Carol Brown (Tasmania, Australian Labor Party) Share this | Hansard source

The Howard government’s AWA individual contracts cut wages and conditions, and that is exactly what the previous government gave Australian workers. The Rudd Labor government has a strong plan to build a stronger, fairer and more secure Australia to help working families, pensioners and carers facing financial pressures and to prepare Australia for the new challenges of the 21st century. Our government has come to office at a time when we are facing some of the most challenging global economic conditions in almost a quarter of a century. The Rudd Labor government is making sure our economy emerges in strong shape from these tough international times so that we can provide quality jobs and security for working families into the future.

We need to build infrastructure for a new century that meets the needs of a rapidly changing world. Since coming to office only nine months ago we have committed to a $76 billion infrastructure investment program, allocating funds for transport, utilities, communications and social infrastructure. The government will invest $26 million in roads and rail infrastructure through the 2008-09 budget to the end of AusLink 2. We will invest $20 billion, through the Building Australia Fund, in transport, energy and water priorities. We will invest $15 billion in education infrastructure through the Education Investment Fund—by establishing trade training centres in schools and computers in our classrooms and by investing in our universities. Also, we will invest $11 billion in health and hospital infrastructure through the Health and Hospitals Fund. As you can see, this government is investing in a range of infrastructure measures which will enable us to build a strong Australian economy. We need an economy that is equipped to tackle the demanding challenges of the global economy, not just now but also into the future.

It was those opposite who failed to prepare Australia for these tough global economic conditions. They were happy to maintain infrastructure when they should have been investing in new measures to ready Australia for the 21st century. It was this 11 years of inaction by the Howard government which resulted in us inheriting a run-down economy. Australia’s inflation was running at its highest level in 16 years and the country was experiencing the second highest interest rates amongst advanced economies. In May, the Treasurer, Mr Wayne Swan, produced a responsible budget, with a surplus of $22 billion, designed to fight inflation and put downward pressure on interest rates. That is now at risk from the economic vandals opposite.

The budget marked the end of short-term reckless spending and the start of responsible investment to prepare our economy to meet future economic challenges. The Rudd Labor government moved quickly to ensure fighting inflation was its core priority, given rising interest rates at the time. Thankfully, we saw a rate decrease yesterday. It is an issue that can no longer be ignored. Over the last three years the Reserve Bank of Australia warned on more than 20 separate occasions that skills shortages and capacity constraints were threatening growth and contributing to inflation. And each time the Howard-Costello government chose to ignore these warnings and failed to act. The strong, responsible economic management the Rudd Labor government has undertaken is already showing signs of providing relief for working families. The Rudd Labor government is committed to continuing our responsible fiscal management. The government understands the financial strain that the official interest rate increases over the last three years and the rising cost of living are putting on household budgets. (Time expired)