Louise Pratt (WA, Australian Labor Party) Share this | Hansard source

There is indeed one thing we can all agree with Senator Fifield about: that we are facing a time of global economic challenge. But, at least on this side of the house, that is where our agreement with Senator Fifield ends. It is not our budget that is the problem; it is not our strategy that is the problem. The root cause of the challenges we face today is twofold, and neither cause is of this government’s making. The first cause is the state of the global economy. We are all aware of the complex and difficult external economic pressures on the Australian economy resulting from the global credit crunch and oil fluctuations, amongst other things.

But the second cause sits much closer to home: it sits directly opposite. The reality is that this government has inherited an economy which, until late last year, was managed by a government wearing blinkers, a government who during their time in office refused to see the building of inflationary pressure on interest rates and refused to act to head this off—a now former government who failed to act to secure our country’s prosperity by investing to ensure ongoing increases in the productivity of our economy, in things like skills.

Senator Fifield’s motion is no more than a desperate attempt by those opposite to obscure these facts and, in doing so, salvage their economic credentials. That is a big ask, because, while this government has always been and will always be happy to talk up the Australian economy—there is no doubt about the underlying strengths of the Australian economy—you do not secure it by talking about it; you secure it by acting. That is why the government has directed its efforts, in a very fiscally responsible way, to building a budget surplus, a very healthy surplus of more than $20 billion, that will work to shield Australian standards of living against this global economic uncertainty. It is a budget designed to put downward pressure on inflation and interest rates, which will in turn help ease the financial burden on Australian families. This government is shielding our economy by building this surplus and giving Australian families a break from the tremendous financial burden they are under.

The Liberal government ignored the Reserve Bank warnings about the capacity constraints in the Australian economy time and again, allowing inflation to build and build. They put pressure on Australian families, and there were 10 interest rate rises one after the other. Those opposite are responsible for the financial pressure on Australian families resulting from a 16-year-high inflation rate. They allowed that pressure to build and, at the same time, they had the nerve to tell Australians they had never been better off. Well, Australian families knew better. They knew that cost-of-living pressures were building. They knew that interest rates were climbing and climbing—they felt it every month—and that inflation was picking up.

It has been left to Labor to deal with the consequences of this negative legacy, this legacy of inaction. And now we have to deal with these in the context of a difficult global environment. But, unlike our predecessors, we will face up to the challenge. We will not just talk; we will act. The government are tackling this challenge head-on to alleviate the financial burden on Australian families and so that the future prosperity of this country can be assured. The government are working to strengthen the Australian economy so that we can address the inflation challenge and the related challenge of interest rate rises. That is why we brought down a budget with a strong surplus: to shield the Australian economy and to look to the future for all Australians. Unlike the former government, we are acting to secure Australia’s prosperity by investing to ensure ongoing increases in the productivity of our economy. That is very important.

This government are looking to the long term and working to protect Australians even further by investing in our collective future through measures such as the Infrastructure Australia fund. Infrastructure Australia represents a national, long-term approach that will make sure that our country has the infrastructure it needs to get on with the job of building productivity to secure our future prosperity so that we have a vibrant, robust and modern economy that can withstand international economic turbulence—and so that the great state of Western Australia can continue its economic boom, to the country’s benefit. Infrastructure Australia is going to be the blueprint for building our country’s long-term infrastructure needs for things like transport, water, energy and communication. It is a fund that will help our producers get their goods to market in quick and cheap ways, give families and businesses better access to the internet, and make our cities function better and improve the quality of life within our cities and towns. It is by having strong, reliable infrastructure that we can build a strong, reliable economy. We want an economy that is protected from the worst fluctuations of the global economy.

To this end, the government is also looking to secure our future through the Education Investment Fund. This fund, too, is about building a modern economy and a productive Australia so that together we can meet the challenges of the future. The Education Investment Fund will provide for capital expenditure. It will help drive renewal and refurbishment of our universities and vocational institutions, as well as our research facilities and major research institutions. Why? Because we know that first-class education facilities and services, especially teaching, lead to a stronger, growing economy. As the OECD made us all aware in 2006:

Evidence of the public and private benefits of education is growing.

Under the previous government, we were sadly lacking investment in this area. The OECD report continued:

Application of knowledge and skills are at the heart of economic growth, with the OECD attributing half of GDP per capita growth from 1994 to 2004 to rising labour productivity.

So you can see that education is the key.

As I said in my first speech in this place, we must engage the entire Australian community if we are to meet the critical challenges facing our nation. Meeting these challenges will require all Australians to confront change, to make sacrifices, to seize opportunities and to adapt. To do this, Australians need access to a quality education and they need a first-class health system. Put simply, our economy is built on skilled and healthy workers. That is why this government is also investing in our future through the Health and Hospitals Fund. This fund will support health infrastructure priorities into the future. It will invest in health and hospital facilities, in medical technology and equipment, and in major medical research facilities and equipment. These three important funds together will be used to invest $40 billion in nation building, for our long-term future. I think this is an agenda that Labor can be very proud of.

But it is not just about building for the future. As we confront change, as we invest for the future, we must also protect those who are vulnerable now. The government is already easing the financial burden on families brought about by high interest rates and other cost-of-living pressures. The government is doing so through targeted assistance to Australian families, targeted assistance that will provide help now while also helping Australians build the skills they need now and into the future. The government has therefore put together the $55 billion Working Families Support Package. This package is comprehensive and will help Australian families claw their way back out from under the financial burdens placed on them by the previous government.