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

My question is to the Prime Minister. Is the Prime Minister aware of comments made by Standard & Poor’s on ABC radio this morning that arrears on housing loans have increased by about 50 per cent over the past two years? Prime Minister, do you accept any responsibility for this increase?

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

I did not hear that particular quote on ABC radio this morning. I believe, however, that the policies of this government, with our end results of low inflation, very low interest rates and huge reductions in unemployment, have contributed to the aggregate capacity of Australians to not only buy a new home but to buy an even more valuable new home. It is true, and it is, in a sense, ironic that the lower the interest rates the more people are encouraged to borrow. As a result some people, particularly those who deal with non-bank lenders, end up overextending themselves.