Michael Danby (Melbourne Ports, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation. What is the government’s strategy for lifting Australia’s long-term productivity performance? Why is it vital that the government’s initiatives are supported?

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thank the member for Melbourne Ports for his question. It is understandable that contemporary economic debate is very heavily focused on the global recession and the various initiatives the government has taken to deal with the consequences flowing from that—in particular the stimulus packages, the guarantees of bank activity, and things of that nature. I want to emphasise today that the government is resolutely and relentlessly focused on the longer term horizons for the future prosperity of the Australian economy. In this context there is one paramount objective, a single word that underlines everything that the government is seeking to do: productivity. Productivity is at the heart of the Rudd government’s agenda for the long-term future of the Australian economy.

Australia did pretty well on productivity throughout the 1990s as a result of many reforms that were put in place, mostly during the 1980s and in some cases early 1990s. Deregulation of the financial system; major reform of tariff protection; investment in education and research and development; export diversification; enterprise bargaining—a whole range of reforms were put in place and the Australian economy reaped the benefits. Over the five years to 1998-99, productivity grew on average by 3.3 per cent; in the subsequent five years to 2003-04 that average dropped to 2.2 per cent; and in the four years beyond that to 2007-08 that productivity growth average dropped to 1.1 per cent.

While the government is focused on sustaining jobs in the short term, all of our critical economic initiatives have been focused also on developing productivity growth into the medium and longer term. I refer to the broadband network proposal; greater investment in universities; reform of research and development allowances; investment in road, rail and port infrastructure—things such as the Hunter Expressway, the Oakajee Port project and regional rail in Victoria. All of these things will have a huge positive impact on productivity into the future for the Australian economy. We march towards a seamless national economy through regulatory reform, harmonisation of state based regulation and, of course, greater efficiency in government spending and government programs—these are all part of the total picture.

Yesterday I raised a leaflet that the Liberal Party put out about their economic position. I have to confess that I had cause to return to that leaflet this morning.

Government Members:

Government members interjecting—

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I know that some of my colleagues are questioning my choice of leisure activities, but I could not resist—the temptation overcame me. The interesting thing is that I pointed out yesterday that there is no mention of the global recession in this leaflet that is a statement of the Liberal Party economic position, and after having a look at it again today I discovered that there is also not a single reference to productivity, no reference whatsoever to the long-term holy grail of economic reform in the Australian economy and not a single reference to what is the greatest challenge for the Australian economy: improving productivity. The pattern is the same: born-to-rule complacency that characterised their nearly 12 years in office that is now manifested by endless point scoring, opportunistic sniping and talking the Australian economy down as a substitute for genuine economic policy. In particular it is manifested by relentless attacks and opposition to the key reforms and key investments the government is putting in place to boost productivity in the Australian economy in the long term. Attacking the broadband network proposal, opposing investment in infrastructure, sniping at the school investments—all of these things are characteristic of the opportunism of the Liberal Party.

I note this morning that, in addition to not putting up any savings measures themselves, as well as opposing the government’s savings measures, the opposition regard past inefficiencies in government as totally trivial matters. There was the Sea Sprite fiasco that occurred on their watch, where $1.4 billion of federal government money went west. I note that the Leader of the Opposition, in an interview on AM this morning—and I have the transcript with me—said that this fiasco, this $1.4 billion, was ‘a distraction’ and ‘a complete diversion’. That was his summary of one of the most embarrassing cases of government waste in the history of the Commonwealth that occurred while he and his government were in office.

Even in areas where the opposition claim to support the government, they do not know what is going on. Two initiatives in the opposition leader’s budget reply speech were that he would have a one-stop portal for filings by business and that he would have a standardised procurement contract for people purchasing from the government. There is one slight problem with these two initiatives: both of them are already occurring. They were so slipshod and complacent that they did not even know that these initiatives are already underway under the Rudd government’s reform agenda.

It is understandable that everybody in economic debate is focused on the global financial crisis and the short-term threat that is posed to the Australian economy by the global recession. We have a big challenge facing us in this country, because once we get through that short-term challenge there is the longer term challenge of productivity. The world will be more competitive, it will be more challenging for Australia, and we have had a lost decade—

Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

What’s going on?

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am very distressed, Tony, that you see the—

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

The member for Warringah will resume his seat.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

We have had a lost decade in Australia—

Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

Mr Abbott interjecting

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

The member for Warringah will resume his seat.

Tony Abbott (Warringah, Liberal Party, Shadow Minister for Families, Housing, Community Services and Indigenous Affairs) Share this | Link to this | Hansard source

Give me an hour. I want an hour. He will still be going when I get back.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I thought I told you to stay in the car and bark at strangers!

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

The member for Warringah will resume his seat and the Minister for Finance and Deregulation will conclude his answer.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Australia faces a great challenge on productivity into the medium-term future, and the opposition has had the luxury for the last 18 months of nobody treating them seriously. But times are changing. The member for Higgins is departing, an election is coming over the horizon within 18 months and it is long overdue—

Opposition Members:

Opposition members interjecting—

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

Order! The member for Sturt will resume his seat. The minister for finance will conclude his answer. Has the minister concluded?

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

No, I have not.

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

The minister will conclude now.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I will conclude.

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

The member for Sturt will resume his seat. The minister will conclude.

Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The government is focused on pursuing the productivity growth that this country needs to re-establish. It is long overdue that the opposition join mainstream debate in this country instead of sniping, instead of opportunism—

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

Order! The minister will resume his seat.