John Murphy (Reid, Australian Labor Party) Share this | Link to this | Hansard source

Improving on the questions from the member for North Sydney, I would like to follow on and ask the Treasurer if he would update the House on the government's approach to supporting jobs and growth in the Australian economy?

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

Before I call the Treasurer, preambles such as that from the member for Reid are unnecessary and unwelcome.

Jamie Briggs (Mayo, Liberal Party, Chairman of the Scrutiny of Government Waste Committee) Share this | Link to this | Hansard source

Tell us about Trish Crossin's job.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Mayo is warned!

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

I welcome the question from the member for Reid. There are deep-seated challenges still in the global economy. There is international uncertainty and we are still living with the aftershocks of the global financial crisis. We can see that across Europe. Our economy, in the face of those uncertain conditions globally, is resilient. We can see this in the unemployment data out today. Unemployment is at 5.4 per cent, which is low and unchanged from last month. As I said before, something like 850,000 jobs have been created in this country under this government. Everyone on this side of the House is proud of that achievement.

That has been done in the face of very substantial global headwinds, as we all know. As the Prime Minister said at the Press Club last week, the high dollar weighs down on our economy. Despite the fact that commodity prices have come off, we still have a high dollar weighing down on parts of the economy. The uncertainty around the global economy produces a cautious consumer. That is also reflected in the economy. These are very substantial headwinds when it comes to the hiring of workers. That is why this employment performance is so remarkable. We have more people in work than ever before.

This is one of the reasons why our economy is 13 per cent bigger than it was at the end of 2007. Compare that to the British economy, which is four per cent smaller. That is an indication of how the macroeconomic framework and policies that have been put in place in this country have worked so well over the past five years. We have contained inflation, which is at 2.2 per cent, as the Prime Minister said before. There is also a low cash rate of three per cent, lower than at any time under those opposite and under half what it was when they left office. They left a legacy of 10 interest rate rises in a row.

What we know is that we have to keep building on that success during the global financial crisis and look forward. That is why we have put in place the Asian century white paper, so we can maximise the opportunities that flow from growth in the region. We are making the investments in skills and education, we are investing in the NBN and above all, we are putting in place a fiscal policy that supports growth and jobs. The fiscal policy advocated by those opposite is one that will put a sledgehammer right through our economy. It will push unemployment up. When that happens, deficit and debt are pushed up. That is the contrary proposition that is being put by the shadow Treasurer.

We have seen today the complete debacle of the so-called policy on Northern Australia, some thought bubble from Gina Rinehart adopted holus bolus by those opposite. That just shows you how sloppy they are when it comes to policy making. (Time expired)

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to his statement at the last election that only a re-elected Gillard Labor government has a plan to responsibly manage the Australian economy and bring the budget back to surplus in 2013 without slashing the health and education budgets. How does the Treasurer reconcile that statement with the government's $1.6 billion cut to public hospitals, its $3.9 billion cut to education and the ditching of its commitment to bring the budget back to surplus this year?

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

I am wondering where the shadow health minister is when it comes to this question. There has not been a cut, despite what has been suggested by the member opposite.

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

I know what is going to happen to you.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Dickson should realise what is going to happen to him in a minute if he does not obey the standing orders.

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

What this government has done every year over the past five years and what we will do every year over the next five years is put in place a responsible fiscal policy that supports jobs and growth.

Luke Simpkins (Cowan, Liberal Party) Share this | Link to this | Hansard source

You cannot balance the budget.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Cowan is warned!

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

Those opposite do not understand that to take good public policy decisions you have to take into account the facts. When facts change in the global economy or in the national economy, responsible governments change their policy to support growth and jobs. That is what this government has done and will continue to do. When we changed policy at the height of the global financial crisis to support employment, we were opposed every step of the way by those opposite. If they had had their way, tens of thousands of small businesses would have hit the wall and a couple of hundred thousand Australians would have been unemployed—more Australians out of work.

Just as they advocated that approach then, they are now projecting that approach forward right now.

At the end of last year, there was a bout of instability in the global economy and commodity prices tumbled dramatically. All of that had an impact on our revenues, and we have taken the responsible and balanced decision to support economic growth by not cutting to make up for that loss of revenue. But those opposite are in complete denial. They say that we did not lose $160 billion during the global financial crisis. They just say that it did not happen. Well, it did happen. It has impacted upon our budget and, in the face of that, we supported jobs and growth.

They are now saying that what they would do is, at a minimum, hack away at the budget to the tune of at least $70 billion; the shadow Treasurer fessed up to this on breakfast television. He sat there beside the Minister for Sustainability, Environment, Water, Population and Communities and admitted that, even at that stage, there was a $70 billion hole. What we see here is a dangerous proposition from the Liberal Party of taking a sledgehammer to the economy by cutting at least $70 billion. That is one of the reasons why they will not put forward costed policies. They want to do a Campbell Newman and get through this year without admitting what their policies are so that, if they are elected, they can take a sledgehammer to the economy afterwards.