Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

One of the roll-on consequences of 12 interest rate rises in a row is that they affect, over time, the economic performance of the economy. What we have seen as a consequence of the tightening of monetary policy off the back of lax fiscal policy from those opposite, going back year after year now, are the actions that have been taken by the Reserve Bank of Australia. That government—those opposite—had 12 years to act on the key capacity side constraints of the economy. They failed to do so. They created the environment whereby inflation, when we took over office, was running at a 16-year high. As a consequence of that, monetary policy settings have been adjusted by the Reserve Bank, and the consequence of that is that we have had an impact on real activity in the economy.

Can I say to those opposite that after 12 years of absolute neglect we now have them seeking to say that they have no responsibility whatsoever for the economic circumstances which this nation confronts in the year 2008, including the prospective impact on activity and employment. By contrast, what we have put forward is a responsible economic document based on a robust surplus, helping working families under pressure on the way through and, most importantly, investing in the future.

But we would all, in this place, be advantaged by one thing—and that is knowing where exactly the Liberal Party now stand. Are they in favour of further tax cuts? Are they in favour of a greater emphasis on government spending? Are they in favour of doing something about inflation? Do they support welfare reform? Do they support means testing? Or do we have to wait for the member for Wentworth to replace the current Leader of the Opposition to find out what the real policies are? Do we have to wait for the member for Higgins to replace the member for Wentworth, to replace the Leader of the Opposition, to know what the real policy settings are? It remains a mystery to the nation.

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