Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

Of course, as those responsible for fiscal policy and the responsible managers of this economy—one of the best-performing economies of the Western world—we are going to comment on all issues that pertain to people’s welfare and the state of the economy. Interest rates cannot be immune from comment by the Prime Minister and the Treasurer, but that does not go to say that the Reserve Bank is not independent. Of course it is independent.

The Labor Party seem keen on going back over the entrails of the last election. I would have thought they would not wish to do so, given the embarrassment of that election to them and given what a thrashing they got at that election. At the last election we made the proper, reasonable and sensible claim—and one that I see is still supported by the Australian people—that interest rates would be lower under our government than they would be under a Labor government, and history establishes that fact. As I said in my answer to a previous question, home mortgage interest rates averaged 12.75 per cent under the previous Labor government, peaking at 17 per cent. Home mortgage interest rates under our government have averaged 7.17 per cent. When we came into office at the end of Labor’s period in office, home mortgage interest rates were 10.5 per cent. Today they are 7.8 per cent. The Australian people understand that coalition policies are always more likely to produce lower interest rates than the policies of the Labor Party.