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Transcript of doorstop interview: Brisbane: 21 July 2009: Access Economics report.



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DOORSTOP INTERVIEW

BRISBANE

21 JULY 2009

SUBJECTS: Access Economics Report

TREASURER:

Well it's encouraging to see further evidence that our economic stimulus is working to support economic activity and jobs. It is the case that economic stimulus has made the Australian economy one of the strongest in the advanced world, with lower debt and lower deficit. But there are still very big challenges out there - very big challenges, which flow from the global recession and of course that's why we need to keep in place economic stimulus to support business to keep customers going through the door, to support employment. And that's why stages two and three of stimulus are so important as they roll out through the rest of this year and in to next year. Nation building investment for recovery in infrastructure such as schools, road, rail and ports. To withdraw that stimulus would be utterly irresponsible and it would be a recipe for higher unemployment. That's why economic stimulus is so important, to support employment and to support business. That's what the Rudd Government's economic stimulus has been doing and that's why I welcome this report today from Access Economics.

JOURNALIST:

Do you think this shows we're out of the downturn?

TREASURER:

It doesn't show that we're out of the downturn; what it shows is that the worst in the global economy may be behind us, but that we will live with the consequences of this global recession for some time to come. For Australia, the consequences will flow through in a lower terms of trade - that is lower prices for our export commodities - and that will cut

national income. The global recession will also lead to a reduction in private business investment over time. That's why our economic stimulus, particularly stages two and three - Nation Building for Recovery - is so important to support employment out there in the economy through the rest of this year and into next year.

JOURNALIST:

Steve Ciobo said that the Government is racking up too much debt. What do you have to say to that?

TREASURER:

Well, if the Liberal Party had their way, their policies would produce higher unemployment

Transcript of 21/07/2009

Page 1 of 2 Transcript - Access Economics Report - Doorstop Interview, Brisbane [21/07/2009]

21/07/2009 http://www.treasurer.gov.au/DisplayDocs.aspx?doc=transcripts/2009/109.htm&pageI...

and more businesses going bust. Economic stimulus is what is supporting this economy, making us one of the strongest advanced economies in the world. But if Mr Ciobo had his way he would be cutting government services or lifting taxes. That's the recipe the Liberal Party's got, if they were to implement their approach. The fact is the Australian Government has done the responsible thing to support employment in our economy and to support businesses, and that has been recognised by the International Monetary Fund and the OECD. And that is why Australia is one of the strongest economies in the world. If Mr Ciobo had his way, there would be simply higher unemployment and more business bankruptcies and that just shows the Liberal Party doesn't understand the nature of the economic challenge before us.

JOURNALIST:

Are you planning any more stimulus measures in case reports like this one from Access Economics turn out to be too optimistic?

TREASURER:

Well, 70 percent of our stimulus is investment in infrastructure, in nation building infrastructure, direct investment is housing, direct investment in schools, road, rail and ports and that will flow through the rest of this year and well into next year, recognising that the consequences of the global recession will continue to affect this economy for the rest of this year and through next year.

JOURNALIST:

Why did you approve the acquisition of rural land on the Liverpool Plains by a wholly owned Chinese entity?

TREASURER:

Well, I don't speculate about Foreign Investment Review Board decisions, I never have in the past and I don't intend to today. I always act, and the Government always acts, in the national interest. Thanks very much.

Page 2 of 2 Transcript - Access Economics Report - Doorstop Interview, Brisbane [21/07/2009]

21/07/2009 http://www.treasurer.gov.au/DisplayDocs.aspx?doc=transcripts/2009/109.htm&pageI...