John Faulkner (NSW, Australian Labor Party) Share this | Hansard source

I will respond to some of what Senator Sinodinos said a little later in my contribution. I want to begin this afternoon by welcoming the opportunity to speak on this matter of public importance about the 2013-14 budget. Of course, as is my practice, I will leave the hysteria and ritual denunciation to opposition senators. After all, it is just same old, same old from them: hyperbole, negativity, doom and gloom. Perhaps it is time for a more objective assessment, the sort of assessment that former Senator Rosemary Crowley—who I note is in the gallery—was noted for in her time as a senator in this chamber. I believe that such an assessment would acknowledge that the government has found the right balance between strong investment in our nation's future and responsible savings. I believe such an objective assessment would acknowledge the government's investments in education and disability care as very significant achievements indeed. Certainly, such an objective assessment would have to acknowledge that the government has delivered this budget from a position of economic strength, as one of the strongest economies in the developed world.

What is this record? What do the facts actually tell us? Our economy has grown by 13 per cent since the beginning of the global financial crisis. More than 950,000 jobs have been created by the government. For the first time ever, we have a AAA credit rating from all three international ratings agencies. This has never been achieved by Australia before, and only seven other countries in the world share this achievement. Inflation is contained and interest rates are at record lows. All of this has been achieved in a climate of global economic uncertainty and during a period in which we have had the world's worst recession since the Great Depression.

The decisive action taken by this government during the global financial crisis meant that we have emerged from the GFC with strong growth, low unemployment and solid public finances. Regardless of what the opposition says, the truth is that our economic position is the envy of the developed world. Australia has seen 21 consecutive years of economic growth. Our economy grew by 3.1 per cent over the past year around its trend rate and faster than any major advanced economy. Since this government came to office in 2007, Australia has moved up three places to now be the 12th largest economy in the world, passing South Korea, Mexico and Spain. More than 950,000 jobs have been created since the current government came to office, despite the fact that millions of jobs have been lost worldwide.

Australia's unemployment rate of 5.5 per cent is one of the lowest in the developed world, less than half the unemployment rate in Europe, which is 12.1 per cent, and significantly less than that of the United States of America, which stands at 7.5 per cent, and the OECD, which stands at eight per cent. Our net debt will peak at only 11.4 per cent of GDP in 2014-15, less than one-eighth of the peak across major advanced economies, with many experiencing levels of net debt over 90 per cent of GDP.

I do not expect all members of the opposition to agree with these facts and figures. After all, they are just statistics, and the opposition seems to reject statistics from time to time. But I know that Senator Sinodinos, who spoke just before me in the debate, was of course the former Prime Minister's economic adviser—that is, Mr Howard's economic adviser—from 1987 to 1989. He had a bit of a break and then came back and was again economic adviser to Mr Howard from 1995 to 1997 and then became Mr Howard's chief of staff from 1997 to 2006. So I suppose that Senator Sinodinos would have seen the article in today's Sydney Morning Herald. I do not always quote the Sydney Morning Herald as a journal of record, but there it is on page 7, under the cross-head 'Unemployment: Former PM surprised by low rate'—and I interpolate here that the former PM is Mr Howard: 'Resilient economy in better shape than most, says Howard'. This is written by journalist Deborah Gough, and I thought I would share it with the Senate, particularly Senator Sinodinos, who was lyrical about the efforts of the government which he served as a staffer. It says:

Former prime minister John Howard gave the economy a big tick before Treasurer Wayne Swan delivered his sixth budget on Tuesday night.

I wish he had told Senator Sinodinos! It continues:

In an off-the-cuff speech on Friday, reported by trade website The Adviser, Mr Howard was upbeat about the economy.

I wish he had told Senator Sinodinos! It continues:

"When the Prime Minister and the Treasurer—

this is quoting Mr Howard directly. Mr Howard said:

"When the Prime Minister and the Treasurer and others tell you that the Australian economy is doing better than most—they are right," Mr Howard said.

The low unemployment rate had surprised him …

"We are still fortunate that we have an unemployment rate with a five in front of it. I wouldn't have thought that was going to be possible a few years ago, and I don't think many people would. Our unemployment has remained pleasingly quite low," …

"And our debt to GDP ratio, the amount of money we owe, to the strength of our economy, is still a lot better than most other countries," he said.

There is Mr Howard, Senator Sinodinos's former employer for all those years, endorsing the Australian economy and, I believe, endorsing the stewardship of the Australian economy of the government elected in 2007. On this occasion—and I would rarely say it—Mr Howard got it right.