Thank you, it's a great pleasure to catch up again with members of the Townsville Chamber of Commerce – a driving force behind the economy here for many years. And to catch up with an old friend. David and I go way back to the days of the Goss Government, when he worked in the Premier's office and I was running the Queensland Labor Party. Our lives have taken us in different directions since then, and it's great to see David in his present role as head of Endeavour Foundation, one of my favourite groups and a local success story spanning decades. Our roles are very different, but I think we're motivated by the same basic values and beliefs that attracted us to public policy - that we create prosperity to spread opportunity. That every Australian deserves a decent shot at a decent life. And that jobs are key to giving people lives of dignity. I know David is also a passionate advocate of the National Disability Insurance Scheme – one of this Government's most fundamental reforms.
This morning I was out at the Endeavour Foundation's Learning and Lifestyle Centre located in North Ward. Here I met with people from across Townsville who are living really full lives and doing it with disability. The fact is too many Australians with disability haven't had the best start in life and don't get the services that a life of dignity demands. The National Disability Insurance Scheme is about putting in place a fundamental long-term reform that will rectify the wrongs of the past so that Australians with disability receive the services they deserve. I've been particularly keen to see a location like Townsville become a trial site for the roll-out of the NDIS. I have a great affection for this city, and I'm incredibly optimistic about Townsville's future as a diverse economic centre. As Townsville business people, you already know how much Townsville has going for it. And as a regular visitor to this town, I've seen this for myself. It's only been a few months since your Mayor, Jenny Hill, took me around the new Townsville Ocean Terminal. I was also here to switch on the NBN about this time last year – Queensland's very first NBN site and something that will be a game changer for the local economy. And my visit in April last year was to check out the work we're doing on the Townsville Ring Road – one of many infrastructure projects our Government's is investing in up here. In fact, this is my fifth visit to Townsville in about fifteen months. I can't imagine any of my predecessors came up here every three months on average. Each time is a marker of the Gillard Government's confidence in your city and your region. So today I'd like to talk to you about Townsville's place in the Government's ambitious vision for Australia's future. I will turn specifically to Townsville in a moment but, before I do, I think it's important to preface that by talking a little bit about how this Government is strengthening our national economy.
It's no secret that Australia has rock-solid economic fundamentals —they're the envy of the developed world. We've got an impressive combination of solid growth, low unemployment, record investment, contained inflation, strong public finances and lower interest rates, We are officially growing faster than any of the major advanced economies and we are expected to outperform them this year and next. While many advanced economies aren't even back at the starting line, our economy is 11 per cent larger than it was before the Government came to office. Over this period our economy has created over 750,000 jobs, while 27 million jobs have been lost across the world. And Standard and Poor's has just affirmed Australia's AAA credit rating yet again only last week, so we have the AAA from all three of the main ratings agencies, something never before achieved by an Australian government. There's no other way to read this than as a ringing endorsement of our economic strength and our economic management.
Our management of the economy isn't just about keeping a steady hand on the tiller. We've got a big, bold vision for this country; one that sees Australia's success continue to grow across the twenty-first century. And there are two things – two obsessions – that feed into that vision: jobs, and planning for Australia's future in the Asian Century. Our jobs record speaks for itself: more than three quarters of a million jobs have been created since Labor came to office in November 2007. Australia's unemployment rate, at just 5.1 per cent, is lower than any of the major advanced economies except Japan. When you view that record against the backdrop of global unemployment higher than any time since the Great Depression, I feel immensely proud of what our country has achieved. And as Asia continues its transformation into the world's economic powerhouse, we'll see even more new jobs – and they'll be new kinds of jobs. This is where our two obsessions collide: getting Australia ready to reap the huge advantages that will come our way as the Asian century unfolds. Let me explain how that works. In the last 30 years, around 200 million people have moved from China's rural villages to work in rapidly growing mega-cities. In the next 15 years, another 240 million will make the same move. What this means is that China's consuming class will grow by about half a billion people in the next decade – and India and other emerging economies have a similar story. That means 500 million more people in China alone with more income, more leisure, and their sights set on a better lifestyle for their families. And that means increased demand for: better quality housing; better quality food – including a higher-protein diet; more and better consumer goods; travel, tourism and entertainment; education; healthcare; financial services; professional services like architecture and engineering and products we haven't even thought of yet! I'm sure if I had a few reams of butcher's paper up here we could make this list go on and on.
The point is that Australian industry and businesses stand poised to help meet this demand. Our farmers, food producers and winemakers. Our tourism operators and our iconic natural beauty. Our schools, TAFEs, universities, and language schools. Our healthcare professionals and facilities. Our banks, credit unions, and financial advisers. Our architecture and engineering firms. The possibilities are truly endless. In order to make the most of these possibilities, we'll have to find new ways to operate and connect with growing Asian markets. We'll need to forge deeper and broader relationships with our neighbours at all levels – not only through the official channels, but through business, social and cultural links as well. The Asian Century White Paper we commissioned – due for release shortly – is essentially a roadmap for how we can do this. It will give us a set of ambitious national objectives to achieve by 2025. It will help us see our way to becoming a more dynamic, resilient and prosperous nation, fully connected with our region and open to the world.
Of course we know that in the first decade of the Asian century, not everyone has felt the benefits of our strong economy. Not everyone has seen the mining boom bringing benefits to their business or their industry. One of the big challenges for many Australians is the higher dollar. This has created significant headwinds for export-facing businesses, particularly in manufacturing, tourism and education. Any small business with customers offshore knows those markets are competitive enough without the added burden of a higher dollar. And I know that many small businesses feel like they aren't seeing the benefits of the mining boom, no matter where they operate. That's why we've been so focused on spreading the benefits of the mining boom to all corners of our economy. One of the ways we're doing this is with a new loss-carry back reform that provides vital business tax relief to help businesses that aren't in the fast lane of the boom. This, of course, builds on the $6,500 instant asset write-off we introduced, and the $5,000 instant write-off on motor vehicles for small businesses. Here in North Queensland, there's 14,000 small businesses that will benefit from the instant asset write-off. Don't forget it's available for each and every asset worth up to $6500 – and worth around $1 billion in extra cash flow for small business in the first year alone. We want to help struggling businesses ride out difficult times — we want to encourage them to invest in capital, skills and restructuring so they can become more competitive. This kind of investment will help businesses lift their productive capacity and, in turn, help lift the productive capacity of the economy. We've also tripled the tax-free threshold, providing greater incentives to work and freeing about a million Australians from having to lodge tax returns. For Townsville, this means 4,000 local residents will no longer pay tax and 48,000 will receive a tax cut of more than $300. One thing we know for sure is that safeguarding Australians' living will mean lifting our productivity. That doesn't mean working harder; it means working smarter. It means having a tax system that creates incentives for growth and innovation and investment. It means having Australian workers that are highly educated, highly skilled, ready to take on the high-end jobs of the future.
That brings me to talk about the other major area of reform that our Government has made big strides in: skills. There are few worthier goals than opening the door to participation in the workforce. We are opening that door. By helping to deliver the skills and training that mean our workers are higher up the value chain, we're opening the door for businesses to get the skilled workers they need. We are modernising our training system. That's why it was so important that the PM secured the agreement of the States and Territories to a new $1.75 billion reform package. Last year, we announced a new National Workforce Development Fund, which now totals $700 million over five years. The Fund, which was set up to co-invest in training schemes with Australian businesses, has been a great success. 50,000 training places are already committed and business is matching the Government dollar for dollar. In Townsville, there's traineeships underway with companies like Thiess and at the Townsville Airport.
We've got a strong economy. We've got a jobs record that's the envy of the developed world. And we've got every prospect of success in the Asian century, if we play our hand well. So where does Townsville fit into this picture? Well, to me, Townsville is a picture of exactly the kind of diverse, dynamic regional economy that will power Australia's passage through the years ahead. I'd like to spend the rest of my time with you setting out how well-placed Townsville really is, and how much our Government is investing in your city. I don't need to talk up Townsville's strengths to you, but it's remarkable how diverse your local economy is, and how many different sectors are providing jobs and opportunities here. You've got billion dollar agricultural industries – in spite of severe cyclone damage from Larry in 2006 and Yasi last year, these industries are coming back stronger than ever. You've got mining and resources, tourism and travel. Plus Australia's biggest Army base at Lavarack, and a world-class university in JCU.
In fact, according to the Good Universities Guide, JCU grads have better job prospects than most of their Australian peers. That's largely because there are so many options for them here in Townsville. As a Queenslander, I certainly don't want to get in the middle of a contest between Townsville and Cairns; the truth is I love both. But Townsville certainly has a different story to tell when it comes to the economy. For example, unemployment. The figure for Far North Queensland, which includes Cairns, Innisfail, Atherton and so on, is around 8.9 per cent. Northern North West Queensland – that's Townsville , Mt Isa, Cloncurry, Palm Island and Kowanyama – has a figure of just 4.7 per cent. Townsville's also got a very strong investment pipeline in mining, construction and tourism, with investment from both the public and private sectors. Most if not all of you will know that there are a number of Townsville-based businesses already investing in Asia. Businesses like Aero Plastics & Structures, who manufacture aircraft components. Townsville welding supplies, exporting products to Asia. Or Big River Timbers, exporting timber to Asia. That's not to say that everything is rosy here in Townsville, nor to say that Cairns doesn't have a lot going for it.
But what Cairns is trying to achieve at the moment – the diversification of its economy – is something you are well on the way towards. That's a real strength and an important building block as this region looks to embrace the opportunities that will flow from the Asian century. A city like Townsville really is in the front row when it comes to Asia's remarkable transformation. And I'm not just talking about the resources investment boom that's soon to evolve into a resources export boom. That will obviously have big implications for Townsville's mining and construction sectors, as well as its transport and freight infrastructure. Townsville knows all about being at the centre of a boom. Because when gold was found at Cape River and then Charters Towers about 145 years ago, Townsville's population went from under 500 to over 13,000 in just 30 years. But today's mining boom is only the first taste of what will be a much more enduring Asian boom. Given the diversity of your economy, the strength of your services sector, especially in tourism and education, Townsville will be especially well-placed to branch into Asian markets beyond the resource boom. That's why this Government is investing in Townsville like nobody has before.
We're putting our money where our mouth is when it comes to significant investments in physical and social infrastructure. We've put millions into upgrades to the Port and the major roads. Especially the Bruce Highway, where we spend about $400 million every year – four times as much as our predecessors. In fact, since 2008, our Government has committed $2.95 billion towards upgrades and maintenance on the Bruce Highway. We've put millions into Townsville's schools and into beds and equipment for the Base Hospital. And into community spaces like the Flinders St Mall, the Convention and Entertainment Centre, and even getting the Townsville 400 off the ground. Townsville businesses and workers also benefit from what we're doing Australia-wide. For example the $6500 instant asset write-off is available to around 14,000 businesses in North Queensland. The small business motor vehicle write-off means a builder or a carpenter here in Townsville can purchase a new ute and then instantly write-off $5000. So there's no doubt we've delivered a lot for this region.
And, just for a moment, I wanted to contrast this with the actions of the Queensland LNP State Government over recent months. I don't do this for political point scoring, but because what the Newman Government is doing is affecting our economy, our frontline services and ultimately, our people, everyday Queenslanders. And it's something you can feel in the community – a lot of people who voted for this guy feel betrayed by what he's doing.
Already we've seen:
- Around 800 Townsville residents set to lose their jobs
- 130 jobs slashed at the Townsville Hospital, including 45 nurses
- The scrapping of the planned $18 million biosecurity lab and the closure of the existing lab at Oonoonba presenting biosecurity risks to the local agriculture industry
- No funding for Blakeys crossing despite the confected huffing and puffing from David Crissafulli
- Police Beats at Thuringowa, The Strand and Townsville CBD on the chopping block
- The rural fire service put at risk, with resources slashed
- $40 million for school bus services, gone
- Nearly $1 billion in roads funding axed across Queensland
Finding savings and working to run an efficient Government is something I've done for the last five years and will continue to do. But what Mr Newman and his Government are doing is something entirely different. They are indiscriminately slashing and burning jobs and basic frontline services. I know it's their first budget, but from watching how've they've gone about all of this there doesn't seem to be too much method in their madness. And if that wasn't bad enough, we've got the Premier teaming up with Tony Abbott and Joe Hockey talking down our economy. To compare this great state of ours to the economy of Spain is really insulting to everyone who calls Queensland home. Notwithstanding the threats presenting by the Newman Government, the reality is the Queensland economy has a bright future. And Townsville is a big part of that for all the reasons I've outlined today.
Townsville has a big role in the success of the Australian economy in the Asian Century. But, although we're optimists, we're not naive or complacent. We know that success won't fall into our laps. We know that it will take investment in jobs, hard work and planning for the future. With your help and input, shaping the business landscape and energising Townsville's economy, we can get it right. And I bet if I'm still coming back here in twenty years' time, I'll see a thriving, vibrant city, linked to the Asia-Pacific region, more diverse and more dynamic than ever. As good as Townsville is today, its best days are still to come.
Thank you.