Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. Will the minister please advise the Senate what the government is doing to build a strong economic and fiscal foundation for our nation's future?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I thank Senator Edwards for that very important question. When we came into government we inherited a weakening economy, rising unemployment and a budget position which was rapidly deteriorating. Australia as a trading nation was facing global economic headwinds. Prices for our key commodities were starting to come off their historic peaks in 2012. Instead of making sure that Australia's economy was as resilient as possible, as competitive as possible and as agile and innovative as possible, the previous Labor government put more lead into our saddlebags and locked Australia into unsustainable and unaffordable spending growth into the future.

Since coming into government we have taken some of that Labor lead out of our economy's saddlebags. We got rid of the mining tax and the carbon tax. We reduced red tape costs for business by $2 billion a year. We have reduced taxes for small business, encouraging them to invest in their future success and employ more Australians. We have pursued a very ambitious free trade agenda, helping our exporters get better access to key markets overseas, in China, Korea and Japan, through the Trans-Pacific Partnership Agreement, covering 40 per cent of the world's economy. We have equally pursued and we are pursuing an ambitious infrastructure investment program. Of course, there is more.

Very soon, the Prime Minister and the minister for innovation will be delivering an innovation package, focusing on innovation as the centrepiece of our future economic success. We are pursuing tax reform because we are so committed to ensuring that Australia is in the best possible position to take advantage of future opportunities in the Asia-Pacific, where most of the global economic growth will be generated in the years and decades to come. These are the sorts of things that this government is focused on. These are the sorts of things we are doing to ensure that people across Australia have the best possible opportunity to get ahead.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister please inform the Senate why the successful implementation of the government's plan for stronger growth, more jobs and budget repair is important to all Australians?

Senator Conroy interjecting—

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Conroy obviously does not realise that the Australian economy continues to grow. Where other commodity based economies around the world are indeed in recession, the Australian economy continues to grow. The Australian economy is in a stronger position than it would have been as a result of the economic and fiscal reforms that this government has been pursuing and will be pursuing moving forward. Why is that important? We are a trading nation. We have lots of opportunity in this part of the world moving forward, but we have to ensure we are as competitive as possible, as productive as possible, as innovative as possible and as agile as possible so that we can take advantage of these opportunities. We have to be as resilient as possible in the face of inevitable future economic shocks.

Of course, stronger growth means an opportunity for more jobs to be created, and for better pay and conditions for people across Australia—surely something that Labor would support. (Time expired)

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Order on my left! Senator Cameron, you have asked your question. Senator Edwards.

Sean Edwards (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a final supplementary question. Will the minister please identify what further opportunities there are to strengthen our economic growth?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

As I was saying, it is indeed very important for the government to press ahead with our plan for stronger growth and more jobs, because it will also deliver a growth dividend for government. It will help us receive more revenue without the need to increase taxes or come up with all these new taxes, which Labor did when they were in government.

We are currently working very hard. The minister for innovation, Minister Pyne, is working very hard in putting the innovation package together as the centrepiece of our future economic success. The Treasurer, Minister Morrison, leading a team of ministers and coalition members of parliament, is working very hard on making sure that we have the best possible tax settings moving forward. Indeed, in the free trade space there is more opportunity. After China, Japan and South Korea, Minister Robb is working very hard in relation to— (Time expired)