Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Trade, Tourism and Investment, Senator Birmingham. How is the Liberal-National government growing a stronger economy—a serious question—and driving jobs growth by supporting Australian exports?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

I thank Senator Molan for his question. I do note that the only questions that have related to the strength of the economy or the benefits of a strong economy today have come from Liberal and National MPs and senators. Senator Molan, thank you for your question, which gives an opportunity to highlight on this budget day the strength of the Australian economy.

As my colleagues Senator Reynolds and Senator Cash have already highlighted, we have seen phenomenal jobs growth under our government—jobs growth that has been fuelled in part by record export performance. Last year, Australia recorded a record trade surplus of some $22.2 billion. This is a record surplus of Australia exporting more than we import. In fact, last year was the first year since 1973 that in each and every month of the year Australia exported more than we imported—a demonstration of the fact that our trade policies have worked and are working, and our government in this year's budget is committed to making sure that they keep working to continue to grow Australia's economy into the future.

Our trade policies have opened up market access across North Asia, with trade deals with Japan, China and Korea, through the Trans-Pacific Partnership and of course through deals we have most recently struck with countries such as Indonesia and Hong Kong. We've also recently announced that we're going to boost funding to the Export Market Development Grants scheme by a further $60 million. This builds on $75 million that our government had already put in place. Do you know what that contrasts with? It contrasts with the $100 million that the previous, Labor, government cut from the Export Market Development Grants scheme. When they were in office, not a single trade deal was commenced and concluded, and they cut export grants. And what did we have as a consequence? We had a weaker economy. What have we done? We've done trade deals and backed exporters. What have we got? A stronger economy, more jobs and a record trade surplus.

Scott Ryan (President) Share this | Link to this | Hansard source

Senator Molan, a supplementary question.

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

What are the benefits of a strong free-trade agenda for the national economy, and how is it helping to secure Australia's future?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

Indeed, a strong level of exports underpins the rest of our economy. It doesn't just help fuel the nearly 1.3 million jobs that have been created under our government. It also helps fuel government revenue, because we've got fewer people receiving welfare and more people in work and paying tax. That allows us to reduce taxes further, as our government has done and is doing. It has reduced taxes for small business, reduced taxes for PAYE salary earners and created a circumstance in which Australians who earn get to keep more of what they earn, where those who work hard get to keep more of those earnings. And of course it allows us, as it has done, to bring the budget back to surplus. Do you know the last time we saw a Labor Party surplus? The last Labor Party surplus was in 1989. Senator Paterson was just two at the time! Senator Steele-John hadn't even been born the last time the Labor Party delivered a budget surplus! Our government, through trade and other policies, has brought us back to— (Time expired)

Scott Ryan (President) Share this | Link to this | Hansard source

A final supplementary question, Senator Molan.

Jim Molan (NSW, Liberal Party) Share this | Link to this | Hansard source

What are the risks to free trade and to the government's ambitious trade and pro-jobs agenda?

Simon Birmingham (SA, Liberal Party, Minister for Trade) Share this | Link to this | Hansard source

To continue to grow exports, you need to have a strong economy. To have a strong economy, businesses need to actually be able to invest, and they're not going to invest under the weight of $200 billion worth of extra taxes that the Labor Party propose. They're not going to invest in a world where they see energy prices and electricity prices continuing to go up. They're not going to invest in a world where they see industrial relations uncertainty from a government that is acting entirely at the behest of the trade union movement. These are the threats that the Australian economy would face were there to be a change of government at the next election.

The contrast could not be stronger. Our government promised to balance the budget, and we have; we promised a stronger economy, and we've delivered; and we promised to create jobs, and we've exceeded our targets, delivering 1.3 million jobs. We promised to go out to the world and back Australian exporters, and we've done so, and they're exporting in record volumes. That's the difference a coalition Liberal-National government makes to the Australian economy. (Time expired)

Mr President, I ask that further questions be placed on the Notice Paper.