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

The shadow Treasurer interjects again. I would draw his attention to commentaries such as those by Ross Gittins in the financial pages of the paper where he was described roundly as an economic illiterate for assuming that the impact of Australia’s public borrowing would in turn have a direct effect on interest rates. That is simply illogical because of the fundamental underpinning fact that our overall borrowings represent such a small slice of total global public debt. Therefore, the proposition being advanced by the opposition is one of absolute fiction and fear which has no underpinnings in fact. Those opposite would understand that if they were being honest about their reflections on this.

I welcome the question from the Leader of the Opposition. It goes to why we have embarked upon this economic stimulus strategy and how we have structured it in three stages and over time in order for it to have its maximum effect when the economy is at its weakest and then to contract as the global economy recovers. The stimulus strategy is consistent with both the global advice of the IMF and the World Bank and advice nationally within Australia from the Treasury of the Commonwealth of Australia. It is a stimulus strategy which I would suggest that those opposite, if they were honest about it, would agree is having a positive effect. Firstly, at this stage of September 2009, across the 33 members of the OECD Australia uniquely over the last 12 months is the economy which has grown. Secondly, we are the only major economy not to have gone into recession. Thirdly, we have the second lowest unemployment, the lowest debt and the lowest deficit of the major advanced economies. And, on top of that, we are the only economy not to have gone into recession. Those opposite regard that as a scorecard of economic failure.

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