Amanda Rishworth (Kingston, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on recent assessments of the Australian economy and what respected economists and institutions are saying about the state of our recovery?

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

I thank the member for Kingston for this very important question, because the Australian economy has come through this global recession in stronger shape than any other advanced economy—the strongest growing of 33 advanced economies, and one of only two that did not contract during the calendar year 2009. Of course, we have unemployment rates that are the envy of the United States and Europe, and there have been something like 180,000 jobs created over the past year. I think that is supported strongly by everyone on this side of the House that has supported the government’s economic stimulus.

The fact is that Australians have worked together—employers and employees. The community has come together to produce this outcome, and this has been a remarkable achievement. It has been commented on today by the Reserve Bank in their minutes that have been released today. This is what they had to say:

It now appeared that the peak unemployment rate in the recent downturn had been equal to around the low point in the previous three cycles.

That is a fantastic result for Australia. This has been commented upon by the Commonwealth Bank and their chief economist, Michael Blythe, who had this to say a couple of days ago:

The Australian economy withstood the full force of the global financial crisis and recession remarkably well. Australia dodged the recession bullet.

That is what Michael Blythe had to say. He then went on to comment as to how that was the case, and he had this to say:

A year ago, consumer sentiment in Australia was collapsing, much as it was everywhere else. The extreme pessimism proved relatively short lived, however. A large part of the divergence between expectations and reality reflects the fact that aggressive policy action worked, and it worked quickly.

That was the impact of the government stimulus.

Of course, what the events of the past 18 months show is the importance of maintaining confidence through responsible economic management. Of course, what we have seen from those opposite is exactly the opposite. What we have seen is a glimpse of erratic and reckless decisions from the Leader of the Opposition and what he might do if he were in government. We have seen total disarray. Those opposite could not describe the size of the tax, who it would apply to or when it would start. They have simply been in disarray.

But the really good news is that Senator Joyce came back today. He came back to make it all crystal clear. He was asked by Lyndal Curtis on AM this question:

Business … will pass on this tax if you are taxing companies like Woolworths and Coles. That will feed into the … price of bread and milk, won’t it?

Senator Joyce said:

… it will …

Of course, what he has confirmed is what we have been saying: the price will be paid by pensioners and families—all of this so somebody on $150,000 a year can receive $2,800 per week. He is not content with pulling a billion dollars out of public hospitals. Pulling a billion dollars out of public hospitals is fine, but he wants to pay $2,800 per week to somebody on $150,000 a year. That just tells you the twisted priorities of this Leader of the Opposition and how out of touch he is with the lifestyles of average Australians.

He said something very revealing in the party room last week. We discovered what was under the budgie smugglers: a big new tax.

Honourable Members:

Honourable members interjecting—

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

Order! The House will come to order.

Government Members:

Government members interjecting—

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

Order, those on my right!

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

Mr Speaker, on a point of order: I would ask you to ask the minister opposite to withdraw those potty-mouthed remarks.

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

I withdraw. When the Leader of the Opposition was speaking in the party room last week—and I think he has made these remarks before—he said that he would always prefer to apologise after, rather than seek permission before, a policy announcement. That should send a chill down the spine of every business in this country. He would prefer not to seek permission before—not be upfront with the people of Australia and the business community, but take a decision and then somehow make it right by apologising later.

His arrogance in those statements was only exceeded by the statements from the shadow Treasurer. The shadow Treasurer, when he was asked about this ‘big new tax’, said it was a windfall gain for business. A big new tax becomes a windfall gain for business. We all know that Senator Joyce has also been out there putting his points of view, inventing new definitions of debt—‘net gross public private debt’. So what we have here is the ‘Three Stooges’ of the opposition frontbench. They have no credibility—no credibility with the business community and no credibility with the wider community—because they came into this House when this country was in its hour of need and they opposed the stimulus that saved our country. They opposed the stimulus that has created 180,000 jobs and now they propose to put a big tax on business which will push up prices for pensioners and families. The whole community will suffer. What they have demonstrated over the past few weeks is just how reckless and erratic they are and how incapable they are of managing the economy of this country.