Chris Bowen (McMahon, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer to today's poor private capital expenditure results down 11 per cent since the federal election and the worst quarterly results since the global financial crisis. Is this more evidence of the 'instantaneous adrenaline charge to the economy' that the Prime Minister promised before the election, or the real momentum the Treasurer keeps reminding us of?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I say to the member for McMahon that, whilst the capex figures released today were disappointing, they were, of course, over the March quarter—prior to the cut in interest rates by the Reserve Bank and prior to our budget. In fact, in plant and equipment and machinery in particular, I can say to you that the $20,000 instant asset write-off in our budget is going to make a difference to the procurement of capital by small business in particular. When it comes to capital expenditure by the private sector, as reported by the ABS, and given that there has been a substantial reduction in commodity investment and construction associated with a fall in iron ore prices in particular, the fall in capex was not without expectation. There was no doubt about that.

Opposition Members:

Opposition members interjecting—

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

Even old buggerlugs over there, the member for Lilley, knows that. He stood at this dispatch box and talked at length about the transition in the Australian economy. He talked about it—

Opposition members interjecting—

Just like there has been a transition in the AWU from the right to the left.

Mr Conroy interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Charlton will desist!

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

How does that sit with you, Swanee? Anyway, capital expenditure—

Julie Owens (Parramatta, Australian Labor Party, Shadow Parliamentary Secretary for Small Business) Share this | Link to this | Hansard source

Madam Speaker, on a point of order: I ask that you ask the member to refer to members by their correct title.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Treasurer will refer to members by their name.

Honourable members interjecting—

There is far too much noise from both sides of the House. If the member for Wakefield would like an early mark, it being a Thursday—be it a plane or a bus—we can oblige.

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I would say there were two significant events that obviously had an impact on capex expectations in the March quarter. The first event was the defeat of the Newman government in Queensland and the decision by Queensland Labor to turn its back on billions of dollars of infrastructure money associated with asset recycling.

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The noise will cease!

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The second one, and perhaps the most calamitous infrastructure decision in modern Australian history—

Ms MacTiernan interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Perth will cease! The member for Perth will leave under 94(a).

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

was the decision by the new Victorian government to rip up the contract for the East West Link. In that decision alone the Victorian government immediately ripped up 6,000 jobs and wrote a cheque for $1 billion for a road that was not going to be built. It was a project that would have involved probably around $12 billion of private sector capital expenditure.

Mr Bowen interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for McMahon will desist. Or perhaps he might like to join the member for Perth?

Joe Hockey (North Sydney, Liberal Party, Treasurer) Share this | Link to this | Hansard source

If you want to know the main reasons why the capex numbers were less than expected, I say point the finger at Labor—because. Labor is the one in Queensland and Victoria that has ripped the heart out of new capital expenditure.