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

I thank the member for his question. The global economy is in a difficult position. We face some of the most difficult global conditions we have seen in very many years. That is the cold, hard reality, no matter how much those opposite want to deny it. The global credit crunch and the oil price shock in the system have had a dramatic impact on the global economy. Of course, it is slowing growth, it is pushing up borrowing costs for both businesses and households, and it is most certainly impacting upon consumer confidence right around the world. Let us just have a look at some of the outcomes around the world, Mr Speaker. Japan’s economy has contracted by 0.6 per cent; Germany’s economy has contracted by 0.5 per cent; France’s economy has contracted by 0.3 per cent; Italy’s economy has contracted by 0.3 per cent; and Canada’s economy has contracted by 0.1 per cent in the March quarter.

The good news is that we are in a far better position than all of these countries because our underlying economic fundamentals are strong. There are some things that we cannot control and there are many things that we can control. Of course, what we can control is a disciplined economic policy and we can put together a very strong surplus—a $22 billion surplus. We can put money into investment funds which can drive the productive capacity of our economy. We can do all of those things. That is why it is so stunning that our surplus should be under attack in the Senate when it is so necessary to put downward pressure on inflation and so necessary to make the necessary investments in education and infrastructure.

This government has an agenda for the future; but of course those opposite have nothing at all, just irresponsible political games. Yesterday in the House there was some confusion in the opposition. We had the Leader of the Opposition in the MPI debate saying that the economy was heading for a hard landing and, of course, we had the Treasury spokesman saying directly the opposite. It is simply extraordinary that the Leader of the Opposition should trash the economy for 15 minutes. And, of course, then we had the Treasury spokesman saying that that is what he should not be doing at all.

What we need from the opposition is some responsibility to pass the budget in the Senate so that we can strengthen our economic foundations. We want some responsibility from the opposition—and we are not getting it.

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