Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

I thank Senator Hurley for that question. The IMF has once again strongly endorsed the government’s economic policy and its handling of the global financial crisis. It has also confirmed that growth in the resources sector creates challenges which reinforce the need for responsible economic management. As the Treasurer has noted, the government is determined to create a stronger, broader and more competitive economy that benefits all Australians. A diversified economy will reduce the risk of instability in any one sector or any one major export market, which might, in fact, if it were to occur, drive down confidence in the whole economy.

Diversity does not mean propping up inefficient and non-competitive industries. It means we must support productivity growth across the economy through our investments in education, skills, infrastructure and innovation. This is one reason why we are investing so heavily in universities and science research programs to enhance the productivity and the productive capacity of our industries. That is why we are driving innovation and renewal in established industries and it is why we are reforming research and development tax incentives to support small and medium sized enterprises prepared to engage in innovation. That is why we are doubling the level of support for small and medium sized enterprises engaged in genuine R&D and that is why we will be calling upon this parliament to support those reforms. (Time expired)