Kay Hull (Riverina, National Party) Share this | Hansard source

It could have been the member for Griffith in the current term or it could have been the Prime Minister, the member for Bennelong. He is still strong. He is still standing and still delivering, but the most important thing is that he is still accountable. Let me just advise the House that there have been three leaders of the opposition in that time with nobody accountable for any promises made during the 2004 election. It surprises me to see just how much has been played about the 2004 election when nobody is taking responsibility for the promises made by the opposition because nobody that was in the fray at that time is still standing.

The member for Prospect also took the time to remove the states from the issue, and indicated that the Reserve Bank did not include the states in the rate rise. However, let me quote from an article that admittedly was in the Weekend Australian on Saturday 12 August 2006. It was a very interesting interview with the then Reserve Bank Governor, Mr Macfarlane. He said:

I have been lucky—for most of my time, fiscal policy has consisted of small surpluses.

So the movement in the government account has not been big enough to be important in the consideration of monetary policy.

It might become an issue because the states are now part of the equation.

I remind the House that this government has been the deliverer of significant benefits that have not been recognised. We have had significant tax cuts from a surplus created through the repayment of an enormous Labor debt of $90 billion, saving us $8 billion in interest payments. That has gone to the taxpayer in the form of significant tax cuts.

I admit that average house prices have gone up. However, that also means that the mortgage payments are now paying off a hugely increased value of asset. This has to be taken into consideration. There are many people in my electorate—and right across Australia I suspect—who will be hurt by the interest rate rise, as the Prime Minister has indicated today. He has not taken his eye off the ball for one second. He has not set about to not take responsibility or to not indicate that there has been a problem for many homeowners who will find this interest rate rise extraordinarily difficult to deal with. At the same time, I must remind the House that it would be much easier for many of these homeowners to manage this issue than it would have been some years ago.

We also have to take into consideration that a report by building industry participants, out of the Housing Industry Association and Real Estate Institute of Australia, has emphasised that rising interest rates, state government land release policy and state and local government charges are the main factors adversely affecting housing affordability. I recall coming into this House not so long ago and talking about this very issue and about new homebuyers having to confront the second highest level of costs—

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