Senate debates
Wednesday, 3 September 2008
Questions without Notice
Economy
2:28 pm
Gary Humphries (ACT, Liberal Party) Share this | Link to this | Hansard source
My question is to the Minister representing the Minister for Small Business, Independent Contractors and the Service Economy, Senator Carr. How many jobs have been lost in the service economy since the election of the Rudd Labor government?
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
What we have noticed is that—
Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
What we have noticed is that you don’t have an answer.
John Hogg (President) Share this | Link to this | Hansard source
Senator Carr, ignore the interjection and refer your comments to the chair.
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
What is apparent is that global economic events, such as the US subprime crisis, and the global economic turmoil are having an impact on consumer and business confidence around the world. Here in Australia what we have also seen is that there have been further influences as a result of the effects of rising petrol prices in recent times and of course the 12 interest rate rises that occurred as a result of the previous government’s failures to actually deal with its responsibilities with regard to the warnings that the Reserve Bank offered. Yesterday the Reserve Bank made changes to the interest rate regime in this country, and I have no doubt that those changes will have a very positive impact on business confidence and consumer confidence.
Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source
Senator Sterle interjecting—
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
The difference between this government and the previous government is that we are actually in the business of ensuring that we respond to these challenges. We believe that this country can work its way through these challenges and come out so much stronger as a result of it. This is a government which is helping small business by reforming the tax system, by providing tax cuts to small business, by investing in education and skills development, by providing $42 million in funding over four years for small business advisory services, by investing in infrastructure and by embarking upon an ambitious regulatory reform program covering some 27 areas of overlapping and inconsistent business regulations. As a consequence of that, we are able to actually reduce the amount of red tape.
What we have seen in contrast is a coalition which has been engaging in irresponsible, short-term political opportunism by blocking key budget measures in this chamber. This is a measure which is calculated, surely, to undermine business confidence and consumer confidence. What you find is that the opposition has failed to measure up to its responsibilities to work to ensure that this country meets the challenges that we are facing as a result of the international economic circumstances. What we have seen today is that the national accounts figures have indicated that this is a country that is still enjoying solid growth.
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.
John Hogg (President) Share this | Link to this | Hansard source
Order! Senator Macdonald deserves to be heard in silence.
Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition in the Senate) Share this | Link to this | Hansard source
This minister makes a complete mockery of question time. He was asked a question on numbers that have lost their jobs in the service industries since the Rudd government has been in power, and nowhere in his answer has he gone near it. This is not just a point of order on the question of relevance but a point of order on the whole basis of having question time, which is to get information from ministers. This minister has been asked three simple questions and seems incapable of understanding them and of giving the figures that we have asked for in them.
Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source
Mr President, on the point of order: the minister has been responsive. The issue that has been raised is whether the minister is relevant to the question asked. I submit that the minister has been relevant to the question that has been asked. As to the remaining part of the issue that Senator Macdonald raises about other matters, it seems to me he has stretched a long way further than what he may permissibly do in respect of raising an issue of relevance. Be that as it may, Senator Macdonald has been in this place long enough to understand that he can raise an issue of relevance in question time. That is his right. As to the other matters, I think Senator Macdonald has stretched far and wide in respect of the relevance issue. He should confine his remarks to the issue around relevance itself, if he wants to raise a point of order, and address his remarks to that. But I submit there is no point of order.
John Hogg (President) Share this | Link to this | Hansard source
Senator Macdonald, as you know, there is no point of order. I cannot instruct a minister, as I have told your colleagues previously and as other presidents before me have said, on how to answer a question or direct them to answer it in a specific way. I draw the minister’s attention to the question and I advise the minister that there are 45 seconds in which to address the issues raised by the question.
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
The fact is that the national accounts figures today highlight that Australia is still enjoying solid economic growth despite the international challenges that the world economy is facing, despite the enormous pressures that are being brought to bear as a result of the financial crisis that has emerged from the United States and despite the fact that there has been a slowing in consumer confidence, particularly in retail, which has affected employment in the retail sector. Despite all of those factors, we are still enjoying solid growth in this country. This is a government committed to working through these challenges and ensuring that Australia comes out of them much stronger than it is at the moment.
Gary Humphries (ACT, Liberal Party) Share this | Link to this | Hansard source
Mr President, I ask a supplementary question. I refer the minister to this month’s Australian Industry Group performance of service index, which shows that employment in the services sector has fallen for the third consecutive month. What specific steps is this government taking to prevent further job losses in this sector—or is the government just content to sit back, fold its arms and watch unemployment in this sector creep towards the 4.75 per cent that is forecast?
Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source
The latest performance of service index suggests that activity in the service sector has contracted in August amid a softening of consumer confidence and business confidence, weaker economic conditions and higher petrol prices. This is, of course, expected as a result of the slowing of the economy. What we have here is an employment index that continues to decrease in the context of an international environment in which Australia by comparison is doing remarkably well. The real issue here is: what were the circumstances that led to those 12 interest rate rises, 10 of which occurred under your government? Why was it that you chose to ignore 20 warnings from the Reserve Bank about the consequences of your policies? This is the direct question that the opposition should be now answering, and that is what the Australian people will be seeking from you.