Glenn Sterle (WA, Australian Labor Party) Share this | Hansard source

I rise to respond in this address-in-reply debate to the Governor-General’s speech. In the last three years there has been both bad news and good news for Australia. The bad news has been that, while we did not fully realise it at the time, the major world economies, including Australia’s, stood on the brink of an economic disaster, which was to unfold with full force during 2008 and became known as the global financial crisis. I am a Geelong supporter and a Geelong member so GFC has different connotations for me, and unfortunately we are having our own little crisis too. But I am talking now about the global financial crisis that turned out to be the greatest economic setback experienced by the global economy since the Great Depression of the 1930s.

Very few leading economists forecast the speed or the extent of the world economic downturn. In fact, few could have expected the dire situation the world would face as we stood upon the virtual precipice of a systemic collapse of the world’s financial systems. However, through the concerted action of the major Western economies, the global economy was brought back from the brink of ruin and fortunately is recovering, although in a modest fashion. Neither the US nor Europe have yet to restore their economic health to the levels previously enjoyed. Indeed, many leading commentators remain pessimistic about the likely speed of economic recovery in the US and Europe. The US still has significant problems with high unemployment and high debt levels, and several European nations are by no means out of the woods yet. Closer to home, there was no doubt that at the time we faced the massive risk that our economy would be overwhelmed by overseas events. While our economy is strong, we are reliant to an extent on the health of nations such as China and India, who represent major export markets for us.

The good news for Australia has been that in November 2007 Australia elected a Labor government. This decision by the Australian people provided a government prepared to make the hard decisions. On 24 November 2007 Australians elected a government that knew what needed to be done to protect the jobs and livelihoods of millions of Australians. The Labor government was prepared to make the hard decisions. It was this Labor government that took decisive action to provide economic stimulus that kept thousands—and I mean thousands—of small businesses’ doors open. It was a stimulus that kept brickies, sparkies, plumbers, roof tilers and many more actively engaged, a stimulus that provided much sought after work to truck drivers, store persons and suppliers of building materials. It was a national building stimulus. Unfortunately, that lot opposite at every single turn opposed our stimulus packages, did not support one—none of you.