Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Edwards for that very important question. I am pleased to advise the Senate that the government is optimistic about the economic outlook for Australia. The Australian economy is in its 25th year of continuous growth. Our economy continues to grow, despite the biggest fall in our terms of trade in about 50 years. Where other commodity based economies like Canada and Brazil are in recession, Australia continues to grow.

Why is that so? There are a range of reasons. Partly it is because of the important structural reforms pursued by previous governments. We have an independent Reserve Bank, which means that we have independent monetary policy decisions. We have a floating exchange rate, which helps to cushion the effect of significant falls in our terms of trade—as increases in production volumes and export volumes, including through our resources sector, of course, have helped to cushion some of the effects of significant falls in key commodity prices.

But it is very important that we continue to work as a country to ensure that we are the most productive we can be and the most competitive and the most innovative. That is, of course, where the Turnbull government is dedicating all of its policy focus at present. Our very ambitious free trade agenda is all about making sure that Australian exporting businesses are the most successful they can be in getting access to key markets in our region. The reasons we are pursuing free trade agreements like the China-Australia Free Trade Agreement are all about making sure that Australian export businesses are able to grow their business into those markets beyond resources exports, moving forward. We are an open, commodity based trading economy. It is very important in that context that we prepare ourselves for the inevitable future shocks that will come our way and that we prepare for the new future opportunities to grow. (Time expired)