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

Before the last election, the member for Warringah promised that if he won government the economy would receive an adrenaline surge. I am not a doctor, but I do know a little bit about adrenaline. Most people know that it is a bodily reaction to fight or flight. It either gives you the energy to fight or it gives you the energy to run away. But adrenaline can also do something else, sadly. I know this from my partner who has worked in child protection for 23 years. Adrenaline can actually freeze you as well. When people are incredibly scared, they actually get a surge of adrenaline and can be frozen on the spot. Unfortunately, child abuse victims often talk about that—the fact that they were frozen.

That is the sort of adrenaline that has hit the Australian economy. It is frozen and it is getting worse. When Labor was in government growth was at 2.5 per cent, and now growth is at 0.2 per cent in the latest figures that came out this week. Under the Labor government there was a budget deficit of $30 billion, and it is now nearly $50 billion. On government debt, we were told by the member for North Sydney that there would be a surplus in his first year, yet government debt is now out to $114 billion, with another $2 billion borrowed this week. Business investment is down 11 per cent. Real wages, throughout Australia, are actually falling. Unemployment, when Labor was in office, was at 5.7 per cent and it is now 6.3 per cent—800,000 Australians out of work. That is a massive number. Let's put it in context: all of Tasmania has 515,000, and if you count every person in the Northern Territory that is 234,000. So if you take every single person in Tasmania and every single person in the Northern Territory and then throw in a couple of other territories as well, like Norfolk Island and the like, you still do not get to 800,000. We know what that means if the household does not have employment.

Have the Liberal and National parties, supposedly the economic managers, been cutting taxes across the nation? Well, let's look at that. The tax-to-GDP ratio has actually increased under the coalition government. They said that they were going to be a low-taxing government.

We remember those famous words delivered at Penrith by the member for Warringah the night before the election, where he said there would be no cuts to education, no cuts to health, no change to pensions, no change to the GST and no cuts to the ABC or SBS. It turned out to be a to-do list, that supposed promise to the people of Australia. In terms of flagging a 50 per cent increase in the GST, going from 10 per cent up to 15 per cent, it would especially impact on poorer households.

The supposed economic wonder child that talked up his credentials before the election has turned out to have wreaked havoc across the economy. It will take years to turn around the economy due to the way it has been mishandled. They have focused on things like giving a knighthood to the Queen's husband, as if that is a priority. It is unbelievable.

We have a government that seems to be frozen in place, where the economy is going backwards, but it does not have the ability to talk to the Australian people or to talk to Australian businesses. And now, unbelievably, it has picked an argument with small businesses. I have 19,000 small businesses in my electorate. The government has now picked an argument with COSBOA because of its broken promise on the effects test. It is unbelievable to think that everything touched by this government, in just two years in office, could have such a devastating effect on Australia, especially on our economy, as well as creating division in Australian society.

Matt Williams (Hindmarsh, Liberal Party) Share this | Link to this | Hansard source

Yesterday's announcement that Australia will take on an additional 12,000 refugees from the crisis in Syria and Iraq is great news. I congratulate the Prime Minister and the government as Australia increases our commitment to those who have been or are being persecuted for their religious beliefs. The 12,000 refugees announced are on top of the 13,750 refugees that Australia takes each and every year. The number of refugees will increase to 18,750 in 2018-19. Only last year the government took 4,400 refugees from the region.

The fact that Australia has secure boarders allows us greater flexibility in determining who are most in need of asylum. Our officials will work with the UNHCR to resettle the refugees as soon as possible. These people are escaping the horrors that Daesh has unleashed against the Middle East region. The program will focus on women, children and persecuted minorities. I know the support announced by the government will be well supported by the Australian people. It is a compassionate and measured response.

The move by the government to increase humanitarian migration has created a lot of discussion out there with the public about the benefits or otherwise of migration. I wanted to take this opportunity to outline some of the economic benefits that can come from an increase in migration and the need of my home state of South Australia for economic stimuli.

A report released last week by the Australian Bureau of Statistics stated that migrants have generated $38 billion in total income in recent years. More directly to the refugees that are bound for Australia, the report stated:

Humanitarian migrants displayed greater entrepreneurial qualities and reported a higher proportion of income from their own unincorporated businesses and this income increased sharply after five years of residency.

In November 2013, the ABS released a survey on the characteristics of recent migrants. Of those who obtained Australian citizenship since arrival, the labour participation rate was 77 per cent, which is above the national average rate of about 65 per cent. Claims that migrants are a net pressure on welfare payments do not stack up. Migrants are likely to be working.

The New South Wales government has done some research on the benefits of migration on the economy. Its report found that migration has boosted the economic performance of Australia and noted 'the personal characteristics and social factors that have facilitated "exceptional" business performance by many Australian migrants'.

I want to refer to another report. A recent study by AMES and Deloitte Access Economics has shown that since 2010 approximately 160 refugees have resettled in Nhill in north-western Victoria. More than 70 full-time equivalent positions were added to the regional economy over the five-year period of analysis, representing three per cent of total employment across the area. The economic impact of this is estimated to be over $40 million in net present value terms. That is a fantastic outcome for a regional community that has been able to resettle refugees.

It has been said that the movement of refugees from Syria is the largest since World War II, and this is a crisis that Australia has responded to. During our history there have been several high-profile examples of people fleeing to Australia, sometimes with little more than the clothes on their back. Frank Lowy, the founder of the Westfield shopping centres, is a prominent Australian who is one of many who were persecuted during World War II. He arrived in Australian in 1952 penniless to be reunited with his mother, but he has gone on to make a significant contribution to our country, not just in business but also as the Chairman of the Football Federation Australia.

I have found numerous reports of how migration helps economies to grow and, while there are always challenges, this is overwhelmingly a benefit to our nation. One report that I would like to highlight in closing is the 2007 report from the Department of Social Services which said:

The main conclusion to be drawn from this study is that the social benefits of migration far outweigh the cost, especially in the longer term. The evidence that is available overwhelmingly supports the view that migrants to Australia have made and continue to make substantial contributions to Australia's stock of human, social and produced capital.

In my home state of South Australia, we need as much help as we can get with our economy, and the Premier has come out with his own support for resettlement of refugees in South Australia. This can only help our economy. The Commonwealth government regularly provides support for resettlement and will ensure that the refugees are given the opportunity to succeed and thrive in our great land.

Question agreed to.

Federation Chamber adjourned at 12:06