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

The member for Curtin finds this entire matter of such inconsequence that she just makes meaningless interjections. I would say to the member for Curtin that at times like this the Australian economy is looking for positive economic news. Those opposite only want to engage in talking the economy down.

The second phase of the government’s strategy is to invest in medium-term infrastructure. That is why we are proudly investing in the biggest school modernisation program Australia has ever seen in electorates right across this country, Liberal, Labor, National and Independent. Why? Because it is good for the nation. We are investing in social housing and in energy efficiency measures. Why? Because these projects can kick in from the middle of the year onwards in order to provide a second injection of activity into the economy.

The third phase of our economic stimulus strategy—our nation building for recovery plan—is long-term infrastructure. These are the measures announced prior to and in the budget itself—rail, road, port, high-speed broadband, investing in clean energy initiatives and investing in building the university and TAFE infrastructure and research infrastructure Australia needs for the future. In fact, in our total economic stimulus strategy, about 70 per cent of the investment is in nation-building infrastructure. We are doing that in order to make a difference.

These three phases of the government’s economic stimulus strategy are aimed to step in and fill the breach while the private economy is in retreat. That is what governments do at times like this. Those opposite, presumably still free-market fundamentalists, say, ‘Let the free market rip; sit on your hands, do nothing and simply allow the unemployment queues of Australia to grow even longer.’ Whereas the government’s strategy is to act, the approach of those opposite is, ‘Let us not act. Let us sit on our hands.’ That is what those opposite have said. We instead have said, ‘We need intervention in the economy to support growth while the private sector is in retreat.’

The opposition have come to this final point recognising that the Australian government’s economic stimulus strategy is delivering support and have embarked upon this negative, dishonest scare campaign on debt and deficit. The Leader of the Opposition knows the following facts to be true: first, that Australia’s net debt is the lowest of all the major advanced economies; second, that Australia’s AAA credit rating has been reaffirmed since the budget; and, third—and this is out of the mouth of the member for North Sydney and the member for Warringah, and out of his own mouth from time to time—that they, if they were in government, when pressed would do exactly the same. Despite these three facts, the lowest net debt of the major advanced economies—

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