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

My question is to the Minister for Finance and Deregulation, Senator Wong. Can the minister update the Senate on the outlook for the global economy? In particular, how does the outlook for the Australian economy compare to the outlook for the global economy generally?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am pleased to advise the Senate that the IMF's recent World Economic Outlook confirms that Australia's economic outlook remains positive, underpinned by our strong fundamentals. It confirms that the Australian economy is expected to grow faster than all major advanced economies next year despite increased global instability. The IMF has issued a stark warning about the outlook for the global economy, something we should all be mindful of, because global activity has weakened and downside risks are intensifying. Despite this, the IMF has given a ringing endorsement of the Australian economy—an economy that can look forward to faster growth than any other major advanced economy, an economy located in the part of the world which is growing, an economy with relatively low unemployment, an economy where we have seen 730,000 jobs created since Labor came to government, an economy with strong public finances, an economy with a $430 billion investment pipeline coming into our economy and a clear plan to return to surplus in 2012-13. This is a resounding endorsement of the economic management of this government.

Honourable Senators:

Honourable senators interjecting—

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

Senator Wong, resume your seat. When there is silence on both sides we will proceed. Senator Wong.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

This is a strong endorsement of the economic management of this government and the resilience of Australians, the resilience and hard work of the Australian people. This is a government which has taken the approach of focusing on supporting our economy and jobs during a time of crisis and ensuring that in years to come all Australians benefit from the economy's strength. This stands in stark contrast to the negativity of those opposite, who have done nothing but seek to talk down the economy. (Time expired)

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

Mr President, I ask a supplementary question. Can the minister outline for the Senate the importance of a strong fiscal strategy to Australia's economic performance?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

In addition to its endorsement of the Australian economy, the IMF also praises the government's fiscal strategy, saying that the planned return to surplus is welcome and commenting on the fact that we will deliver the fastest fiscal consolidation since the 1960s. I would remind those opposite that this government is doing that while keeping tax, as a proportion of GDP, well below that which we inherited, well below that which Peter Costello bequeathed to us.

In addition to the IMF's endorsement, senators will no doubt be aware of the endorsement—

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Wong, resume your seat. There is 45 minutes to go until the time when you can take note of answers.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Senators will no doubt be aware of the endorsement of the Treasurer in the recent Euromoney magazine, an award that I will say this about—

Opposition senators interjecting—

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

Order! Individuals are enjoying the discussion but that is something for outside, or, if people want to debate the issue, post 3 pm.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

This is an award for Australia and tribute should be paid not just to the Treasurer but— (Time expired)

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

Mr President, I ask a supplementary question. I thank the minister. Can the minister outline for the Senate any challenges to maintaining the government's strong fiscal strategy, and has the government minister taken any steps to minimise these risks?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

If I can just finish the sentence I was part-way through. This award is for Australia. It is a tribute to the hard work of many millions of Australian businesses and working families, who have worked so hard to make our economy one of the strongest in the developed world, which is something those opposite just cannot bear.

I am asked by Senator Sterle about risks for the government's fiscal strategy. The risk for the strong fiscal performance of Australia is the recklessness of those opposite. The party of a $70 billion black hole. A party that has never once in opposition got its costings right. Not once under Mr Abbott and his economic team have you got your costings right. How extraordinarily embarrassing for you. (Time expired)