Interest Rates

February 22, 2009

I am pleased to take this opportunity to speak on the motion before the House moved by the member for Lindsay on interest rates.

Let me continue with my contribution. There is very much an issue of confidence out there in the Australian economy, and confidence is an important element in any market. It is the very foundation for strong economics within those markets; it is the very foundation of an orderly market as opposed to a market that is out of control. What we see appearing in the Australian market—and in the Australian economy, for that matter—is a crisis of confidence in the Treasurer. The people do not believe that the Treasurer has what it takes to run a $1.1 trillion economy. The Treasurer comes into this House and seems to be in a hell of a muddle over what NAIRU is. He seems to think it is the Pacific solution. He referred to a whole range of things and said, ‘Well, sometimes I have the answers and sometimes I don’t; sometimes I’ll be able to give this House the answers and sometimes I won’t.’ The Treasurer, who is responsible for a $1.1 trillion economy, is uncertain of the concept of NAIRU and certainly out of his depth. He has moved from brown-paper-bag-onomics to trying to run a $1.1 trillion economy and he has come up short. And the people of Australia are seeing that. They are nervous. Confidence is faltering and falling. People need to have the confidence to invest; they need to have the confidence to purchase. But, under this Treasurer, we see a fall in confidence. People do not have confidence in him to run the economy. I was reading in the Herald Sun today an article by Steve Lewis. What was said of the Treasurer in that? It said:

That was in the paper today: ‘dishonest’ and ‘slimy’ and an ‘untrustworthy character’. That has to have an effect on confidence.

There is a great irony with the Australian Labor Party. They opposed every measure that the previous government took to bring the budget into surplus, they opposed every measure to implement solid economic policy and they opposed tax reform; yet, at the end of the day, they claim to be fiscal conservatives. They opposed every measure that was put in place. I find it very ironic that members opposite can come into this House and claim the mantle of fiscal conservatism when, during their time on the opposition benches, they did not assist the government of the day with the passage of those bills; they voted against them. All of the previous members are on the record as voting against the GST. We all remember the words ‘day of fundamental injustice’ from the now Prime Minister. (Time expired)