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(generated from captions) nervous? No. Seb, you nervous? No.

Very calm about this. See you in

half an hour. First, Kevin Rudd said it. Glenn Stevens has confirmed Now Reserve Bank Governor Australia is in recession. But the Opposition is adamant isn't the answer. a third stimulus package Why not? Opposition Leader Malcolm Turnbull. Let's ask

You've long criticised Kevin Rudd we're in recession. for not admitting he's using it as a distraction. Now that he has, you say can you? You can't have it both ways,

I don't think the question of

whether we are in a recession

technically today is

technically today is the real issue.

The real issue is what are we doing

The real issue is what are we doing

to get out of it? Where are the

policies? Mr Rudd has had his cash

splashes. He said they would create

jobs. Have they created jobs? No. He

said they would create economic

growth. Have they created economic

growth? No. He has had two

growth? No. He has had two cash

splashes and he wants to do a third.

The only thing it will do is create

bigger debt and higher taxes in the

future but no jobs. You got groups

like the international monetary fund

coming out saying the recession will

get worse but Australia is in a good

get worse but Australia is in a good

position. He must be doing something

right. It is the hand he was dealt

with. The coalition left it in a

very strong economic debt. All

Labor's debt paid off, future

paid obligations to federal pensioners

paid off and it was a solid economy

that he inherited and he had a

regulated banking system which was

put in place by the Howard

government which ensured we didn't

have a subprime crisis. Australia

was in the position to not take on

this economic downturn. That is why

we are better off.

we are better off. We got

Federal Budget coming up shortly. we are better off. We got the

There is talk of another economic

stimulus. You say we don't need it. stimulus. You say we don't need

You are a former banker. What would

you do? I would focus on jobs. Jobs,

you do? I would focus on jobs. Jobs, jobs, jobs. Doing what? How do you

focus? What specific policies would

you bring in for jobs Provide

you bring in for jobs Provide real

incentives for businesses to keep on

the payroll. Lower the cost of small

business employing people by

superannuation, tax cuts due for

July 1 this year and next year.

Bring them forward. We proposed that

businesses be able to roll their

losses backwards and recover

losses backwards and recover tax

they paid in previous years. Instead

of only being able to carry forward

losses be able to carry them

backwards. Many countries do this.

This would provide real cash flow

for businesses. We propose that the

investment be invested in

infrastructure, roads, bridges,

water. Those types of things.

water. Those types of things. They

are doing that. For schools. Where?

I missed it. They are spending it on

primary schools and libraries. I

have been up in Central Queensland.

Vital bits of economic

infrastructure which are ready to go

not being invested in. In the Lower Hunter they

Hunter they have been arguing for

the F3 link. The land has been

brought and the

brought and the planning done. Bob

and the coalition are saying let's

get started. They are handing out

cash but not building roads. That is

what creates jobs. Invest in

business by providing incentives by

keeping on the payroll. If you spend business by providing incentives by

money, spend it on economic

infrastructure. They would say by

giving us our cheques, our $

giving us our cheques, our $90 o or

whatever as a customer of a business

will go and more business. That is

how bosses will keep us on in terms

against the Government of jobs. The evidence is just dead

against the Government there. The

first cash splash which was in

December said would create 75,000

jobs. It didn't create one. The

economists tells that 83% of it was

saved. We go and borrow $

saved. We go and borrow $10 billion

which our kids will have to pay off

and $7. and $

That is and $7.1 billion of it is spent.

That is not much of a return. If you

want to get say real return at a

time like this, everyone will tell

you that you should focus on

Government is not economic infrastructure. The

Government is not doing that. It is

not spending on projects that are

crying out for money. In Queensland

you had the Gladstone begging for crying out for money. In Queensland

money. In Mackay you had a vital

money. In Mackay you had a vital bit

of Rin fra structure, no

Commonwealth money, no Kevin Rudd

money coming there. He is spending

money in a way that runs up massive

debt, doesn't create jobs but it

makes him very popular. Everything debt, doesn't create jobs but it

about Mr Rudd is about politics and makes him very popular. Everything

driving up the debt. Not too popular today. The

today. The papers are having a go at

what he eats on the aircraft. What

do you think of this? Everywhere I

go in Australia people want to know

what the Government is doing to

promote jobs and why money is not

being more effectively spent. I

think the Prime Minister has got

think the Prime Minister has got his

priorities wrong on the