Arthur Sinodinos (NSW, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Minister for Finance and Deregulation. I refer the minister to the fact that many economies—

Government Senators:

Government senators interjecting—

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

Order on my right! Senator Sinodinos, you are entitled to be heard.

Government senators: Come on down! Give him a seat at the front!

Arthur Sinodinos (NSW, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition) Share this | Link to this | Hansard source

Great depth in our frontbench! I refer the minister to the fact that many economies in Asia are enjoying lower rates of unemployment than Australia's current rate of 5.1 per cent including Taiwan and Japan at 4.3; China at 4.1; Hong Kong at 3.2; South Korea at 3.1; Vietnam at 2.3; and Singapore at two per cent. Why does the government persist in comparing Australia's economic performance to economies in Europe and North America as an illustration of the Australian economy's strength—as per the minister's Lateline interview on 28 August—but will not compare our performance to the rapidly growing economies in our own region?

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

I thank Senator Sinodinos for his question and congratulate him on his recent—very recent—appointment as shadow parliamentary secretary assisting the Leader of the Opposition. I trust that he will bring his expertise on matters fiscal to that role.

In terms of the question about comparisons of unemployment rates, the answer is we are an advanced economy. We are not a developing economy or a newly emerging economy so, in terms of where we are in the stages of economic development of nations around the world, a more accurate comparison is to similar types of economies. Having said that, I would acknowledge this point: we do have a low unemployment rate by comparison at the moment—5.1 per cent, which is substantially less than that in the United States and, obviously, in Europe. Of course it is the case that you cannot simply look at the jobs created to date. You have to look at what are the circumstances that enable job creation and prosperity into the future. That is why the government is so focused on making the investments that Australians believe are important for Australia to succeed in the decades ahead; in particular, the investment needed to lift the educational standards here in this country. I know Senator Sinodinos is one of the few on that side who actually has an international mindset; I think that was the phrase he used in his first speech. I agree with that, and I think he would understand that we do have to ensure that, beyond the resources boom in the decades ahead, we are capable as a nation of making sure we can tap into the emerging and very fast-growing markets for services and other exports in our region. (Time expired)

Arthur Sinodinos (NSW, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I also refer the minister to the World Bank's ease of doing business rankings in which Australia is ranked 15th in the world while Singapore is ranked first. Why does the government continue to pursue economic policy settings more reflective of Europe rather than the pro-market, pro-growth economic policies of countries such as Singapore and Hong Kong which have resulted in superior economic growth, greater employment and higher living standards?

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

In terms of pro-growth policies, I would remind the Senate that the Australian economy in the last national accounts grew 3.7 per cent for the year. I would remind the Senate that since this government came to power the Australian economy has grown close to 11 per cent. Compare it to some other advanced economies: for example, the UK has contracted in the same period and rates of growth even in countries like Germany—which is regarded as one of the strongest economies, certainly in Europe—are slightly less than three per cent—but I will check that figure. So I think to suggest this government is not pursuing pro-growth policies really flies in the face of the evidence. I would also remind the senator that S&P has recently reaffirmed the AAA credit rating of this nation and that is a testament to the strong public finances that the government has ensured.

Arthur Sinodinos (NSW, Liberal Party, Shadow Parliamentary Secretary Assisting the Leader of the Opposition) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that Asian centres such as Singapore are increasingly being selected by entrepreneurs and companies as a base to establish their headquarters in the Asia-Pacific region, rather than Sydney and Melbourne, hasn't the government's fiscal and regulatory approach of more taxes and red tape contributed to a decline in the competitiveness of our cities in the region?

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

If the senator is concerned about taxes and competitiveness, I look forward to him denouncing the royalty increase from Premier Newman, which, as has been outlined very clearly by the Queensland Resources Council and other mining companies, will cost jobs. So I look forward to him denouncing that. I suspect his position will be, certainly in public, complete silence when it comes to that issue. I also look forward to him backing the NBN because I am reliably advised from my left—that is geographically speaking, of course—by Senator Conroy that Singapore has a fibre-to-the-home network and I look forward, therefore, to Senator Sinodinos and others who understand the importance of broadband to the productivity of the economy supporting much more forcefully the National Broadband Network.