Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

My question is to Minister Wong, representing the Treasurer. Can the minister update the Senate on the outlook for the Australian economy? Has the minister seen any recent international reports on the performance of the Australian economy and the role of this government's fiscal management in supporting this?

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

I thank Senator Crossin for her question. Last week, the International Monetary Fund delivered another strong endorsement of this government's economic management. While we understand that not everyone in Australia is doing it easy, reports like these demonstrate again why all Australians can be proud of what the nation has achieved.

The IMF reiterated its projection of a sound and solid outlook for the economy, with growth faster than any other major advanced economy. The report provides an overwhelmingly positive assessment of the Australian economy—an economy underpinned by low unemployment, low interest rates, contained inflation, strong public finances and a strong investment outlook. Despite those opposite doing their best to talk down the economy, we know that new business investment is expected to reach a 50-year high as a proportion of GDP at the end of the forecast period.

Because of the government's fiscal discipline, we have already seen that this has given room to the Reserve Bank to move to deliver the equivalent of six interest rate cuts since November last year. Because of these cuts, Australians on a $300,000 mortgage are paying around $4½ thousand less per year than they were when those opposite left office. In fact, official interest rates are lower now than at any time under the Howard government, under the government of those opposite. Who can forget them promising to keep interest rates low and then seeing 10 interest rate rises in a row up until 2007? Interest rates under this Labor government are lower than at any point under those opposite. (Time expired)

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister outline how the government's response to the global financial crisis has been viewed by international bodies?

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

We on this side understand what the global financial crisis has done to many economies around the world. We understand also how important it was that the government and business acted in the way that we did during the GFC. We all know about the devastating effects of the GFC—the worst global downturn since the Great Depression—notwithstanding the desire of those opposite to gloss over it and wave it away.

The International Monetary Fund recognises Australia as one of only a small handful of advanced countries to have avoided a recession and it commended the government response. It commented on the government's 'adept handling of the fallout from the GFC, prudent economic management and strong supervision of the financial sector, which has kept Australia on the dwindling list of AAA-rated countries.'

Trish Crossin (NT, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister outline for the Senate if the government is aware of any opposing views to the IMF's outlook of Australia?

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

The opposing views are, of course, from those opposite. Probably the most amusing, were they not so irresponsible, were the appearances by Mr Hockey on the ABC Insiders program, where he attempted to explain how an economy that has grown for two decades—an economy around trend growth—was actually flatlining. When the Insiders host said to him, 'Well, no, if it were zero it would be flatlining. That is what that means,' Mr Hockey said 'No'. Somehow, in the world of Hockeynomics, a growing economy is flatlining. This is just more ridiculous commentary from those opposite. It really exposes them for what they are. They are willing to talk down the economy, to risk jobs and risk confidence in order to further their own political interests.