I acknowledge the First Australians on whose land we meet and whose cultures we celebrate as among the oldest continuing cultures in human history.
It's great to be back home in Queensland, and here in the Queensland Art Gallery -- an outstanding Brisbane venue.
Australia Day is a time when we can reflect on our nation and the year that is now behind us. In Queensland we remember those whose livelihoods were threatened by the devastating floods. You can throw anything at Queenslanders and they survive - indeed they thrive. There's an indomitable spirit, a 'can do' spirit, here that has seen this state, now entering the second half of its second century, go from strength to strength.
Since our last Australia Day, Queenslanders - like all Australians - have been confronted by the worst global recession in 75 years and together we are weathering the global storm. As a nation, we have the fastest growth, lowest debt, lowest deficit and the second lowest unemployment rate, when compared with the Major Advanced Economies.
We've shown how strength can be drawn from unity when governments at all levels; businesses small and large; local communities, unions and charity groups all work together, and I am optimistic that the decade ahead holds great things for Queensland, building on the achievements of the decade just passed.
In the past decade, Queensland outstripped national economic growth by a country mile, an average annual growth rate of 4.7 per cent compared to the national average of 3.2 per cent - the best performance anywhere in Australia, and Queensland promises to continue driving the national economy as we move into recovery from the global downturn.
On Australia Day 2010, we can be optimistic about our future, but can't afford to be complacent. We cannot ignore the very real challenges ahead.
This week I have travelled the nation ahead of Australia Day, speaking about our need to prepare for the long-term challenges of the four decades to 2050. To help guide that work, the Government has been preparing the Third Intergenerational Report, entitled Australia to 2050: Future Challenges.
The Australia to 2050 report, which the Treasurer will release in coming weeks, analyses the key long-term challenges facing Australia over the next 40 years. The Australia to 2050 report sets out the massive demographic change resulting from the ageing of our population:
* Today we are a nation of 22 million Australians.
* By 2050, we will be a nation of 36 million Australians - reflecting natural population growth and a continuation of migration trends of the past forty years.
* Today, some 14 per cent of Australians - one in seven - are over the age of 65.
* By 2050, some 23 per cent of Australians - one in four - will be over 65.
* The ageing of the population is expected to reduce the workforce participation rate from around 65 per cent now to around 60 per cent by 2049-50.
The extent of that change is revealed by the dramatic change in the ratio of the number of people of working age (and paying taxes) to those aged 65 and over:
* Forty years ago, in 1970, the ratio was 7.5 people of working age to every person 65 and over
* In 2010, the ratio is 5 to 1.
* And in 40 years' time, in 2050, it is projected to fall so far that there will be just 2.7 people of working age for each person aged 65 and over.
This creates a major long-term economic challenge, as Australia faces higher costs yet slower economic growth:
* The Australia to 2050 report projects that average annual growth in real GDP per person is projected to fall to 1.5 per cent over the next 40 years.
* This contrasts to an average increase in GDP per capita of 1.9 per cent per year over the past 40 years.
* In other words, average family incomes will grow at a slower rate than in recent years. This defines Australia's long-term growth challenge: acting now, to counter the projected decline in economic growth in the years ahead; acting now, to enhance productivity growth and workforce participation - the clear message about what needs to be done in response to the ageing of the population set out in Treasury's intergenerational modelling.
By lifting productivity and participation, we can achieve a higher rate of economic growth and counter the effects of the ageing of the population:
* The Treasury analysis undertaken for the Australia to 2050 report shows that if average productivity growth was lifted back towards the 1990s mark of an average 2 per cent per year - up from the 1.4 per cent to which it declined in the decade just passed - this would produce enormous benefits.
* Our economy would be $570 billion bigger in 2050.
* On average, every Australian man, woman and child would be $16,000 better off a year in 2050.
It is productivity growth that must play the central role in building Australia's future economic growth. Productivity is about how we use labour, capital and technology across the economy. It's about working smarter - rather than working harder, or working longer.
Productivity depends on all of us - workers, businesses and the Government - but the Government plays a vital role in facilitating long-term productivity growth.
To lift productivity we need broad economic reforms.
First, we can increase productivity by building advanced 21st century infrastructure:
* According to IMF research, in developed countries like Australia, an increase in the public infrastructure stock by 1 per cent leads to an increase in output by around 0.2 per cent.
* According to the Productivity Commission, improving the efficiency of Australia's energy and transport infrastructure could, after a period of adjustment, increase GDP by nearly 2 per cent.
* This is the equivalent of around $75 billion or $2,000 per person in today's dollars, based on the figures in the Australia to 2050 report.
Second, we can increase productivity by building a highly skilled, highly trained workforce:
* The Productivity Commission has found that improvements related to education and training - early learning, higher education attainment and increases in numeracy and literacy - could raise aggregate labour productivity by up to 1.2 per cent.
* If we could boost GDP in 2050 by 1.2 per cent, that would amount to around $45 billion in today's dollars - or the equivalent of around $1,200 for each Australian.
Third, we can increase productivity through microeconomic reforms - such as the reforms the Government is prosecuting to build a seamless national economy:
* The Productivity Commission found in 2005 that the National Competition Policy and related reforms during the 1990s increased Australia's GDP by 2.5 per cent.
* Further microeconomic reforms can build on this achievement and continue to lift GDP and productivity.
* The Government's commitment to tackle social exclusion can also contribute to increasing workforce participation and productivity growth by removing barriers to work and improving skills among the most disadvantaged Australians, such as Indigenous Australians, unemployed youth and the homeless.These measures will also help the 2.6 per cent of Australians - or around 570,000 - who were left out while the nation reaped the benefits of the mining boom in the past decade.
The other side of the challenge of the ageing of our population is the challenge it poses to the sustainability of future budgets. Unless we can achieve higher levels of productivity growth and workforce participation, we face either generating large, unsustainable budget deficits into the second quarter of the century, or needing to reduce government services.
The task of meeting the challenge of the ageing population has been made more difficult by the aftermath of higher budget expenditure during the past decade, which has locked in a permanently higher spending base:
* During the growth period of the 2000s, the average real growth in government spending actually increased to 3.8 per cent.
* This compared to an average 2.5 per cent annual real growth in spending during the growth period of the 1990s.
In response to this challenge, the Government has committed to a medium-term fiscal strategy that will help us manage the challenge of an ageing population by delivering a permanent structural improvement in Australia's public finances. The long-term consequence of the Government's medium-term fiscal strategy is that by 2049-50, the Budget outcome is projected to be around 3.5 per cent of GDP better off - or $130 billion in today's dollar terms.
The Australian Government is acting on the challenges facing Australia. We took strong, early and decisive action in response to the global economic crisis to support jobs and working families here in Queensland and across the nation, but we always kept our eye on the ball, directing some 70 per cent of our economic stimulus towards nation-building infrastructure, infrastructure that will advance the long-term challenge of enhancing productivity and workforce participation.
Across Australia, our Nation-Building for Recovery Plan involves a $77 billion investment. The total stimulus to the Queensland economy amounts to $11.7 billion, through payments to support working families and investment in medium- and longer-term infrastructure.
Our first action was immediate stimulus of the economy through targeted bonus payments to families, pensioners and individuals. We did this to ease the pressure on households struggling with the global recession, while supporting economic growth.
In Queensland, this meant:
* $1.3 billion in tax bonus payments to around 1.5 million individuals;
* Around $700 million in stimulus payments to families, and $790 million to pensioners;
* $511 million in Back to School bonus payments for more than 550,000 children;
* $255 million in Single Income Family Payments for almost 290,000 families, covering more than 560,000 children; and in addition to these measures, some 560,000 pensioners in Queensland have received substantial permanent pension increases of up to $32 per week - helping make a big difference for those struggling with cost of living pressures.
We also helped 40,034 Queenslanders into their first homes by the end of November last year, through the First Home Owners Boost.
The Nation Building Economic Stimulus Plan also invests in medium-term, shovel-ready infrastructure that supports jobs during the economic downturn.
The Building the Education Revolution Program is the biggest schools modernisation program in Australia's history:
* We're investing $16.2 billion in 9,526 schools across the country.
* Through the National School Pride component, we're investing $1.3 billion in over 13,000 small scale and minor refurbishment projects. This includes $241 million in 3,700 projects here in Queensland.
* Through the Primary Schools for the 21st Century component, we're investing $14 billion in over 10,000 new libraries, multipurpose halls, and classrooms. This includes $2.7 billion for 2,235 projects here in Queensland.
* And we're investing over $800 million in 537 new science and language centres for secondary schools, including $200 million for 127 science and language centres here in Queensland.
Second, we have the Social Housing Initiative - the biggest Commonwealth Government investment in social housing ever:
* We're investing $5.2 billion in over 19,000 new social housing dwellings. This includes $1.1 billion for over 4,000 new dwellings here in Queensland.
* We're investing $400 million in 70,000 repairs and maintenance jobs for social housing. This includes an $80 million investment in 22,000 projects here in Queensland.
* And we're investing almost $250 million in 800 new defence housing dwellings. Almost half of these dwellings will be right here in Queensland because we recognise that defence housing needs in this state are particularly strong.
Third, we are transforming homes across the country with the Energy Efficient Homes Package:
We've already paid out over $1 billion towards almost 800,000 ceiling insulation jobs. $350 million of that investment has been for over a quarter million homes here in Queensland.
We've also paid out $134 million for over 84,000 solar hot water rebates, including $24 million for almost 15,000 here in Queensland.
And finally, the Nation-Building Economic Stimulus Plan includes almost $1 billion in transport and community infrastructure:
* We're investing $150 million in 607 Black Spot projects to improve safety on our roads. This includes a $30 million investment in 93 projects here in Queensland.
* We're investing another $150 million in almost 300 Boom Gates projects, to improve safety at rail crossings. This includes $43 million for 66 projects in Queensland.
* And we're investing $550 million in 137 projects through the Regional and Local Community Infrastructure Program - including a $30 million investment in 19 projects here in Queensland.
* We have also supported local communities through 37 Jobs Fund projects in Queensland, generating or retaining a total of 1,129 jobs, 908 traineeships and 765 work experience positions.
The Government is also committed to building long-term economic infrastructure that will support productivity growth in coming decades. This long-term infrastructure is the transport, communications and energy networks that will drive economic growth for future generations.
That is why we are investing $36 billion in transport infrastructure across the country over the next five years. It is an unprecedented transport infrastructure investment. We've doubled the roads budget. We've quadrupled the rail budget. We're investing in ports for the first time.
Here in Queensland, we're investing $8.6 billion, which includes:
* $2.6 billion for duplication and safety works on the Bruce Highway - one of the longest and most important sections of the national road network
* $2.5 billion for the upgrade of the Ipswich Motorway - one of Brisbane's most important arterial routes
* And $365 million towards the Gold Coast Light Rail project that will transform one of the fastest growing regions in Australia.
Modern, efficient, and safe transport infrastructure is critical to making sure Queensland is one of the best places to live in the world.
We are also committed to the infrastructure of the 21st Century - high-speed, optical-fibre broadband. That is why we have established a company to invest $43 billion in a National Broadband Network with speeds of 100 megabits per second, taking us from the back of the pack among developed economies into the modern era.
It will plug Queensland into the global economy. It will transform the way we live and work. It will underpin our future prosperity.
Preparing for the future is also about preparing for the low-carbon economy of the future. That is why we have created the $4.5 billion Clean Energy Initiative to support new green infrastructure, including:
* The $2.4 billion Carbon Capture and Storage Flagships Program to support construction and demonstration of large-scale projects.
* The $1.6 billion Solar Flagships Program to support construction of large-scale solar power stations.
* Together, these massive infrastructure investments in transport, communications and energy are about setting us up for growth for decades to come.
The Government is investing in an education revolution, to give Australians the skills, education and training that will help lift productivity growth and workforce participation in the long term. That starts with early childhood education for the youngest Australians:
Over the next four years, $16 billion will be invested in Early Childhood Education and Child Care - an increase of more than $1 billion. That is more than double the investment made over the previous four year period under the previous government, and $13.1 billion of this will directly assist parents with the cost of child care. In Queensland, we are providing:
* More than $700 million each year to help parents with the cost of child care;
* $11 million to create six early learning and care centres;
* $75 million for 10 integrated Children and Family Centres in Queensland - targeted towards Indigenous families; and
* $252 million to help all Queensland kids access 15 hours of kindergarten in the year before they start school.
I've already spoken about how we are investing in the biggest school modernisation program in Australia's history. We are also investing record amounts in our schools, to give the new generations of Australians access to the best education possible. Nationally, we will invest more than $62 billion in school education from 2009-2012, compared to $33 billion in the previous four year period.
In Queensland, that means a 138 per cent increase in education funding:
* We have already allocated $54.8 million for around 54,661 computers in 522 Queensland schools.
* We've also provided around $73 million provided for 28 Trades Training Centres in schools to help address skill shortages in traditional trades and emerging industries.
This Government has increased investment in funding for vocational education and training by 64 per cent to $4.1 billion in 2009-10 - and providing a total $14.8 billion over 4 years to 2012-13.Nationally we have provided $2 billion for the Productivity Places Program to fund 711,000 places over five years. Already we have enrolled over 112,000 job seekers enrolled in the program, with over 60,000 having completed their training.
We've taken action to support apprenticeships, to avoid thousands of Australians missing out on training due to the economic downturn. Under the Apprentice Kickstart program launched last month, we have tripled the incentive for employers to take on a young apprentice. Since it began on 1 December, new sign-ups for apprentices have soared by more than 50 per cent compared to the same time last year, and by last week we had a total of 6,421 new trade apprentices signed up - of whom 1,114 were Queenslanders.
The Government has begun the process of reforming our health and hospitals system to meet the long-term challenges of the ageing of the population. We have made substantial new investments in health care here in Queensland and across the nation, delivering an increase of around 29 per cent in funding for Queensland over a four year period. As part of the National Healthcare agreement, the Australian Government will deliver $64 billion in health and hospitals funding over five years. This is an increase of more than $20 billion, or 50 per cent over the last agreement. Queensland will receive around $12.5 billion from this agreement.
Nationally, we have delivered $750 million to take pressure off our emergency departments. Queensland's share is $147 million, to deliver upgrades at Prince Charles, Logan, Redland, QEII, Ipswich, Caboolture, Bundaberg and Toowoomba Hospitals, and of the $600 million we are investing to reduce elective surgery waiting lists across the country, Queensland has so far received a total of $57 million.
That is made up of:
* $28 million to conduct additional surgeries - with Queensland delivering 5,928 additional surgical procedures, well above its target of 4,000;
* $29 million to expand elective surgery capacity and commission additional operating theatres.
As part of the $3.2 billion health infrastructure package in the 2009-10 Budget, Queensland will receive a total of $480 million towards hospitals and medical research infrastructure. This includes:
* $250 million to expand Townsville Hospital;
* $40 million for the Smart Therapies Institute;
* $104 million for an Oral Health Centre in Brisbane; and
* $76 million to extend Rockhampton Hospital.
* These are important investments in the future of our health care system and the future health of our nation.
Australia Day is a time to reflect not only on the future, but also on past achievements. It is also a time to acknowledge the great achievements of individuals in building the modern Australia of today.
On each Australia Day, we recognise those individual contributions through the Australian of the Year Awards, which turn 50 years old this year, Australians who have served their community and made us all proud of our nation.
The 2010 Queensland finalist, Dr Chris Sarra, is a leader in Indigenous education. A world-class educator, Chris hails from Bundaberg and is the youngest of 10 children. In the late 1990s, Dr Sarra took on the challenges of Indigenous education as the Principal of Cherbourg State School in South East Queensland. His 'Strong and Smart' philosophy and his leadership led to dramatic improvements at the school. He now heads the Stronger Smarter Institute, which is transforming Indigenous education with its focus on high expectations, quality relationships and community engagement in schools.
This is nationally important work, so I'm sure you'll join me in wishing Chris the very best for his work and for next week's Awards.
The strength of the finalists each year for the Australian of the Year Award reminds us that the Australian spirit is alive and well here in Queensland in 2010: the 'can do' spirit; the spirit of a 'fair go';and a spirit of compassion, embodied in our nation's response to disasters at home and abroad - from last year's floods and bushfires here in Australia, to the tragic earthquake in recent days in Haiti.
That spirit is everywhere in this great land of ours, qualities that can make us all proud this Australia Day.
And so I raise the toast: To Australia.