Julie Owens (Parramatta, Australian Labor Party) Share this | Hansard source

I am pleased to rise to speak in support of the Appropriation Bill (No. 3) 2009-2010 and Appropriation Bill (No. 4) 2009-2010 because it gives me an opportunity to talk about the delivery of the Rudd government’s economic stimulus plan in my electorate of Parramatta. I am pleased to report to my fellow Parramattans that the Rudd government’s Nation Building Economic Stimulus Plan is on track to be delivered in Parramatta.

The Rudd government is investing more than $200 million in the Greater Parramatta region, including $158 million in the Parramatta electorate, for more than 1,500 Parramatta projects that support jobs and small business and keep the west working. Parramatta is the beating heart of Western Sydney’s economy, the regional capital of small retail and manufacturing, and in Parramatta we understand the stimulus—we actually get it. I would say that I have not seen business as engaged with government as it is at the moment. Business understands the damage that the global financial crisis could have inflicted on it and on the community and it understands the work that the government has done on its behalf in acting so quickly to deliver stimulus.

They also know that the world crisis is not over yet and that the economy needs a steady hand to see us through along the recovery path. They tell me on a regular basis now how they are going, and I am very grateful for that feedback. Families in my community understand that our region has weathered the global financial storm relatively well without the dramatic increases in unemployment that usually plague Western Sydney when the economy slows and they see the evidence of the stimulus working in the mushrooming of small construction sites in our schools and suburbs.

You need to understand two things about Parramatta to really get it. Firstly, we always do it tougher than the averages for large cities. The choices that governments make to support and stimulate the private economy in tough times have starker results in Western Sydney then in the rest of Sydney or Melbourne, for example. In areas like ours people are the first onto the dole queue when things go bad and they are the last ones off. In Parramatta we understand that reasonable, affordable debt is better than massive unemployment, that action is far better than inaction or delay.

Secondly, we do not have the inherited personal wealth of other places. Parramatta is a city of firsts where families get their first university degree, migrants come to live for the first time, they buy their first home or they open their first business. We simply do not have the buffer in Parramatta that you might see in other areas. We are vulnerable. People in Parramatta take risks and calculated chances to advance their prosperity. Unemployment devastates families in this condition.

The $42 billion Nation Building Economic Stimulus Plan represents the largest Commonwealth infrastructure project in our nation’s history. It is not just good for Parramatta, it is essential. The government’s decisive action through our infrastructure stimulus plan is protecting jobs through over 28,000 individual projects nationwide. We are keeping the economy strong and we are supporting working families in the here and now. The government introduced the plan with two key goals. We knew when we were elected that we had to build for the future. We inherited an infrastructure deficit and a skills deficit that would delay future growth in Australia. We knew we had to act. Through the stimulus package, we have protected Australia from the worst global recession in 75 years, but we have also built Australia’s future with investment in long-term infrastructure.

One year on, these objectives are being met in Parramatta. During the past 12 months the Australian economy has received relief from the Reserve Bank’s emergency low interest rates and from ongoing growth in the Chinese economy. But let us be absolutely clear: the difference between the strengthening growth in the Australian economy and being engulfed by the global recession, like eight out of our top 10 trading partners, is the government’s economic stimulus strategy. The difference between having generated 112,000 new jobs in the past year here and the hundreds of thousands of job losses overseas is the government’s economic stimulus plan. The difference between the increasingly confident business outlook and small business going to the wall in communities across the nation is the government’s economic stimulus plan. The Nation Building Economic Stimulus Plan is delivering on what it promised—jobs for today and infrastructure for tomorrow.

Half of the $42 billion stimulus has now been injected into the economy through businesses, households, state and local government allocations and construction projects. Almost three-quarters—71 per cent—of almost 50,000 infrastructure projects have been completed or are under way. The Nation Building Economic Stimulus Plan is transforming schools, community facilities and neighbourhoods across the nation and is building lasting foundations for Australia’s future growth and productivity.

One year ago, Australia was facing the most hostile global economic conditions in three-quarters of a century. The collapse of Lehman Brothers in September 2008 and subsequent events on Wall Street had reshaped the landscape of American finance and what had begun as a seemingly small tremor in American financial markets gathered force as the inter-bank lending markets turning the wheels of the global financial system effectively shut down. By the beginning of 2009, an earthquake was rocking the entire global economy. World trade collapsed by nearly 45 per cent on an annual basis in the last three months of 2008. Entire banking systems needed to be rescued around the world, recapitalised, and, in the case of individual banks in many countries, nationalised. Stock markets slumped, many losing more than half their value. Financial institutions that had survived a combination of world wars and world recessions were swept aside and even the finances of nations themselves were threatened, with one nation state declaring itself to be officially bankrupt.

We were truly looking at the prospect of the total failure of the global financial system, the collapse of global economic growth and the real possibility of a global depression of indefinite severity and duration. The jobs of hundreds of thousands of Australians were at risk and the Australian government faced a stark choice. We could simply fold our arms and allow businesses to fold and unemployment to rise, or we could act decisively by providing a major stimulus to the economy that would cushion Australia from the full force of the global economic recession.

We had a very small window of opportunity within which to make that decision. The government weighed the arguments and the evidence of past global crises and we concluded that we must do everything that we reasonably could to cushion Australia from the impact of recession, to project jobs, apprentices and businesses and to protect our economy from the full impact of the economic cyclone. The government’s first urgent step was to guarantee deposits and to guarantee wholesale funding for APRA-regulated banks, building societies and credit unions. This was an essential move for without it credit for major projects would have largely seized up and construction projects across the nation would have stopped in their tracks.

In the months that followed, the government rolled out $77 billion in stimulus and investment packages to support the economy in the immediate, medium and long term. The centrepiece of this $77 billion stimulus and investment is the $42 billion Nation Building Economic Stimulus Plan. The government’s strategy began with immediate stimulus through cash payments, support for first home owners and tax breaks to encourage investment by small business. But it had to be fast. Our rationale was that these measures would trigger key drivers of growth in the Australian economy—in particular, household consumption—at a time when we faced the risk of a free fall in retail spending due to a collapse in consumer confidence. We in this place all know the concentration of Australian jobs which lies in the retail sector—some 15 per cent of the entire Australian workforce and a major part of the economy of Western Sydney.

I have received enormously positive feedback from retail business in Parramatta on the effect of that early cash stimulus. Business generally has commented positively on the tax incentives for small business capital equipment, which was introduced shortly after, designed to bring forward business expense on capital equipment. The tax incentives and cash stimulus had a huge positive impact on Auto Alley in Church Street, Parramatta. Michael Wentworth of the Motor Traders’ Association spoke of this impact while I was visiting Holden heartland in Parramatta to speak to apprentices in the Group Training in the Trades Program. Mr Wentworth said that the car industry in Parramatta was thriving because of three forms of government stimulus: the cash handouts, the tax breaks and the direct apprentice training support. Mr Wentworth said that without these three forms of government stimulus Auto Alley in Parramatta would have been shutting down hoists and laying off workers. Instead, they were booming throughout 2009.

The next stage of the strategy was to provide medium-term support for the economy by investing in school modernisation, energy efficiency and social housing. The third stage which follows is investment in major long-term infrastructure projects in rail, roads, ports, education, research, clean energy and broadband.

From the beginning the government recognised that, if a plan were to be effective, timing was critical. It was essential that funds flowed quickly. For this reason, in February 2009 the Council of Australian Governments agreed to ambitious delivery time frames. This has been a herculean task, with Commonwealth, state and territory coordinators-general overseeing the development, approval, construction and completion of around 50,000 major construction projects across Australia. This is virtually unprecedented in our country’s history. Now, one year on from the announcement of the plan, we are well into the delivery phase. Of the major building construction projects being rolled out, 49,179 projects have been approved, 34,800 projects have commenced and over 8,300 have been completed.

In Parramatta I set up a ‘Keep the west working’ campaign which has organised regular roundtables of Parramatta’s key economic leaders, forums for small business and forums for school principals. This was all to ensure that we stayed on track to meet our targets and to feed in feedback on the delivery to government as swiftly as possible. I was pleased last month to welcome Treasurer Wayne Swan to Parramatta for the most recent ‘Keep the west working’ roundtable at the headquarters of Rheem Australia in Rydalmere. The rapid delivery of the plan has been critical to its effectiveness.

By comparison with other nations Australia acted early and decisively in implementing stimulus measures. For example, the United States government currently estimates that only 34 per cent of its stimulus package announced last year has been paid out. That is $269 billion out of $787 billion. The Australian government was acutely aware of the need to bring forward stimulus at a time when economic growth was under acute stress. Unlike other nations, Australia’s speed in acting before our economy plunged into a deep downward spiral and before a surge in unemployment had a significant impact prevented the loss of skill and capital that comes with deep recessions and therefore the need for a long, painful rebuilding. Early and decisive action was critical and that is why the impact of the stimulus peaked in mid-2009 and continues to phase down as the economy recovers.

The Building the Education Revolution program is the most visible part of the stimulus package in my area and represents the single largest school modernisation project in Australian history. There are 12,467 National School Pride projects underway and 4,434 have been completed. Five hundred and three science and language centres are underway and the first three are finished. Of the 10,087 Primary Schools for the 21st Century projects, 5,334 are now at the on-site construction phase and many have been completed.

In Parramatta, $110 million has been invested in 145 projects at more than 50 Parramatta schools, including 14 new school halls, 16 new covered outdoor learning areas, 11 new libraries, four science and language centres and 22 new classroom facilities. These projects are making a significant difference in classrooms across the country. In schools such as St Monica’s, North Parramatta, it is making a very real difference.

St Monica’s received $3.5 million for a new multipurpose hall; however, the advanced planning and the commitment of their broader school community have seen St Monica’s add enormous value on top of the Rudd government’s contribution. They had been planning major development work for a long time in anticipation of funds and the opportunity. The Building the Education Revolution provided that opportunity and allowed St Monica’s to incorporate their new stimulus hall at the heart of an entirely rebuilt school. St Monica’s were first off the mark in Parramatta with construction and had the first ribbon-cutting ceremony performed under the package. I would have to say that when I went there not much of the school was left; it was a very large construction site, but it looks really wonderful now. St Monica’s is a classic example of the Rudd government’s education revolution working to achieve outstanding results and an example of communities working together to multiply the value of government investment to deliver truly 21st century learning environments for Parramatta students.

I have visited an enormous number of smaller schools in Parramatta who simply would not have qualified for infrastructure investment in school halls without the Building the Education Revolution. It is these smaller schools that I am particularly pleased for, generally small primary schools, where an enormous legacy is being created by the nation-building economic stimulus in Parramatta.

In my area 20 schools have been completed or are nearing completion and 150 projects are under construction. Of the 283 projects approved in central Western Sydney, 90 per cent are on track to be delivered by the end of this year. The Building the Education Revolution in central Western Sydney is currently employing more than 1,800 people working for more than 220 businesses. Laurie Foy, Director of Brookfield Multiplex, recently spoke at my Keep the West Working summit with Treasurer Swan and reinforced the outstanding impact of the Building the Education Revolution on Parramatta jobs. Laurie commented that Brookfield Multiplex currently has 140 employees directly engaged on the Building the Education Revolution program in central Western Sydney, with approximately half this number being employed as a direct result of the BER program. He commented that without the Rudd stimulus Brookfield Multiplex would have been looking down the barrel of substantial job losses.

It is not just schools that the Rudd government is stimulating with construction work. Laurie Ferguson and I had the pleasure of announcing a $4 million investment at the North Parramatta campus of the University of Western Sydney late last year. The $4 million investment is targeted to assist UWS begin the construction of a world-leading innovative science and technology precinct on the North Parramatta campus. Also, the Sydney Institute of TAFE has been the beneficiary of the stimulus, with a $2.1 million refurbishment at the Granville TAFE campus.

Social housing is also benefiting, with the Rudd government investing $32 million in the construction of more than 130 new Parramatta family homes. Furthermore, the government is investing approximately $4 million in the refurbishment and maintenance of 1,000 existing homes. Nationwide, work has been completed on 42,000 of the 70,000 dwellings approved for repairs, and some 19,000 dwellings have been approved for construction, with 6½ thousand underway. We expect to have 75 per cent of these houses completed by the end of this year. Our investment in social housing is critical to supporting businesses right across Australia. It is providing jobs for the hundreds and thousands of workers involved—the builders, plumbers, carpenters, electricians, brickies and carpet layers, and many more in the building and construction industry.

The importance of the investment in jobs was reinforced for me by local tradie John Bini, whom I spoke to while visiting a stimulus housing project in Isabella Street, Parramatta. That particular project is building 24 apartment dwellings specifically designed for people with physical and intellectual disabilities. Mr Bini said that prior to the stimulus he and his friends in the construction industry had real concerns about how they were going to put food on the table because they had seen construction virtually grind to a halt, but with the stimulus there has been more than enough work available. In fact, John said that the stimulus had put him and his fellow tradies in a position to work as often and as much as they needed to support their families.

The stimulus has also included significant funds through local councils. Under the Regional and Local Community Infrastructure Program we are providing new and upgraded facilities to address different needs of communities across the nation. In all, 3,220 approved projects are underway, with an impressive 2,654 projects having been completed. Of the larger strategic projects, 102 of the 137 are underway.

18:09:54

In Parramatta the Nation Building Economic Stimulus Plan has invested more than $5 million in 16 community infrastructure projects. The centrepiece of this investment is the $5 million revitalisation of Granville town centre with a $2.1 million contribution from the Rudd government. Just last weekend I had the opportunity to inspect construction work while holding one of my regular mobile offices at the Granville shopping centre. I can inform my community that construction is well underway and well past the halfway point. In speaking to local small business people the feedback was that this local infrastructure investment will be a fantastic boost for local business and is well and truly overdue.

Taken as a whole, all of these measures constitute the most ambitious nation-building plan in Australian history. Without the stimulus package there is no doubt that Australia would have plunged into a technical recession. Australia’s growth may have been as low as minus two per cent over the year to the September quarter. Instead Australia has a stronger rate of economic growth than any of the major advanced economies, growing by 0.6 per cent over last year to September 2009. The International Monetary Fund is now forecasting that the Australian economy will grow faster than initially expected this year, predicting that the Australian economy will grow by 2.5 per cent this year, up from the two per cent the IMF forecast in October last year. The IMF says Australia’s economic growth is likely to reach three per cent next year. The latest official forecast suggests a peak in the unemployment rate of 6.75 per cent in the June quarter 2010, which is around 1.5 percentage points lower than the projected unemployment in the absence of the stimulus. In fact Australia’s unemployment rate of 5.3 per cent is lower than any of the major advanced economies except that of Japan. Industry groups such as the Master Builders Association of Australia have acknowledged the key role that the stimulus package has played in turning around the economic outlook. Specifically the MBA has estimated that the stimulus measures are helping to maintain up to 50,000 jobs in nonresidential building that would otherwise have been lost.

The economy is still in need of support as we move into economic recovery and as the focus of the stimulus plan shifts to the long-term infrastructure projects. Those projects are critical to lifting productivity growth and tackling the long-term economic challenge of an ageing population as outlined in the third Intergenerational report. The Nation Building Economic Stimulus Plan has laid a strong foundation for tackling those long-term challenges and it has cushioned Australia from the greatest economic threat we have faced in our lifetime. I know that my community knows that many of our neighbours are still working and supporting their families because the stimulus package was delivered fast and effectively. My commitment is to keep the focus on jobs. (Time expired)

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