Reserve Bank Cuts Interest Rates Another 0.25% To 4.25%

Dec 06, 2011

The Reserve Bank of Australia has cut interest rates for the second month in a row.

The reduction of 25 basis points – 0.25% – takes the cash rate to 4.25%.

The Treasurer, Wayne Swan, welcomed the cut, describing it as “welcome Christmas cheer”. He called on the banks to pass on the reduction in full.

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

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 4.25 per cent, effective 7 December 2011.

Growth in the global economy has moderated this year after a strong performance in 2010. Some of the slowing reflected temporary factors, and as these passed, the pace of expansion in the United States and much of Asia began to pick up around mid year. China’s growth has been slowing, as policymakers there had intended. Trade in Asia is now, however, seeing some effects of a significant slowing in economic activity in Europe. [Read more...]

Filed Under: Audio, Gillard Government, Reserve Bank Tagged With: , ,

Swan Releases Mid-Year Economic and Fiscal Outlook: Budget Surplus Shaved

Nov 29, 2011

The Treasurer, Wayne Swan, has released the Mid-Year Economic and Fiscal Outlook (MYEFO). It forecasts an increased budget deficit for 2011-12 and a small surplus in 2012-13.

Key points from MYEFO:

  • 2011-12 budget deficit has increased to $37 billion from the budget forecast of $23 billion.
  • The budget surplus for 2012-13 has been downgraded from $3.5 billion to $1.5 billion.
  • Deteriorating economic conditions have cut $20 billion from revenue over the four-year forward estimates.
  • Additional savings of $11.5 billion over four years have been announced.
  • The baby bonus has been cut from $5400 to $5000.
  • A 2.5% efficiency dividend, on top of an existing 1.5%, will produce savings across government departments of $1.5 billion.
  • The federal and High Courts, and cultural institutions such as the Australian War Memorial have been been protected from cuts.
  • There will be a crackdown on living away from home tax concessions, an increase in the eligibility age for the dependent spouse offset.
  • Gross Domestic Product is now forecast to grow by 3.25%, down from 4.25%.
  • Unemployment is expected to be 5.5% in 2011-12 and 2012-13, slightly up on budget forecasts.

[Read more...]

Filed Under: Audio, Audio2011, Budget, Gillard Government, Liberal Party, Video Tagged With: , , , , , ,

Global Resolve: Wayne Swan on Economic Policy

Sep 27, 2011

The Treasurer, Wayne Swan, has outlined Australia’s economic policy, the nation’s role in Asia, and the challenges of the global economy, in a speech to the Harvard Club of New York.

The speech follows Swan’s acceptance of the Finance Minister of the Year award from Euromoney magazine.

This is the transcript of Wayne Swan’s speech to the Harvard Club of New York.

That was a very kind introduction and a very warm welcome, and I want to thank you for having me here.

Harvard has made such an extraordinary contribution to the advancement of economic policy around the world so it’s an honour to be here to address you today.

It’s great to be in New York again, the capital city of the free world.

It’s a tragedy that the remarkable history of this city and the fond memories of it so many people carry are stained of course by two history-altering events, both marked this month.

The first was commemorated 15 days ago, a full decade after the fall of two towers brought death and destruction and beyond that a dramatic escalation of a war our nations still fight together today.

The second was quietly remembered just four days later – three years since Lehman’s collapse pushed the global economy off a cliff, towards the greatest synchronised downturn since the Great Depression. [Read more...]

Filed Under: Economy, Gillard Government Tagged With: ,

Gillard and Swan Trade Blows With Abbott Over Flood Levy

Jan 29, 2011

Wayne Swan and Tony Abbott have traded blows as the debate over the proposed flood levy continues.

The Treasurer described Abbott’s attitudes and his speech to Young Liberals today as “disgusting”. He said it was disgusting that Abbott would seek to use the floods as a means to rise to power.

The Opposition Leader continued to claim that Australia did not need “yet another new tax” and offered to sit down with the Prime Minister to find another $1.8 billion in budget savings.

The Prime Minister said Abbott should “think again” and said she couldn’t understand how he could propose a levy to fund his election promises but opposed one for flood reconstruction.

  • Listen to Wayne Swan’s comments.

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  • Listen to Tony Abbott’s comments.

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    Tony Abbott

  • Listen to Julia Gillard’s comments in Swan Hill.

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    Julia Gillard
Filed Under: Audio, Gillard Government, Liberal Party Tagged With: , , ,

Flood Levy Debate: Don’t Patronise Me, Neil

Jan 28, 2011

The debate over the Gillard government’s flood levy got willing today as the Prime Minister clashed with Neil Mitchell on Melbourne radio station 3AW.

Towards the end of the interview, Gillard and Mitchell clashed over Cabinet support for the levy and oversight of the flood recovery spending.

  • Listen to Gillard and Mitchell: “Don’t patronise me, Neil.” (3m)

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  • For the complete context of the encounter, listen to the complete Gillard-Mitchell interview. (20m) – transcript below.

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Later in the morning, Queensland Premier Anna Bligh and Treasurer Andrew Fraser held a press conference to outline infrastructure rebuilding plans.

  • Listen to Bligh and Fraser. (26m)

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In a speech this afternoon to the CEO Institute in Brisbane, the Federal Treasurer, Wayne Swan, defended the government’s plan for the flood levy. He argued that in a growing economy it is important “to pay your way as you go”. Swan said it would have been irresponsible to borrow to fund the rebuilding program.

  • Listen to Wayne Swan’s speech. (25m)

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Transcript of Julia Gillard’s interview with Neil Mitchell.

GILLARD:

Good morning, Neil.

MITCHELL:

Thank you very much for your time. I appreciate it. Prime Minister, with your Government’s history of mis-management, like the insulation program, school re-building, who are you going to put in charge of the spending of this money you’re going to take from us? [Read more...]

Filed Under: Audio, Audio2011, Budget, Economy, Gillard Government, Infrastructure Tagged With: , , , , ,

The Impact of the Floods On Our Patchwork Economy: Swan

Jan 28, 2011

This is the text of a speech delivered by the Treasurer, Wayne Swan, to the CEO Institute, in Brisbane.

  • Listen to Wayne Swan’s speech. (25m)

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The Impact of the Floods on our Patchwork Economy

Wayne SwanThanks very much for having me and for that kind introduction.

I’d like to thank everyone for being here today, at such a challenging time for our state in particular, for other flood-affected communities in Victoria and elsewhere, and for the national economy more broadly. I’m sure all of you have many competing demands on your time, whether you’ve been personally affected by the floods or involved in the huge rescue and cleanup operation, or whether you’re looking after staff, or whether you’re just trying to get your business back on its feet.

Like me, you would have been inspired by the sheer depth of the community spirit we’ve seen in Queensland in recent weeks. Given the scale of the floods, we’re going to need every ounce of that community and corporate spirit, as we turn our attention to the economic costs and the economic recovery. [Read more...]

Filed Under: Audio, Budget, Economy, Gillard Government Tagged With: , ,

Wayne Swan Media Conference on Floods and CPI

Jan 25, 2011

Treasurer Wayne Swan held a doorstop press conference today to comment on the release of the latest Consumer Price Index figures.

Swan also talked about the impact on the federal budget of the floods.

  • Listen to Wayne Swan’s media doorstop.

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Text of media release from Treasurer Wayne Swan.

Consumer Price Index – December Quarter 2010

Today’s inflation figures showed that both CPI inflation and underlying inflation in the Australian economy continued to moderate in the December quarter, with underlying inflation easing to its lowest level in a decade.

The Consumer Price Index (CPI) grew by 0.4 per cent in the December quarter, down from 0.7 per cent in the previous three months. Headline inflation was 2.7 per cent through the year, down from 2.8 per cent in the September quarter. [Read more...]

Filed Under: Audio, Budget, Economy, Gillard Government, Infrastructure Tagged With: , ,

Gillard Forms Business Taskforce to Assist in Queensland Flood Recovery

Jan 18, 2011

The Prime Minister, Julia Gillard, has announced the formation of a Business Taskforce to support Queenslanders in the immediate aftermath of the Queensland floods.

Gillard announced the taskforce at a press conference this morning with Lindsay Fox, the chairman of Linfox, the transport and logistics business.

Julia Gillard and Lindsay Fox

Members of the taskforce include former Queensland Premier Wayne Goss, now the chairman of Deloitte Touche Tohmatsu. There will be representatives from business associations, including Heather Ridout, Graham Bradley and David Michaelis. The National Farmers Federation is represented by its president Jock Laurie.

Answering questions at the press conference, Gillard refused to be drawn on the effects of the floods on the federal budget. She said the cost of the flood damage is not yet known but the government faces difficult budgetary choices. She would not comment on speculation about introducing a levy to fund recovery programs or on dipping into the Future Fund.

  • Listen to Gillard and Fox at their press conference.

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This is the text of a joint media release from Prime Minister Julia Gillard and Treasurer Wayne Swan.

As everyday Australians show their compassion and determination by pulling together to help Queenslanders affected by the devastating floods, Australian businesses have answered the call as well.

The Prime Minister today announced the Australian Government will immediately establish a Business Taskforce to support Queenslanders in the immediate recovery effort.

The Business Taskforce will bring together ten Australian business leaders from a range of industries to mobilise business efforts across Australia.

The focus will be on:

  • Leveraging corporate donations of dollars
  • Helping drive and coordinate in-kind donations
  • Using Australia’s best business expertise to help with business recovery and rebuilding efforts in Queensland.

The Taskforce will be chaired by the Federal Treasurer and will meet with the Prime Minister for the first time next week.

The support pouring in from across Australia for people affected by the Queensland floods has been amazing – but Queensland is going to need much, much more in the coming months.

It is important to ensure that business support is marshaled effectively to ensure it gets to the areas and people who need it most, as well as to make sure that the resources being provided are useful and appropriate.

The Taskforce will be established for three months initially, with its ongoing operation to be reviewed at that time.

The Taskforce will play no role in directing government funding or managing the government’s response to the floods disaster. Instead, it will play the important role of helping to drive the involvement of a key sector of Australia in supporting Queensland at this difficult time.

Members of the Taskforce

  • Wayne Swan, Deputy Prime Minister and Treasurer
  • Bill Shorten, Assistant Treasurer
  • Andrew Fraser, Queensland Treasurer

  • Graham Bradley, Business Council of Australia President
  • Brian Flannery, White Energy Chief Executive
  • Lindsay Fox, Linfox chairman
  • Wayne Goss, Deloitte Touche Tohmatsu Chairman
  • Jock Laurie, National Farmers Federation President
  • Catherine Livingstone, Telstra, Macquarie Bank, WorleyParsons director
  • Michael Luscombe, Woolworths CEO
  • David Michaelis, Australian Chamber of Commerce and Industry President
  • Heather Ridout, Australian Industry Group CEO
  • David Stewart, Leighton Holdings Ltd CEO
Filed Under: Audio, Business, Gillard Government, QLD Tagged With: , , , , , ,

NBN Business Case Released

Dec 20, 2010

The NBN Business Case report has been released by the federal government.

Pressure for release of the National Broadband Network business case has been mounting for some time.

The Prime Minister, Julia Gillard, accompanied by Wayne Swan, Senator Conroy, Senator Wong, and the Chairman of NBNCo, Mike Quigley, held a press conference in Canberra today to release the report. [Read more...]

Filed Under: Audio, Broadband, Gillard Government Tagged With: , , , , , ,

Swan Announces Banking Reforms

Dec 12, 2010

The Treasurer, Wayne Swan, has announced a series of proposals to increase competition in Australian banking.

The Treasurer spoke at a press conference in Canberra today with Assistant Treasurer Bill Shorten and Parliamentary Secretary David Bradbury. Click the PLAY button to listen to the complete audio of the press conference:

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[Read more...]

Filed Under: Audio, Economy, Gillard Government Tagged With: , , , ,