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

I thank the honourable member for Hasluck for his question. I can inform him that the national accounts came out for the December quarter today. They showed solid economic growth of 0.5 per cent for the quarter and 2.7 per cent for the year. Importantly, we see that consumption is continuing to moderate and the housing cycle, which the government expressed concern about some years ago, continues to readjust. National growth is now led by business investment. New private engineering construction grew 7.1 per cent in the quarter and 29.8 per cent through the year. New machinery and equipment investment grew 6.2 per cent in the quarter and 15.8 per cent through the year.

What we are seeing now is a rebalancing of the Australian economy—out of the housing cycle and consumption into business investment—which will build capacity and, particularly in the mining industry, allow Australia to take advantage of very strong terms of trade. That terms of trade increase indicates the importance of experienced management, and not just experienced management on this side of the House but, if the opposition should ever come to government, they would need experienced management too. But unfortunately the factional war lords—

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