BENSON: Penny Wong, you would be pleased with the assessment from the OECD it expects growth in Australias economy to increase, and, in fact, it expects a higher rate of growth than even you are predicting, you being the Government.
WONG: This report from the OECD backs the strength of the Australian economy and backs the Governments budget strategy. It reminds us that we remain a very strong economy, particularly by comparison with other advanced economies, and it backs the Governments fiscal strategy in returning the budget to surplus.
BENSON: And the OECD points to the boom; the mining boom, the resources boom is driving the economy. Is this simply a case of Australia riding the dumb luck of the lucky country, rather than any particular genius of administration?
WONG: Unlike most of the rest of the advanced economies around the world, this is a nation which avoided recession. And we avoided recession because the Government acted, and because of the resilience of the Australian people and Australian business. We avoided the high levels of unemployment and the loss of investment that we see all over the advanced economies of the world.
So we came through the global financial crisis in much better shape than most other advanced economies and the OECD report reflects that history, as well as the enormous investment boom that we have in the mining industry.
BENSON: You mentioned unemployment there: that is one of the issues that the OECD report raises. And it, in fact, predicts that unemployment will go higher than the Government has been predicting. Its looking at something just under 6 per cent.
WONG: Look at unemployment at the moment. Its 4.9 per cent. Its very low. We have both the OECD and the Governments Budget predicting growth above 3 per cent in 2012 and 2013. We said in the Budget we still anticipate an unemployment rate that is low by comparison with other economies, and we still anticipate continued trend growth, or growth at around or above trend.
BENSON: Consumer caution is one of the things the OECD says is holding back growth in Australia. Business leaders in Australia are saying that the political tumult around at the moment is adding to the uncertainty in the minds of consumers. Do you accept that youve got the politics hopelessly wrong, even if youve got the economics right at the moment?
WONG: I think the thing that is most driving confidence negatively in this country is the talking down of the Australian economy that we have seen month after month from the Opposition.
BENSON: But Bill Kelty, the former ACTU head, was making the point just a few days ago that you, the Government, cant blame the Opposition for your circumstances. And, if you look at the political circumstances now, they revolve around Craig Thomson, a problem of your own creating. You preselected him when I say you, Labor, preselected him; when you knew that there were issues, you stuck with him; the Prime Minister, in particular, saying that she had confidence throughout when many questions were raised; and even now, you cant get rid of him because you need his vote.
WONG: In terms of Mr Thomson, hes made a statement to the Parliament. Hes no longer a member of the Labor caucus. I can tell you what Im focused on: Im focused on explaining to the Australian people the benefits in the Budget for families, for low income and middle income Australians. Im focused on how we better spread the benefits of the mining boom so that more Australians get the opportunity to share in its benefits. These are much bigger and much more important issues to Australians than some of the things that you described.
BENSON: On Craig Thomson, Mal Washer, the Liberal MP, is warning of the dangers from the pressure that Craig Thomson is now facing. He says we dont want people to hurt themselves. Are you concerned about the pressures on Craig Thomson taking a personal toll?
WONG: Im reluctant to discuss these sorts of things on radio, but Id say Mal Washer should speak to his side of politics. If Mr Washer is concerned about Mr Thomsons well-being because of the attacks on him, he should probably have a discussion with Tony Abbott.
BENSON: Penny Wong, thank you very much.
WONG: Good to speak with you.
ENDS