Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I will return to what I was saying before, because the honourable member raises an important question: why have we embarked on this course of action and what are the consequences that flow from it and the consequences that would flow from not doing it? If you have a withdrawal of foreign bank syndication, what would happen therefore is that there would be a further factor fuelling the collapse of asset prices in this country. If that occurred—and all serious economists and economic writers are concerned about this—the flow-on effect to the general economy would be huge. That is why, based on the advice we received, this was the most prudent course of action.

I say to the honourable member that when the joint vehicle, the Australian Business Investment Partnership, is activated, of course it will involve the Commonwealth in the acquisition of assets. Therefore, assets will appear on the Commonwealth government’s overall ledger. That is a key point that he should bear in mind. The further point I make is this: as the Liberal Party embarks upon what is plainly its political strategy, which is about deficit and debt, those opposite think that they are onto a real political winner. Their political strategy is clear for all to see. They do not care about the consequences on the property sector in Australia, they do not care about the consequences for families who are struggling with the impact of the financial crisis—

See this speech in context