Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

My question is to the minister representing the Treasurer, Senator Cormann. Can the minister confirm that since the Treasurer was last at the dispatch box delivering his budget speech, real GDP growth in 2016-17 has fallen from 2.5 per cent to 1.75 per cent. Is this what the government meant when they promised jobs and growth?

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

What I can confirm is that the most recent release of quarterly results in the national accounts showed that year-on-year growth up until that time was 2.4 per cent, which of course is one of the best growth rates among major developed economies—better than any of the G7 economies, better than the OECD average, better than the eurozone, better than the United States.

It is true that we have had a cyclone in recent times and that has had an effect—a temporary effect—this financial year on economic growth. But, if you look at the budget papers, the budget papers actually show that our expectation is that growth will again pick up in 2017-18 to 2.75 per cent and then three per cent in the subsequent three years. Just imagine if we had not pursued a strong and ambitious pro-growth agenda. If we had not pursued an agenda with better export trade deals, if we had not got rid of the mining tax, if we had not got rid of the carbon tax, if we had not pursued an innovation agenda, if we had not pursued an ambitious infrastructure investment project, if we had kept Labor's policy settings in place, imagine how much worse the situation would be that Australia would be in today. Our growth today is stronger than it would have been if Labor's anti-success, anti-growth policies had remained in place—the policies that we reversed—and if we had not pursued our very ambitious pro-growth agenda under the Turnbull government.

In this budget we deliver the next instalment in our plan for jobs and growth and the next instalment in making sure that stronger growth can deliver more and better-paid jobs. We of course commend all of the measures in this budget to the chamber.

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

Senator Marshall, a supplementary question.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Can the minister confirm that since the Treasurer was last at the dispatch box delivering his budget speech, employment growth in 2016-17 has fallen from 1.75 per cent to one per cent, while the unemployment rate has been revised up from 5.5 per cent to 5.75 per cent. Is this what the government meant when they promised jobs and growth?

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

Over the forward estimates, as Senator Marshall would be well aware, the unemployment rate is projected to go down to 5¼ per cent—5.25 per cent. He would be well aware that the government has made many decisions that precisely facilitate stronger growth and more jobs.

If we had kept Labor's anti-growth policies in place, like the mining tax, like the carbon tax, if we had taken Labor's anti-trade agenda onboard and if we had pursued Labor's push to increase the cost of electricity for business and families, the situation in terms of growth and jobs in Australia today would be worse. Jobs growth in Australia today is better than what it was in Labor's last year in government. We have turned that situation around that we inherited from the Labor Party. And, of course, if we implement the strong jobs and growth agenda in this budget, if we implement our Ten Year Enterprise Tax Plan in full, boosting investment and productivity, there would be more jobs. (Time expired)

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

Senator Marshall, a final supplementary question.

Gavin Marshall (Victoria, Deputy-President) Share this | Link to this | Hansard source

Given that, in the 12 months since the 2016-17 budget, growth is down, employment is down, wages growth is down and unemployment is up, isn't it clear that what the Turnbull-Morrison team is actually delivering is fewer jobs and less growth?

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

No, that is not clear. Growth is stronger and employment growth is stronger than it would be if Labor were in government. I was reminded today of a front page of TheSydney Morning Herald

Opposition Senators:

Opposition senators interjecting—

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

Order on my left!

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

I was very disappointed that James Massola went on strike over this past week, because I was reminded of a great front page in TheSydney Morning Herald during the election campaign, saying that Labor's pre-election costings were putting Australia's AAA credit rating at risk, because you went to the election with deficits $16.5 billion larger than what was reflected in the Pre-election Economic and Fiscal Outlook, and respected economists were making the point then that Labor was putting economic growth at risk.

In the coalition, we are working hard to help business be more successful so that they can hire more Australians and pay them better wages, by pursuing lower company tax rates, by pursuing access to reliable and affordable energy, by pursuing an export trade agenda that is properly ambitious, unlike Labor— (Time expired)