Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. Does the Prime Minister recall this election TV ad, which was seen by—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The leader will resume his seat. Members will put those placards down. I remind all members of my warning on placards at the last session. I will deal with people who disregard that.

Kim Beazley (Brand, Australian Labor Party, Leader of the Opposition) Share this | Link to this | Hansard source

Does the Prime Minister recall that television ad, which was seen by millions of Australians and is still on the Liberal Party website? Doesn’t this advertisement clearly ask Australians to trust the Howard government to ‘keep inflation under control’ and ‘keep interest rates at record lows’? Now, with three back-to-back interest rate hikes, why does the Prime Minister use weasel words to hide the fact that he has failed on both fronts and has breached the trust of the Australian people?

Opposition Members:

Opposition members interjecting—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! There is far too much noise!

Jenny Macklin (Jagajaga, Australian Labor Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Ms Macklin interjecting

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

Yes, I’m real nervous, Jenny! She’s got me on the run! Perhaps I can best respond to that question asked by the Leader of the Opposition by referring to a question that I was asked on this subject not after the election but before the election. It was a question asked of me by Neil Mitchell of 3AW in Melbourne. I think the Leader of the Opposition knows Mr Mitchell. He is about the most respected radio broadcaster in Melbourne at least and he is amongst the very best in the country. This is what he had to say. This was the question:

So you wouldn’t be embarrassed to win the election and then have an interest rates rise …

That is a fair question, and that is what has happened. We won the election and there has been an interest rate rise. This is what this debate is all about. You know what my answer was? This was on 23 September 2004. This is what I had to say:

Well I don’t seek to give guarantees, judgements about individual movements. My argument is that they will—

David Hawker (Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister will resume his seat. The member for Parramatta will remove herself under standing order 94(a).

The member for Parramatta then left the chamber.

John Howard (Bennelong, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

I said:

Well I don’t seek to give guarantees, judgements about individual movements. My argument is that they will always be lower under our policies and that argument is supported by the last time Labor was in government and the impact of their industrial relations policies.

The truth is that under 13 years of Labor interest rates on housing averaged 12¾ per cent; under 10 years of this government they have averaged 7¼ per cent—five percentage points lower. Every homeowner in Australia over a certain age, their children and, in some cases, their grandchildren know that under the former government housing interest rates reached the astronomical level of 17 per cent. I believe that the government’s credibility as the parties in politics best able to deliver lower interest rates remains absolutely unchallenged.

Julia Gillard (Lalor, Australian Labor Party, Shadow Minister for Health and Manager of Opposition Business in the House) Share this | Link to this | Hansard source

Peter doesn’t think you tell the truth.

David Hawker (Speaker) Share this | Link to this | Hansard source

The Manager of Opposition Business will cease interjecting.