Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

My question is also to the Treasurer. Will the Treasurer update the House about data released overnight in Europe? How does this contrast with the strong performance of the Australian economy and what does it say about this government's successful management of the economy?

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

I thank the member for Moreton for his question, because overnight we did receive more disturbing data from Europe. The euro area GDP contracted by 0.2 per cent in the June quarter, to 0.4 per cent below its level of a year ago. This means that Europe's economy is now two per cent smaller relative to its pre-GFC levels four years on. There could not be a starker contrast between what is happening in Europe and what is happening in our country.

Our country is now 10 per cent bigger than it was when that crew over there was last in government. One of the reasons it is 10 per cent bigger is the policies we have put in place to protect small business and to protect workers in this country during the global financial crisis and the global recession. Because we did that we are a more prosperous community, but we are also a fairer community. We protected small businesses and we protected the workforce at a time of international contraction, so much so that we have an unemployment rate of 5.2 per cent in Australia—half the rate that is seen in Europe of 11.2 per cent. A total of 800,000 jobs have been created in this country under the government. Of course, we are not weighed down by excessive debt. We have a gold-plated, AAA credit rating from three major global agencies for the first time in our history.

It does not matter how high our economy jumps, the Leader of the Opposition is always trying to tear it down. Now he has been joined in that endeavour by the Premier of Queensland, who goes out talking down the state economy in Queensland—joining here with the Leader of the Opposition to talk down our economy. That is shameful, because in this environment we have a world-leading economy. Yes, we have challenges, we have a higher dollar, we have cautious consumers, but we understand that we have a bright future—not only creating prosperity but also spreading opportunity. That is why we on this side of the House are supporting tax breaks for 2.7 million small businesses. Who is opposing that? The Liberals. That is why we on this side of the House are supporting families to get their share of the mining boom with additional family payments. And it is why we are providing an additional boost to superannuation for over eight million workers in this country, because we understand how important it is not just to create prosperity but also to spread opportunity right around our country. Every time we put in place policies to do that, we are opposed by those opposite who talk down our economy and who want to give a tax cut to the big end of town by getting rid of the MRRT. They would rather give a tax cut to Clive Palmer than support Australian workers—and that says a lot about their priorities. (Time expired)

Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

My question is to the Prime Minister and it follows on from the comments we have just heard from the Treasurer. I refer the Prime Minister to the survey of 150 global CEOs, published today, which shows that 41 per cent said they were less likely to invest now in Australia compared to just a year ago. Does the Prime Minister agree with global investors who stated in a report:

How can Australian based manufacturing facilities be competitive when they face additional costs from the carbon tax that their overseas competitors do not.

(Time expired)

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

I will ask the member for Goldstein to read just the last part of his question, as I was trying to allow him to be heard in silence.

Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

Thank you, Madam Deputy Speaker. Does the Prime Minister agree with global investors who stated in a report:

How can Australian based manufacturing facilities be competitive when they face additional costs from the carbon tax that their overseas competitors do not.

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

I had the opportunity last night to address the forum that the member for Goldstein is speaking of and had the opportunity when I was there to talk to them about the strength of the Australian economy. Amongst other things, I talked about the strength of investment in Australia. I think it is important to have the facts on the table, so let us get them on the table.

Mr Hockey interjecting—

Since the government came to office in late 2007, there has been a staggering $919 billion of private business investment that has been happening despite the global financial crisis. New private business investment has been growing by more than 20 per cent over the year since last September—its fastest rate in a decade. Let me repeat that for the member for Goldstein: since last September it has been growing at its fastest rate in a decade. In the March quarter of this year private business investment as a percentage of GDP reached its highest level in the past 40 years, at 16.7 per cent, and we expect it to rise further this financial year and next financial year. We are seeing a huge investment pipeline into our country and there is more to come.

Of course, because of this huge investment pipeline and because of the strength of our resources sector we have also seen a considerable appreciation in our currency, a very strong Australian dollar. When you talk to people in manufacturing it is the strong Australian dollar that they identify as putting pressure on them. The government has been working with the manufacturing sector for some time now. For example, we have been co-investing with some manufacturers to ensure we continue to make cars in this country, something the opposition wants to slash and burn. We have been investing in skills because they are so important to manufacturing. We have been rolling out the National Broadband Network, because the best of new technology is important to manufacturing.

Mr Hockey interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The member for North Sydney is warned!

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

We have been investing in traditional infrastructure too: shortly, I will receive the report from the manufacturing task force that I put together in order to provide the government with further perspectives. On the question of uncertainty and the concern of investors about uncertainty, the member for Goldstein must understand that the source of that uncertainty is the opposition's plans to rip up every economic reform in this country that is contributing to our prosperity.

Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

Madam Deputy Speaker, my question was a very simple proposition about the impact on the competitive position of industry from the carbon tax. It has not been answered.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Goldstein is seeking a point of order on relevance. I again point out that points of order are not to restate or argue the question. Using points of the abuse is also not appropriate. The Prime Minister has finished her answer.