George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy. Will the minister confirm that Labor’s budget forecasts unemployment of nearly one million Australians?

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

I thank Senator Brandis and congratulate him on being allowed to ask a question. Let us be clear. What is absolutely clear in the budget papers when it comes to unemployment, the question about which Senator Brandis is asking, is that 210,000 Australians would be unemployed if we had followed Senator Brandis’s and the Leader of the Opposition’s policy agenda—210,000 Australians.

To come in here and cry crocodile tears for those who are going to suffer, through no fault of their own but through the fault of the global economic recession, and pretend that you are even remotely interested in the plight of those Australian families borders on the incredulous. Those opposite would condemn a further 210,000 Australians and their families to unemployment because of the policies they are pursuing and because they are not interested in the slightest. Those opposite have no credibility. They seek to walk both sides of the street. They seek to feign sorrow for the 900,000-plus Australians who will become unemployed yet seek to increase the burden for a further 210,000, plus more to come, depending on how irresponsible they are in this chamber in the near future. Those opposite should take a good, long, hard look at themselves. (Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Do the unemployment projections take account of the inevitable job losses resulting from Labor’s proposed job-destroying emissions trading scheme?

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

I thank the senator for that. The underlying assumption made by Senator Brandis in that question is fundamentally flawed because, as my colleague Senator Wong has repeatedly outlined, Labor’s policy is to increase jobs in many sectors. Many sectors will get an increase in jobs. So the bald assertion—no pun intended—from those opposite that there will be massive job losses ignores the reality of Labor’s comprehensive plans in these areas. I am sure, if they asked a question on CPRS to the relevant minister, she would delight in taking them through the jobs that are being created through this government’s initiatives in the environment of greenhouse science. So feel free, because I know Senator Wong would love to deal with it. (Time expired)

George Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the minister aware that New Zealand is forecast to have a deeper and longer recession than Australia? Why is it that it has only forecast five per cent unemployment while Australia is now looking at the horrendous unemployment level of 8.5 per cent? Is that not further proof that Labor has lost control of the nation’s economy? Minister, when are you going to stop hiding behind the global financial crisis? When is the Australian government going to accept responsibility for Australian unemployment?

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

I am willing to take at face value that Senator Brandis was handed this question, because I am sure he did not write it himself. To suggest that there is a comparison between the New Zealand economy and its exports and resources and the Australian economy and its interrelationship with its resource base beggars belief. Australia has been dragged into this recession last because we on this side of the chamber have had the courage to implement tough decisions. Those opposite suggest that New Zealand’s economy relies on the resource sector. New Zealand did not have a government that just wasted 10 years of a resource boom, frittered it away with cash splashes and did not address the infrastructure needs or the long-term productivity needs of the country. And to come in here and suggest that New Zealand is a comparison point is frankly— (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Conroy. Given that we are in the midst of the most challenging global economic downturn for three-quarters of a century, virtually every advanced economy in the world is expected to be in deep recession this year. In Australia, government revenue has taken a massive hit with the write-down of around $210 billion across the forward estimates since the 2008-09 budget as a result of the worsening global condition. Our gross domestic product is expected to decline by half a per cent this financial year before recovering in 2010-11. Can the minister outline to the Senate what measures are contained in the budget to support nation building and economic recovery?

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

I congratulate Senator Sterle on that excellent question and commend the level of research that went into it to the opposition question time tactics team. We are indeed facing an unprecedented contraction in the global economy. The centrepiece of last night’s budget was nation building for recovery. This government is committed to supporting the jobs of today by building infrastructure Australia needs for tomorrow. As the Treasurer noted last night, the Rudd government has delivered a budget that is carefully crafted to create a solid foundation for future growth and position us to capitalise on the global recovery when it comes. At the core of this budget is the biggest plan for spending on nation-building infrastructure since the Snowy Mountains scheme. The budget is focused on stimulating productivity and supporting jobs, underpinned by investment in rail, road, port and broadband infrastructure that are the building blocks of the 21st century economy.

It builds on our education revolution, giving schools, universities and TAFEs the funds to provide training places that will ensure Australian workers are skilled up and ready when the recovery comes. The budget creates a historic system of paid parental leave, giving new parents the time to spend with their babies while retaining their links to their jobs and providing a massive boost to workforce participation and productivity. We are investing in world-class hospitals, research and innovation and giving our pensioners the fair go they deserve. (Time expired)

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that international experts around the world have indicated that investment in productive economic infrastructure will be vital for both creating jobs in the short term and laying the foundations for future growth, productivity and competitiveness in the medium to long term, can the minister provide further detail on infrastructure spending contained in the budget? What, in particular, will the budget deliver to regional and rural Australia?

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

The centrepiece of the budget is the $22 billion we are investing in the infrastructure of our nation, which it needs to grow and prosper in the years ahead as we emerge from the global recession. The government will invest $8.5 billion in Australia’s critical road, rail and port infrastructure needs, neglected for 11½ long years by those opposite. A key investment is an additional $3.4 billion in Network 1, the road freight corridor between Melbourne and Cairns, which includes the Hume, Pacific and Bruce highways. The government is also investing over $3 billion in other road infrastructure projects in regional New South Wales and Queensland. (Time expired)

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When there is quiet, I will call on Senator Sterle.

Glenn Sterle (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. The budget announced last night was framed in the most challenging economic circumstances since the Great Depression, and some tough choices were made to ensure that our economy moves forward on a sustainable footing in the future. In this light, could the minister explain why the nation-building measures announced in last night’s budget are required now? Why are these investments in infrastructure needed at a time when government revenues are under such extreme pressure? How will these measures support jobs and stimulate the economy?

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

The Rudd government is determined to invest now in the building blocks of long-term growth and economic recovery. As Australia is hit by the brutal force of the global recession, we must now invest in the infrastructure and the human capital that were so shamefully neglected by those opposite during the boom years. Rather than invest in the future, those opposite chose to pursue short-term political gain. The Rudd government is now dealing—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Conroy, resume your seat. It is not a time for debate across the chamber.

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

The Rudd government is now dealing with the fallout of the failure of those opposite to build essential infrastructure for the 21st century and to invest in human capital for education and training—and you did. Up against the wall— (Time expired)