Wayne Swan (Lilley, Australian Labor Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is directed to the Prime Minister. Is the Prime Minister aware that the Reserve Bank’s measure of the debt servicing of households shows a bigger share of household income is being consumed by mortgage interest payments today than ever before? Why doesn’t the Prime Minister tell the truth, like the Treasurer’s parents said he should, and admit interest rate rises today are having a greater impact on household budgets than rates prevailing in 1989?

Opposition Members:

Opposition members interjecting—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister has the call.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Mr Speaker, the truth is that housing loans are larger today because people are wealthier today than they were 10 years ago—

Jenny Macklin (Jagajaga, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Ms Macklin interjecting

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The Deputy Leader of the Opposition is warned.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

and the value of their homes is higher. And I thought even the member for Lilley would understand that if the value of your home is greater then the loan you need to buy that home has to be greater. But let me content myself as I cast around for a description of the state of the Australian economy at the present time. I found some words spoken on 30 July 2006. These words were:

... Barrie, because times have been good, unemployment is low, the economy is relatively prosperous ...

I couldn’t have put it better myself. Wayne Swan, Insiders, 30 July 2006.