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

I thank the member for Braddon for that very important question. Australia has had a long history of economic reform which has created almost two decades of uninterrupted expansion. This makes Australia stand out almost uniquely amongst developed countries. Of course, in the past when there have been fundamental economic reforms put in place, there have always been exaggerated claims about these reforms—how they would produce the end of the world, how damaging that would be and how they were unacceptable. We should reflect on the last 25 years or so. We should reflect on what was said during the eighties and the nineties when the dollar was floated, when the tariff walls were brought down and when compulsory superannuation was introduced. These reforms were opposed bitterly by sections of the business community, who would have Australians believe that they would damage the economy and hurt employment.

Of course, through these reforms the Australian economy did become stronger and stronger, so much so that these reforms are much admired elsewhere in the world. But at the time there was not agreement in the community about them at all. There was trenchant opposition from sections of the business community. You can remember what happened when there were proposals to tax gold, with the removal of its income tax exemption. We were told that was going to be the end of the world. That industry survived and prospered. Of course, there was the bitter opposition to the petroleum resource rent tax that was introduced in the early eighties. It pays to go through some of the quotes of what was said at that time. This was said on 1 July 1984 in relation to the petroleum resource rent tax:

The Hawke Government’s RRT will effectively destroy the incentive for offshore exploration …

Who do you reckon said that? John Howard, the shadow Treasurer. This was from an industry representative on 2 March 1984:

An RRT reduces the upside potential so, no matter how much of the financial exposure is covered by the Government, investors will not be induced to put their money into exploration in Australia but will rather explore overseas and invest in other, less risky, industries in Australia.

Who could have possibly said that? Rio? BHP? That was a representative from BHP on 2 March 1984. We had this one from an industry negotiator on 2 March 1984: ‘An RRT is a bit like communism’. Who could have said that today? The man who owns those opposite lock, stock and barrel. All these claims were rubbish then and they are not true now. We are being told that we will see the end of the world. What we have put forward is a very important economic reform for Australia to grow the resource sector, to deal with the challenges of a two-speed economy, to provide some incentive for corporate Australia and small business. And it is opposed by all of those opposite because they are owned lock, stock and barrel by sections of the mining industry. We on this side of the House will stand up for the national economic interest.

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