Julie Owens (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on developments in the global economy? What do these say about the continuing strength of our own economy?

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

I thank the member for Parramatta for her question, because overnight we had another stark reminder of just how difficult conditions are in the global economy, with unemployment across Europe and the eurozone hitting a shocking 11.6 per cent. The situation here could not be more different. In the eurozone there are something like 18½ million people in the ranks of the unemployed, but we have seen here in Australia 800,000 jobs created in the period of this Labor government. Our unemployment rate has a five in front of it, which is less than half the rate in the eurozone. Of course, that is a direct result of direct actions taken by this government to support our economy in the face of a collapse in global demand during the global financial crisis and the global recession.

As a consequence of that, our economy is stronger than just about any other developed economy. If those opposite had had their way, Australia would have experienced a recession and we would have had the capital destruction and the skills destruction that goes with that which are still being felt across developed economies right around the world.

Everybody on this side of the House is proud of the actions taken by this government to support employment, to support jobs and to support small business—and, in particular, to ensure that so many Australians were taking home a pay packet. We will always support those on low and middle incomes, unlike those opposite, who have been in here, in the parliament, in the last couple of days hacking away at wages and working conditions and supporting policies that will erode the living standards of working Australians.

We understand that the global economy does have a dramatic impact on the future of the economy in this region. One of the reasons I am going to the G20 meeting in Mexico over the weekend is to talk with my colleagues and other finance ministers about what must be done to reinvigorate global growth, because global growth with a three in front of it is simply not going to enable a reduction in unemployment levels across the country. So we do need some decisive action through those bodies.

But what we are seeing—and this is what works in Australia's favour—is this shift in economic power from the West to the East. Here in this region we appreciate the opportunities that lie before us, which is why we have published the Asian century white paper. We understand that putting in place a range of policies to support capacity in the economy and productivity growth is the way of the future. That is our plan for the future. It stands in very stark contrast to the approach of those opposite. We want to build our workforce up; they want to tear it down. We have a very clear plan for the future; they have an approach that is simply stuck in the past.