Ross Vasta Bonner, Liberal Party
2:43 pm
My question is addressed to the Treasurer: would the Treasurer update the House on today’s economic data? What does this indicate about the Australian economy?
Peter Costello Higgins, Liberal Party, Treasurer
I thank the honourable member for Bonner for his question today. The August figures on housing finance were released, which showed that housing finance commitments fell in the month of August but are 15.4 per cent higher over the course of the year. This is consistent with moderate growth overall in the housing market, although it is quite plain that in Perth the housing market is particularly strong and it is much more subdued in the eastern capitals.
Also released today was the Westpac-Melbourne Institute consumer sentiment, which rose 3.9 per cent in October and is now 7.2 per cent above the level of a year ago. Four of the five indexes rose in October and the index has now nearly entirely recovered the huge fall that it suffered in August. It appears as if the major reason for the rise in consumer sentiment is the fall in petrol prices. The all-capital petrol price last week around Australia was 116c per litre, down from its peak in August of 136c per litre. So that is a 20c drop in the average in capital cities over the last two months.
Indeed, looking at the oil price, the oil price, which overnight was $US58.50 a barrel, is some 20 per cent lower than it was in August. It might be too early to say that the oil price has peaked and stabilised, but a 20 per cent decline in the oil price over the last two months is certainly very welcome, and very welcome to Australian consumers, who are now paying in capital cities 20c a litre less than they were paying in August, and you are seeing that in consumer sentiment, which is now higher than it was this time last year. What all of this adds up to is continuing growth in the economy as a whole. We are now entering the 16th year of growth in Australia—the longest run of economic growth in Australian history.
Jennie George Throsby, Australian Labor Party, Shadow Parliamentary Secretary for Environment and Heritage
Thanks to the Labor Party’s governance.
Peter Costello Higgins, Liberal Party, Treasurer
I just heard the authentic voice of socialism interjecting: the former President of the ACTU, claiming credit for economic growth. Let me remind the parliament that 10 years ago—
Lindsay Tanner Melbourne, Australian Labor Party, Shadow Minister for Finance
Mr Tanner interjecting
Peter Costello Higgins, Liberal Party, Treasurer
we did not talk about surplus budgets, because the budget was $10 billion in deficit. Let me say, 10 years ago we did not talk about clearing debt, because we had $96 billion of debt.
Peter Costello Higgins, Liberal Party, Treasurer
Let me tell you, 10 years ago we did not talk about unemployment rates at five per cent, because unemployment rates were up at 10 per cent. And 10 years ago the current mortgage interest rate, at 7.8 per cent, would have been considered unattainable. Let me remind the very voluble Leader of the Opposition, ‘The Skipper’, and his crew on Gilligan’s Island over there: the member for Gellibrand, Mary Ann; The Professor, the member for Griffith. And whom will we christen Gilligan? I think the member for Lilley. He has got to be Gilligan, over on that—
Unidentified interjection - Hansard doesn't record who said this
Honourable Members:
Lindsay Tanner Melbourne, Australian Labor Party, Shadow Minister for Finance
Mr Speaker, I rise on a point of order. The Treasurer has strayed a long way from the question. He was not asked for alternative policies. He should be called back to order—
David Hawker Speaker
The member for Melbourne will resume his seat. I am sure the Treasurer will come back to the question. I call the Treasurer.
Peter Costello Higgins, Liberal Party, Treasurer
Mr Speaker, I was. But, anyway, as I was saying in relation to housing finance, this is consistent with a growing housing market.
Kevin Rudd Griffith, Australian Labor Party, Shadow Minister for Foreign Affairs and Trade and International Security
Mr Rudd interjecting
Peter Costello Higgins, Liberal Party, Treasurer
I was rather distracted by the crew on Gilligan’s Island over there, as the member for Menzies has christened them.
Bernie Ripoll Oxley, Australian Labor Party, Shadow Parliamentary Secretary for Industry, Infrastructure and Industrial Relations
Mr Ripoll interjecting
Peter Costello Higgins, Liberal Party, Treasurer
Let me say, if we were stranded on Gilligan’s Island—
Kevin Rudd Griffith, Australian Labor Party, Shadow Minister for Foreign Affairs and Trade and International Security
Mr Rudd interjecting
Peter Costello Higgins, Liberal Party, Treasurer
under ‘Skipper Beazley’, we would never be where we are today.