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

This government is desperate and out of control.

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

The member for Lilley will come to his question.

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

My question is directed to the Treasurer. Does the Treasurer recall making the following comment on 11 May this year about the threat that the skills crisis posed to interest rates:

It really, you know, it’s totally unrelated to monetary policy.

If the Treasurer believes the impact of skills shortages on inflation is totally unrelated to monetary policy, can he explain why the RBA have repeatedly warned about it in quarterly statements on monetary policy?

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

The RBA cited its reasons when it made its most recent announcements. The reasons were the strength of the global economy and demand in the Australian economy, particularly pointing at credit growth. It did not say anything about skills. I notice that there is a habit in the Labor Party of misrepresenting what people say. Nobody could have given a clearer example of that than the member for Grayndler in the question that he asked the Prime Minister earlier today. At an appropriate time, I will be making an explanation to show how he completely misled the House in the question he asked earlier.

Let me just conclude this point on this note. I sat in this House for six years in opposition and I can tell members of the House that never once in those six years did I hear anything about labour shortages, and I will tell you why. The Labor Party had 11 per cent unemployment. As far as problems go, it is much better to have jobs chasing workers than workers chasing jobs. The coalition is the party of employment; Labor stands for recession and unemployment. We now have a situation whereby we have the lowest unemployment in 30 years and that is because only the coalition can manage the Australian economy.

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

I seek leave to table the document containing the Treasurer’s comments.

Leave granted.