Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for his question. The government has budgeted for a strong surplus to put downward pressure on inflation and to put downward pressure on interest rates, and also to ensure a buffer against international financial turbulence. We have also been able to put in place the essential investment to build the productive capacity of our economy and to build productivity into the future. We have also put in place tax cuts and our $55 billion working families support package that will give a very significant boost to household incomes after 1 July. There has been some commentary about the Reserve Bank board minutes, from which I quote:

As in previous meetings, the central issue was that, over the past year, inflation has picked up to an uncomfortably high rate, against a background of limited ... capacity.

Those opposite would like people to believe that suddenly inflation skyrocketed on the morning of 26 November last year.

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