Mark Furner (Queensland, Australian Labor Party) Share this | Hansard source

I rise today to dispute Senator Fifield’s matter of public importance attacking the Gillard government’s management of this nation’s economy. In our first term in government we were faced with the biggest economic crisis of our generation—the global financial crisis. When we heard of the crisis unfolding in the United States, the Labor government took swift action and implemented the Nation Building and Jobs Plan to stimulate our economy and ensure that we did not go down the same path. Our $42 billion Nation Building and Jobs Plan did what it was supposed to do, and Australia’s economy continues to outperform those of other developed nations. Our stimulus package injected much-needed funds into education through the Building the Education Revolution as well as into infrastructure, roads, social housing, renewable energy, small business, defence housing and even into the hands of working Australians. The coalition voted against this package that kept our economy afloat and our citizens in jobs. The coalition has attacked our spending and our deficit, which is to be paid back three years ahead of schedule. The coalition would have kept this nation’s surplus and let people join the unemployment queues, lose their homes and keep our schools infrastructure back in the past just like the coalition. Instead, due to the government’s strong and decisive action and injection of stimulus into the economy, our nation’s schools now have the 21st century facilities that they had been yearning for.

I have been privileged to open many BER projects in Queensland, and I am yet to hear any negative feedback about the scheme that kept the construction companies, sparkies, painters and public servants in jobs throughout the economic downturn. Students have new libraries, new computer labs, new halls, new indoor sports centres and refurbished classrooms thanks to the Labor government’s BER. I have heard from principals who are still in disbelief that they have these new facilities, which would not have been provided to them under a coalition government. I have heard from students who are excited that they now have somewhere to play sport when it is raining, a new library in which to research assignments or even a new dance studio. Benowa State School, for example, hires out its new dance studio to the local community. The BER not only assisted the students, the builders and anyone else who worked on these facilities but also assisted the furniture companies whom the schools chose to furnish their new classrooms, computer labs and libraries. It also provided local community groups with facilities to hold meetings and functions.

Our stimulus package helped Australians enter the housing market for the first time. Our boost to the first home owners grant assisted 250,000 Australians into their first home. The first home owner boost provided an additional $7,000 to the already existing $7,000 first home owners grant, and those who chose to purchase or build a brand new home received $14,000 on top of the grant. This has supported thousands of jobs in the housing supply industry, including those of electricians, plumbers, builders and tradespeople.

The Nation Building and Jobs Plan also provided funding to invigorate existing and build new facilities for the community to enjoy. The government allocated $800 million under the Regional and Local Community Infrastructure Program to help build and renew community centres, town halls, parks, playgrounds, sports facilities and swimming pools. This initiative employed many Australians and ensured our citizens had access to brilliant infrastructure. Under the $250 million allocation, 3,220 projects were approved for funding to 566 councils. More than 2,750 have already been completed. Under the $550 million allocation, 70 of the 137 strategic community projects have commenced.

It is true that we are strong economic managers. Just look at the new policies we have implemented that will still enable us to go back to surplus in 2012-13. In January 2011 our nation’s first Paid Parental Leave scheme begins. We will be enabling working Australians to stay at home longer with their new born or adopted children. Providing support to our working families is important in maintaining a relationship between employers and employees and provides an avenue for mothers to return to the workforce. We also overhauled our pension system and provided a much-needed increase for our four million pensioners who depend on it. Are you telling me that a pension increase is irresponsible?

How can the opposition accuse us of mismanagement when we are in one of the best fiscal positions in the world? We have the lowest debt and deficit of all major advanced economies. We have the lowest unemployment rate of all major advanced economies. We were the only major advanced economy to avoid recession and we maintained our AAA credit rating.

If we had not taken action during the GFC, about 200,000 jobs would have been lost. Can you imagine the struggle our working families would have faced if this were the case? Instead, this year 360,400 jobs were created, with 55,800 in September and 56,700 in August this year. This is the biggest two-month increase in employment in 22 years. Interest rates are still lower than they were under John Howard when he left office, and we have delivered tax cuts for our working families and low-income earners. Someone who earns $50,000 a year is now paying $1,750 less in tax than in 2007. In fact, the highest our interest rates had even been in this country were under a coalition government. Under former Prime Minister Malcolm Fraser and Treasurer John Howard interest rates peaked at 21.4 per cent. During our first term, interest rates continued to drop, but, since we avoided recession and have a strong economy, interest rates have started to go up. This was always going to happen. However, interest rates are still lower today than when the coalition was ousted from government in 2007.

As we all know here today, interest rates are controlled by the independent Reserve Bank of Australia. However, last week the shadow Treasurer, Joe Hockey, said he believed the RBA needed to be regulated on interest rates. He said:

… I would say that the Treasurer is not using the obvious levers available to put pressure on the banks to stop them from raising interest rates outside of the changes—