George Campbell (NSW, Australian Labor Party) Share this | Hansard source

Well, you’re happy to go back to 1991 and talk about interest rates; what were interest rates when John Howard was Treasurer of this country? In 1983 interest rates were 12.5 per cent. What was the unemployment rate when the current Prime Minister was Treasurer of this country? On 5 March 1983 unemployment was 10.7 per cent. What was the inflation rate when John Howard was the Treasurer of this country? On 5 March 1983 inflation was 11 per cent. What was GDP growth when John Howard was the Treasurer of this country? It was minus 2.6 per cent. That is the legacy that he left the Labor government in 1983. So we set about correcting the economic mess that was left to us by the current Prime Minister.

Of course, there were ups and downs over that period. In 1985 we had to confront—as you should well know, Senator Joyce—a collapse in our terms of trade. There was far too much of an imbalance in our economy. What did the Hawke-Keating government set about doing? It set about broadening the base of the Australian economy by promoting and encouraging the growth of our manufacturing sector and, in particular, growth in the trade of elaborately transformed manufactures. And it did that—between 1986 and 1996 it doubled the growth in the trade of elaborately transformed manufactures, which went from about eight per cent to 18 per cent. That growth has declined under this government.

It is true that currently, in terms of exports, we are going through a boom period. But if you look at the figures you will see that they are primarily in primary products and minerals. That is what is holding up our export performance. Despite that, we still have a trade imbalance of $14.5 billion. As Senator Sherry said, foreign debt has grown to $473 billion—over half of our GDP.

It is interesting to note the response of those on the other side when the question of foreign debt is raised. In 1996 we saw the current Prime Minister and Treasurer driving around the country in a debt truck, telling people how bad foreign debt was for the economy and the country—the fact that it was equal to $10,000 for every individual. Well, it is now equal to $22,000 for every individual. That is how much foreign debt has grown under those opposite during their 10 years in office.

We have been wondering where they have hidden the debt truck. We have been looking in some of the garages around Canberra. But we have suddenly realised, having seen the figures published today, that they would need to hire the MCG to hide it—that is how much foreign debt has grown over the period of their stewardship. These chickens will come home to roost because this economy is like a meringue—it looks solid on the outside, but put your finger in it and it will collapse. (Time expired)