Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation, Senator Wong. Minister, what is the importance of a constructive policy debate in achieving economic reform?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thank Senator Bishop for the question. I was outlining yesterday that the Australian economy is in a strong position. We avoided the recession that struck so many advanced economies. We have strong economic growth, a low unemployment rate and strong public finances. There are also challenges facing the nation and the government as we move to implement and effect long-term economic reform. As we have seen in the media of late, there appears to have been a breakdown in the consensus that has been needed in the past and is needed for the future when it comes to economic reform. The reality is that Australia needs political parties, political leaders, business leaders and the community to engage in a constructive discussion, a dialogue, about economic reform. You cannot simply say no and you cannot simply turn your back on reform. Australians deserve more than that.

What we have seen from the opposition has been quite extraordinary in the last few days and weeks, with Mr Robb debating floating of the dollar and Mr Hockey debating others in his party room as well as the government when it comes to his suggestion that we should intervene in the competitive market for interest rates. We believe the Australian people deserve more than a retreat to economic populism; they deserve a constructive economic debate. We are very pleased that some members of the opposition appear to be recognising this important fact. We are very pleased to see that even Ms Julie Bishop and Mr Turnbull have been urging the shadow Treasurer to exercise caution when he talks about regulating interest rates and the banks. I will perhaps come to this in the next question. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister inform the Senate about any relevant views from business and industry bodies about contributions to policy reform?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

As I said, we welcome constructive dialogue with the business community and Australian business leaders about the way forward, the next wave of economic reform, to ensure ongoing economic growth, continuing rising incomes and a low unemployment rate. I note that the Business Council President, Graham Bradley, recently said to political leaders, including the opposition leader and his team: ‘My message is we expect you to do your bit in embracing sound policy reform and to contribute constructively to its development.’ Can I suggest to the opposition that they might do well to listen to that admonition; they might do well to listen to that suggestion. As I was saying previously, it is interesting to note that even Ms Bishop has been urging Mr Hockey not to trash the coalition’s economic credentials. (Time expired)

Mark Bishop (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister outline the importance of consistency when developing economic policies? Is the minister aware of any risks to future prosperity from any alternative approaches?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

There is some importance in consistency in economic policy. We note that has been somewhat lacking of late from those on the other side. We have seen, as I said, not only Ms Bishop criticising Mr Hockey but also Mr Turnbull. Ms Bishop is understood to have said, ‘We shouldn’t forget who we are as a party when it comes to running a populist line on rate rises.’ This is the Deputy Leader of the Opposition, of course, talking about the shadow Treasurer. But what was even more telling was what Mr Abbott did or did not do earlier today. Earlier today, Mr Abbott on three occasions was asked whether he backed in Mr Hockey and backed in Mr Hockey’s plan, and on three occasions he declined to do so. What does that say about consistency on the other side? It has not quite got to the stage of the Howard-Costello fight that we are seeing played out, but what we are seeing is complete confusion in the opposition about what their policy is. (Time expired)