Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

Mr President, my question is to the Minister representing the Treasurer, Senator Wong. I refer the minister to the recent Global competitiveness report 2012-2013 by the World Economic Forum. Given the World Economic Forum ranked Australia 15th in the world in global competitiveness three years ago, can the minister explain why in the latest global competitiveness rankings Australia has now dropped to 20th in the world under the life of the Rudd and Gillard governments?

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

The question seems to assume or to make a clear implication that people do not want to invest in this country. And if that is the case, why is it we have seen private investment at the highest level as a share of the economy in 40 years? Why is that? Why have we got half a trillion dollars of investment in the resources sector pipeline, more than half of that at the advanced stage?

I know this is good news that those opposite do not want to hear, but the reality is that the figures on investment coming into this country, even though I note that the opposition do not want—

Honourable Senators:

Honourable senators interjecting—

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

If the senator cares about the attractiveness of Australia as an investment destination, he should first recognise that there is more investment occurring in this country than we have seen for decades previously. It certainly is a share of the economy; we certainly have a far larger investment in the resources sector than we have ever seen. He should also perhaps walk down to the end of the chamber and have a chat to the leader of—of course you would! I know you are sensitive about this; so sensitive!

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

Mr President, I rise on a point of order going to relevance. The question was about competitiveness. The question asked one thing: why has Australia slipped from 15th to 20th on the competitiveness table. It was not about investment. You should direct the minister to the question.

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

I believe the minister is answering the question. The minister has 48 seconds remaining.

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

According to Senator Brandis economics, investment and competiveness are completely different; they are never linked and there is nothing associated with competitiveness when people look at investment. That is clearly the position of the coalition. And I can understand why he is so sensitive and has to take a point of order when I point out the ridiculous position that the opposition are in when it comes to their position on foreign investment. We have the chest-beating up here, but it is now very quiet from the National Party mice down in the corner. They roar outside of here, but then tiptoe in after Mr Robb makes sure he pulls them into line. That is the reality, Mr President.

Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer to those World Economic Forum rankings. The economic rankings across 144 countries also measure the extent to which taxation impacts on the incentives to work and invest. Does the government believe its carbon and mining taxes might have contributed to Australia slipping from 66th in the world to 103rd in the world—out of 144 countries—under the life of the Rudd and Gillard governments?

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

It is true that you have to have an eye to the effect of taxation on work and on investment. That is one of the reasons why this government is implementing an increase in the tax-free threshold, which will particularly ensure low-income Australians can receive more of every dollar they earn. That is an incentive to participation. That is ensuring that taxation instils the incentive to work. It is a good policy and it is a discredit the opposition that they are opposing it. But when—

Opposition Senators:

Opposition senators interjecting—

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

Order!

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

Thank you. In relation to carbon pricing and mining investment, I would make the point that we have seen private investment, including in the resources sector, increase since those two policies were announced. I also would make this point, but I do not think I have got time to do so, so I will have to do it another time.

Gary Humphries (ACT, Liberal Party, Shadow Parliamentary Secretary for Defence Materiel) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. In the same global competitiveness report Australia has plunged from 66th in the world on the burden of government regulation criterion to 96th in the world. Can the minister explain how the government's promise to reduce the burden of red tape is reconciled with the fact that, in the overregulation stakes, Australia now ranks behind countries such as Burkina Faso, the Kyrgyz Republic, Botswana and Chad?

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

I assume that the senator is not suggesting that we should take Botswana as the benchmark when it comes to labour rights or employment conditions or wage rates. I assume he is not taking the position that Ms Rinehart has when it comes to ensuring we are a competitive destination for investment. I make the point in terms of deregulation that, under the Howard government, we saw a whole lot of promises around deregulation and nothing delivered except the GST, which imposed a greater burden of regulation upon small and medium enterprises particularly. The Howard government commissioned two reviews, the Bell review and the Banks report. They did not act on a great number of those recommendations. We actually are acting on them, and if the senator wants to ensure things like the harmonisation of occupational health and safety, recommended in most of these reports, I suggest he go and talk to Premier Baillieu (Time expired)