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

I want to assure Senator Wong that this government’s primary concern is the welfare of ordinary Australian families, and that is why we are very proud of the fact that under our government there has been a substantial increase in real wages, some 30-something per cent—that is after inflation—whereas under the previous Labor government there was effectively no increase in real wages during their whole period of government. That is why we are proud of the fact that under our policies inflation has been contained to 2½ per cent on average over the period of our government, compared to 5.2 per cent on average over the previous Labor government—double the rate of inflation that has occurred under our government on average.

It is very interesting to look at some of the breakdowns of prices. Of course it is in the Labor Party’s interest to highlight areas where they claim certain price increases have occurred, completely ignoring the increase in wages that has occurred. The figures I quoted in relation to mortgages and wages were taken from CommSec; they are not government figures. They are produced by CommSec looking at the data available from 2002 to 2007. They do show that average wages have increased more than average rents. They do not like the facts, but those are the facts. Australians are to that extent in a better position because we have got policies in place that ensure that their wages increase faster than their prices and their costs, so they are better off under our government.

Have a look at some of the basics. As I said, the average wage over the last five years has increased by 25 per cent; whereas the CPI has gone up only 14 per cent. In 2002 the average weekly wage could buy 531 litres of milk. Today the average wage can buy 710 litres of milk. In 2002 the average weekly wage could buy 727 litres of petrol. Today the average wage can buy 1,293 litres of petrol. In 2002 it took an average wage earner 38 weeks to buy a new Ford Falcon compared to 34 weeks today. The facts are that Australians have, under our government, seen their wages rise faster than costs. You do not like the facts, but those are the facts.