Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Cormann. On the same day record low growth for Australians under this government is again confirmed, Morrison government MPs, including the member for Goldstein, the member for McKellar and the member for Hughes—Mr Wilson, Mr Falinski and Mr Kelly—have all lined up to publicly criticise the Reserve Bank. Given the Morrison government continues to refuse to heed the advice of the Reserve Bank to stimulate the economy, including by bringing forward vital infrastructure investment, can the minister advise when this government will stop criticising the RBA and start heeding its advice?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I comprehensively reject the premise of the question. Firstly—

Senator Wong interjecting—

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

Order! Can I hear the minister?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Firstly, the government does not comment on monetary policy decisions of the Reserve Bank.

Opposition senators interjecting—

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

Order on my left! There is an opportunity for supplementary questions and debate after question time.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

We respect the independence of the Reserve Bank. It is the Reserve Bank—

Opposition senators interjecting—

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

We are going to waste time in question time, which is the forum for non-government parties.

Senator Wong interjecting—

I will call the minister when there is silence.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

We respect the independence of the Reserve Bank and, of course, we respect the fact that it is their job to determine monetary policy settings based on their assessment of the economic information and data in relevant consideration that they appropriately pursue.

I would also make the point that the Australian government is pursuing a pro-growth economic strategy enshrined in our budget. That is in stark contrast with the alternative policies taken to the last election by the alternative government, which was delivering a socialist, antibusiness and high-taxing agenda which would have weakened the economy, which would have created more unemployment and which would have led to lower wages.

Since the election, of course, we have legislated another $158 billion worth of income tax relief, which takes the level of income tax relief legislated over the last two years to more than $300 billion. More than $23 billion of that has been returned to the pockets of hardworking Australians since the middle of July. And, indeed, we continue to implement a very ambitious infrastructure investment program, with our $100 billion federal Infrastructure Investment Pipeline.

Indeed, let me reassure Senator Wong and all senators that the government's fiscal policy continues absolutely to run in the same direction as monetary policy, and that we are very, very respectful of the Reserve Bank.

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

Senator Wong, a supplementary question?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

The RBA cuts which the minister's colleagues are lining up to criticise—and I refer him to their public statements—are a direct result of the economy's weakness under this government and the coalition's failure to provide complementary fiscal stimulus, as the RBA has called for on multiple occasions. Can the minister explain why his colleagues are so anxious to criticise the RBA instead of the government doing its job, and that is to take action to turn the economy around?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

I completely reject the premise of that question. Under our government, the Australian economy continues to grow. The Australian economy continued to grow at a time when other economies around the world—in the June quarter, for example—were shrinking. Our economy in the June quarter was growing at half a per cent, and here is the Labor Party saying that the sky is about to fall in! In the UK, in Germany, in South Korea and in Singapore the economies were shrinking.

There are a few global economic headwinds that we are dealing with as a globally focused open-trading economy—

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

Order, Senator Cormann. Senator Wong on a point of order.

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

A point of order on direct relevance. The question is not about the Labor Party. The question is about why the government is ignoring the RBA. Why is the government ignoring the Reserve Bank of Australia? That is the question.

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

While the minister did mention the Labor Party, I believe that for the point of order you raised just then, Senator Wong, he was talking about other matters which are directly relevant to the question. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Let me say it very succinctly for Senator Wong: we respect the—

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

You just ignore them!

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

I'm going to ask for some silence on my left and leadership from those along the front benches. Senator Cormann.

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

We respect the independence of the Reserve Bank to set monetary policy. We are responsible for setting fiscal policy, and the Australian people endorsed our agenda going to the last election. They rejected yours and you still can't get over it!

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

Senator Wong, a final supplementary question?

Penny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Link to this | Hansard source

Can the minister explain why the Morrison government continues to ignore calls from the International Monetary Fund; the Reserve Bank of Australia; state and territory governments; and business groups, including the Australian Industry Group, for bringing forward targeted and measured stimulus to support the economy? When will the government finally take action to protect Australians who are struggling with a stagnant economy and record low wage growth?

Mathias Cormann (WA, Liberal Party, Vice-President of the Executive Council) Share this | Link to this | Hansard source

Again, I reject the premise of the question. Real wages growth is higher than it was during the last year of the Labor government, so the proposition that real wages growth is at a record low is just completely and utterly misleading the public.

Furthermore, we went to the last election with a plan to grow the economy and to deal with the challenges that we knew were coming our way. We are implementing our pro-growth budget and we'll provide an update on that pro-growth budget in our half-yearly budget update in December. We will continue to make decisions in an orderly fashion. We will not ever pursue the sorts of cash splashes that the Labor Party recklessly and irresponsibly pursued in government. We are not going to force schools to accept school halls they don't need. We are not going to put pink batts into people's houses and set their houses on fire, only then to spend another billion dollars taking those pink batts out again. We will continue to make sensible decisions, implementing our plan to build a stronger economy and a more resilient economy, and to create more jobs.