Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

I ask my question of the Treasurer. I refer to the Australian Bureau of Statistics motor vehicle sales data today that shows a fall in car sales in February. This means car sales have fallen consistently now for one year. Does the Treasurer now regret increasing the cost of motor vehicles in his May budget by increasing the taxes on cars? Didn’t the Rudd government’s increased tax on cars make things much worse for an industry that is now facing the risk of a Rudd recession?

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

Here we have yet another example of the shadow Treasurer being in complete denial about the global recession. Let us just go through the international figures on car sales and look at the falls around the world over the year to February: in the UK, they fell by 22 per cent; in the United States, they fell by 40 per cent; in Japan, they fell by 24 per cent; and, in Canada, they fell by 22 per cent. They refuse to acknowledge—

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order on relevance. Unless the Treasurer wants to point out which countries put up taxes—

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

Order! The Treasurer is responding to the question.

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

The world economy is experiencing the sharpest downturn in living memory, something that those opposite will not acknowledge. The consequence of that is they cannot support any of our measures to boost demand in the Australian economy. Our measures are boosting demand in the Australian economy through economic stimulus, which they oppose.

There are some other figures out today. The ABS has figures out today on industry employment. They show something really interesting. We do not want to overstate these figures, but I think they are very important. These figures show that retail trade in Australia grew by 16,000 people in the three months through to February. I will tell the shadow minister what it fell by in the United States: 130,000 people.

Those opposite refuse to acknowledge that, in the middle of a global recession, governments must act. This government has acted. It has acted decisively. They come into this House and say to us that we are involved in irresponsible spending, whilst at the same time they are giving $1.6 billion to the alcohol industry. How does that work?

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

I rise on a point of order on relevance, Mr Speaker. The Treasurer was asked a question about taxes on vehicles, not about any other matter. It was very specific. I ask you to bring him back to answering, unless his contention is that taxes increase sales.

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

The Treasurer is responding to the question.

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

This is yet another example of how out of touch they are. They value Porsches more than they value pensioners. When it comes to economic credibility, they simply have not got a clue. They are completely out of touch. The merchant banker there and the lawyer for merchant bankers over there do not know what life is like for the average person. They do not walk in the same shopping aisles as the average person, and the consequence of that is that they are not supporting important measures to bolster demand in the Australian economy. This government is. We make no apology for it, because it is the responsible course of action.

The irresponsible course of action is not to act and, as a consequence, deepen the downturn. That is what happens if you do not act: you deepen the downturn. What happens then is that debt is higher because deficits are higher. So, by not acting and not supporting fiscal stimulus, they are arguing for a higher debt and higher deficits. The proof of all of this is their decision to support the alcohol industry and give it a bonus of $1.6 billion, whilst they come into this House and oppose bonuses of $900 for people on low and medium incomes. The hypocrisy of the opportunists opposite knows no bounds. All they have is a political strategy. We have a strategy in the national interest. The Leader of the Opposition has a strategy in his own self-interest, because he sits there hoping the economy goes down so that he can take political advantage of it. On this side of the House, we will continue to support the national interest in the interests of employment and growth in the Australian economy.