David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and the Minister representing the Treasurer, Senator Cormann. Can the minister inform the Senate what today's national accounts tell us about the state of the economy?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Bushby for that question. The national accounts released today show the importance of our economic reform agenda. They show the importance of our policies to build a stronger, more prosperous economy where everyone can get ahead. Imagine what the national accounts would have shown today if we had not repealed the carbon tax, if we had not repealed the mining tax, if we had not made more than $1 trillion worth of project approvals, if we had not pursued three free trade agreements, and if we had not cut more than $1 billion in excessive business red tape costs out of the economy.

The national accounts released today showed that, over the past quarter, the economy grew by 0.3 per cent. That takes economic growth over the last 12 months, the first year of the Abbott government, to 2.7 per cent, compared to 1.9 per cent over the equivalent period of the previous government. That is of course stronger growth than what we experienced under Labor.

But we are not resting on our laurels at all. Over the last 12 months we have set the foundations for stronger growth into the future. We have put in place the foundations for stronger economic growth, stronger prosperity and higher living standards into the future. What we inherited in September last year was a weakening economy, rising unemployment, low consumer confidence and lower business investment. Over the last 12 months we have been ensuring that, moving forward on the back of stronger economic growth, we can create more jobs, improve living standards and set the foundations for budget repair.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the state of our economy, will the minister advise the Senate why it is important to press ahead with the government's reform agenda and budget repair strategy?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

If you want to know where you are headed, it is most important to know what trajectory you are on. Six years of Labor government put us on a bad trajectory. This government is focused on putting us on a good trajectory. Back in 2007 Labor inherited a strong economy and a strong budget.

Look no further than this; I launched earlier today this 'Menzies essay': Quiet Achievers: The New Zealand Path to Reform. Labor keeps hiding behind the global financial crisis to justify its failure in government, to justify the debt and deficit disaster they left behind. Labor in Australia inherited a strong position in 2007. The National Party in New Zealand inherited a weak position comparatively. Look at what the National Party in New Zealand has done in six years of National Party government in New Zealand post GFC— (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. Will the minister advise the Senate why budget repair is so important for business and consumer confidence?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Yes, what has happened to consumer confidence? It is the lowest since the recession and the GFC. That is what you have done for confidence.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Wong, the worst finance minister in the history of the Commonwealth, is asking what has happened to consumer confidence. We inherited low consumer confidence. Consumer confidence in Australia today is back at long-term trend measures. This does not suit the worst finance minister in the history of the Commonwealth, because she cannot handle the fact that this is a government that has started to build a stronger, more prosperous economy, started to repair the budget, despite the best efforts of the Labor Party to boycott the necessary and important budget repair. We have set the foundations for a stronger and more prosperous economy into the future.

We will continue with the task at hand. We will continue to focus on the national interest. We will continue to make the difficult but necessary decisions to protect living standards and build better opportunities for all Australians into the future—whatever the Labor Party does.

Eric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.