Senators:

Honourable senators interjecting—

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

Order, on both sides! I need to hear Senator Conroy. Senator Conroy, continue.

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

Michael Blythe, CBA Chief Economist, said on 2 September that the second quarter national accounts delivered ‘a picture of an economy that has responded well to the hefty dosage of policy medicine delivered over the previous nine months’. (Time expired)

Dana Wortley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I thank the minister for his response and ask a further supplementary question. Can the minister advise the Senate on the implications of adopting alternative approaches in the current global economic climate? What would have been the impact on jobs and economic growth if the government’s fiscal stimulus had not been implemented?

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, I rise on a point of order.

Honourable Senators:

Honourable senators interjecting—

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

Order! I am entitled to hear Senator Macdonald.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Mr President, is this not a hypothetical question, which is banned under the standing orders?

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

No. There is no point of order.

Opposition Senators:

Opposition senators interjecting—

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

I have ruled that there is no point of order. Senator Conroy, respond.

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

Last week’s national account figures showed just how big a misjudgment it was for Mr Turnbull and those opposite to oppose the stimulus. If Mr Turnbull had had his way, Australia would be in recession. That would have been your legacy if he had been successful. Tens of thousands more jobs would have been lost. He would rather have seen Australia go backwards—

Honourable Senators:

Honourable senators interjecting—

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

Senator Conroy, continue with your answer. The interjections on both sides are disorderly. Senator Conroy, continue.

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

He would rather have seen Australia go backwards by 0.3 per cent than forwards by 0.6 per cent. The fact that Mr Turnbull continues to call for the government stimulus to be stopped, despite the G20 nations, the Treasury and every credible economist saying it should continue, shows just how out of touch and opportunistic he is. It just demonstrates that Senator Bernardi was absolutely right when he said in his speech at— (Time expired)

Cory Bernardi (SA, Liberal Party) Share this | Link to this | Hansard source

I’m pleased I’m right, Senator Conroy.

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

Order! I am waiting to call someone on your side, Senator Bernardi. Senator Back.