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

Will the Prime Minister at last level with the Australian people and tell this House the maximum amount of government debt his budget will create, expressed as a sum of money?

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

I thank the honourable member for his question. On the question of gross debt, as I indicated in many interviews last week, gross debt peaks at around $300 billion; secondly, net debt peaks at around $200 billion; and, thirdly, I have said repeatedly that net debt rises to about 13.8 per cent of GDP, which to the chagrin of those opposite is the lowest net debt of all the major advanced economies. In fact this is about one-seventh that of the other major advanced economies. What I find remarkable in the debate which the Leader of the Opposition has engaged in on this matter over the last week and beyond is that it does reflect a general strategy on the part of those opposite which is this: they will stop at nothing to talk the economy down. This government has embraced a nation-building strategy for recovery; those opposite are engaged in talking the economy down. The government is in the business of building the economy up; those opposite are in the business of talking the economy down. The reason why we have a positive strategy and they have a negative strategy is that we are acting in the national interest and they are acting in their political interest. The contrast is absolutely clear.

So I would suggest to those opposite that, when they are confronted with developments out there in the economy which actually suggest that Australia is doing better than other economies in the midst of the worst recession in three-quarters of a century, it would be useful if they began talking positively about the economy as well, rather than engaging in one permanent negative diatribe about what is going on out there. The net impact of talking the economy down is to in fact have an effect on confidence and, if you have that effect on confidence, that has an effect on real economic performance. So the contrast is clear for all to see. We stand for a positive strategy, and those opposite for a negative strategy. We stand for talking the economy up; you stand for talking the economy down. The contrast is clear for all to see.

Kerry Rea (Bonner, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister outline how the government is supporting jobs today by investing in the nation-building infrastructure of tomorrow to lift Australia out of recession as rapidly as possible?

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

I thank the honourable member for Bonner for her question because it goes to building the economy up in the part of Brisbane that she represents. The government is seeking to build the economy up in the electorates of all members in this place, even though a large slice of them chose to vote against these measures. Let us take the electorate of Bonner, which the honourable member represents. The government’s nation-building economic stimulus plan is currently supporting 103 projects in the electorate of Bonner—a $29.9 million investment in the honourable member’s electorate. This includes 101 projects under the Building the Education Revolution program, the single largest school modernisation program in Australia’s history. It also includes black spot projects right across the country—in the case of the electorate of Bonner and Brisbane, a $1.25 million investment.

These practical projects are the way in which we are building the economy up, while those opposite are embarked upon a strategy to talk the economy down. Right across the country, the government’s nation building for recovery plan is about to launch 35,000 projects by year’s end. Already in the case of rail and road, $135 million has been spent on the Hunter Valley to Newcastle rail track to transport coal—150 jobs in the Hunter region. Already, work has begun on the line between Maroona and the South Australian border and the line between Albury and Seymour in Victoria, two rail projects worth 240 jobs. The first of 301,000 new concrete railway sleepers have been unloaded near Parkes for the Cootamundra to Parkes track upgrade. Work continues on the $164 million Midland Highway Brighton bypass project in Tasmania. The bypass and associated transport hub are expected to provide up to 380 jobs in Tasmania. That is simply in rail and road.

In social housing, construction of the first new house built under the stimulus plan has now been completed. The house was built in 13 weeks with a total of 52 people involved in the building works, which also included three apprentices. Work has also commenced on site for 29 new housing construction projects in Tasmania, 45 construction projects in New South Wales and 42 new ones in Western Australia.

In the National School Pride program, where every school in the country is being allocated between $50,000 and $200,000 for maintenance and repairs, projects are beginning right across the nation. The Primary Schools for the 21st Century program has already commenced early work on more than 300 schools round Australia as part of round 1 of what will be the largest school modernisation program in Australia’s history. Community infrastructure is being built, with 137 councils being funded to build and renew community infrastructure right across the country, including sporting infrastructure. In energy efficiency, 20,000 Australian homeowners have had ceiling insulation installed in their homes and more than 20,000 homeowners have installed a solar hot water system under the stimulus plan’s energy efficiency program. These are the practical projects that are underway at present. This is what we are engaged in nationwide. This is practical work to build the economy up, not to tear the economy down.

If you were wandering around the country last week and listening to what the Leader of the Opposition and the member for North Sydney were saying, you would have heard one diatribe of negativity. Every single interview was aimed at talking the economy down, talking confidence down and therefore talking the performance of our economy down. Our nation building for recovery plan is about building the economy up. We are supporting jobs, small business and apprenticeships today by investing in the infrastructure Australia needs for tomorrow. That is why we as the government have stepped in to fill the gap which has been left by the private sector in retreat. That is why we have invested nearly 70 per cent of the government’s stimulus strategy in nation-building infrastructure. That is the strategy that we are embarked upon. Those opposite, however, are embarked upon a negative scare campaign on deficit and debt with a view to talking the economy down. We have a nation building for recovery plan. The government is proud of it. We are getting on with the business of making an impact on the global economic recession, a recession which is causing havoc across every economy in the world, and that is why Australia is doing better than most other economies in the world.