Chris Evans (WA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Finance and Administration (Senator Minchin) to questions without notice asked by Opposition senators today relating to inflation and interest rates.

Today we saw the eighth increase in a row in mortgage interest rates. We now know that on an average mortgage, or a mortgage of about $300,000 a year, families in Australia will have to pay an extra $195 a month, about $50 a week, to service their mortgage—to pay for the house in which they live. This is a huge burden. It is the highest burden in a decade, and it represents a record share of people’s income being spent on the cost of their mortgages. With rising house prices and the rising size of mortgages, people in Australia are now paying a record share of their income to service their repayments.

What we have from the government today is an out of touch, arrogant response to the concerns and pressures on Australian families. Mr Costello, the Treasurer, and the Prime Minister continue to describe interest rates as ‘extremely low’. I do not know what planet they live on and I do not know what they know about paying a mortgage, but everyone I know does not describe these interest rates as ‘extremely low’. Everyone I know realises that they have had to suffer eight increases in a row, that the pressure on their families to meet those repayments is huge, that they are feeling threatened and that their financial security is threatened as a result of this. And this government does not seem to care.

We also know that the Liberal Party’s website still carries the promise—John Howard’s claim that he would keep interest rates at record lows. That was his promise to the Australian people at the last election: he would keep interest rates at record lows. He has breached the trust of the Australian people. He has let them down, because interest rates are not at record lows. We know they are not at record lows, but the Liberal Party is in denial. The Liberal Party will not accept the fact that it has lost control of inflation and, as a result, Australian families are paying the price. They are paying the price by having to pay up to $200 extra a month in interest rates on repayments on their mortgage as interest rates continue to climb.

The government are in denial. They do not want to talk about the promise made before the last election. They want to run from that. Mr Howard wants to rephrase and reclarify what he promised. But we know that the Prime Minister has breached a promise to the Australian public. He will not and has not been able to keep interest rates extremely low, and now he wants to move on. We know also that he gave the green light to the Reserve Bank to increase interest rates. He saw it as the interest rate hike that we had to have. What he said to Australian families is: ‘Because we have lost control of inflation and because you are paying 10 per cent extra on your grocery bill compared to what you were paying last year, we have let the economy run out of control. Because of that, someone has to pay a price. And who is going to pay the price? Australian families are. We have given the Reserve Bank the green light so they can put up interest rates. So ordinary families will pay 50 bucks extra a month because we failed—because we let inflation get out of control. You will pay the price.’

Senator Minchin today said, ‘Governments need to touch the brakes.’ That was his phrase: they need to touch the brakes. What he meant was that every family servicing a mortgage will have to pay in excess of $50 a month extra as the government seek to touch the brakes. ‘Touching the brakes’ means ‘touching you’. Touching you and increasing your repayments is the way the government touch the brakes on the economy. They have not invested in infrastructure, they have not invested in skills, they have not managed inflation, and now it is all out of control and Australian families are paying the price.

Australian families will be very interested to hear that you are so out of touch as a government—that you are so unconcerned with this that you continue to say, ‘Oh well, it is the states’ fault,’ or, ‘It is the former Labor government’s fault.’ Today you are trawling around the press gallery with a document saying what Kim Beazley said in 1994. Take some responsibility. Take up your commitment to the Australian public. You will not take responsibility for your failure. You want to take credit for the positives, but you will not front up. You have breached your faith with the Australian public. You said that you would keep interest rates at record lows. You have let them down, and you ought to front up and take some responsibility. (Time expired)