Nick Sherry (Tasmania, Australian Labor Party, Shadow Minister for Banking and Financial Services) Share this | Hansard source

In rising to take note of answers to questions today I want to go to the issue of rising interest rates and their impact in the Australian community. In the last few days, new figures have been released concerning mortgage repossession figures in New South Wales. These are important figures because they are an indication of the stress that many families are under as a consequence of the higher interest rates that we have seen over the last five years under this Liberal government. In New South Wales, the repossession figures from 2004 through to 2006 have increased by some 75 per cent. I have here the figures since 1990. What is interesting to note is that they were at their lowest over this period in 1994, when there were approximately 1,300. They were stable through until 1998, when they increased to around 2,000, and held steady until the year 2004, when they started to increase significantly.

Why is that the case? Obviously, there is a link between increasing interest rates under the Howard Liberal government and repossession rates. There has been a long-established nexus between the two figures. The reality on the ground in New South Wales—and I am sure that my colleague Senator Hutchins, who lives in Western Sydney, will be able to talk in more detail about this—is that this has a devastating impact on families when rising interest rates force families to sell. They do not just lose their home but have enormous general financial stress placed upon them.

I asked Senator Minchin today for an explanation of this in light of the promise made by the Prime Minister, Mr Howard, at the last election that he would keep interest rates low and that interest rates would not increase under a Liberal government. That was the promise. We heard it time and time again from the Prime Minister, Mr Howard, at the last election. I have asked Senator Minchin about rising interest rates on a number of occasions in the Senate chamber since the last election. What is his defence for the breach of this fundamental promise made by Mr Howard at the last election that the Howard Liberal government would keep interest rates lows? What is his excuse? It is generally a historical comparison with the years of the Labor government. Comparisons can be valid from time to time but, if we are going to reflect on history, we have never yet had an explanation from Senator Minchin about why interest rates reached 22 per cent when the current Prime Minister was last Treasurer. If we want to talk about history, let us not just compare today with the period when Labor was in power but also with the period when Mr Howard was last Treasurer of this country, when interest rates reached a devastating 22 per cent.

But my argument would be this: we are now 10 years on from the Labor government. We know that the Prime Minister, Mr Howard, is a clever politician—he is very sharp and clever. We know that the Prime Minister is very good at pulling out simple themes in order to provide an excuse for things that go wrong on this government’s watch. But 10 years? The government have to take some responsibility for things that go wrong on their watch. It is now 10 years since they were elected, and the government simply will not take responsibility. When things are good, they take all the credit; when something goes wrong, the states are to blame or the old Labor government of 10 years ago is to blame. This is a Prime Minister and a government that are running out of puff and running out of ideas and they will not take responsibility. This is an important area that impacts on families. We have seen four increases in interest rates since the last election and eight in the last five years. That represents a fundamental breach of the promise and commitment Mr Howard gave quite solemnly at the last election that interest rates would remain low under a Liberal government. We have another example of the stress and hurt rising interest rates under this government are causing Australian families in our community. (Time expired)