Stuart Henry (Hasluck, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Would the Treasurer outline to the House the latest consumer sentiment survey and progress made on implementing the OECD’s report Economic policy reforms: going for growth?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Hasluck for his question. I can inform the House that the consumer sentiment index released for the month of February showed a rise in consumer confidence of 1.8 per cent and that consumer sentiment now stands higher than it has since August last year, although at a more moderate level than in 2003-04. That is consistent with some slowing in consumer demand but a welcome adjustment in the most recent months to price increases such as the extraordinary increase in petrol prices with which Australian motorists have been afflicted. It is clear that strong consumer sentiment is underpinned by low unemployment, low inflation and stable and low interest rates. If we can keep inflation under control in the Australian economy, particularly if we can prevent second-round effects flowing from petrol prices, there are prospects to continue strong and steady growth throughout the course of the year. In its most recent survey on Australia, the OECD noted as follows:

In the last decade of the 20th century, Australia became a model for other OECD countries in two respects: first, the tenacity and thoroughness with which deep structural reforms were proposed ... and second, the adoption of fiscal and monetary frameworks that emphasised transparency and accountability.

The most recent Economic policy reforms: going for growth OECD report noted the progress that Australia has made even in the last year—progress in promoting employment of the low skilled, progress in reforming disability benefit schemes, progress in strengthening vocational education, progress in reducing marginal effective tax rates for low-income earners and progress in accelerating reforms in electricity, rail, gas and water industries. That was from the release overnight of the OECD report Economic policy reforms: going for growth. It showed that we are making progress in many of those areas where the Australian Labor Party is trying to block reforms, such as labour markets, disability pensions and the like. I must re-emphasise to the House and re-emphasise to the Australian public the importance of continuing the reform program. It is the reform program that got Australia to where it is today. It is the reform program of today which will get us to where we want to be tomorrow. These deep-seated reforms are what will drive jobs and productivity in the future, and that is why this government is committed to continuing with them.