George Brandis (Queensland, Liberal Party) Share this | Hansard source

The government welcomes this debate which invites a comparison between the economic position of Australian households today and the economic position of Australian households 10 years ago today, on the last day of the last Labor government. How remarkable it is that Senator Sherry, one of the—if I may say so—more economically articulate Labor senators, could give a five-minute speech about household debt without once mentioning interest rates. How extraordinary.

As all Australians know from their hip pocket, there is more prosperity in Australia today than there was 10 years ago, largely because interest rates are so low. Today, the average standard variable lending rate is 7.3 per cent. In historical comparative terms, that is a low figure, which has been a low and stable figure for several years now. But on this day 10 years ago the equivalent indicator was 10.5 per cent—and that was the best performance the former Labor government recorded. We all remember that, at their zenith during the former Labor government, housing loan interest rates rose to 17 per cent, while interest rates on business loans and loans to farmers were as high as 22 and 23 per cent. It would be interesting for Senator Sherry to tell us what the net household debt position was under the last Labor government, with interest rates on housing loans at 17 per cent, on business loans at 22 per cent and on farm loans at 23 per cent. But he did not tell us about that. That is the first point to be made—that the debt service ratio of Australian households today is much lower than it was 10 years ago today because interest rates are so low.

As well, Senator Minchin, in answer to questions from Senator Sherry, informed the Senate of the national accounts figures. The most significant of the results in the national accounts published today was the fact that over the last 10 years the growth in real wages has been 16.8 per cent. Over the 13 years of the previous Labor government, growth in real wages was negligible. I heard the Prime Minister say in House of Representatives question time earlier that it was 0.2 per cent over that 13 years. Over the 10 years of coalition government there has been a 17 per cent growth in real wages.

Australia is better off today than it was 10 years ago. You take any indicium of economic prosperity you care to name—whether it be interest rates, home mortgage rates, growth in real wages or the unemployment rate, which 10 years ago on this day was 8.2 per cent but today is 5.3 per cent. Ten years ago on this day the aggregate net household wealth of Australian households was $1.7 trillion, but today it is $4.5 trillion. Net household wealth has almost trebled in the last 10 years, while the stock exchange index has more than doubled from what it was on this day 10 years ago. So I say to my Australian Labor Party colleagues: any time you want to take us on in a debate about economic management, you feel very free. Please bring it on. Because on any indicium of economic prosperity you care to name Australia is a wealthier, better employed, more prosperous, more secure nation today than it was on this day 10 years ago, when your period of economic stewardship came to a very timely end.