Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the national accounts and the low economic growth of 0.1 per cent over the months of July, August and September. Does the Prime Minister now regret that, up until 16 September, he and his ministers were talking up inflation as an out-of-control monster, apparently unaware that the impact of the global financial crisis was already being felt every day by Australians in a rapidly slowing real economy?

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

The challenges that the government faced upon its election in relation to inflation were the subject of some remarks by me in the chamber yesterday. Those inflationary pressures existed as a consequence of capacity constraints in the economy. These were detailed in successive Reserve Bank warnings to the previous government and not acted on. Secondly, when it comes to the challenge of the global financial crisis, all governments around the world have been acting as effectively as they can to respond to the difficulties presented by the crisis—firstly, in terms of the stabilisation of global financial markets and, secondly, by addressing the realities now confronting the global economy to embrace appropriate stimulus packages for the future. That is the government’s policy. That is what we have been doing. There is a large challenge which lies ahead. I would say in response to the Leader of the Opposition that our policy on these matters is clear: stability for the financial system and, through fiscal stimulus, a continuation of support for growth in the Australian economy into the future and for families and jobs. In doing this, we will act in concert with the monetary policy actions of the Reserve Bank of Australia.