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

My question is to the Minister representing the Treasurer, Senator Conroy. Can the minister update the Senate on the national accounts released today?

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 September quarter national accounts released today show that GDP growth increased by 0.1 per cent in the September quarter to be 1.9 per cent higher over the year. This is a positive outcome for Australia in the context of a global recession. As I have attempted to point out to those opposite on numerous occasions, we need to put these figures into perspective. In other words, and particularly for the benefit of those opposite, we need to compare these figures with what is going on in other countries during this difficult period. Let me repeat again—because I have read out the specific figures before: the US, the UK, Germany, Italy, Spain, Japan, Singapore and Hong Kong all recorded negative growth in the three months to September. And two-thirds of OECD economies are expected to contract in 2009. So, while most countries are contracting, our economy continues to grow.

Australian households are pulling back on their spending in the face of the global financial crisis. Household consumption increased by just 0.1 per cent in the September quarter as households continue to rebuild their savings. Businesses are continuing to invest in our economy. New business investment rose by a solid 1.8 per cent in the quarter and is 12.5 per cent higher over the year. Let me stress that point in particular. (Time expired)

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

Mr President, I ask a supplementary question. In light of today’s national account figures, can the minister update the Senate on what other measures the government is taking to stimulate growth and create jobs?

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

Today’s figures show we cannot resist the pull of international economic forces, but our economy is better placed than other nations to face this global financial crisis. As I have said in this chamber before, and as the Treasurer said yesterday in the other place, all arms of policy are directed towards buffering our nation and its people from the worst the world can throw at us. The government has acted decisively to strengthen growth and limit the impact of the global financial crisis on Australian jobs. Our $10.4 billion Economic Security Strategy, the bulk of which kicks in from next week, will provide relief to households and strengthen growth. The $15.1 billion COAG package will help stimulate growth, create jobs— (Time expired)

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

Mr President, I ask a further supplementary question. Can the minister outline why, in the current global circumstances, decisive action is important?

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

Australians can take heart from the fact that both the government and the Reserve Bank are taking every responsible step to strengthen the Australian economy and protect jobs in the face of the global financial crisis. We know we are facing almost unprecedented economic conditions. We know that most major and developing economies are being affected. And we know that the Australian economy has slowed considerably since the beginning of this global crisis. But we are not out of the woods yet. This will be a long and protracted global financial crisis; it has a long way to run. We will continue to take whatever action is necessary to support growth and limit the impacts of the global financial crisis and the global recession on Australian jobs. (Time expired)