Lindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

In the 2004 election campaign, the former Prime Minister promised to keep interest rates at record lows. Of course, what eventuated thereafter was 10 interest rate increases in a row. So when this government took office we had a pattern of rising interest rates which continued for the first few months of that term in office. We now have the Reserve Bank rate at three per cent; of course, the rate was 6.75 per cent when the government took office.

This government absolutely rejects the suggestion—the ludicrous proposition—that our fiscal settings are putting upward pressure on interest rates. That suggestion from the opposition has attracted derision from a wide range of respected economic commentators. We have got circumstances in the global economy that the opposition simply refuses to acknowledge. In fact, we had the bizarre proposition today from the member for Sturt, pronouncing that it is all over: the global financial crisis, the recession and the difficulties in the Australian economy are all over—it was all in your imagination; it is all finished! What are we worrying about?

The truth is we have a major economic challenge still underway in this country. As far as the government is concerned it is true to say, over the past six months, ‘Yes, so far so good. The stimulus strategy has been working, and working well.’ But there are many challenges in front of us, and it would be absolutely retrograde of the government to withdraw that stimulus. In fact, I note today that an organisation that is usually supportive of the opposition on many matters—ACCI—came out and said precisely that. You cannot even get ACCI to support your position. The organisation that has a long history of being very close to the Liberal Party, the employers’ organisation, points out that peremptory withdrawal of the stimulus would threaten the recovery, would threaten the Australian economy, would threaten jobs and would threaten businesses.

It is a sorry situation when the conservative parties in this country cannot even get the No. 1 employer organisation to support their economic policy. That speaks volumes for the economic competence of the opposition.

See this speech in context