Chapter 6 - Concluding Comments
6.1
The world is facing the worst global economic crisis since the Great
Depression. Every major advanced economy is now in recession and key emerging
economies are slowing sharply. While Australia is better placed than most other
countries, it is not immune from these global economic forces. The deepening
global recession is threatening growth and jobs in our economy and the
financial security of families and businesses.
6.2
In normal times, monetary policy would be the primary instrument for
supporting demand, but these are not normal times. The overwhelming view of
international institutions, industry groups and respected economists is that
significant fiscal stimulus is needed to limit the fallout from the collapse in
global demand. The IMF has recommended a fiscal stimulus of 2 per cent of
global GDP for calendar year 2009. The Nation Building and Jobs Plan is
consistent with this recommendation and is broadly in line with the size of
stimulus packages being implemented in other countries.
6.3
The Nation Building and Jobs Plan will provide an immediate stimulus to
the Australian economy and help mitigate the effects of the global recession on
growth and employment. This action is critical to restoring stability,
underpinning confidence, and supporting growth and jobs in the economy.
Evidence provided to the Committee indicated that without timely implementation
of this Plan, the Australian economy could stall and many more Australians
could face unemployment.
6.4
The six bills before the Senate contain the key components of the
Government's Nation Building and Jobs Plan. The plan combines an immediate
stimulus to the economy, through the payment of five cash bonuses, with direct
investment in national infrastructure, including schools, community housing,
energy efficiency and roads and support to small businesses. It delivers an
appropriate balance between providing immediate support for growth and jobs,
and making the investments needed to strengthen the future economic growth.
6.5
The Plan has been designed to provide a timely, temporary and targeted
stimulus to the economy. It does not lock in permanent increases in government
spending. Evidence presented to the Committee shows that the Governments
balance sheet will remain in a strong position, particularly when compared with
almost all other comparable economies.
6.6
To limit the fallout of the global recession on Australian families and
businesses, the committee supports the timely implementation of the Government's
Nation Building and Jobs Plan.
Recommendation 1
6.7
The Committee recommends that the Senate pass the bills as a matter of
urgency.
Senator Helen Polley
Chair
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