Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

We live in extraordinary times—a time when the world is crying out for leadership over politics and leadership over fear. Good economic policy will deliver us out of this pandemic and out of these difficult economic times. We will only get good economic policy out of first-rate leadership at all levels of government.

The Liberals have spent the last decade painting Labor's approach in the recovery from the GFC as wasteful spending. Ironically, the last seven years of a federal Liberal government have settled Australia with an astronomical debt. Our national debt is galloping like the Melbourne Cup thoroughbreds towards $1 trillion. Former Treasurer Peter Costello argues that the government isn't operating at sustainable levels and that future generations are doomed under this government because they have placed debt that will never be paid down on their shoulders. Treasury is forecasting that Australia's net debt position will be $703.2 billion for 2020-21, meaning a net debt to GDP ratio of 36.1 per cent, increasing to $966.2 billion by 2023-24—to a net debt to GDP ratio of 43.8 per cent. The economic outlook appears grim under this directionless government. The Morrison government needs a real plan to stimulate demand and to increase domestic employment. This government cannot keep deferring responsibility to the Reserve Bank of Australia.

During the GFC, Labor employed this mechanism responsibly through increasing public spending via direct investment in public infrastructure to increase the supply of jobs. Regardless of Labor's critics, this worked. School halls and classrooms were built; teachers, students and parents were thankful for it and it led to a boom in construction jobs; we got the balance right. But balance is not something that this government employs, let alone understands. In contrast, the Morrison government has pushed hard on tax cuts, arguing that if business and individuals keep more of the money that they earn then more money will be spent. However, tax cuts only work if money is spent within the community and is not saved or invested.

What more can be done then? This is a watershed moment in our history where we can engage in structural reform and ensure a better future for Australia. Let's bring back manufacturing to our great country. The solutions the Liberals have proposed so far are deeply flawed and fail the rules of basic economics 101. Scott Morrison has deliberately excluded 928,000 people aged 35 and over from hiring subsidies. And then there is the Fair Work Amendment (Supporting Australia's Jobs and Economic Recovery) Bill 2020, which aims to casualise our workforce and to cut workers' pay. This doesn't treat a large working cohort with any respect, let alone basic economic intelligence.

Furthermore, the Morrison government has also not considered investing in public housing, unlike the Andrews Labor government in Victoria. Public housing more than pays for itself. Every $1 million of residential building construction output has a multiplying effect of $2.9 million throughout the industry and broader economy. This stimulus would also boost the post-crisis economic recovery and reduce homelessness.

Scott Morrison needs to commit to creating incentives to bring manufacturing back to Australia by including all Australian workers, regardless of their age. The year 2020 highlighted the importance of having supply chain resilience. Reshoring manufacturing would mean that highly skilled manufacturing jobs would be created within Australia to boost our economy and strengthen our resilience amidst the international crisis. The Morrison government is spending big but relying too heavily on the RBA and failing to recalibrate the investment in reskilling the nation. No adoption of an energy policy means that there is no guarantee that this spending will result in good economic outcomes. A responsible government needs to employ a targeted approach to spending which collectively lifts Australia out of recession and guarantees prosperity into the future.