Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I seek leave to amend general business notice of motion No. 90, standing in my name for today, relating to investment in public infrastructure.

Leave granted.

I move the motion as amended:

That the Senate—

(a) notes:

  (i) the Organisation for Economic Co-operation and Development (OECD) September 2016 Interim Economic Outlook which states that all countries have room to restructure their spending and tax policies by increasing infrastructure spending and using fiscal measures to support structural reforms,

  (ii) the International Monetary Fund (IMF) April 2016 World Economic Outlook which states that infrastructure investment is needed across a range of countries and that countries with fiscal space should not wait to take advantage of low interest rates, and

  (iii) the August 2016 and final speech of the former Reserve Bank Governor, Mr Glenn Stevens, in which he drew a distinction between borrowing to invest in the right investment assets – long-lived assets that yield an economic return – as opposed to borrowing to pay pensions, welfare and routine government expenses; and

(b) calls on the Government to:

  (i) distinguish between 'good' debt used to fund investment in transformative and productivity enhancing infrastructure, and 'bad' debt used to fund recurrent spending, and

  (ii) from the next budget update onwards, distinguish between borrowing for recurrent purposes from borrowing for capital, and increase borrowing to invest in public infrastructure that would help provide a more sustainable economic future and create jobs.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Leave is granted for one minute.

James McGrath (Queensland, Liberal National Party, Assistant Minister to the Prime Minister) Share this | Link to this | Hansard source

The government agrees with both the current and former Reserve Bank of Australia governors on the important point that we need to be very disciplined about borrowing for recurrent expenditure. It is vital that we first reduce our current deficit and borrowing for day-to-day government spending. This would give Australia flexibility to consider ways we could fund productive infrastructure beyond the record $50 billion in national infrastructure the government is already investing in improving our productive capacity. We note that even good debt has to be paid back. The government does, however, welcome the Greens' commitment to balancing the budget, although we will not be supporting this motion.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

I seek leave to make a short statement.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Leave is granted for one minute.

Peter Whish-Wilson (Tasmania, Australian Greens) Share this | Link to this | Hansard source

The Greens do not say in this motion what Senator McGrath just said—that this is about 'balancing the budget'. This is actually about listening to the experts, both in this country and internationally, that now is a record low-interest rate period and a significant opportunity for the Australian government to take out debt for productive infrastructure, get money moving in this country to create jobs and invest in infrastructure in the places where it is most needed. It is not just the Greens that are saying this; it is the outgoing Governor of the Reserve Bank saying a very similar thing. Nearly every economist working for the major banks is saying the same thing. The International Monetary Fund is saying the same thing. The OECD is saying the same thing. This government is not spending money on infrastructure. Now is the time to be doing it. We are very disappointed that the government is not supporting our motion today.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

The question is that No. 90 under general business standing in the name of Senator Whish-Wilson be agreed to.