Senator STERLE (2:34 PM) —My question is to the Minister representing the Treasurer, Senator Conroy. Given that we are in the midst of the most challenging global economic downturn for three-quarters of a century, virtually every advanced economy in the world is expected to be in deep recession this year. In Australia, government revenue has taken a massive hit with the write-down of around $210 billion across the forward estimates since the 2008-09 budget as a result of the worsening global condition. Our gross domestic product is expected to decline by half a per cent this financial year before recovering in 2010-11. Can the minister outline to the Senate what measures are contained in the budget to support nation building and economic recovery?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —I congratulate Senator Sterle on that excellent question and commend the level of research that went into it to the opposition question time tactics team. We are indeed facing an unprecedented contraction in the global economy. The centrepiece of last night’s budget was nation building for recovery. This government is committed to supporting the jobs of today by building infrastructure Australia needs for tomorrow. As the Treasurer noted last night, the Rudd government has delivered a budget that is carefully crafted to create a solid foundation for future growth and position us to capitalise on the global recovery when it comes. At the core of this budget is the biggest plan for spending on nation-building infrastructure since the Snowy Mountains scheme. The budget is focused on stimulating productivity and supporting jobs, underpinned by investment in rail, road, port and broadband infrastructure that are the building blocks of the 21st century economy.

It builds on our education revolution, giving schools, universities and TAFEs the funds to provide training places that will ensure Australian workers are skilled up and ready when the recovery comes. The budget creates a historic system of paid parental leave, giving new parents the time to spend with their babies while retaining their links to their jobs and providing a massive boost to workforce participation and productivity. We are investing in world-class hospitals, research and innovation and giving our pensioners the fair go they deserve. (Time expired)

Senator STERLE —Mr President, I ask a supplementary question. Given that international experts around the world have indicated that investment in productive economic infrastructure will be vital for both creating jobs in the short term and laying the foundations for future growth, productivity and competitiveness in the medium to long term, can the minister provide further detail on infrastructure spending contained in the budget? What, in particular, will the budget deliver to regional and rural Australia?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —The centrepiece of the budget is the $22 billion we are investing in the infrastructure of our nation, which it needs to grow and prosper in the years ahead as we emerge from the global recession. The government will invest $8.5 billion in Australia’s critical road, rail and port infrastructure needs, neglected for 11½ long years by those opposite. A key investment is an additional $3.4 billion in Network 1, the road freight corridor between Melbourne and Cairns, which includes the Hume, Pacific and Bruce highways. The government is also investing over $3 billion in other road infrastructure projects in regional New South Wales and Queensland. (Time expired)

Opposition senators interjecting—

The PRESIDENT —When there is quiet, I will call on Senator Sterle.

Senator STERLE —Mr President, I ask a further supplementary question. The budget announced last night was framed in the most challenging economic circumstances since the Great Depression, and some tough choices were made to ensure that our economy moves forward on a sustainable footing in the future. In this light, could the minister explain why the nation-building measures announced in last night’s budget are required now? Why are these investments in infrastructure needed at a time when government revenues are under such extreme pressure? How will these measures support jobs and stimulate the economy?

Senator CONROY (Minister for Broadband, Communications and the Digital Economy) —The Rudd government is determined to invest now in the building blocks of long-term growth and economic recovery. As Australia is hit by the brutal force of the global recession, we must now invest in the infrastructure and the human capital that were so shamefully neglected by those opposite during the boom years. Rather than invest in the future, those opposite chose to pursue short-term political gain. The Rudd government is now dealing—

Honourable senators interjecting—

The PRESIDENT —Senator Conroy, resume your seat. It is not a time for debate across the chamber.

Senator CONROY —The Rudd government is now dealing with the fallout of the failure of those opposite to build essential infrastructure for the 21st century and to invest in human capital for education and training—and you did fail. Up against the wall— (Time expired)