Glenn Sterle (WA, Australian Labor Party, Shadow Assistant Minister for Road Safety) Share this | Link to this | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Finance (Senator Cormann) to questions without notice asked by Senators Sheldon and Gallagher today relating to economic growth.

I rise to take note of the questions given to Senator Cormann—not his answers—asked by Senators Sheldon and Gallagher. Quite clearly, the call should be, 'Roll up, roll up, roll up—the circus is in town!' My goodness me, what a shemozzle! I particularly take note of the question that Senator Sheldon put to the finance minister. When we read the priorities that the Prime Minister's office has sent out to all of Australia, it's no wonder that the majority of Australians sit there and shake their heads thinking, 'What the heck have we got leading this nation?' Senator Sheldon clearly asked the minister about the embarrassing leak—these speaking notes—where the government says that they have a plan for an 'even stronger economy'. I have to be honest with you: if it came down to what the Prime Minister said or what the finance minister said in question time, I would put my money on Deloitte Access Economics. Deloitte Access Economics would absolutely get my vote straightaway. They today pointed out that they expect economic growth to be below trend this year, much less than what the government forecast, and that wages growth has stalled. We got a dribbling response from the minister—I'd like to say it's comic, but it's not funny; it's far from being funny.

Then Senator Sheldon proposed a supplementary question to the finance minister. In the government's talking notes, Treasurer Frydenberg has claimed that the fundamentals of the economy are strong. Once again—if I had to choose—would I believe Deloitte Access Economics or would I believe the Treasurer, Mr Frydenberg, when we talked about the economy being strong or otherwise and that his government have 'the right policies settings'? Deloitte Access Economics came out quite clearly. They said that the pain in our economy has been home grown. That only means one thing: it's by this mob here. It's been fertilised well by this mob too, over the last six years, I can tell you!

I'd like to think this government talking points document is just pretend stuff, but unfortunately there are a bunch of young kids in the Prime Minister's office who think that all the backbenchers are that dumb that they have to put out stupid statements, that government members can all follow, in case they get bailed up in the hallway. Have a look. It has some of their plans for a stronger economy. This is what the Prime Minister's kiddies are saying to that mob opposite—in case they get quizzed, see if they can blind the media or anyone else with some pollie words, some absolute rubbish. One of their plans for an even stronger economy is 'building resilience and rewarding aspiration'. Makes you want to vomit, listening to this! This is what they say: 'Reduce the costs of doing business—

A government senator: Hear, hear!

And then they put 'energy, deregulation, finance'—are you ready for another 'Hear, hear!'? Give me another 'Hear, hear!' Are you ready for this one?—and 'getting paid on time'. Well, let me just spend a couple of minutes talking about getting paid on time. What this mob over there wouldn't know is I've been very, very busy this year hosting transport industry associations, owner-drivers state and national, the Transport Workers Union. We've all been in the one room here in Canberra not once but twice. The first time there were 70-odd people and the second time there were 60-odd people, representing no less than 36 different organisations around Australia. They're having a gripe about this great industry, the transport industry. Let me tell you this: when Australia slows down, the first for it to affect, the first who feels the pain, is the trucking industry. I'll make that very clear. It's not the housing industry but the trucking industry, because we're the ones who cart the bricks and we're the ones who cart the tiles and the cement. We know what it's like.

But they had a host of issues that they were concerned about. One was the great disrespect afforded to them by the mob over on that side of the chamber when they insulted the industry. When the industry drove the recommendations in the terms of reference for the Senate inquiry into the road transport industry, each and every single one of this mob lined up dutifully and respectfully and voted against it just to slap the trucking industry on its way through. Their rates are shocking not only now but it was quoted to me on more than one occasion—and I talk with experience here, because I know darn well what I'm talking about. I don't need kiddie speaking notes from someone who spent most of their adult life watching The West Wing'This is what you need to say.' Not only are they struggling to get paid, but guess what one of the biggest problems was? It was getting paid on time. There is this nonsense in the transport industry about the users of transport from mining companies, the great doyen of the Liberal Party support base, that it's not seven days or 14 days—I went on strike to get paid for seven days! I pulled up and parked across the gate with my mates to make sure we got paid, because we had bills to pay. With you lot, it's 30 days, 60 days, 90 days, 120 days. One of the largest contracts in this nation—I won't mention who it is—has now screwed the trucking industry to 150-day payments, and the government is doing nothing. (Time expired)

Paul Scarr (Queensland, Liberal Party) Share this | Link to this | Hansard source

I'm happy to rise to take note of answers. Firstly, if I could just respond to that last point: I absolutely agree that our mining companies and other major suppliers need to respect their suppliers and not treat their suppliers as another form of finance. I absolutely agree with the senator's point in that regard. However, there wasn't much else I agreed with.

I had cause to reflect on the fact that, given the PMO's note was inadvertently circulated earlier today, the best the opposition could do was to refer to a report put out by Deloitte Access Economics earlier today where it referred to homegrown pain. And what are they referring to when they refer to homegrown pain? They're referring to the drought, and they're also referring to the fact that there have been decreases in home prices over the last little period. And why wouldn't there have been decreases in home prices? As I've said in this place before, I have never seen such fear in the lead-up to an election as I saw in my home state of Queensland—the fear of a possible Labor government, the fear of the changes to negative gearing, the fear of the changes in capital gains tax and the fear of a raft of messages which would have been an absolute hit to this economy.

And yet, the difference is quite outstanding. As the Minister for Finance referred to earlier today, what we now have is a situation where, in the June quarter, the real GDP grew by 0.5 per cent to be 1.4 per cent higher through the year. This is much better than how some of the other countries with AAA ratings are faring in these difficult global conditions—better than Singapore, better than Germany, better than many of our trading partners and better than many other countries which have a AAA credit rating. We're actually doing much better than many of our trading partners and other countries with AAA credit ratings.

It made me reflect on whether or not the opposition has properly read the PMO note that was inadvertently circulated earlier today. The plan is there—our plan for an even stronger economy, building resilience and rewarding aspiration. I must say that every morning when I get up, the first thing I do is read the PMO note. Some people might go for a jog for 10 kilometres, do yoga or swim laps—I read the PMO note. It's the best way to be invigorated for a day ahead in this place. Why? Because we're meeting the plan—the plan that's set out in the PMO's note. It actually invigorates me. 'Lower taxes so you can keep more of what you earn.' Tick. 'Reduce the costs of doing business—energy, deregulation, finance, getting paid on time.' Tick. 'Equip Australians with the skills that Australian businesses need to boost their success.' Tick. 'Expand our trade borders.' Tick. 'Build the infrastructure our economy needs to grow.' Tick. We're on track.

I must say, listening to the last contribution, it reminded me of an anecdote from the famous Lord Birkenhead, one of Winston Churchill's best friends. When he was appearing before a judge, the judge said after reading his submissions: 'I must say, Mr Smith'—he hadn't reached the heady heights of becoming a lord at that stage—'after reading your submissions, I'm no wiser. I'm no wiser after having read your submissions.' Lord Birkenhead responded, 'No, milord, no wiser but at least better informed.' So we can say today that the members opposite, having read the PMO note, are at least better informed. It doesn't appear that they're much wiser, but, at the very least, they're better informed.

I suggest that they take the note out, study it over the course of this week and reflect on it, because there's some great material there. It sets out the priorities of this government. It sets out the support which is being provided for drought-affected areas. It sets out the reforms which are being undertaken with respect to the farm household allowance and with respect to water infrastructure. It sets out everything that this government is doing in response to the royal commission into the banking industry. It sets out the proposals and initiatives being taken with respect to a raft of policy areas. It's all set out in that note. The best the opposition could come up with was not referring to the note in detail but actually referring to the Deloitte Access Economics report, and even then they did not refer to the proper context of that report.

Carol Brown (Tasmania, Australian Labor Party, Shadow Assistant Minister for Infrastructure and Regional Tourism) Share this | Link to this | Hansard source

I'm not sure how much it takes to invigorate Senator Scarr, but I can tell you: the morning note, as I think this is called—it probably changes once we hit afternoon, just like most of the things that this government says—is not invigorating Australians. The government may talk a big game on the economy, but from what we've seen today in their answers, in the contributions thus far in this debate, what is actually in their misplaced talking points, the Deloitte report and their inaction on banks, their talk doesn't reflect reality. That's the point in the discussion around the comments by Deloitte. What's in the speaking notes does not reflect reality. It doesn't reflect the reality of Australians in regional areas struggling to get a job, the reality of workers and families dealing with stagnant wages and rising costs of living or the reality of small businesses that have been promised so much by the government, who claim to have their interests at heart despite their actions showing the complete opposite.

As we heard this morning, the latest Deloitte Access Economics Business outlook is forecasting below-trend growth this financial year: growth of just 2.2 per cent, which is well below the government's forecast. Most damningly, the report states that 'the pain in our economy has been home grown'. It also says that we're unlikely to see wages accelerate or see unemployment fall much over the coming year. This is terrible news for Australian workers and jobseekers. The government has failed to provide confidence to the Senate today in the answers that we received—and, I expect, has failed to provide confidence to Australian business and workers—that it has the foresight, the capacity and the ability to lift growth, create jobs and boost wages. Indeed, the Deloitte report went on to make it clear that the RBA has been doing all the heavy lifting, with dwindling capacity to move if it wishes to keep some flexibility in the system for monetary policy to deal with global shock.

It's time for the government to do its part and use the levers available to it to support Australian businesses, jobs and workers and get the economy moving. Yet all we see from the government are talking points in an attempt to paint a picture so far from reality. It reminds me of a song from the Rocky Horror Picture Show:

Rose tints my world

Keeps me safe from my trouble and pain.

Well, the rosy picture painted in the government's talking points may try and keep them out of trouble, but it does nothing to alleviate the pain experienced by Australians facing rising costs and dwindling pay. It's time the Australian people got some honesty from this government. It's time the Prime Minister and the Treasurer issued a budget with updated forecasts that reflect reality. This country is crying out for an economic plan that will reverse the collapsing confidence and finally spur along overdue wages growth. Instead, all we see is relentless wedge politics, blame-shifting and, embarrassingly, rosy talking points.

Let's make sure we never forget just how many Australians are doing it hard. This week is Anti-Poverty Week. There are three million Australians, including 739,000 children, living below the poverty line, living on less than 50 per cent of the median income—that is, 13.2 per cent of Australians or one in six Australian children. Where is the government's plan to tackle poverty and boost incomes? All of this comes from seeing record household debt, stagnant wages and banks that are refusing to pass on cuts to interest rates. If there's one thing that Australian people know about this Liberal government it's that they simply can't be trusted when it comes to standing up to the banks. This is a government that has had 12 months to consider a Productivity Commission report on the failures of banking competition, and this government has done nothing. (Time expired)

Perin Davey (NSW, National Party) Share this | Link to this | Hansard source

We've heard a lot today about our morning note, which we receive and read voraciously, and I would certainly be amazed if the ALP didn't follow a similar process. Otherwise, how can you keep yourselves informed about what your agenda is? On our side of the chamber, we are well informed as to what our agenda is, and I thank you for raising the issue of what our government can do and what levers we have in our toolbox that we can use to stimulate our economy. We are certainly doing that. Our government has a 10-year, $100 billion infrastructure pipeline that is going to stimulate our economy and create jobs. Most importantly, it will create jobs in regional Australia and regional New South Wales, which is getting me very excited.

What has the team on the other side of this place done to stimulate regional economies in the past 10 or 20 years? I would say they have done nothing. They've taken water out of our districts and they have not invested in infrastructure in regional Australia at all, whereas we've got a $100 billion pipeline that is going to see us deal with projects, both metro and regional.

We have hundreds of projects—city-shaping projects, congestion-busting projects—underway or in the planning phase. We've got NorthConnex and WestConnex in Sydney, the M1 in Brisbane and the Melbourne Airport Rail Link. Personally, I cannot wait for that to open, because there's nothing worse than trying to deal with peak-hour traffic between Flinders Street railway station and the airport in Melbourne. We've got METRONET in Perth, Bridgewater Bridge in Hobart and the North-South Corridor in Adelaide. They're our metro projects. They're going to address bottlenecks and traffic headaches, free up our roads and deal with urban congestion. We're also investing in commuter car parks to get people off our roads and onto public transport, which helps in trying to reduce carbon emissions from traffic. That should make the Greens very happy, and we are investing in it. That's what we're doing.

We are also investing in regional infrastructure. We have the Inland Rail being constructed as we speak, which is going to get freight between Melbourne and Brisbane more conveniently and more efficiently. We're going to invest in a hub-and-spoke model so that we have the connections to get our regional freight to intermodal transport hubs, getting it to port far more efficiently, which is going to stimulate our regional agricultural enterprises and make our economy more efficient at getting our export products to market.

Most importantly, in the current environment, we are investing in water infrastructure. Just this weekend, we announced money for Dungowan and Wyangala dams in New South Wales. We are committed to further significant water infrastructure to help our nation droughtproof itself for the future. This is not limited to dams. This is also about investigating water recycling, stormwater harvesting and modern technologies so that our towns have secure water supplies into the future. We are delivering the funding needed to fast-track the construction of dams and this critical water infrastructure.

However, we need the states to get on board. That is why the Prime Minister has written to the states, asking them to prioritise infrastructure projects so that we can get this money into our economy and start stimulating our economy and creating the jobs that we know are there, ready for the taking. We need to identify the skills shortages and get people into these jobs so they're off welfare. The best way for them to increase their household income is by getting off welfare and into a job. Infrastructure projects will create jobs. They will create the opportunities that people need and want across our economy, particularly in rural and regional Australia, and I'm very excited to be part of a government that is committed to delivering these projects across our economy for our communities and for the future economic security this will provide.

Anthony Chisholm (Queensland, Australian Labor Party) Share this | Link to this | Hansard source

If you'd listened to the contributions from senators opposite, you wouldn't think that they'd been in government for six years, would you, given the way they were talking about what they are doing now? They've had six years to do something about it. Senator Davey was talking about building a dam in New South Wales. You've had a state Liberal-National government in New South Wales for eight years, and they still haven't done anything about it. When she talked about the regional economy, there was one report that didn't make the talking points. They've come in here and they've all sucked up to the Prime Minister's office, saying how they all wake up in the morning and dutifully read their talking points. I don't have a problem with them doing talking points, but what I do have a problem with is that the rhetoric in the talking points misses the reality. The reality is what the Australian people are facing, and it is what people like Senator Davey need to be made aware of.

Let's look at the Chamber of Commerce and Industry Queensland's report that came out today, which says that youth unemployment has gone from 12.1 per cent in Central Queensland when Labor left office in 2013 to 22.5 per cent under this government. That's actually their record. So they can come in here and say on their victory lap—the hubris and arrogance we've seen since they won the election—'How good are we?' but that's the reality of what people are facing in all parts of Australia but particularly regional Queensland, and it's what this government is responsible for. That's what needs to be accepted and rammed home: this is the economy that this government has created. After six years of being in power, this is the economy that they have created.

That's what the questions we asked in question time today went to. They went to the economic circumstances that Australians are confronted with after six years of an LNP government. It's not good enough that people in regional Queensland are having to wait so long for employment. Again, the Chamber of Commerce and Industry said that the average wait time for someone to find a job in parts of Central Queensland is 10 times the wait in inner-city Brisbane. It's also not right that if someone loses their job in Mount Isa it takes them on average 18 months to find work. This is what people in Queensland are confronting at the moment. This is the economy that this government is responsible for.

Let's go to today's questions about the Deloitte Access Economics report about Australia's economic challenges. I thought the most interesting thing was that it made the point that these things are home grown. Weak growth, stagnant wages and unemployment are all significant problems, and they are all home grown after six years of this government. We've had an LNP government for six years. We've had three prime ministers, we've had three Treasurers—we're actually onto our fourth one now—and this is what they have been responsible for.

Let's go to the leaked talking points. This is where the rhetoric doesn't match the reality. They talk about how they'll keep the budget strong to guarantee the essentials that Australians can rely on et cetera, et cetera. There's going to be a reckoning on this when the Australian people say: 'Hang on a sec. This is what we are confronting after six years of this government.' They have no plan to fix the economy, even when the Reserve Bank cut interest rates again below one per cent. For the first time they are a quarter of what they were during the global financial crisis. They have no plan when it comes to plummeting consumer confidence. I'm reminded of Joe Hockey, when he said of the RBA decision to cut interest rates to 2.5 per cent in August 2013:

… they're not cutting interest rates because the economy is doing well. Interest rates are being cut to 50-year lows because the economy is struggling.

Well, today they're at 0.75 per cent under this government. So, if that's what they were saying six years ago, we know the reality of what they should be saying now.

We know that the government has been attempting to say that the fundamentals of the economy are strong and that it has the policy settings right. Well, we only need to look at today's report from Deloitte, which shows that more needs to be done to address weak economic growth, stagnant wages and unemployment. It also says that we're unlikely to see wages accelerate or unemployment fall much over the coming year. So, basically, what Australians can expect from this government is more of the same. They're actually not providing any of the answers that the Australian people need. They continue to do a victory lap. All we have seen from them since winning the last election is hubris and arrogance. They are going to continue with that. They will not actually try and deal with the real challenges confronting the Australian people, and the Australian people are going to work that out.

Question agreed to.