Michael Ferguson (Bass, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Would the Treasurer outline recent data on private sector credit, and what does this indicate about the Australian economy?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for Bass for his question. The Reserve Bank today released its monthly credit series, showing that credit remained stable in the month of September. Total private sector credit—comprising housing, personal and business credit—increased one per cent and was 14.4 per cent higher over the year, unchanged from August. Household sector credit—comprising household and personal credit—rose one per cent in September and housing credit rose one per cent to be 14.2 per cent higher than at the same time last year, unchanged from the growth rate in August. Housing credit growth at 14.2 per cent is significantly lower than the growth that we saw in 2004 when housing credit growth was up around 21 per cent. So, although credit growth is quite strong, it is certainly not at the peaks that it was before the readjustment in the housing cycle back in 2004.

One of the things that is supporting decent credit growth in this country is employment. There are 1.9 million additional Australians who have work compared to when the Labor Party was last in office. It is undoubtedly the case that that has given people the confidence to take out credit, because they are confident of their employment prospects under a coalition government. Your chances of getting a job were significantly lower under the Labor Party, which put so many people out of work.

Michael Hatton (Blaxland, Australian Labor Party) Share this | Link to this | Hansard source

Mr Hatton interjecting

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I believe it is the member for Blaxland who is interjecting. After all, it was his boss, Mr Keating, who presided over all those people who were put out of work.

Michael Hatton (Blaxland, Australian Labor Party) Share this | Link to this | Hansard source

Mr Hatton interjecting

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

Order! The member for Blaxland does not have to respond.

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The Labor Party did not care about people who were put out of work in the late eighties and nineties, because the Labor Party increased unemployment. The Labor Party never had an unemployment rate with a four in front of it.

Michael Hatton (Blaxland, Australian Labor Party) Share this | Link to this | Hansard source

Mr Hatton interjecting

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

The member for Blaxland is warned!

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The Labor Party loved the unemployed so much they kept creating more of them. They got the unemployment rate up to 10 and 11 per cent under their predecessor, the boss of the member for Blaxland. It is the coalition that stands for jobs for working people. It is the coalition that stood up to give the working people of this country a go at a job. It is good economic policy, because this is the party that cares for the working people of Australia.