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PM defends Coalition after IMF slashes economic growth forecast – question time live PM defends Coalition after IMF slashes economic growth forecast – politics live
(about 2 hours later)
The entire chamber is treating this answer like the teacher has just left the room unsupervised for a moment. Simon Birmingham’s explanation is one thing. But that is not what the treasurer said.
I swear to Riri, everytime I look down in that chamber some face I have never seen before pops up. Simon Birmingham is on Afternoon Briefing with Patricia Karvelas - she asks about Josh Frydenberg’s claim that drought was “the number one call on the budget” - the drought.
One of those faces sends Michael McCormack to the despatch box.
Enough said.
Adam Bandt to Scott Morrison:
The Bureau of Meteorology has said the Murray-Darling basin is on record drought, the climate crisis is a significant factor. Your government is lifting pollution which is making global warming were sent threatening farmers and communities on the land further. Prime Minister, if we have always been a land of droughts and flooding rain, why are you doing everything in your power to make these extreme events worse? Doesn’t every piece of thermal coal you explored and burn send another farmer to the wall? What is more important, crops or coal?
Morrison:
I would refer him to the speech I gave to the UN, recently, in the national statement for Australia, which set out clearly the actions Australia was taken, and our record, in particular in relation to renewable energy investments, which per capita is the highest of any country in the world today.
I note the Member for Melbourne shaking his head. I simply said, that Australian per capita investment in renewable energy is the highest in the world today! He shook his head. If he is in denial of those facts I will leave that to him! What I know is what I set out in that national statement at the United Nations which showed we will meet our Kyoto 2020 targets, we will beat them by 367 million tons.
We will meet our 2030 commitments, through the combination of measures we have announced, and other factors will contribute to that, out to 2030. We agree there is a need to take action on climate change. That was not an issue of debate or division. Between the major parties at the last election.
The issue that was at debate being contested was the scale and the level of targets that could be responsibly set Australia into the future, and the impact that would have on the Australian economy. At the election we were able to explain clearly what the costs of those were, our targets and how we would meet them. The Labor Party at the last election were unable to do that, unable to spell out what the cost would be two jobs, this was a key issue.
He continues talking about what the party who is not in government is doing. Because, that is what we do now.
Jim Chalmers to Josh Frydenberg:
My question is to the Treasurer, why does the Treasurer pretend the global factors are the primary reason for our floundering economy, when the Reserve Bank and others say Australia’s weak economic growth is homegrown?
Frydenberg:Frydenberg:
YOU TAKE EVERY OPPORTUNITY TO TALK DOWN THE AUSTRALIAN ECONOMY. There is no doubt we face domestic challenges to the economy, not least of which is the number one call on the Budget, the drought
We are back to yelling. And also, describing the economy as a snowflake. Speaking to Birmingham, Karvelas asks:
Scott Morrison is now reading from a handwritten answer for this lickspittle, which is an achievement, given it covers the entire government manifesto. You mentioned the drought and there were lots of dramatic drought theatrics in the lower house. I know you’re a senator. But the Treasurer Josh Frydenberg talked about the drought being the number one policy of the government. But it’s not, is it?
Anthony Albanese to Scott Morrison: Birmingham:
My question is again addressed to the prime minister. Will the prime minister admit that since May the Reserve Bank has downgraded its growth forecast for Australia. The OECD has downgraded its growth forecast for Australia by twice as much as the G20, and the IMF has downgraded its growth forecast for Australia by four times more than other advanced economies. Why doesn’t the government have a plan to turn the economy around? In terms of the policy transactions that have been undertaken and since Scott Morrison became the Prime Minister there has been a continuity in measures to support farmers, to support communities and build resilience and a lot of different investment...
(Spoiler: No, he won’t admit that.) PK:
Morrison: Sure, but it is not number one Budget item, is it, welfare, pensions...
Our plan is very clear and we took it to the last election, it was endorsed by the Australian people, and that plan is anchored first and foremost not in the panicked and crisis policies of the Labor party, which if they had had the opportunity in the last election they would be now taking a wrecking ball to the Australian economy with their higher taxes and their reckless spending. No, the Australian people chose stability and certainty of keeping more of what they earn, of ensuring that those tax cuts would be delivered and that is exactly what we delivered as soon as we got back into this place. And Labor resisted it and resisted it and resisted it, and they folded as usual. They can’t even keep the consistency and the opposition to good economic policy. Birmingham:
I mean, at least Morrison has admitted that Labor voted for the tax cuts. If you go by totality of spending then that’s a different equation. If you’re looking at the number of different policy measures and responses that have been accumulated in a short period of time, I think I the number of different responses to the drought would be right up there.
Scott Morrison is now explaining why “now is not the time for Labor’s policies”. PK:
Has someone told him that we are at the very beginning of the election cycle and the only way Labor’s policies would be enacted is if the government adopted them? OK. But shouldn’t the Government be clear about that? It’s not its number one item at all?
There has been a bit of commentary around that the government still hasn’t switched out of election mode – I think that is just going to get louder. Birmingham: I wasn’t there to hear the exact words the Treasurer used...
Looks like someone missed the jump – Jim Chalmers gets the next question: ..but if you’re looking at the priorities the Government set, a number of policies delivered, drought response is right up there. Because we’ve been focused on not just how you help farmers but also how you help communities and how you build resilience.
The prime minister just stated the downgrades of the IMF apply to everyone. Why is the downgrade for Australia’s growth four times worse than for other advanced economies? Speaking of matters of public importance, I missed this in Anthony Albanese’s speech in the MPI yesterday:
Josh Frydenberg: In a speech to the Lowy Institute, he [Scott Morrison] spoke about ‘negative globalism’ as if Australia has not had a bipartisan position for 50 years of supporting global institutions that we voluntarily signed up for.
The IMF today in its global economic outlook had Australia’s economic growth in 2019 at 1.7%, and in 2020 at 2.3% and, as the House knows, Australia’s in its 29th consecutive year of economic growth. Mr Speaker, employment growth in Australia is at 2.5%. Do you know what it was when we came to government? 0.7%, Mr Speaker. Less than one-third of what we have inherited today. Economic participation, the number of people who are in work, is at a record high. Over 66%, Mr Speaker. The welfare dependency today is now at a 30-year low, Mr Speaker. We have been taking our place in the world. But he’s prepared to press buttons of nationalism out there in order to try to criticise us.
Frydenberg did not raise his voice once in that one. *snaps* He went to the UN as well and said that our emissions were going down, but we know that all the records say that they’re actually going up and they’ll go up every year until 2030.
Anthony Albanese: While he was there, he attacked children for being concerned about the scientifically proven facts of climate change – about caring for the planet that they, after all, will be on for longer than those of us who are no longer young people.
Why has the IMF slashed Australia’s economic growth forecast this calendar year? He’s like a Scooby Doo villain who’s sure he would’ve gotten away with it if it weren’t for those meddling kids! That’s his attitude. He says we’re on track to meet our Paris targets. We know that that’s not the case. When he was in the United States he skipped the UN summit on climate change, even though he was there, to visit smart drive-through technology at McDonald’s, of all places.
Scott Morrison: Not even there could he follow through. The fact is that, during his visit, Scott Morrison proclaimed, ‘We’re making jobs great again.’ As much as we used to mock the former member for Warringah for his slogans, at least they were original.
The revision by the IMF overnight reflects the uncertainty of the times in which we live, Mr Speaker, and that uncertainty extends to the global environment, which I would hope the opposition would be familiar with. We have been fashioning budgets for years to deal with the increasing uncertainty in the global economic climate. Arthur Sinodinos will be delivering his valedictory speech to the Senate chamber within the hour.
He will also be familiar with the real impact on the economy of the terrible drought that is now impacting on the Australian economy. And this is why, Mr Speaker, over successive budgets now we have been putting in place the types of resilience measures that support our economy in times like these. This is also being termed “operation wildebeest” in some quarters (as in, carving the weak from the herd).
And the uncertainty of the times reflected in the IMF forecast revisions overnight, which obviously applies to a whole host of economies all around the world, that is just a fact, that is just a fact, the truth remains that while things are tough Australia’s economy is growing only second to the United States of all G7 nations. (Once again, we are not part of the G7.) Oh dear - Labor's You Are the Weakest Link strategy worked a treat in #SenateQT.Colbeck said he hadn't read Grattan Institute report on youth poverty...Needed to correct in under a minute!#auspol pic.twitter.com/NNzcHzR3lH
There is a lot of work to do, but in uncertain times, I’d tell you what it calls for. The matter of public importance is now being held in the chamber – it is also on the IMF report.
It calls for lower taxes, which is what we are doing, Mr Speaker. It calls us for reducing the cost of doing business in this country, and amplifying procedures in the industrial areas, to engage in reforms and our skill sector, to ensure that we are expanding our trade borders all around the world as we have been doing now over the last six years. It calls us to invest $100bn in infrastructure as we are doing, and that is just for infrastructure, with some almost $10bn invested just this year alone, Mr Speaker. The government side of the chamber exits very, very quickly, but Anthony Albanese takes a moment to pay tribute to the portrait of Nova Peris, who was the first Indigenous woman to serve in federal parliament.
And it calls on us to invest $200bn in the future to recapitalise in our defence industries, as we heard yesterday in south-western Sydney, $250,000 worth of value added is provided by Quickstep, an Australian company, into every joint strike fighter that will be flown by every country that purchased them around the world. It is a wonderful portrait and the first in the Parliament House historic memorials collection to be painted by an Indigenous artist, Dr Jandamarra Cadd.
These are our investment decisions to address these uncertain times. Those opposite think the answer is higher taxes, and they think higher taxes will have no impact on the economy, and the leader of the opposition was asked today whether he thought Labor’s high taxes would have had an impact on the economy, and he said no! Peris was painted as she appeared while delivering her first speech to the Senate, her feet bare, and firmly on the ground, representing her Indigenous ancestors who walked before her.
He said I don’t think they would. He said the answer was no, in response to the tax increases they have proposed when it comes to the housing tax. So, Mr Speaker, we are for lower taxes, a stronger economy and a strong budget. Even Scott Morrison can’t do this any more.
That exchange there is how question time is going to play out. Question time ends.
But let’s see. I blame toastmasters #qt
Tim Wilson was just building up to his big ‘climate protesters are terrible’ speech conclusion when Anthony Albanese interjected to say it was 2pm and therefore question time. Meanwhile, Christian Porter starts shuddering and is unsure why.
Saved by the bell. Vince Connelly, having apparently attended the cut-price Kenneth Branagh school of theatrical delivery, stands for the next dixer – and actually does some stretches.
Here is Katie Allen on the IMF report on the ABC: I am not exaggerating. It’s like watching Ned Flanders prepare to deliver Hamlet’s monologue.
To be fair, we are in a new economic environment. Economists are telling us we should do this and that but it is difficult to know what is going to be the best thing going forward when you think about the global situation. We know that at the Australian level, we have the right plan going forward and that has actually been voted for by the Australian people and that is what they want to see, a budget that is in balance ... and delivering jobs and we’re doing that. And we are done with this part, but the torture continues with question time to also continue.
We need to be very, very careful about trade and implications there, to make sure we are building a trade portfolio and our relationships with other countries is diversified. So that when the headwinds turn and take us in the right direction, we are ready to take those opportunities and move forward.
And Pat Conroy’s response:
This is a government intent on media releases rather than conducting real action.
We have the slowest economic growth in Australia since 2001. 1.8 million Australians out of work or wanting more hours. We have productivity going backwards and for the first time in a long time, net disposable income, real disposable income fell by 1% so we have households getting poorer as we speak.
What we need is urgent action by the Government to bring forward stage two of the tax cuts which we say we would support. They have announced infrastructure spending but it is often on the never-never and not now. What the bank and independent commentators say is that we need a government to play its part and stimulate the economy now.
When I walk down my high street and shopping centres, there are a lot of people looking for work is not finding it and a lot of empty shops.
This from Jim Chalmers this morning is probably a good indication of where we will see Labor head this question time, methinks:
Last night the IMF substantially slashed their expectations for growth in the Australian economy. These new numbers absolutely torpedo what was left of the Morrison Government’s economic credibility. The Australian economy is floundering and the IMF is slashing its forecasts for Australia because Morrison and Frydenberg don’t have a plan to turn things around. For months now Josh Frydenberg has been pretending that the economy here is strong and that the policy settings are right, but what the IMF proves is that neither of those things are true.
The IMF is ringing the alarm bells on the Australian economy but Morrison and Frydenberg are too out of touch to hear them. What we need to see from the Government is a plan to turn around an economy which is floundering on their watch. The Australian economy is floundering and people are struggling, and the Morrison Government is just sitting on its hands doing nothing. They don’t have a clue what to do here and so they’re doing nothing. They can’t continue to leave all of the heavy lifting to the Reserve Bank. The IMF makes the point in their report that there’s been too much emphasis on interest rate cuts and not enough fiscal policy or budget changes from governments, including our own. Morrison and Frydenberg need to listen to the alarm bells which are being rung by the IMF.
The IMF has slashed their expectations for growth in this economy under this Liberal Government. What we need to see is a plan to turn things around. The absence of a plan so far is costing Australia in terms of economic growth and jobs. We have the slowest economic growth in this country that we’ve had in 10 years since the Global Financial Crisis; household debt is at record highs; almost two million Australians are looking for work or for more work; productivity and living standards are in decline; business investment is the lowest it’s been since the early 1990s recession. Wherever you look in this economy there is weakness which is being left unattended by a Morrison Government without a plan.
We are getting close to question time ... I don’t even need predictions today. It will all be economy, economy, economy. There is no way it can be anything else.
The trade minister, Simon Birmingham, has held a press conference and indicated the government may negotiate with the Labor party to win over their support for three new trade agreements.
Enabling legislation for the deals was introduced to the House of Representatives today.
Labor is likely to support the enabling legislation, but the unions are pushing back hard and have been lobbying MPs and the crossbench not to vote in support of the agreements because of concerns over the deals allowing more temporary workers into the country.
When asked if the government was prepared to negotiate with the opposition to win over support, as has occurred with previous trade deals, Birmingham said the government would take a “practical” approach.
“We are practical and of course I will always speak with my Labor counterparts, I am genuine when I say that I hope that bipartisanship can be maintained in relation to trade access and opportunities,” he said.
As part of this, Birmingham said the government was considering the recommendations made by the joint standing committee on treaties which reported on the agreements last week.
“We will engage in discussions with the opposition where necessary, and we will work through issues if need be in a sensible way, but the agreements as they stand are good agreements that are demonstrably in Australia’s national interest.”
In response to union warnings that the agreements would undermine Australian jobs and allow an influx of temporary workers, Birmingham said the movement needed to “stop misleading, stop lying”.
“I say to the union movement very clearly there are no new labour market testing waivers created as a result of the Indonesian free trade agreement, point blank,” he said.
“So stop the scare campaign and recognise that this agreement has been negotiated to create more Australian jobs by giving us a better chance to sell more goods and services into Indonesia.”
Birmingham said he hoped the enabling legislation for the agreements could pass the Senate by the end of the year, allowing the deals to come into force early in 2020.
Question: You spent $2.5m on the election campaign this year. GetUp targeted six Coalition Liberal MPs. Peter Dutton, Greg Hunt, Tony Abbott, Kevin Andrews and Christian Porter. Tony Abbott lost his seat, and many people say that GetUp had little influence on that because he was responsible for his own unpopularity. Do you bear responsibility, then, for the fact that your millions didn’t unseat any of the other MPs and, in fact, there’s an argument that people have put that GetUp’s presence, for example, in Dixon, had the opposite effect. It boosted Peter Dutton’s popularity?
Paul Oosting:
Firstly, that’s not right. Peter Dutton faced a much smaller swing than other parts of Queensland.
And whilst it’s true to say, it’s undoubtedly a fact, that we’re sitting here today having not achieved our objectives in the election campaign, and we’ve been reflecting on that and how we can work differently going forward, I’m proud of the campaign that we ran together.
We all fed in what our priorities should be, what the issues we should work on, where the energies go on, and we chose the hard right faction of the Coalition. Many of those are in what are traditionally deemed to be safe seats. With where things were going or where we thought they would go.
How we do things differently if we had the opportunity again. But we have come out of it with real strengths as we outlined in the speech.
We have a lot to be proud of in the 10,000 people, almost half of whom have stepped up into politics for the very first time, who have really broadened and deepened this movement, and they’re more passionate than ever to keep getting involved and not waiting for that.
Getting involved right now, we have to find a solution to the major crises that are facing our country – unemployment and the climate crisis. The IPCC says that we have 12 years left to address climate change.
Three of the years will occur under this government, so we have to move on from the election that occurred five months ago and continue to try to find ways to look at the issues our members care about.
I guess this is never getting old:
Fantastic. Great move. Well done Angus! Great beef barbecue at parliament today, supporting Australian primary producers and the tasty Angus beef we get to enjoy! https://t.co/A03G1mirve pic.twitter.com/f3RE6HM7kJ
Paul Oosting:
It’s fair to say that Australians have a healthy scepticism about politicians, but something else is afoot today. Not the normal, healthy suspicion that’s always been part of our political culture. A much deeper anger across the whole system.
A University of Canberra study showed that it crashed from 86% in 2007 to just 41% last year.
And that was before the change of prime minister. We saw that first hand, actually, almost 10,000 GetUp volunteers with 37,404 hours simply talking to people, on their phones and in their doorsteps, in nearly every state, in nearly every demographic about the issues that matter, the policy options and why they should vote for change.
What we found, though, was alarming. It’s as if something had snapped. We were shaken by the depth of hopelessness and cynicism across the community, like politics which is something that’s been tried, failed and they’ve given up.
People were only half joking when they asked what the prime minister’s name was. They talked about their frustrations that nobody listens to them because they don’t have bags of money to throw around.
They despaired about the lack of any vision to tackle the big complex problems like unemployment, climate change or the drought. Politics seems now, singularly, incapable of addressing these things, and many Australians feel powerless to do anything about it. Many no longer believe politics can make anything in their lives better.