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

I thank the honourable member for his question, because it goes to the global dimensions of what we are confronting at the moment. For those opposite who are interested in facts, as opposed to fiction or political opportunity, here is one for you: 32 out of the 33 most advanced economies in the world have been forecast by the IMF to contract this year. Secondly, eight out of 10 of Australia’s top trading partners are in recession now. This means, for this country, higher unemployment, and higher unemployment in practically every other economy around the world. Take the United States alone, where they have lost some 5½ million jobs since the beginning of 2008. That is what is happening in the world. What is this government’s strategy? It is to support jobs, small business and apprentices today by investing in the nation-building infrastructure our country needs for tomorrow. That is our strategy.

What have we done in terms of practical effect? In financial markets in Australia we have acted to provide guarantees for the deposits of each and every Australian in their banks, their building societies and their credit unions, in order to underpin confidence in our financial markets. Secondly, we have reinforced those interventions by the work we have done collaboratively through the G20 to assist in stabilising global financial markets.

This government has also invested directly in infrastructure measures. Some 70 per cent of this government’s economic stimulus in nation-building infrastructure has been invested precisely in those assets which our country needs to build productivity and economic growth in the future—supporting jobs, supporting apprentices, supporting small businesses across our country. This is nation building for recovery: investing in urban rail; investing in roads; investing in ports; investing in the largest school modernisation program our country has ever seen, to boost productivity; investing in a national broadband network; and investing in skills. We are currently investing in one of the largest expansions in the skills base that this country has ever seen, including investment in some 711,000 new apprenticeships, TAFE places and VET places. Through this we are also implementing much-needed reform because, during this difficult time of economic downturn, for every person under the age of 25 we have a very simple principle: we expect under-25s in this period to be either earning or learning. And we are providing the training places across the nation to turn that principle into reality.

Because of the global recession there has been something in excess of a $200 billion collapse in government tax revenues, which means that the government has lost the equivalent of one dollar in every five in tax revenue to the Commonwealth. Two-thirds of this government’s temporary deficit is made up from the collapse in taxes caused by the global recession—a temporary deficit supported by the $180 billion debt and deficit plan embraced by the Leader of the Opposition; the Liberals’ debt and deficit plan. Two-thirds of this government’s temporary deficit is made up from the collapse in tax revenues—one dollar in five—

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