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

The government has outlined its fiscal strategy for the four years ahead. We have clearly outlined our program of economic stimulus, in particular our nation-building projects for recovery. We did that for one reason and one reason only: we are in the middle of a global recession that is threatening the employment of tens of thousands of Australians, threatening the viability of communities and threatening the jobs of very many people. We have moved entirely for the right reasons: to stimulate our economy and to protect our people from a vicious global recession. We have done that entirely appropriately and in a responsible way.

Our fiscal stimulus has been assessed by the OECD as being one of the best in the OECD and one of the most responsible in the OECD. But this budget is not just about the here and now. This budget is about the future. It is a budget about building the wealth creation potential of the Australian economy through investing in infrastructure, skills, higher education and our people. It is a budget that is about preparing this country for a time when global growth returns. It is a budget which is about maximising the opportunities for this country when global growth returns, and to do that we do have to borrow on a temporary basis.

It is also the responsible course of action for us to put in place a path back to surplus. What should never be forgotten is that there is more room to move in this country than in many other developed countries. Using the strength of our balance sheet to protect our people is entirely the responsible thing to do in these very difficult circumstances. As global growth does return, we will pay down debt, move the budget back to surplus and bring into play our medium-term fiscal rules—and they are tough. A two per cent cap on spending once growth comes back to trend is a very important fiscal discipline put in place by me and the Minister for Finance and Deregulation back in February and implemented in detail in this budget. You can see the stimulus wind down in the forward estimates. In the final year of the forward estimates there is no new net spend because what we have done, principally, is to borrow to make up for the $210 billion which has been lost to this country because of the global recession.

That is the responsible thing to do. But, of course, those opposite have simply become totally irresponsible and totally out of touch. They are just so remote and removed from the problems in the Australian economy, if you judge them by what they have had to say in this House about the nature of the challenge that we face in this country. There is no understanding of it whatsoever in their public statements.

I have always had a degree of respect for the Leader of the Opposition. I have always thought he was a reasonably bright bloke. And I always thought that he had some contacts with the business community that might help him get in touch with what was going on in the economy. But he is so out of touch that he does not understand the most basic fact of business life: if business is going to be successful and if business is going to be profitable it needs demand. When you have a global recession and when you have the withdrawal of private capital, that gap can only be met up by a government borrowing responsibly. That is what we have been doing, and in so doing we have had the support of the business community.

We have had the support of the business community because we have acted responsibly. Part of acting responsibly is bringing the budget back to surplus when global growth returns and paying down debt, thereby ensuring that we have protected our community at this time of global threat. But those opposite have no notion of that at all. They have become so opportunistic—they have become so rank in their approach to politics—that they have come in here today and played the race card as well. It is unbelievable! Their behaviour in the House this week means that they are absolutely and completely unfit for government.

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