Senator FURNER (2:47 PM) —My question is to the Minister representing the Treasurer, Senator Conroy. Can the minister update the Senate on the outcomes of the Reserve Bank of Australia’s board meeting today?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —Mr President, I will take this opportunity to inform the chamber that the Reserve Bank has just announced that it will be reducing the official cash rate by 100 basis points to 4.25 per cent. We join with Australian families and businesses in welcoming this substantial relief. This is a vital rate cut from the Reserve Bank delivered at a time when all our joint efforts are directed towards strengthening the economy and protecting jobs. The Rudd government and Australian families expect banks to pass the cut on responsibly and fully. I indicate that already the Commonwealth Bank has advised it will pass on this decrease in full.

Mr President, I have spoken many times in this chamber about the substantial challenges that confront our economy. These challenges originated in global financial markets. Given the speed and scale of subsequent events we are not immune to the new-found real economy realities which confront major and developing economies around the world. Today’s decision by the RBA means that monetary and fiscal policy are working together to give relief to families and protect jobs.

That is why this government was so decisive and swift when it decided to introduce its economic strategy and when it fought against those opposite to deliver a budget surplus, which would give us the capacity to respond when the time was needed. That time is now. As we have repeatedly said we will take whatever further action is necessary to protect Australian families and protect Australian jobs unlike those opposite who want to sit on their hands and pretend that nothing is happening.

Senator FURNER —Mr President, I ask a supplementary question. Can the minister outline how the RBA’s decision in tandem with other measures will strengthen the economy in the current global economic climate?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —We have been upfront about saying that the global financial crisis will slow growth and threaten jobs in Australia. In the face of these almost unprecedented global economic challenges the Rudd government has taken early and decisive action to strengthen growth and support households during the global financial crisis. With today’s further cut in official interest rates and the Economic Security Strategy payments this month, monetary and fiscal policy are working together to give relief to families and protect jobs. The Economic Security Strategy will deliver $1,400 for single pensioners, $2,100 for pensioner couples and $1,000 per child for families on FTBA in a lump sum payment before Christmas. (Time expired)

Senator FURNER —Mr President, I ask a further supplementary question. How does the government’s policy approach compare to that advocated by the opposition?

Senator CONROY (Deputy Leader of the Government in the Senate) —Australians can take heart at the fact that both the government and the RBA are willing to make the tough decisions to strengthen the Australian economy and protect jobs in the face of the global financial crisis. As I have said before, if necessary we will not hesitate to take further action to strengthen growth and limit the impact of the global financial crisis and the global recession on Australian jobs. Let’s contrast our approach with that of those opposite. Admittedly, it is hard to keep track of what their position actually is, given that their leader likes to walk both sides of the street on every important economic issue: telling people what they want to hear and then doing differently. We must deduce from the recent questioning of those opposite in this chamber that they would prefer to sit on their hands and do nothing to protect Australian jobs. (Time expired)