Mr CHEESEMAN (2:23 PM) —My question is to the Prime Minister. Will the Prime Minister update the House on the current standing of the Australian economy and what action the government is taking to modernise our economy to create opportunities for all Australians?

Ms GILLARD (Prime Minister) —I thank the member for Corangamite for his question. I know that he is concerned about cost-of-living pressures, about jobs, about the economic circumstances of working families and he understands that his constituents need a strong economy whereby they can have a job so that they can prosper. Yesterday in this House I explained the work that had happened in Afghanistan whilst I was at the Lisbon summit. But being at the Lisbon summit also provided me with an opportunity to talk to a number of world leaders including leaders of European countries—and that builds on the opportunities I had at G20 and APEC particularly. When I had those discussions, let me assure you, one of the first things that were said in those discussions was: how has the Australian economy come through the GFC, the global financial crisis, in such strong shape? How is it that you have created 650,000 jobs in circumstances where around the world the world has gone into recession and many economies are struggling with high unemployment rates that look like they will persist, recession and large amounts of budget debt and deficit which will lead to budget cutbacks, putting burdens on the same families who are struggling with unemployment? And they look at the Australian economy and they want to know how we have done it.

We did it because as a nation we worked together. Employers played their part, unions played their part and the government played their part by their quick and decisive action to keep our economy growing and particularly to ensure that people had the benefits and the dignity of work. During the global financial crisis we acted to keep people in work, we acted to keep apprenticeships being created, we acted to help those who were made redundant get the best-quality employment services to maximise their ability to get another opportunity. We acted to support families with household assistance, we acted to keep credit flowing so businesses could have the opportunity to keep their businesses going and to have that credit. We acted to protect customers of banks and guarantee their deposits. But all of that work now means that, whilst our economy is coming out of the global financial crisis strong, we cannot sit on our laurels; we need to build the next waves of reform. Not for us the lazy ideas-free path of those opposite, not for us the lazy indulgence of the Howard years whereby the economy grew and the money generated was not invested in long-term growth. We will be investing in long-term growth—in skills, in productivity, in participation, in infrastructure. We have a reform agenda for our taxation system. We need to make sure that these reforms are delivered so that prosperity is sustained for the long term. It takes ideas, it takes policy innovation, it takes method, it takes patience and I would recommend to those opposite trying to exhibit some of those traits in their desperate and relentless search for at least one policy idea. We have not seen any of them yet.