Hockey Talks Of Economic Reform In Speech To London Institute

The Treasurer, Joe Hockey, has addressed the Institute of Economic Affairs in London on the future of the Australian economy.

HockeyIn his speech, Hockey discussed the importance of economic change. “Economies, and their enterprises, that are slow to adapt will be left behind,” he said.

Hockey compared Ford and Google: “The Ford Motor Company, which revolutionised manufacturing and the auto industry in the 20th century, currently has a market capitalisation of $53 billion after 110 years of operation. Google is more than 7 times larger in just 15 years.”

Structural reform will “lay the foundation for a more promising and secure future,” Hockey said. “Over the next decade, the traditional macroeconomic levers of monetary and fiscal policy will not deliver enduring growth… With fiscal policy constrained and monetary policy limited, the only alternative to facilitate growth is to undertake further structural reform in response to global change. Structural reform is indeed the key plank of Australia’s economic strategy under the Abbott Government.” [Read more…]


G20 Finance Ministers And Central Bank Governors Meeting Concludes In Cairns

The meeting of G20 Finance Ministers and Central Bank Governors has broken up in Cairns and Treasurer Joe Hockey says progress has been made on the group’s aim to lift global economic growth by 2% of the next five years.

Hockey

Hockey said: “The IMF and OECD have looked at over 900 measures put forward by countries – of which 700 are new – and estimate our efforts could lift global GDP by 1.8 per cent through to 2018. Their analysis has been released. We are 90 per cent of the way there to meet our 2 per cent goal.” [Read more…]


Abbott Emphasises Government’s Budget Strategy As Polls Head South

Amid a hostile reaction to proposals from the Audit Commission and opinion polls showing the government trailing the ALP, Prime Minister Tony Abbott has sought to focus attention on the government’s overall budget strategy.

In his weekly video message, Abbott concentrated on the Budget deficit and said “we must again live within our means, as we did in the Howard years”.

Abbott said all Australians needed to “chip in” so that the “legacy of debt” from the ALP can be controlled. He said: “Beyond a certain point, you don’t control debt; debt controls you.” [Read more…]


The Case For Change: Joe Hockey’s Pre-Budget Speech To The Spectator Australia

The Treasurer, Joe Hockey, says the government will release the Commission of Audit report on May 1, in advance of the May 13 Budget which he says will begin a repair job on the nation’s finances.

Hockey made the announcement during a speech at an event organised by The Spectator Australia. He also spoke with the British journalist and chairman of Spectator Magazines, Andrew Neil.

Hockey-Neil

Hockey said all Australians had to contribute to the “heavy lifting” needed to get the Budget “back on track”. He said the fiscal consolidation programme to be announced in the Budget “will establish a clear path back to a surplus of 1 per cent of GDP by 2024”. [Read more…]


Interest Rates Remain On Hold As Reserve Bank Sees “Period Of Stability”

The Reserve Bank of Australia has left interest rates unchanged for the eighth consecutive month.

At its board meeting today, the RBA left the cash rate at 2.5%. The rate was last changed in August last year.

The Reserve’s Governor, Glenn Stevens, said rates were unlikely to change in the near future: “In the Board’s judgement, monetary policy is appropriately configured to foster sustainable growth in demand and inflation outcomes consistent with the target. On present indications, the most prudent course is likely to be a period of stability in interest rates.”

Statement from the Governor of the Reserve Bank of Australia, Glenn Stevens.

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to leave the cash rate unchanged at 2.5 per cent.

Growth in the global economy was a bit below trend in 2013, but there are reasonable prospects of a pick-up this year. The United States economy, while affected by adverse weather, continues its expansion and the euro area has begun a recovery from recession, albeit a fragile one. Japan has recorded a significant pick-up in growth. China’s growth remains generally in line with policymakers’ objectives, though it may have slowed a little in early 2014. Commodity prices have declined from their peaks but in historical terms remain high. [Read more…]


G20 Finance Ministers Commit To 2% GDP Growth Target

The G20 Finance Ministers have committed to a collective growth rate of 2% above the current trajectory over the next five years.

Hockey

Speaking after the meeting of Finance Ministers and Central Bank Governors in Sydney, Treasurer Joe Hockey said: “Realistically, these policies could mean an extra US$2 trillion in global economic activity and tens of millions of additional jobs.” [Read more…]