Mr MARTIN FERGUSON (5:40 PM) —I rise this evening to talk about some recent comments of the Prime Minister about the labour market. When you take a look at the economic parameters of this year's budget papers a few things strike you as a bit strange. The budget papers say that nominal wages will rise by 3¾ per cent in 2000-01. They then say that prices will rise by 5¼ per cent. That means—and I challenge anyone to argue to the contrary—that Australian workers will be forced to take a real wage cut of 1½ per cent. I think Australian workers might be a little bit alarmed to learn that their real wages will be cut by 1½ per cent next financial year, and they might be asking why the Howard government did not tell them. That is right—the Howard government did not tell Australian workers that the GST will cut their real wages next year; they just assumed it.

The Treasurer claims that people are compensated by tax cuts and that you can only look at these things in post-tax terms. It appears that the Minister for Employment, Workplace Relations and Small Business disagrees, because he has used pre-tax real wages for over a decade. He points out that the government cannot deliver the outcome it forecasts in a deregulated system. `It can't be done,' he says. The Prime Minister and the minister for workplace relations stand up in parliament talking about pre-tax real wages. On that basis, it is very clear that Australian workers face a cut in their real wages because of the GST. If the government would like to suddenly start talking in post-tax terms, I am happy to go on with that debate. Of course, post-tax terms are now irrelevant for many Australian families because their tax cuts have been wiped out by the GST driven increases in interest rates.

Post-tax terms would also force the Howard government to concede that Labor in the 1980s produced the unique combination of record employment growth and the biggest increase in the disposable incomes of low paid Australian workers in many decades. That period also delivered to Australian families quality child care, Medicare and a world-class superannuation system. Because Labor invested in these things—our social capital—we also managed to maintain broad support for the modernisation of our economy. It is that period of modernisation that provided the underpinning of nine years of economic growth—something that organisations, such as the OECD, readily acknowledge. Even in post-tax terms, the GST driven interest rate increases have already wiped out the tax cuts of many Australian families.

I would ask that people contrast Labor's approach with what we have had under the Howard government. Under the Howard government, we have had employment growth fall from 20,000 per month in Labor's last term to 13,000 per month. Under the Howard government, we have had cuts to education, cuts to employment, cuts to child care, cuts to regional development, and cuts to family and community services. It is all about real take home wages, real disposable income. All we have to look forward to is a GST, rising inflation, rising interest rates and a greater struggle for the individuals, families and communities that want to turn the Prime Minister out of office.

The government has divided our people and chosen populism over policy. It has left too many people and places behind, and it lacks all ambition for our nation's future. If the Prime Minister wants to talk about real wages, interest rates or jobs, let us have the debate. The only way to move forward is to move forward together, but this government is doing nothing but holding it back. In that context, I want to also say that that is not just my view. I refer to comments made by the member for Herbert this afternoon in the Main Committee, when he finally admitted, as many Australians believe, that this government is too city-centric. I urge people to refer to Hansard.

In conclusion, as shadow minister for transport, I also want to express my condolences to the family, friends and communities affected by the tragic crash of the Piper Chieftain in the Spencer Gulf last night. As shadow minister, I will work to ensure that all their questions about why and how this happened are answered. It is a tragic event for the families and their communities, and my thoughts are with them.