Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Birmingham. How many years has the coalition government presided over record low wages growth?

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

I thank Senator Gallagher for her question. The government have been proud to serve and deliver for Australians a strong economy in the lead-up into this global economic crisis, this pandemic induced crisis, that we face. The government have worked tirelessly to create more employment opportunities for more Australians and have achieved that in record levels. We acknowledge, indeed, during that time that inflationary factors, including wage factors, have been at relative lows. They have been at relative lows together, noting that the inflation factors have also been at lows. So nominal wages growth has been at lows alongside low inflation growth. But what our government managed to achieve in the run-up to the last election was growth of 1½ million extra jobs in Australia—1½ million additional jobs for Australians, giving them every opportunity—

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

Senator Gallagher on a point of order?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

The point of order is relevance. There was no preamble—

Honourable senators interjecting—

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

I'm actually trying to hear the point of order.

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

It was a very direct question about wages growth. How many years have they presided over record low wages growth? The minister should be relevant to the question.

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

I can't instruct a minister how to answer a question, nor the terms in which he can answer it. I've allowed you to remind the minister of the question, Senator Gallagher. When the minister is talking about wages growth I would contend that it includes being able to glance across, as he just was, issues of the labour market, as long as he relates those to wages growth. I cannot instruct him how to answer a question or the terms in which to answer it, but talking about wages growth is directly relevant to the question. Senator Wong?

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

If that were the case, we would agree. But he's not, he's talking about jobs and other economic parameters. My submission is that a glancing reference doesn't then justify a range of material which is simply not relevant to the question.

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

In my view, Senator Wong, the minister was, to use the colloquial phrase, 'glancing across'. I heard him turn to this just around the one minute mark. So less than 15 seconds into a two-minute answer I do consider to be glancing across issues of the labour market when they're made directly relevant to the issue of wages growth. I will listen carefully and let the minister continue.

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

Indeed, I'm more than happy to talk about wages as well as jobs. The two are firmly connected. Real wages have increased in Australia over the past year. Wages price index growth of 1.4 per cent has outpaced inflation of 0.7 per cent. I was pointing out earlier in the answer, in addressing this, that inflation rates have been at incredible lows. With inflation low, unsurprisingly, so too are associated wages rates. But what we have done, and what has achieved the economic strength for Australia, was to achieve record jobs growth which, of course, feeds into wages—(Time expired)

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

Senator Gallagher, a supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

On Tuesday the RBA governor warned of 'subdued increases in wages and prices over coming years'. Will Australian workers have to endure a decade of low wages growth under this government? When will wages growth return to trend?

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

I thank Senator Gallagher for at least using all aspects there of a quote, recognising that the RBA governor was noting anticipated low prices growth as well. So low prices growth and a low inflation environment do, of course, mean that you would—

Opposition Senators:

Opposition senators interjecting—

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

Those opposite like to come in here and they frequently seek to talk about the nominal rates in relation to wages. We face at present a global economic situation quite unlike anything the world has seen in the last hundred years. Our country has responded more strongly and better than most, but we acknowledge there remain difficulties across the economy for many businesses and for many households. But yesterday's growth figures, welcomed by the RBA Governor whom you quote and who has endorsed strongly the approach the government has taken in terms of our policy settings, are all about getting people back to work and driving growth across the economy. (Time expired)

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

Senator Gallagher, a final supplementary question?

Katy Gallagher (ACT, Australian Labor Party, Shadow Minister for Finance) Share this | Link to this | Hansard source

Given that the government has prioritised spending $15 million worth of taxpayers' money congratulating itself on its so-called 'Our Comeback' marketing campaign, when will Australian families, who are under mounting cost-of-living pressure, financially experience a wages comeback?

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

Our absolute focus is on driving strong economic growth across the economy to get growth in all quarters for all Australians. What we're achieving in that regard has clearly been about getting, in the growth that was delivered yesterday, impressive economic figures for Australia. These economic figures demonstrate yet again our country is outperforming much of the rest of the world.

We went into this pandemic in a stronger position than much of the rest of the world because we had been outperforming in terms of jobs growth, because we had outperformed in terms of budget management. We went into the pandemic with resilience and strength and we are now coming through this pandemic in a better position than most of the rest of the world, not just on health outcomes but on economic outcomes, which are closely tied to one another. We clearly are committed to and will continue to implement the policies that deliver the economic growth that we saw yesterday. (Time expired)