Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Evans, the Minister representing the Prime Minister. Can the minister update the Senate on how the Australian economy continues to perform strongly despite the challenges in the global economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I thank Senator Gallacher for his question. The Australian economy is a clear standout performer in the developed world. All Australians should be very proud of this remarkable achievement, especially during one of the more difficult times for the world economy—one of the worst since the Great Depression. But, despite the great challenges for the economies of Europe and North America, it is clear how resilient the economy of Australia is, with good growth, low inflation and low unemployment.

Overnight we were reminded about the great challenges ahead for Europe with the second Greek election. Whatever the final outcome of the election, we are urging the region's policy-makers to progress their fiscal reforms so that they can boost growth and put their public finances on a sustainable footing. That is the message the Prime Minister has taken with her to the G20 leaders' summit in Mexico this week, and we know that Europe must heed it.

We know that we are not immune from what happens in Europe and more broadly in the global economy, but we also know that the Australian economy's resilience is strong. Our economy grew by 1.3 per cent in the March quarter and 4.3 per cent throughout the last year. This is faster growth than that of any other major advanced economy. Our interest rates are low with the RBA cutting the cash rate to 3.5 per cent, providing additional help for households and small businesses with a cash rate lower than it was at any time under the Howard government.

With such strong results, Australians should be confident about our future and about the Australian economy. With record investment in the pipeline, strong public finances, contained inflation, low interest rates and low unemployment, there is more opportunity than ever before to see everyone participate in a strong economy and take advantage of the opportunities it presents.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister update the Senate on how the strong economy continues to support jobs?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

The government's sound economic management is helping to deliver a very strong economy. During the global financial crisis the government's No. 1 priority was to support growth and support jobs, and today the Australian economy is nearly 10 per cent bigger than it was before the GFC. This is quite remarkable—it is now 10 per cent bigger than it was prior to the global financial crisis. A bigger economy means more jobs for Australians. As we know, the unemployment rate is lower at 5.1 per cent with nearly 40,000 jobs added in May alone and 800,000 since Labor came to office.

We know that the key to the prosperity of Australia and its people is the creation of jobs and providing good quality jobs for Australians who want to work. The Australian economy is doing that. This government's stewardship is ensuring that Australians get the opportunity to work and support their families.

Alex Gallacher (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware of any risk to the long-term strength of the Australian economy?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

The government is absolutely focused on ensuring our economy continues to outperform the rest of the developed world, and it is a pity the opposition continued to talk down that economy, talk down confidence in the Australian economy, because that confidence will help build more jobs, more investment and more success for the Australian economy. I know their spokespeople were struck dumb over Australia's recent economic data. They were disappointed that Australia is going so well and that we are creating wealth for all Australians.

By investing in our human capital, by investing in education, higher education and skills, we are building capacity in our people to continue to take advantage of their abilities and innovation. It is a shame that the opposition do not go out and talk up the economy and help build confidence which will allow us to create even more jobs and opportunities for Australians. (Time expired)