Malcolm Turnbull (Wentworth, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. I refer again to the statement issued today by the Governor of the Reserve Bank, which stated, ‘Inflation is likely to remain relatively high in the short term.’ I ask the Treasurer: with inflation expected to reach five per cent at the same time the economy is slowing, does he now regret his intemperate remark that ‘the inflation genie is out of the bottle’, which he made when inflation was at three per cent?

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

I thank the member for his question. I just wish he would tell the truth in the question. In October, November and December last year underlying inflation hit 3.6 per cent—the highest in 16 years. And we have been frank with the Australian people in telling them that it has gone up since then.

Brendan Nelson (Bradfield, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Dr Nelson interjecting

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

There he goes. He says: after a year of us running the economy, we are responsible for the inflation. I was talking before about the political opportunism from plan A there, from plan B up there and from plan C over here, and I will tell you what it is based on. It is based on the notion that there was no inflation in the Australian economy until 24 November last year. That is what it is based on. It is based on the notion that 10 interest rate rises in a row never had any impact on economic growth. It is based on the notion that there has been no impact on the Australian economy by events in world financial markets—that they are not pushing up borrowing costs for households and businesses. It is all based on a furphy. These people who sit opposite are just so intent on playing short-term political games, they have got no concept of the national interest. I will tell you this: we on this side of the House will stand up for the national interest every time. That is what we are doing by putting together a responsible budget and a responsible surplus. That is what we are doing with our responsible plans for nation building. We understand the need to invest for the future and to tackle the inflation challenge so that we can have sustainable, long-term growth.