Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sherry. Can the Assistant Treasurer inform the Senate on what the latest economic indicators tell us about Australia’s emergence from the global recession? What has been the role of the Rudd government’s quick and decisive action in guiding Australia through the worst of the global financial crisis and onto the road to full recovery?

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

The indicators continue to be positive for the Australian economy and for business and for jobs. Significantly, further improvement is likely, with last week’s NAB quarterly business survey finding business confidence strengthened further in the December quarter. It is now at the highest level in 15 years. This boost to business confidence comes off the back of the Rudd government’s economic stimulus and its underpinning of ongoing investment and job creation in the face of considerable economic challenges that confront our global economy. Business conditions also improved further in the December quarter. They are at their highest level since March 2008. The improvement was broad across most sectors, with finance, property services, residential construction and construction services performing the best. The independent OECD report released last week made it clear that fiscal and monetary stimulus in Australia shielded businesses and citizens from the initial impacts of the global recession. Employment in Australia in 2010 will be between—

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Abetz interjecting—

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

Senator Abetz is of course interjecting, Mr President, as you know. He cannot find any reputable economic commentator to support the Liberal-National party’s opposition to the stimulus—he cannot find any. Today’s new vehicle sales figures released by the Bureau of Statistics are further proof of the success of the stimulus. Although the January 2010 seasonally adjusted estimate for sale of new vehicles decreased by 3.4 per cent compared to December 2009, this was expected because of the government’s small business and general business tax break, which concluded on 30 December—another part of the stimulus package. The impact of the stimulus tax break is shown in year-on-year figures. According to the ABS, the January 2010 seasonally adjusted estimate for motor vehicle sales increased by some 15.6 per cent. (Time expired)

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. How does Australia compare to the rest of the world in terms of economic performance through the worst global financial crisis in 75 years? What are the Rudd government’s plans for full recovery from the global recession and for continuing to keep Australia at the head of the pack?

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

I was just referring to car sales. Of course, car sales in most other advanced economies fell off a cliff, and that did not happen in Australia. As a comparison, Australia is one of three of 33 advanced economies to avoid recession during the global financial crisis—just one of three. The IMF estimated the Australian economy grew by just under one per cent in 2009. That compares to a contraction of 3.2 per cent for other advanced economies. Other advanced economies, on average, went backwards over the last calendar year. Australia’s economy grew, and all we have from those opposite is criticism of the measures the government took to cushion the Australian economy. Australia, with 5.3 per cent unemployment, has the second lowest jobless rate behind Japan in the advanced economic world. Since September 2008, of all the major economies in the world, Australia has managed— (Time expired)

Annette Hurley (SA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Is the Assistant Treasurer aware of any alternatives to the Rudd government’s timely, targeted and temporary economic stimulus measures that have steered Australia through the worst of the global recession?

Eric Abetz (Tasmania, Liberal Party, Deputy Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Senator Abetz interjecting—

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

I do not know about pink batts, but I know about pink tutus! If you look at the alternative economic think tank of the Liberal-National party, we have the opposition Treasury spokesman, Mr Hockey. He is the one who waves around a magic wand and pink tutus. He was asked on the weekend about his leader, Mr Abbott. Mr Abbott is the one who thinks we should have had a stimulus package like New Zealand, but of course New Zealand has had five negative economic quarters. Then, of course, we have had Senator Joyce. He is an accountant but he does not understand billions or millions, and he has whipped up dangerous hysteria about Australia’s non-existent government debt problem. Mr Hockey summed it up by saying: ‘Real people making real decisions. That’s what we are.’ ‘We wear tutus when we’re explaining economic policy’—extreme statements and rolling out excuses later. The opposition are tutu-wearing dancers and their tutu— (Time expired)