Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for his question. It is very important to understand that state government expenditure on critical economic infrastructure is a very important part of lifting the productive capacity of the economy. Those opposite do not seem to get it. They simply do not seem to understand the importance of critical economic infrastructure in this economy and, because of their failure to provide political and economic leadership in this area over 11 years, there are now inflationary pressures in the economy—elevated inflationary pressures, which have caused seven interest rate rises in the last three years alone. So we on this side of the House do understand the importance of critical economic infrastructure. It is absolutely essential that it goes in place if we are going to lift the productive capacity of our economy and put downward pressure on inflation and downward pressure on interest rates in the long term.

Why are we getting these questions today? Because they are so embarrassed about their complacency over the last 11 years and because their failure in infrastructure gives lie to any claim they have to economic competence. Of course, the other thing that gives lie to their claims of economic competence is the seven interest rate rises that this country has experienced in the last three years on the back of the highest elevated inflation in 16 years. That is the parting gift of the Liberal Party of Australia to the people of Australia. But we take the fight against inflation very seriously, which is why the Prime Minister has put forward his five-point plan.

I will quote an authority on infrastructure—this is from Governor Glenn Stevens to the Economics, Finance and Public Administration Committee on 21 February. He said:

Balance sheets of governments in this country, by and large, are in very good shape.

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