Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Small Business, Competition Policy and Consumer Affairs) Share this | Link to this | Hansard source

My question is to the Prime Minister. I remind the Prime Minister of job losses at Murray Goulburn, Mars, SPC, Heinz and National Foods in Victoria. I also remind the Prime Minister of comments this week from her Minister for Small Business, who, when asked to comment on the rising jobs crisis in the manufacturing industry, said, 'What jobs crisis?' Does the Prime Minister agree with her minister's comments, or is this just another case of her government dismissing job losses as mere growing pains?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

To the member who asked the question: I understand that he is deeply embarrassed today because the coalition has marched away from Australian businesses—marched away from small businesses and marched away from Australian businesses.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister will answer the question.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

They stand today for the betrayal of Australian businesses, and I suspect he is embarrassed by that.

On the question that the member asked me: there is nothing that drives this government more than ensuring that Australian people have the benefits of work and the dignity of work. That is why we worked so hard during the global financial crisis, against the relentless negativity of the opposition, to support jobs. We did not want to see hundreds of thousands of Australians thrown on the scrap heap. We did not want to see young people who came of age during those economic circumstances losing the opportunity for an apprenticeship and a start in the world of work. So we supported jobs; the opposition did not. We continue to support jobs and the opposition does not. That is the track record in this parliament. That track record has been added to today by the betrayal by the opposition of businesses, because, as they betray businesses on this tax cut, they are betraying working people as well.

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

Answer the question!

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister will answer the question.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I am asked about jobs, Mr Speaker. Consequently I am responding to the important policies that the government has to support businesses, to support economic growth and to support jobs. The OECD says that, in terms of major tax bases, company income tax has the largest adverse effect on economic growth. If you are against cutting company tax, you are against economic growth. If you are against economic growth, then you are against jobs. And, if you are against economic growth and jobs, then you are also against increasing wages—those increasing wages which come with the benefits of economic growth.

The KPMG modelling that was done at the time of the Henry tax review indicated that real wages would be around half a percentage point higher than otherwise in the long run with a one per cent company tax cut.

Bruce Billson (Dunkley, Liberal Party, Shadow Minister for Small Business, Competition Policy and Consumer Affairs) Share this | Link to this | Hansard source

Mr Speaker, on a point of order: perhaps you could ask the Prime Minister to answer the question.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister has 41 seconds left.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I was asked very broadly about jobs and I am saying that the government stands for jobs and it stands for high-skilled, high-wage jobs. In providing a one per cent company tax cut, what we will see, as has been modelled, is around $330 a year for an average employee as a wage rise. That is because of the benefits of extra economic growth. So what we have today is the government standing for jobs, and the opposition opposed to jobs; us standing for a reduction to company tax, and the opposition refusing to reduce company tax; and us standing up for small business as the opposition runs away from them. (Time expired)