We'll harness power of the G20
Prime Minister of Australia, the Hon Tony Abbott MP
AS the 12th largest economy in the world, Australia supports global efforts to promote economic growth, create jobs and strengthen the global economy against future economic setbacks.
Our economy is currently in its 22nd consecutive year of growth. All Australians have shared the benefits of that growth. This growth hasn't been an accident. The Hawke, Keating and Howard governments all played a part in making Australia more competitive. The new Coalition government is doing its part too: we are scrapping bad taxes, cutting red and green tape, building infrastructure and cutting waste.
We are laying the foundations for a stronger economy with continued growth and jobs. Every day we are honouring our commitments. Labor's $1.8 billion fringe benefits tax hit on cars is gone; nurses, teachers and tradies can undertake further study without fear of losing deductions; $160bn in projects have been given the environmental go-ahead and the Commission of Audit is under way. In the past fortnight, the House of Representatives has passed bills to scrap the carbon tax and the mining tax. Our bill to fully restore the Australian Building and Construction Commission has also been introduced. The carbon tax repeal will remove a $9bn hit from the economy. The mining tax repeal will lift the sovereign-risk cloud Labor created. The full restoration of the ABCC can provide up to $6bn in economic benefits each year. When these bills go before the Senate, Labor will have a choice: perpetuate support for policies that have hurt jobs growth and harmed family budgets, or vote with the Coalition to strengthen the economy. The government is also determined to create more jobs and economic opportunities for Australians through boosting trade. Enhancing our competitiveness and connectedness to our neighbours and partners is in the interests of everyone.
Yesterday marked the commencement of Australia's presidency of the G20. As the world's premier economic forum, the G20 summit in Brisbane will be the most important international gathering ever hosted in Australia. The members of the G20 cover 85 per cent of global GDP, 75 per cent of global trade and 65 per cent of the world's population. Eight out of 10 of Australia's largest two-way trading partners will be participating.
More trade and stronger global growth are essential for our economy. That's why the government is fast-tracking free trade agreements with South Korea, Japan, China, Indonesia and India, who are all members of the G20. It is also why we are encouraging people-to-people linkages. The new, two-way Colombo Plan recognises that more young Australians studying in the universities of our Asian trading partners, as well as more foreign students studying in Australia, will deepen linkages between our countries.
I am determined the G20 won't be a talkfest. It must be practical and focused. Our actions in Brisbane will be focused on removing the international impediments to trade, jobs and growth and identifying real solutions to issues such as lifting workforce participation rates and funding infrastructure.
We saw during the global financial crisis the impact of a slowing world economy on our economy. Unemployment rose, retirement savings suffered, revenue declined and confidence was lost. A stronger world economy means more jobs, more confidence and more tax revenue that can be used to pay down debt. This is what we must work towards. The G20 demonstrated its dynamism and strength during the GFC. The challenge is to be relevant when there is no immediate crisis to deal with.
One area of focus is infrastructure. The world needs more infrastructure investment because building infrastructure drives growth and makes economies more productive in the longer term. The OECD estimates that the world will need $50 trillion in infrastructure investment by 2030. We need to encourage greater private-sector involvement and help capital markets better channel global savings to productive investments.
Through our policies at home and our interactions abroad, the government is putting in place the building blocks for a stronger economy. From the start of the Hawke government to the end of the Howard government, Australia continually sought to remove the impediments to growth, improve productivity and encourage trade. This is what the government will focus on at the G20 and what we will do in parliament during the coming fortnight.
2 December 2013