Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, my question is to the Assistant Treasurer, Senator Sherry. Is the Assistant Treasurer aware that overnight the Organisation for Economic Cooperation and Development released the 2009 Employment outlook annual report? Can the Assistant Treasurer tell the Senate about this latest independent assessment of Australia’s economy? What does the OECD say about the role of the government’s stimulus package in Australia’s economic performance during this global recession, especially in comparison with other advanced economies? Does the OECD report indicate whether the government’s stimulus package has lifted employment and whether the number of jobless would now be higher without the stimulus strategy, and, if so, does it say how many jobs this swift and decisive government action has saved? Finally, does the OECD report forecast whether the government stimulus strategy will have— (Time expired)

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Firstly, the OECD is a world-leading, independent and well-respected economic organisation. It states that job losses across the OECD would have been far higher if national governments had not implemented fiscal stimulus packages. The fiscal stimulus strategy and actions of governments around the world have in fact avoided a depression.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

Senator Ian Macdonald interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

It is a lot more reliable, Senator Macdonald, than the Australian. This is what the report says:

Vigorous government actions to stabilise financial markets and raise aggregate demand appear to have prevented the financial crisis from developing into a depression, but have not been adequate to prevent a severe recession in most OECD countries.

‘Vigorous government actions’? Let’s see: they would be the fiscal stimulus and the bank guarantee. These are the very things that the Liberal and National parties have continued to criticise, attack and oppose.

The OECD singles out the Australian government stimulus as having been particularly effective in supporting employment. While the OECD states that most fiscal packages generally have not had a strong effect in cushioning the initial decline in employment, there is one exception—that is, Australia. Australia is a notable exception. The OECD estimates that Australia’s stimulus will lead to employment being 1.4 to 1.9 per cent higher in 2010 than would otherwise have been the case. That is 160,000 to 210,000 Australian workers whose jobs have been saved by decisive action, and in part the stimulus package has made a significant contribution. Those opposite have vigorously opposed and vigorously criticised the stimulus package that has saved more than 200,000 jobs. (Time expired)

Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Does the OECD 2009 Employment outlook annual report contain an assessment of the role of fiscal stimulus packages in other countries and how well they have supported jobs in their economies? Does this assessment include an outlook on the general employment situation in other advanced economies? Is there any kind of warning in the report about the dangers of allowing unemployment to rise further? In particular, does the report raise concerns with difficulties faced in getting people back to work after they have been out of work for a lengthy period of time and after a recession? What do the unemployment forecasts for Australia and for the other OECD economies contained in the report tell us about the prospects of a recovery from this global recession?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Unfortunately the report’s assessment of the outlook for workers in OECD countries, other than Australia, is particularly grim. They are forecasting some 57 million people will be without jobs across advanced economies by the end of next year. This will be an almost doubling of unemployment since the beginning of 2008—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern Australia) Share this | Link to this | Hansard source

What about underemployment in Australia?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

and, yes, Senator Macdonald, underemployment is an important issue in every country. The current forecast is for OECD-wide unemployment rates to reach 9.9 per cent by 2010. For Australia over the same period, the OECD forecast is 7.7 per cent. And as we know, it is currently 5.8 per cent. There remains a massive challenge as unemployment continues to rise here and around the world. As I have said on a number of occasions, even though Australia is the only advanced economy not to have gone into recession, with 0.6 per cent growth, that in itself is not sufficient to maintain jobs and prevent unemployment. (Time expired)

Steve Hutchins (NSW, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the Assistant Treasurer advise the Senate of the government’s plans for the future of Australia’s stimulus package? In light of the dire circumstances around the world and how they will continue to affect the Australian economy, will the government maintain its original three-stage structure of our decisive stimulus package—that is, immediate, medium- and long-term elements in support of our economy?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Thank you to Senator Hutchins for emphasising the points in his questions. Unfortunately, it has not penetrated the minds of those opposite just how important the stimulus package has been.

Mark Arbib (NSW, Australian Labor Party, Minister Assisting the Prime Minister for Government Service Delivery) Share this | Link to this | Hansard source

They didn’t even know there was a global recession.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Exactly! They do not even know there is a global recession; they do not want to acknowledge there is a global recession. They do not want to acknowledge that their negative approach in opposing the fiscal stimulus package would have cost jobs. If we had followed the advice of the Liberal opposition, we would have more than 200,000 additional unemployed. It is very sad to see the very divided and split Liberal-National party stand for increasing joblessness. That is their prescription. The old neoliberal approach is to increase unemployment, and yet just a few months ago they were saying it was all about jobs, jobs, jobs. In fact, what they are arguing in their negative, sit-on-their-hands approach— (Time expired)