Maria Kovacic (NSW, Liberal Party) Share this | Hansard source

I was reflecting on a comment that Senator Walsh made about how this government knows how to tackle inflation and deliver services at the same time, and I'm trying to work out why they're not doing it, if they know how to do it. It would be much simpler for all the Australians who are struggling under this cost-of-living crisis if that were the case. It would be a lot simpler for young Australians who can't even fathom renting a property because it's so expensive so much as having the dream or the aspiration of owning their own home, and it would be very helpful to Australians who have seen their mortgages double over the last 15 months or so. So I would suggest that if they do know how to do it, Australians who are struggling under this cost-of-living crisis should be put out of their misery and the government should do its job.

On Wednesday last week, the RBA told the Senate Select Committee on the Cost of Living that government spending means that interest rates must be higher for longer. That's not the opposition saying that; that's the RBA saying that in a Senate select committee. Instead of heeding this warning and reducing spending to allow the RBA to cut rates to ease cost-of-living pressures for everyday Australians, this government has instead spent an additional $315 billion since coming to office, and then it's told Australians that they should be grateful that the government has been so helpful to them in offering all of this cost-of-living relief.

The RBA conceded last week that government spending is not helping the inflation problem. The Australian also reported AMP Chief Economist Shane Oliver telling that same committee that he thought the RBA 'should be cutting interest rates now' but argued that increased government spending had cruelled that chance. Again, you have a specific link between interest rates and the doubling of those interest rates for Australians and the economic mismanagement of this government. He went on to say:

The Reserve Bank would probably be a lot closer to that if they didn't revise up their growth forecast. Why did they revise up their growth forecast? Partly because they got stronger public spending numbers in there. The RBA's job would be a lot easier if they did haven't the surge in government spending that's been occurring over the last few years.

It is very clear that this inflation and cost-of-living crisis is homegrown. There have been comments about things that were inherited. I'm really sorry, but, when you have been government for almost three years, it's time to stop talking about what you think you may have inherited and actually start talking about what you're going to do, particularly when you stated earlier that you know how to do it.

Shane Oliver wasn't the only economist making those kinds of comments. It wasn't a one-off. Professor Steven Hamilton made a number of different statements to the inquiry and one really struck me. It was one that the Australian also reported as did other media agencies. He said, 'The RBA has got its foot on the brake, but this government has its foot on the accelerator'. How on earth are the RBA meant to deliver the outcomes that they're trying to achieve when the government is hampering them at every step?

The only lever that the RBA has is to lift interest rates, and who does that hurt? It hurts Australian mortgage holders, and it hurts Australian renters. That's about 66 per cent of the economy. The other third of the economy is not impacted in the same way. So what we're effectively doing is we're bashing that same group of people who can't cut their spending. You can't cut back your mortgage repayment. It doesn't work like that. You can't cut back the rent you pay. It doesn't work like that, unless of course you attempt to move, downsize or uproot your family and find something cheaper, which a lot of families, unfortunately, are now having to face the reality of because this government hasn't been able to do their job. I thank my colleague Senator McGrath for putting up this matter, because it is absolutely urgent and important, without question.