Ruth Webber (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Conroy, the Minister representing the Treasurer. Can the minister outline for the Senate the challenges confronting the domestic economy? Can the minister advise the Senate of what action the government is taking to meet these challenges?

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Rudd government has set about modernising the economy and increasing its capacity so that we can meet the big challenges, withstand international turbulence and deliver for Australian families. The truth is that the Rudd government inherited an economy shackled by poor productivity and capacity constraints, which have fuelled high inflation. These are facts—not political opinion. They are cold, hard data produced by the ABS and the RBA. Fact 1: when the government was elected, inflation was running at a 16-year high. The RBA is projecting inflation to remain elevated until 2010. Fact 2: when the government was elected, interest rates had risen 10 times. That is right. Interest rates had risen 10 times in a row, and were the second highest amongst major advanced economies. Fact 3: average annual productivity growth over the last five years has been lower than in any equivalent period in at least the last 16 years—lowest in the last 16 years. In the last year of the Howard-Costello government, productivity growth was zero. Zero! Fact 4: since 2004-05, Commonwealth spending has grown, on average, at around four per cent per year in real terms—more rapidly than in any other four-year period in the past decade and a half. Fact 5: at the time of the election, despite the best terms of trade in 50 years, we have generated 5½ years of monthly trade deficits—the longest sequence in Australia’s economic history. When it comes to the opposition’s economic legacy and the challenges that we face, the speech made by the shadow Treasurer shows that he is in a state of denial. In his uncontrollable arrogance, he reckons—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. The minister is clearly just reading from his computer. I suggest that he simply send an email to Senator Webber, who does not seem to be listening to his answer, so that she can read it.

Alan Ferguson (President) Share this | Link to this | Hansard source

Senator Macdonald, I do not think that you will be surprised to learn that I rule that point of order out of order.

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

In his uncontrollable arrogance, he reckons businesses are wrong about skill shortages, the ABS is wrong about inflation, the Treasury is wrong about unsustainable spending, the RBA is wrong about capacity constraints, the BCA is wrong about the Liberal’s failure to invest and the AiG is wrong about poor productivity growth. The shadow Treasurer is so out of touch that his only policy for inflation, productivity and skills is to do nothing. That is no way to run a modern economy. That is a risky and dangerous approach that gave us the highest inflation and the worst productivity in 16 years. This government is putting in place infrastructure, like the high-speed broadband fibre-to-the-node network, to deliver—

Nick Minchin (SA, Liberal Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Minchin interjecting—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

I will take that interjection, Senator Minchin. I want to make it absolutely clear that, despite interjections from those opposite and some ill-informed media commentary, my department is working night and day to deliver on Labor’s commitment. (Time expired)