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

I note the rolling series of interjections from those opposite, who do not regard this crisis as real. It is a stark reminder of the fact that those opposite seem to exist in some sort of self-contained political bubble. The world is grappling with a real problem, a real crisis, and we are seeking as a world community to deliver responses to that crisis. Those opposite seem to be engaged in a political conversation known only to and understood only by themselves.

Dealing with protectionism, whether it is financial protectionism or protectionism in goods and services, is of critical importance for the future. If we fail to do so, we will not be heeding the lessons of the 1930s. If we fail to do so and resort to new forms of financial protectionism then we will see the emergence of a new form of protectionism which would become the 21st century equivalent of the Smoot-Hawley tariff of the 1930s. These things must be avoided, and it requires, therefore, concerted global action and concerted global leadership in order to do so.

On the domestic agenda, the government’s response to the global economic crisis—this global economic storm—has been to embrace a course of action to reduce the impact on unemployment and on Australian families. We have done that in three specific areas under our economic stimulus strategy: first of all, to continue to take action in support of the stability of Australian financial markets, anchored in our guarantee to Australian deposit holders. On top of that, we are also investing in critical areas to support the Australian finance industry, most particularly through the Business Investment Partnership. We are, secondly, engaging in direct support to employment for 1½ million Australians who work in the Australian retail industry, through the support that we have provided to consumption and the payments we have made to pensioners, to carers, to veterans and to others, because those 1½ million jobs are important. On the debate just before about employment impacts across the economy: it has been important to see recent statements by some of our leading retailers about their plans to add to employment in the year ahead, which is remarkable given the stress which the economy generally is under as a consequence of the global recession. The third element of our strategy is to engage in long-term investment and infrastructure, in school building and in public housing, as well as energy insulation to ensure we are also doing our bit to draw down greenhouse gas emissions. Finally, what we are doing in addition to these three sets of measures is embracing new and additional measures to support those who, through no fault of their own, lose their job.

These constitute the core elements of the government’s strategy at home for dealing with the overall impact of the global recession on Australia. This must occur in harmony with what we do globally as well—which brings us back to the agenda which now looms for G20 leaders at the summit which will be held in London in a week or so—because each of the domestic measures that I have just referred to in my remarks to the House has direct parallel with international measures: firstly, financial markets and their stability globally, dealing with toxic assets, properly resourcing the International Monetary Fund and reforming its governance; secondly, dealing properly with coordinated fiscal stimulus worldwide so that all economies are raising activity at a time when the private sector is in retreat; thirdly, acting in concert with our partners to ensure that we are bringing about a proper regulatory system for the future; and fourthly, acting on protectionism as well.

I conclude my remarks where I began as a response to the interjection by those opposite. Those opposite exist in a parallel universe. Those opposite exist in a universe completely disconnected from what is actually going on in the global economy and its roll-on consequences for Australians, their jobs, their families and their communities. The government strategy is clear cut, but I would say to those opposite—as, during the break, they wrestle with the rolling leadership tensions between the member for Higgins and the member for Wentworth—that the nation expects a little better of a party which seeks to put itself up as the alternative government of Australia. This is a time of deep national economic crisis. What we need is not simply an opposition which opposes everything and proposes nothing, an opposition which simply says that the best thing to do is to sit, wait and do nothing. What the nation expects is for leadership to emanate from this parliament to deal with the challenges which the global economy has delivered us. That is the government strategy. I would challenge those opposite to support such a strategy.

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