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

The proposition put by the Acting Leader of the Opposition is just absurd. The global financial crisis is impacting on all organisations who raise funds on credit markets, including commercial banks and state governments. The current conditions in financial markets do make it harder for state governments to borrow to fund important capital works. In the environment we are in at the moment, nothing could be more important than capital works, particularly when it comes to critical economic infrastructure. The government has made no secret of its commitment to invest in infrastructure and its commitment to see the private sector invest in infrastructure and the state governments do the same. This is a very, very important part of strengthening our economy in the face of the global financial crisis but, as importantly, an important part of reform in the Australian economy, which had been neglected for 12 long years.

Critical economic infrastructure goes to the core of the capacity constraints that this economy has suffered from and under over a very long period of time. As the Reserve Bank pointed out, on 20 occasions the previous government was warned by the Reserve Bank about the implications for inflation because of its failure to take infrastructure issues seriously. This government is determined to ensure that Australia does have the infrastructure it needs to underpin growth and prosperity for the long term. Like any sensible government, and like any government that is committed to economic prosperity, we will take on board any sensible suggestions that are made to us from either the private sector or the public sector.

As for the ridiculous speculation that the member put forward then, and other matters in today’s newspapers, what this government is on about is a commitment to infrastructure. We will take on board in our discussions with the states some means to assist them if that is required—if that is required—when it comes to their borrowing programs. There has been an exchange of correspondence with the Queensland Treasurer, which the member is aware of, and I have written back to the Queensland Treasurer suggesting to him that we are happy to work constructively with the state governments to see a resolution to this problem but rejecting the solutions that he put forward in that letter.

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