The Deputy Opposition Leader has shamelessly misrepresented the IMF by selectively reporting comments contained in its latest World Economic Outlook. He further compounded his misrepresentation by claiming that the Government attempted to suppress key figures from the IMF Report.
The May 2001 World Economic Outlook was released, in its entirety, on the IMF's website overnight. Full details, including IMF country projections on growth, inflation, unemployment and the current account were made available then. The Government has not suppressed anything.
Contrary to Mr Crean's assertions, the report does not blame the GST for the forecast slower growth in 2001. Nor did the Treasurer's press release omit to mention the issue. As noted by the Treasurer, the IMF has forecast a slowing in Australia's economic growth. The IMF report clearly acknowledges, however, that forecast growth in Australia, along with New Zealand, will be adversely affected by the weakening external environment.
The IMF further notes that "on the structural side, Australia has successfully completed a major tax reform, recently enacted measures aimed at fostering innovation, and is preparing to tackle welfare reform." While the IMF notes that less progress is being made on labour market deregulation, the intransigence of the Australian Labor Party is a major factor impeding further progress. Labor's continued obstruction of the Government's unfair dismissals legislation is the most obvious case in point.
Mr Crean also persists with Labor's obfuscation concerning the Shell/Woodside foreign investment decision. This morning he once again failed to clarify whether Labor supports or opposes the Government's decision. He hides behind the mantra of process - that the Treasurer had not provided any reasons for his decision. That claim is false.
What the Treasurer clearly said in his press release was that "it is in the national interest for the operator of this project to develop the resource to its maximum and for sales from the North West Shelf to be promoted in preference to competing sales from projects in other parts of the world.. I have not been able to see that enduring conditions which are fully enforceable could be put in place in advance, as such conditions would require action after the approval and require the consent of joint venturers which cannot be guaranteed."
Labor should come off the fence and tell the Australian people where they stand.
27 April 2001