Don Farrell (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Senator Conroy, the Minister representing the Treasurer. Can the minister update the Senate on how the government is responding to the increasingly serious crisis unfolding in international financial markets and whether he is aware of any alternative policy responses?

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

I thank Senator Farrell for that question. The turmoil in global financial markets—and yet again we hear laughter from those opposite—including the recent developments in the United States continues to permeate through economies around the world. Australia is not immune to these developments but we are better placed than most to withstand the fallout. The fundamentals of our economy remain strong. However, this is not a time to be complacent. We are confident that with the right, consistent policy settings we will come through these difficult global times in a stronger position. That is what this international economic crisis demands: consistent, responsible economic management.

Despite this, yesterday, those opposite elected a new leader who has walked both sides of the street on every serious economic issue this year. In his inaugural speech, Mr Turnbull, the member for Wentworth stated that we are facing probably the gravest economic crisis globally in any of our lifetimes. Then he proceeded to blow $20 billion in 20 minutes by recommitting the opposition to the reckless spending and irresponsible budget-blocking measures those opposite have adopted all of this year. While the new opposition leader acknowledges the gravity of the international situation, he continues to play short-term politics with the surplus.

Of course, this is not the only example of the member for Wentworth walking both sides of the street. In fact, during his nine months as shadow Treasurer, the member for Wentworth has crossed the street more times than the proverbial chicken. At first, he could not decide whether inflation was a problem or not. At the start of the year, he told us that inflation was a ‘fairytale’. That is right, your new leader described the inflation issue as a ‘fairytale’ and said that inflation was running at ‘manageable levels’. Then he told us that inflation was a very serious challenge that needed to be addressed. Then he could not decide whether interest rates should go up or down. He told us, at the start of the year, that rates should go up and then, after they did twice, he told us that they should remain where they are.

Finally, on the topic of the budget surplus—a crucial buffer at these times of international economic turbulence—he has been on every side of that issue as well. Before the budget, he said there was no need for spending cuts; that the surplus was about right. That is what he said before the budget. After the budget, he said we did not cut hard enough; in fact, we needed a bigger surplus. Now he says there is no need for a big surplus, that we can make do with a smaller one. The new opposition leader talks about the need for economic leadership. Perhaps someone should tell him that economic leadership is not walking both sides of the street; economic leadership is acting consistently in the long-term interests of the Australian economy. Our strategy, which combines relief for families with long-term investment in growth, is the best way to respond to the substantial global challenges that have reached our shores. (Time expired)