Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

My question is to the minister representing—

Hon. Senators:

Honourable senators interjecting—

Sue Lines (President) | Link to this | Hansard source

I'm sorry, Senator Hume, I'm going to ask you to start again. I'm waiting for silence. Order on my right! Senator Hume.

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

My question is to the minister representing the Treasurer, Minister Gallagher. The RBA said yesterday that the board also remains concerned about the continued weakness in productivity growth, and continued weakness will constrain the economy's ability to grow without generating high inflation. The RBA revised down productivity growth in the December quarter to negative 0.5 per cent, significantly below the 0.2 per cent increase that had been forecast by Treasury. Minister, why is productivity continuing to fall?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I thank Senator Hume for the question about productivity, because it is an important issue across our economy, and we've been upfront about that since we came to government, when the government that Senator Hume was a member of had a productivity assumption of 1.5 per cent every year across their budget and failed to meet it each time. Treasury advice to the incoming government was that a more realistic figure should be lower than that, and we have adopted that Treasury advice.

But we have had a productivity issue in our economy for decades, including for the entire time that those opposite were in government. That's why we've put productivity and addressing productivity at the centre of our economic thinking and into the decisions we've taken in the budget. In particular, I would urge those who will have the opportunity, to vote this week so we can get the bill done. In another regulatory reform bill, the first regulatory reform bill which was brought to this parliament, those opposite voted against it. I hope that the second bill that we bring forward, which is about reducing red tape and has, as one of our measures, addressing productivity, will be in the Senate and listed on the program this week, and it should be passed by the Senate this week.

But we also have a range of other measures in the budget that specifically go to looking at ways that we can improve productivity across the economy, and we will continue to do that. We will probably continue to be frustrated by those opposite, who don't support a lot of it, whether it's building homes, modernising energy markets, better recognising skills, unlocking data and AI— (Time expired)

Sue Lines (President) | Link to this | Hansard source

Senator Hume, first supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

The RBA has warned repeatedly that low or negative productivity growth will force it to raise interest rates. Does increasing taxes on individuals, on businesses and on construction increase productivity or lower productivity?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

I do notice that, on Senator Bragg's big day out—he had a big day out down at the Press Club today. Oh, he'd been looking forward to it! I could tell. I could just pick it up. Again, when asked about whether or not GST would have to be looked at as a way of balancing the budget, what was Senator Bragg's answer? 'Well, maybe. We'll have to look at everything—put everything on the table.' So the party of lower taxes apparently—

Sue Lines (President) | Link to this | Hansard source

Order! Minister Gallagher, resume your seat. Senator Hume—

Honourable senators interjecting—

Order! Senators, come to order. I have a senator on her feet. Senator Hume?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Madam President, it was about whether taxes on individuals, businesses and construction increase or decrease productivity.

Sue Lines (President) | Link to this | Hansard source

Thank you, Senator Hume. There's no need to go through the question again. I will draw the minister to your question.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

Senator Hume wasn't specific about whose taxes, because Senator Bragg, on Braggy's big day out—that's what we're calling it over here: Braggy's big day out with the microphone. And everyone else—'Oh, God. What's he going to say?'

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

I'll just say it again: relevance to taxes on businesses, individuals or construction increasing or lowering productivity.

Sue Lines (President) | Link to this | Hansard source

Senator Hume, it's not an indulgence during a point of order to restate or make other points. I have, as you heard, drawn the minister back to your question, and I'll continue to listen carefully to the answer. That requires all senators to listen in respectful silence.

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

We're hoping that Senator Bragg gets another spot next week at the Press Club. We'd all come down to have a listen.

On the question, as Senator Hume knows, because she sat in the estimates hearings, Treasury's advice is that the decisions in this budget support the productivity assumptions out there. (Time expired)

Sue Lines (President) | Link to this | Hansard source

Senator Hume, second supplementary?

Jane Hume (Victoria, Liberal Party, Shadow Minister for Employment and Industrial Relations) | Link to this | Hansard source

Under Labor, real wages have fallen back to around 2011 levels, yet yesterday your own leader here in the Senate continued to boast about nominal wage increases inflated by inflation, and your Treasurer continues to trumpet headline GDP growth inflated by rapid population growth. Why does the government continue to gaslight Australians with headline numbers when in real terms and in real life their wages and their living standards have gone backwards?

Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) | Link to this | Hansard source

Well, we won't be lectured by those opposite about wages. We all sat here for years watching you do absolutely nothing but try to constrain wages for working people. And the answer to Senator Hume's question is that I don't accept any of the propositions she puts.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) | Link to this | Hansard source

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