Malcolm Turnbull (Wentworth, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. I refer to the Reserve Bank’s regular and frequent observation that the deregulation of Australia’s labour market has moderated inflationary pressures compared to previous periods of high economic growth. Given the Prime Minister’s so-called five-point plan to fight inflation fails even to mention labour market reform, let alone its implications for inflation, will the Treasurer guarantee that the government’s plans to reregulate the labour market will not put upward pressure on inflation and on interest rates?

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

I thank the member for Wentworth for his question. I think the first thing to be said is that Australian working families deserve a fair and balanced industrial relations system, and they will get one from the Rudd government. They will get a fair and balanced industrial relations system. Those on the other side are pretty famous for making all sorts of ridiculous statements about industrial relations systems, interest rates and wages. All through last year the member for North Sydney, for example, was making claims that Work Choices would produce higher wages. Now those in the opposition are trying to claim that somehow the abolition of Work Choices will produce higher wages. This is simply voodoo economics. They do not know whether they are Arthur or whether they are Martha when it comes to industrial relations. Half of the opposition frontbench want to support our abolition of Work Choices and half of them want to oppose it.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. It is about relevance.

Government Members:

Government members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for North Sydney has the call.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

The Treasurer was asked about the Reserve Bank’s warnings, and we know that the Reserve Bank has given him private warnings as well. We would ask him to come back to the question.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer will answer the question in a relevant manner about the warnings of the Reserve Bank about deregulating the labour market.

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

I do take statements from the Reserve Bank very seriously. I take them very seriously when they talk about inflationary pressures in the Australian economy. I take them very seriously. But the facts are these: following the introduction of Work Choices the Australian people had six interest rate rises. There have been seven interest rate rises driven by inflation in the Australian economy in the last three years—seven interest rate rises driven by elevated inflation. Why is the Reserve Bank important here? Because its job is to target inflation. That is what its job is: to target inflation.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order about relevance. It is a very simple question: will you guarantee that your changes to workplace relations will not have an inflationary impact on the Australian economy?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer will answer the question.

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

I am here to talk about our industrial relations package, our repeal of Work Choices. Our industrial relations reforms will improve the functioning of the labour market.

Joe Hockey (North Sydney, Liberal Party, Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Answer the question!

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The honourable member for North Sydney is not assisting.

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

We will invest in skills. We will attend to labour productivity. That is what we will be doing. Our industrial relations system—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I simply say to the members on my left: no matter how much they feel provoked, there is no need for them to not sit in silence and listen to the response by the Treasurer.

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

We do take the issue of inflation very seriously. It erodes living conditions. It attacks wages. It really is a threat to the sustained growth of the Australian economy. Our industrial relations system will guard against wage inflation because it will be underpinned by workplace-level enterprise bargaining. That is what it will be underpinned by, meaning changes in wages must be linked to productivity. That is what our system will do. And it will provide flexibility at the individual level. This government will put in place a fair and balanced industrial relations system. Along with our investment in skills, we will do everything we can to lift productivity in this economy. Nothing is more important in the fight against inflation than improving our productivity performance, and all of our package is aimed at doing that.

Malcolm Turnbull (Wentworth, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I ask the Treasurer to table the paper from which he was reading.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Was the Treasurer making reference to documents? Are they confidential documents? Were the documents that the Treasurer was referring to confidential? Come to the dispatch box and explain. Were they confidential?

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

Yes, they are.