Australia needs to be optimistic but also realistic about public policy as the country begins to emerge from the global financial crisis (GFC) and focus upon growth sub-sectors such as the financial services sector, Assistant Treasurer Bill Shorten said.
“The ongoing, strong growth of the services economy in Australia means we need to nourish and encourage growth of sub-sectors like financial services, not stifle it through more taxes, even if such taxes are based upon a principle of some decency,” Shorten said during his speech at the 2011 ALP National conference on Friday.
“We need to be optimistic about public policy, but also realistic.”
Shorten urged people to reduce fiscal stimulus type spending in order for the economy to grow after the GFC.
“And we are now pulling back, as the economy grows, which helps reduce inflationary pressures,” he said.
He said Australia’s economy is in a much stronger position than a large percentage of global economies, supported by the AAA rating from all three global rating agencies this week.
“This week is outstanding proof of Labor’s fiscal management, which means unlike our friends in Europe, it costs us less to borrow money from overseas,” he said.
He added that the market recovery in Australia sends a strong message to other economies about its strong economic fundamentals and budget position.
“We came through, and we’re well placed, unlike almost anybody else, to grow and, in our modest way, prevail in the region and in the larger polity,” he said.
