Michael Keenan (Stirling, Liberal Party) Share this | Hansard source

This is a typically silly MPI from the ALP. Even though we have an economy that has been expanding rapidly for the past 16 years, it has been accompanied by a historically low rate of inflation. Today in the House we have heard opposition speakers attacking the government on issues that, realistically, are largely outside of the government’s control—and not once did I hear them outline what they might do differently if they were in government. The reality is that, for the past 11 years, the Howard government has pursued responsible economic policies that have delivered economic growth without the accompanying large increase in prices. Indeed, real wages, which reflect people’s purchasing power, have actually risen by 20 per cent.

Sadly, there is a political party in this House which does not pursue policies that would continue these same results. Mr Deputy Speaker, do you know what would put pressure on the cost of living? Do you know what would drive inflation up? Pattern bargaining. If we were to turn back the clock on industrial relations reform, that would drive up the cost of living. If we were to return to an industrial relations policy that predates the reforms of the Hawke and Keating governments, that would drive up the cost of living. ALP members come into the House crying crocodile tears about the cost of living, whilst supporting an industrial relations system that would put heavy upward pressure on inflation—policies that would put extra pressure on families in my electorate of Stirling. This is an IR policy that would drive a stake through the heart of the Western Australian economy. If the members opposite actually cared about inflation and the cost of living, they would immediately repudiate their job-destroying IR policies that would drive up prices.

Members opposite spend most of their time talking about the increased cost of housing. But what would the abolition of the Australian Building and Construction Commission do to the cost of housing? What would abolishing the only thing that stands in the way of a return to lawlessness on building sites around the country do to the cost of housing? What would a return to the thuggery of the CFMEU do to the cost of housing? When Kevin Reynolds and Joe McDonald get their hands back on building sites around Perth, as they are fully expecting to do if a Rudd Labor government is elected, you can expect housing prices in WA to skyrocket.

The biggest determinant of the cost of living is housing prices. Basic economics tells us that high land prices are ultimately dependent on the supply and demand of land. That means that they are ultimately dependent on the planning policies pursued by state Labor governments. I come from Western Australia, where housing affordability has become critical. In Western Australia, the tax-gouging state Labor government, with its record stamp duty revenue windfall, has an insatiable appetite for public money. I would not be so outraged about this if it actually did something with its taxpayer funded windfall. But the state Labor government does not build anything or do anything; all it ever seems to do is run around the state blaming infrastructure shortfalls on the federal government. It takes its taxpayer funded windfall and employs more public servants. I would not be so outraged if they were police, nurses or teachers. But what it does is employ more administrators and more ministerial staff.

Planning policies are a key determinant of housing affordability. Coming from Western Australia, I note there is something perverse about a state as large as Western Australia—not obviously a state that is short of land—having such a housing crisis. The state government continues to fail to provide the conditions for more land to come onto the market. It is the policies of the state Labor governments around the country that are increasing the cost of land and putting upward pressure on the cost of living. The reality is the best way to control inflation and keep the cost of living down is to do the hard years on managing the economy. It is to pay off debt, which relieves pressure on interest rates. It is by providing tax relief, which means people can spend more of their hard-earned cash.

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