Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to his misguided and mistaken message to Australian borrowers earlier this year that the inflation monster was out of control in Australia. What does the Prime Minister have to say to those Australian mortgage holders who took his irresponsible and politically motivated comments on inflation seriously and locked into fixed rate loans fearing interest rates would rise because of his inflation monster and who are now paying interest at rates well above current prevailing interest rates?

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

The honourable Leader of the Opposition asked me about inflation. I would draw his attention to repeated statements by the Reserve Bank of Australia over a long period of time about the inflationary challenges which existed in the Australian economy and the capacity constraints which underpinned those inflationary pressures—a failure on the part of the previous government to invest in infrastructure and in skills at a critical time of need. The consequence of that was successive interest rate rises, and the consequence of that was felt by Australian mortgage payers right across the country with 10 interest rate rises in a row. I would suggest the honourable Leader of the Opposition pay very close attention to the economic record of those opposite on the inflation question and on the interest rate question. This government has a clear economic strategy for the period ahead. We intend to get on with the business of running the economy.

Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

On a point of order, I invite the Prime Minister to table the statements by the Reserve Bank in which it referred to inflation as a ‘monster’ or ‘out of control’. I think he will struggle to lay his hands on them.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will resume his place. That is not a point of order.