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

I rise to echo the comments of Treasurer Jim Chalmers about what the Australian economy is facing right now and what Australians are facing, including increased cost-of-living pressures being felt at the supermarket and the petrol pump. There's a lot of concern about the state of the global economy, concern out of the US, China, the Ukraine situation. The entire world is experiencing high rates of inflation, rising interest rates, and a consequence of that is slow growth trends across sectors.

Food and energy security is also placing great pressure on the demand side of the economy, and, as we know too well, governments are somewhat hamstrung in their ability to respond to these issues because of the high debt incurred during the pandemic, debt which equates to $1 trillion, a legacy of the former Liberal government, 10 long years of drift and poor economic policy.

Australia is facing these economic headwinds, but we're going into these difficult set of circumstances with historically low unemployment. This is a huge boost to our position, but we must have the right economic plan for this set of circumstances. It is up to the Reserve Bank to make decisions around the level of interest rates based on the condition of the high and rising inflation we are witnessing across the economy.

Pressure on people's cost of living comes from the supply side of the economy. Therefore it is crucial that we, as a government, provide appropriate cost-of-living relief in the October budget but also put in place a policy framework for lifting the Australian economy. We have delivered in that respect with a historic wage increase for people on the minimum wage. This is where the Albanese Labor government plans for cleaner and cheaper energy, childcare reforms, investment in skills and the digital economy, advancement in manufacturing and the care economy are so important. This is the plan our nation needs now to help deal with the complex set of circumstances emerging within the global economy.

Now, all Australians understand what we have inherited from the previous Liberal government: $1 trillion worth of debt which is costing more and more to pay off because of the increasing interest rates. We have to prioritise, and we will always prioritise what is important to the Australian people, what benefits Australian families.

The paid pandemic leave payment for casuals is something that the government, along with state and territory leaders, are supportive of, which is why the government has extended this until the end of September.

We, as a government, and the Treasurer have made it very clear that we must deal with the legacy of rorts and waste under the previous Liberal government. Big buckets of taxpayer money handed out at ministerial discretion occurred for years under the previous Liberal government. Now we must manage the economy based off what we have inherited, what we face today and the context of the Australian economy on a daily basis. Every dollar that the previous government borrowed is now more expensive to service because of the increase in interest rates. The Liberals left a legacy of nine long years of economic mismanagement and missed opportunities.

Now we must not be under any illusion about what we are facing in this country. Inflation is increasing and interest rates with it. The argument that wages in Australia are putting pressure on inflation is incorrect. It's basically wrong, because wages have been going backwards. Of all the circumstances that are contributing to inflation, wages is certainly not one of them, no matter what those on the other side of this chamber like to say. Lifting interest rates is aiming to deal with the demand of the economy.

One of the reasons we have high inflation is due to the choked-off supply. We must have more resilient supply chains, and Labor has a plan to deal with this. We talked about it during the election campaign. We must, with urgency, improve Australia's sovereign capacity by supporting local manufacturing. We must let the country thrive. We must give them the opportunities to increase wages and invest in the productive capacity of the economy. Creating more resilience is the primary objective of the Albanese Labor government. This Labor government will invest in the capacity of Australian people, and we will support them to train and skill-up. (Time expired)