Malcolm Turnbull has used the win by the leave campaign to warn that the result could cause a “shock” and he has urged Australians to vote for the Coalition government’s “strong economic leadership”.
Speaking at 2pm yesterday when the BBC had already called the vote for the “leave”, Turnbull warned there would be a level of uncertainty in the economy, which would require a stable majority government.
“You have already seen the pound has lost a lot of value,” he said. “It will create a shock. I’m sure stability will return in due course, but it will be a shock.”
But in a second news conference an hour later, Turnbull urged calm in the face of the result, given Britain would take several years to leave the European Union.
“We respect the wishes of the British people, expressed through this referendum,” he said.
“I want to say that Australians, I recognise, will be concerned by the uncertainty and instability in global markets, falls in currencies, including the Australian dollar, and in equity markets.
“It is important to remember that the Australian economy is strong and resilient, and has weathered global shocks before and weathered them well. I have no doubt that in due course, the British government will negotiate a satisfactory departure from the European Union.”
Turnbull said Australia’s relationship with Britain would be as “strong and intimate” as ever while negotiations towards a free trade agreement with the European Union would continue.
“So there is no cause for Australians to be alarmed by these developments,” he said.
Bill Shorten said the Brexit vote proved the need for inclusive growth to avoid disenchantment but he said it would not change Australia’s economic fundamentals.“Like the treasurer and the prime minister, we urge people to remain calm and not necessarily confuse the volatility of the stockmarket with any greater economic shift...in Australia’s economic fundamentals,” Shorten said.
Labor’s Chris Bowen warned the Coalition against “politicising” the results for the sake of the Australian election.
“While the United Kingdom leaving Europe would have economic impacts around the world, now is not the time for these impacts to be politicised or dramatised in a scare campaign by Malcolm Turnbull and Scott Morrison,” the shadow treasurer said.
“The Australian people need their prime minister, their treasurer and the alternative prime minister and treasurer, outlining clearly the impacts of Britain potentially leaving the European Union, without scaring the Australian people about those impacts.”
The treasurer, Scott Morrison, said Australia had a growth rate exceeding all advanced economies and growth in exports, particularly in the services sector.
“In the short term, and the volatility we are seeing in markets is not unanticipated, in many respects some of these issues have been priced at various levels within the market,” Morrison said.
Foreign minister Julie Bishop said Australia’s trade agreements would help maintain the country’s economic strength.
“There will be great volatility, which we’ve seen at the prospect of Britain leaving the EU,” Bishop said.
“But it can’t be taken for granted. We have an economic plan for growing the economy so we can withstand these kind of external shocks.
“That’s what our plan is about – making sure the Australian economy is strong. Our trade agreements with countries to our north and our trade agreements around the world that the Coalition has been negotiating will help us maintain that strength.”