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- 2 May 2006
Interest Rates
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Urgent Motion
Mrs KARYN PALUZZANO (Penrith) [3.46 p.m.]: I move:
That this House:
(1) supports the Government's call on the Reserve Bank of Australia not to raise interest rates;
(2) notes the devastating effect any rates rise would have on families and businesses across New South Wales; and
(3) condemns Peter Costello for failing to recognise the concerns of New South Wales families and small business owners.
It is with pride that I lead for the Government in debate on the most critical issue currently facing families and businesspeople across New South Wales. The prospect of a hike in interest rates hangs over the heads of the people of New South Wales—mums and dads, small businesspeople and farmers—like a black pall and causes terrible anxiety in homes across our State. Anyone in New South Wales who has a mortgage will be very concerned about Peter Costello's plan to buy his way into the Lodge with a budget spending spree.
Money well spent on facilities such as hospitals benefits us all. Money that could be spent on the general practice clinic at the Nepean Hospital could benefit us all, but money spent on pork-barrelling simply drives up interest rates. The last increase in interest took the rates from 5.25 per cent to 5.5 per cent. Consequently, monthly repayments on an average Sydney mortgage of $220,820 jumped to $1,607, an increase of $36 more each month. For a mortgage of $434,000, which is the median Sydney price for a flat, borrowers were stung an extra $64 each month. First home buyers who pay the median price to get their foot in the door have had to find an additional $108 each month.
John Howard told us that cutting services was the key to low interest rates. At the most recent Federal election he conducted a scare campaign based on interest rates rising under a Labor Government and he has had the hide to claim low interest rates as an achievement. The Howard Government's report card, which was well and truly distributed throughout the Federal electorate of Lindsay and includes the State electorate of Penrith, was displayed on the Prime Minister's web site and shows that his statements could not be further from the truth. Compared to other Western economies, interest rates in Australia are not on par. This country's economic professionals scoffed at John Howard's claims. Rory Robertson, an interest rates specialist at the Macquarie Bank, told the Sydney Morning Herald that John Howard was deliberately misleading voters. During the most recent Federal election Howard and Costello went on a spending spree for the purpose of being re-elected, and $65 billion disappeared within weeks. On 7 February on the ABC's 7.30 Report Stephen Koukoulas of Deutsche Bank Securities said:
… when we look through the checklist of issues that have forced the Reserve Bank to send a signal rates are about to go up, one of the issues is the extra government spending, the cash handouts that were all during the election campaign at the middle of last year.
The risk of interest rates crippling New South Wales households is greater under the Howard Government than at any time in recent history. Experts have criticised Peter Costello's failure to look for productivity anywhere beyond the labour market. At the time of the last interest rate rise the Australian Financial Review stated:
Costello has tried to put the blame on the states … to divert the attention from the increasingly obvious shortfall in his own economic management.
Nothing has changed! Peter Costello's arrogant and out-of-touch attitude is truly breathtaking. On Channel 10's Meet the Press program on Sunday morning, Peter Costello made his position clear when he said:
I don't predict the future of interest rates. I've got other things that I'm turning my mind to at the moment.
I wonder what they are! What could be more important to a Federal Treasurer than interest rates; maybe getting his hands on the keys to the Lodge. No wonder the Prime Minister has remained silent on this issue. The Federal Treasurer should listen to the pleas of ordinary families, who are already suffering under the burden of skyrocketing petrol prices. It is interesting that earlier The Nationals in this House interjected, "What would the member for Penrith know about farmers". Last week in Gunnedah, during a visit by the Standing Committee on Public Works, I spoke to the mayor of Gunnedah. She raised the effects of skyrocketing petrol prices on her farm.
As I stated earlier, the double dipping of the Federal Treasurer is adding to that concern. Did any member on the other side of the House support this motion? No, they did not. They have certainly tied their flag to the mast regarding this motion. Opposition members are not supporting farmers in their local areas. Understandably, families have been speaking to me and I have spoken to many people in and around the Penrith electorate. People are nervous about their job security, thanks to the so-called WorkChoices legislation—or Howard's IR changes—that the Iemma Government is fighting every inch of the way, even to the High Court.
I proudly told nurses from Nepean Hospital and members of the Health Services Union at Nepean Hospital that the Iemma Government has fought for a cognate bill to include more than 28,000 State public servants as Crown employees—and that was done in the last session of Parliament. Families living in outer suburban and rural areas will be the first to reach breaking point, including the families represented by me, the honourable member for Londonderry and the honourable member for Menai. We are standing up for those families today, but where is the Opposition? The Opposition supposedly represents families living in The Hills, on the South Coast, further west, in the east and in the north. However, in today's Daily Telegraph working mums and dads have made their feelings clear: Not happy, Peter—Costello, or Debnam. Karyn Firth of Baulkham Hills said:
It is ridiculous … we will lose about $70 a month.
Linda Orr of Castle Hill spoke of her worries, and said:
We don't have a high mortgage, but every rise means budget cuts. For my sister, it will be a matter of whether she can continue to have a mortgage, it is that fine.
Maher Badawy of Baulkham Hills said:
It will affect us dramatically. We won't have any spare money. The kids' sport will have to be cut back.
Peter Costello may have important things on his mind, as he said last Sunday on the Channel 10 program. However, decent, hardworking people across New South Wales struggling to pay off their credit cards, small business owners wading through the nightmare of GST paperwork, and our farmers, who have carried huge debt levels throughout years of drought, are reeling from record fuel costs. The Mayor of Gunnedah, Gae Swain, outlined quite distinctly the effect of the rise in fuel costs on her farming operations. An interest rate hike will be a triple whammy and the factor that could force many families, businesses and farmers to the wall. This afternoon there is no more urgent or important issue facing us. I urge the Opposition to break away from their mates in Canberra and to stand up for New South Wales for a change. I urge the Opposition to break away also from the habit of changing a motion before the House.
I foresee that the Opposition will move to amend the motion, but I challenge the Opposition not to do so. I urge the Opposition not to stand up and say, "I move that the motion be amended by omitting all words after 'That this House', and inserting instead …", and not to delete the words of my motion. I challenge the Opposition to stand up for their local businesses, local farmers and local residents. There is no more important issue than a rise in interest rates and the resulting impacts. As stated earlier there will be impacts on families. This is not only about balancing a budget for a mortgage, it is also about balancing a budget for the recreational aspect. As one person stated in the Daily Telegraph, a rise in interest rates may lead to a child not having a sporting, cultural or recreational activity.
What is Peter Costello doing about his narrow mindedness? He said he has more important things on his mind than the financial wellbeing of people in New South Wales and the financial wellbeing of people in Australia. He should think about keeping interest rates low. As stated earlier, there was a scare campaign and pork-barrelling in the local Federal election. In the electorate of Lindsay $10 million was given to a private company, not to the community of Penrith, by the Liberal candidate. That is what Peter Costello and the Howard Government are doing to areas such as Penrith and New South Wales generally.
Ms PETA SEATON (Southern Highlands) [3.56 p.m.]: There is only one thing scarier than a State Labor Government, and that is a Federal Labor Government. The honourable member for Penrith should have said no to this motion. If she knew her history and if she had any experience of what families in Penrith and other parts of New South Wales, indeed Australia, went through during the last Federal Labor Government she would know that the last time Federal Labor was in power unemployment was 11 per cent, interest rates ranged from 18.5 per cent at the upper limit for mortgages to about 23 per cent or even 25 per cent on credit cards, and people were paid lower real wages. That was all part of Paul Keating's recession that we had to have.
We know what Labor is like when it is in power federally; we know what happens to interest rates under Labor and we know that families and businesses suffer. They have to go without essential basics. Businesses simply go under and go out of business: they have to put off staff and employees. That is why unemployment was about 11 per cent under Labor. I believe the honourable member for Penrith has typed her motion incorrectly. My proposed amendment will correct her motion for her. If she had concentrated while she was typing her motion she would have done it slightly differently. I give notice of my amendment to the motion. I move:
That the motion be amended by leaving out all words after "That" with a view to inserting instead:
"this House:
(1) supports strong economic management to keep interest rates as low as possible, understanding their importance to families and businesses;
(2) condemns the Government for its economic vandalism and New South Wales housing affordability crisis, and
(3) condemns the Premier for failing to recognise the concerns of New South Wales families and small business owners."
The Coalition understands the need for the lowest possible interest rates. The Howard Government has done an excellent job in managing the economy of Australia exceptionally well and exceptionally strongly, and with great discipline. That is why we are enjoying some of the lowest interest rates in living memory, some of the highest real wages and the lowest unemployment rates.
Ms Linda Burney: Point of order: The honourable member for Southern Highlands would know that interest rates are set by the Reserve Bank and not by the Government.
[[ltab]][[ltab][[ltab]][[ltab]Mr DEPUTY-SPEAKER: Order! There is no point of order.
Ms PETA SEATON: The honourable member for Penrith should take note of what the honourable member for Canterbury just said. She should know that the Reserve Bank is an independent setter of interest rates. On all occasions the Reserve Bank looks to the nature of the economic management of the government of the day. When Paul Keating was Prime Minister interest rates were set at 18.5 per cent because the Reserve Bank understood that Australia was a banana republic. Young families who are trying to buy a home would find it difficult to pay interest rates that were set at 18.5 per cent.
The honourable member for Penrith is saying, "Bring back Labor and the bad old days. Let us go back to 18.5 per cent interest rates and 11 per cent unemployment under Labor." That is what we would get if ever the Federal Labor Party got its hands on the budget. The Howard Government has delivered, and it continues to deliver, lower interest rates than Labor could ever produce. Today Government members indicated that they are proud of the Keating Labor Government, which set interest rates at 18.5 per cent. They want Paul Keating back. They invite him to all their fundraisers and he promotes Frank Sartor as the next Premier of New South Wales. Goodness knows what other disasters he predicts.
The honourable member for Penrith should have moved a motion relating to home affordability as that would have been relevant and of interest to people in her area. Clearly, housing affordability is a State responsibility. Home affordability is at a crisis level in New South Wales because of the work of this Premier. Several issues have contributed to the New South Wales housing affordability crisis. I refer to the planning paralysis that has occurred over the last decade. Land release at Edmonston Park is three years late and who knows when the Bringelly land release will commence because this Labor Government cannot afford the necessary infrastructure.
There has been complete paralysis in the preparation and finalisation of regional plans from the Illawarra through to the Hume corridor, the North Coast, the Central Coast and the mid North Coast, and still we have no metropolitan strategy. Local environmental plans have been stalled across the State. New South Wales has the highest taxes and we have seen increases of around $2,600 for everyone in this State. There are levies on new land releases of around $200,000 per block before even one brick has been bought or one house has been built. This Government has failed to provide sufficient infrastructure in New South Wales and, as a result, we are running out of water and electricity.
We have seen a blow-out in the cost of homes and home units—a blow-out of some thousands of dollars for each unit. Land releases are at their lowest levels in more than two decades. Under the Greiner Government around 10,000 blocks were released each year on new greenfields sites. Under the Iemma Labor Government we are down to 2,000 or 3,000 land release sites a year—an appallingly low number. We have a shortfall in the number of homes that are required. Assessments by BIS Shrapnel in the last month have shown a shortfall of 15,000 dwelling units between now and 30 June, which will increase the price of homes. If the supply of homes and home sites is strangled, amazingly the price of available homes will go up. That is what is happening.
All these issues are the responsibility of the State Labor Government. It has failed to plan for land releases and new dwellings. It has failed to keep taxes at a reasonable level and it has increased business and family taxes. Since Sussex Street appointed the Premier to the top job 15 new taxes have been introduced, amounting to $700 million additional revenue each year. What does the honourable member for Penrith think about the Coalition's policy to reduce payroll tax? She talked earlier about the concerns of New South Wales families and small business owners. If she is so concerned about them I look forward to her voting with the Coalition to cut payroll tax. Such a tax cut would mean businesses in the Penrith area would be exempt from payroll tax if the payroll were less than $850,000. At the moment if a business has a payroll of $600,000 it becomes one of the Premier's new taxpayers.
If the honourable member for Penrith is so interested in what is good for small businesses and families in her area I look forward to her supporting our policy to cut payroll tax when that matter is debated and voted on later. This is a classic distraction and blame-shifting exercise by an increasingly desperate and panicky Labor member for Penrith and her colleagues. The housing affordability crisis in New South Wales is the fault of the Premier. For the past 11 years he sat around the same Cabinet table as other Government Ministers and signed up for vendor duty, land tax and all these additional taxes.
The Premier and his Labor colleagues who signed up for wasteful and duplicative spending are responsible for this housing affordability crisis. If Government members want further evidence of that they have only to look at the rising level of mortgage defaults in New South Wales, as shown in the records of the Supreme Court. Mortgage defaults in New South Wales are increasing because State taxes are at record levels. Taxpayers in New South Wales pay the highest level of taxes in this country. They simply cannot afford to pay this Premier's taxes and also buy cars, own or rent homes, or run their businesses. If the honourable member for Penrith is looking for someone to blame for this crisis she should look no further than her boss, the Premier.
[[ltab]][[ltab]Mr ALLAN SHEARAN: (Londonderry) [4.06 p.m.]: I support the motion moved by the honourable member for Penrith, which is in the following terms:
That this House:
(1) supports the Government's call on the Reserve Bank of Australia not to raise interest rates;
(2) notes the devastating effect a rates rise would have on families and businesses across New South Wales; and
(3) condemns Peter Costello for failing to recognise the concerns of New South Wales families as small business owners.
Tonight hundreds and thousands of families across New South Wales are holding their breath. Families and budgets are under pressure. At a time when surging petrol prices are costing families an extra $40 to $50 a week the last thing they need is an extra slug on their home mortgage. During the last Federal election the Federal Coalition promised it was the only Government that could sustain low interest rates. The Iemma Government believes any Reserve Bank decision to lift interest rates would be contrary to the economic interests of this State.
The Iemma Government is pulling out all stops to get New South Wales moving, which means generating economic activity. To do that the Premier has cut taxes, abolished vendor duty, cut workers compensation premiums twice, awarded payroll tax concessions for companies wanting to establish in areas of higher than average unemployment, and lifted the land tax threshold to $352,000. Reducing the cost of doing business and investing in New South Wales is a crucial part of this Government's policy to get New South Wales moving.
The Premier is actively competing for new business for New South Wales. In just five months the New South Wales Government has secured more than 100 jobs with Fidelity Investments, one of the world's biggest fund managers; two new yacht building businesses for the Hunter Valley, with up to 600 jobs created; landed 115 new rail technology jobs in Newcastle; approved the expansion of Port Kembla, which will underwrite the expansion of the car trade in the Illawarra; and secured 1,000 jobs for the region. The New South Wales Government is actively supporting the bid by Australian Defence Industries to construct two amphibious warships for the Australian Navy, which brings shipbuilding back to Sydney Harbour, with a potential spin-off of 600 new jobs.
Of course, it was also announced this afternoon that Tabcorp will relocate 300 jobs to Sydney from Melbourne to support its wagering operations. All this is designed to get our economy moving. However, an increase in interest rates will deliver a crucial blow to families and to our economy. Families and businesses in New South Wales can ill afford a decision to lift interest rates from 5.5 per cent. Australian Business Limited is sounding the warning that higher interest rates will mean less money in the purses and wallets of New South Wales families. That means they will have less money to spend. They will have less to spend on a night out with the kids or on a trip to the movies. These simple pleasures may become unaffordable luxuries.
Families and businesses are already paying record prices at the petrol pump. Many working families are also facing uncertainty regarding the security of their pay packets under John Howard's new industrial relations legislation. The Federal Treasurer stands condemned for his stance on those issues alone. He tries to claim credit for low interest rates as an achievement of the Commonwealth Government but then washes his hands of responsibility when interest rates start to rise. He cannot have it both ways. If Mr Costello seeks to take credit for low interest rates he must also accept responsibility when they start to rise. His position is much the same when it comes to the price of petrol. What does he do? He washes his hands of responsibility for that also.
As reported in this morning's press, the Australian Industry Group stated that an increase at this time would be only counterproductive for manufacturers. It was also reported that the Housing Industry Association described rate rises as "unfounded and simply irresponsible". In other words, when it comes to the real issues that affect household budgets—petrol and interest rates—Peter Costello, the wannabe Prime Minister, does not want to be involved in helping families.
Mr ANDREW CONSTANCE (Bega) [4.11 p.m.]: I support the amendment to the motion moved by the honourable member for Southern Highlands. This afternoon's debate is particularly alarming. I hope that Michael Costa's staff and not Treasury prepared Government members' speeches because they were the worst that I have heard in the House. There is no doubt that on 25 March Labor strategists changed their tack in relation to the profile of the honourable member for Penrith. An article in the Sydney Morning Herald entitled "Overcoming the federal factor" states:
At a focus group involving older voters in Penrith—
I am sorry; I will move on.
Ms Linda Burney: Tell us!
Mr ANDREW CONSTANCE: Okay. The article states:
At a focus group involving older voters in Penrith, seen by the Herald … Alarmingly for Labor in an area of Sydney where the high profiles of Jackie Kelly and Pat Farmer have helped win seats, no one in one of the focus groups could name the Penrith MP, Karyn Paluzzano. Paluzzano, who holds a 6.6 per cent margin, replaced the former minister Faye Lo Po' in the seat in 2003.
My point is that Labor has changed its strategy and is trying to get the honourable member for Penrith to debate issues in this place. My advice to the Labor strategists is to sit her back down and make sure that she does not say anything else in the life of this Parliament because this afternoon she demonstrated clearly her incapacity to deal with monetary policy.
Mr Geoff Corrigan: Point of order: I ask you to draw the honourable member for Bega back to the leave of the motion before the House. He has drifted off onto other matters.
[[ltab]][[ltab][[ltab]][[ltab]Mr DEPUTY-SPEAKER: Order! I uphold the point of order. The honourable member for Bega cannot attack another member unless he uses the proper forms of the House.
Mr ANDREW CONSTANCE: I was merely pointing out that the honourable member for Penrith does not understand monetary policy. The honourable member for Canterbury said clearly that the Reserve Bank of Australia acts independently. The honourable member for Canterbury, who gave the honourable member for Penrith a lecture on monetary policy, knows her stuff but we know that the honourable member for Penrith does not. As to the impact of monetary policy, it is a proven fact that the New South Wales Labor Government does not know anything about that either because it introduced vendor duty and abolished the threshold for land tax, thereby drawing half a million New South Wales residents into the land tax net.
A deceitful campaign is now being run from the Premier down that this is a new government—which just happened to introduce 15 new taxes, but we will not worry about that—that had nothing to do with the introduction of vendor duty and land tax. But guess who was sitting around the Cabinet table making decisions on those issues? It was Premier Iemma. The Carr-Iemma Government has no idea about housing affordability in New South Wales or the impact of taxation. It certainly has no idea about monetary policy. I am sure that the Federal Treasurer is shaking in his boots because this afternoon in the New South Wales Parliament the honourable member for Penrith expressed concern about interest rates.
The honourable member for Penrith should be concerned about housing affordability. She should be worried that families are struggling to make ends meet. They cannot afford to buy their own home. We know that families in places such as Penrith, where the aspirational voters live, are keen to move into their own homes. Yet today the honourable member for Penrith lectured the House on petrol taxes and told us about trips that she has made around country New South Wales. What does that say about her?
Why does the Government not give back the 8¢ a litre that it collected as part of the business franchise levy prior to the introduction of the GST? New South Wales kept that money but Queensland never collected it. The Government is double-dipping on GST and ripping off people across New South Wales through its grubby tax system. Government members express concern about monetary policy when housing affordability in New South Wales is at rock bottom. The Housing Industry Association made that point clearly when it said that the Premier cannot grasp the severity of the situation—and neither can the honourable member for Penrith. [Time expired.]
Ms ALISON MEGARRITY (Menai—Parliamentary Secretary) [4.16 p.m.]: I am proud to join the honourable member for Penrith and the honourable member for Londonderry in putting the Iemma Government's stance on any interest rate rises well and truly on the public record. Today we say no to any rise—and no means no! I am proud to say that Labor members can stand up for the people of New South Wales with the facts on the table, in contrast to the fiction and the weasel words of Peter Costello and his namesake in this place, the Leader of the Opposition. Today the honourable member for Southern Highlands and the honourable member for Bega tried to assert that interest rates are a State Government responsibility. I am sure that is news to everyone. They told us that the Howard Government does not set interest rates. But any student of economics will tell you that the Howard Government has created the economic conditions that have put us in a situation where the Reserve Bank of Australia is considering the fate of interest rates. We must put those facts on the table.
In the last sitting week we called on the Federal Government to step in and give the Australian Competition and Consumer Commission more teeth to act on petrol gouging. But there has been no movement on that front. What is a prime driver that the Reserve Bank considers when reviewing interest rates? It is the prices that we are paying at the petrol pump, which are impacting on our economy. The Federal Government cannot wash its hands and say that interest rates have nothing to do with it. Expert opinion on the outcome of today's Reserve Bank board meeting is split, but there is one certainty: the inflationary pressures that will trigger a rate rise are already evident. I have mentioned the crippling fuel prices. Pharmaceuticals are costing more—ask any family about that—and a tight labour market is being squeezed from all angles. In February the average credit card balance hit a record of $1,988. The economy is reliant on the boom-and-bust mining industry to hide its underlying weaknesses, unprecedented foreign debt in particular. This is all compounded by Peter Costello, a tired Treasurer, hell-bent on buying his way to The Lodge at any cost.
The families and business people we represent in this House—and I say "we" because this decision will hit everyone in New South Wales—deserve to have us stand in bipartisan opposition against an increase in interest rates. The honourable member for Penrith canvassed many of the real concerns of families about the prospect of such an increase and its day-to-day impacts. Yesterday's Daily Telegraph quoted Mr Pat Miller, who said he dreaded an interest rate rise because he has mortgages on both his small business and his home. He said that his family faces selling its second car if interest rates rise. He also said:
It will mean we will have to think about everything we buy—from our oldest one's school uniform to books. Treats will go out the window.
When families and those who run businesses in the 17 suburbs in the Menai electorate read those types of comments and think about the impact of an interest rate rise on young families and businesses, they certainly experience shivers down their spines. According to census data businesses in Menai have the highest number of employees of any electorate in this State. Much of that is due to the small businesses in the electorate. Only last Friday I was privileged to open the new Mortgage Choice franchise at Menai. Similarly, I recently attended the opening of the Bank of Queensland branch in my electorate. Those enterprises are run by local people. Martin Beanland from Mortgage Choice and Michael Zachariah from Bank of Queensland live and work in my electorate. What sort of impact will an increase in interest rates have on their businesses, and so many other businesses directly involved in providing mortgages so that young and older families can move into their own homes?
Peak organisations are also concerned. Paul Ritchie from Australian Business Limited said that households will batten down the hatches, and businesses will be hard hit as the family budget shrinks. Let us not forget that inflation rose by almost 1 per cent from the fourth quarter last year. The horse has bolted and Peter Costello has no intention of doing a thing about it. What a difference the election cycle has meant for the battered and bruised perennial bridesmaid of Liberal politics. In the last Federal election campaign Costello could not crow loudly enough about how he would keep interest rates low. We have not heard a peep from the Prime Minister, the man who pleaded with us to trust him to keep interest rates down. Peter Costello has done a reverse somersault with double pike, a potential gold medal performance, but it is time for the Opposition and the Government today to stand united and say no to an increase in interest rates.
Mrs KARYN PALUZZANO (Penrith) [4.21 p.m.], in reply: I thank honourable members representing the electorates of Londonderry and Menai, who spoke on this motion. It is interesting to note that members of the Opposition did not comment on issues relevant to the motion or the amendment. The people who live in Penrith, Londonderry, Menai, the Southern Highlands and Bega have several things in comment: they are part of a family, they are part of a workplace, perhaps a small business, and they are part of a community. It is families, workplaces, small businesses and community groups that will be impacted on by a rise in interest rates. Honourable members opposite attacked me rather than the issue at hand.
I have lived in Penrith for more than four decades. I have spoken to many people who say that the most important issue they speak to me about is how they live and operate within the community, and their budget is a major part of that. Any rise in interest rates will increase the burden on a family's budget and its mortgage repayments. It will also impact on the recreational and cultural aspects of the lives of the members of that family. I spoke about small businesses. As the honourable member for Menai and the honourable member for Londonderry said, New South Wales is open for business under the Iemma Government, which introduced payroll tax concessions in areas of high unemployment. The honourable member for Londonderry and I understand what it is like to represent areas of socioeconomic hardship. For example, businesses may need encouragement to establish in areas such as Mount Druitt and Fairfield.
Bluescope Steel is one of the band of businesses that is mushrooming near the M7. The number of businesses in that area that will have access to the payroll concessions will be phenomenal. The honourable member for Londonderry also acknowledged the announcement today of the relocation of Tabcorp and 300 jobs to New South Wales. The honourable member for Menai also reminded the House of the importance of economic conditions, which are controlled by the Federal Government. For the past 10 years that has been the Howard-Costello Government, and it is the policies of that Government that have led the Reserve Bank to consider a rise in interest rates. It is worrying that the Federal Treasurer has more on his hands than the possibility of an interest rate rise.
The honourable member for Menai outlined the number of small businesses in her electorate that will be impacted by an interest rate rise. I also went to the opening of a branch of the Bank of Queensland. It is two doors from my electorate office in Station Street, Penrith. The GIO has also opened lending and finance services. On my way to Parliament today I spoke the GIO manager, who outlined her concerns about the pressures on her area of operations that will result from any interest rate rise. Honourable members know that any interest rate rise will impact not only on communities but also on small businesses in both rural and urban areas. As I said earlier, members of the Opposition have not pinned their flag to the mast; they have not supported their local communities. [Time expired.]
Question—That the words stand—put.
The House divided.
Ayes, 48
Ms Allan
Mr Amery
Ms Andrews
Mr Bartlett
Ms Beamer
Mr Black
Mr Brown
Ms Burney
Miss Burton
Mr Campbell
Mr Chaytor
Mr Collier
Mr Crittenden
Mr Daley
Ms D'Amore
Mr Debus
Mr Gaudry | Mr Gibson
Mr Greene
Ms Hay
Mr Hickey
Mr Hunter
Ms Judge
Ms Keneally
Mr Lynch
Mr McBride
Mr McLeay
Ms Meagher
Ms Megarrity
Mr Mills
Ms Moore
Mr Morris
Mr Newell
Mr Orkopoulos | Mrs Paluzzano
Mr Pearce
Mrs Perry
Mr Price
Ms Saliba
Mr Shearan
Mr Stewart
Ms Tebbutt
Mr Tripodi
Mr Watkins
Mr Whan
Mr Yeadon
Tellers,
Mr Corrigan
Mr Martin |
Noes, 35
Mr Aplin
Mr Armstrong
Mr Barr
Ms Berejiklian
Mr Cansdell
Mr Constance
Mr Draper
Mrs Fardell
Mr Fraser
Mrs Hancock
Mr Hartcher
Mr Hazzard | Ms Hodgkinson
Mrs Hopwood
Mr Humpherson
Mr Kerr
Mr McTaggart
Mr Merton
Mr Oakeshott
Mr O'Farrell
Mr Page
Mr Pringle
Mr Richardson
Mr Roberts | Ms Seaton
Mrs Skinner
Mr Slack-Smith
Mr Souris
Mr Stoner
Mr Tink
Mr Torbay
Mr J. H. Turner
Mr R. W. Turner
Tellers,
Mr George
Mr Maguire |
Pairs
Mr Ashton | Mr Debnam |
| Ms Gadiel | Mr Piccoli |
Question resolved in the affirmative.
Amendment negatived.
Question—That the motion be agreed to—put.
The House divided.
Ayes, 49
Ms Allan
Mr Amery
Ms Andrews
Mr Barr
Mr Bartlett
Ms Beamer
Mr Black
Mr Brown
Ms Burney
Miss Burton
Mr Campbell
Mr Chaytor
Mr Collier
Mr Crittenden
Mr Daley
Ms D'Amore
Mr Debus | Mr Gaudry
Mr Gibson
Mr Greene
Ms Hay
Mr Hickey
Mr Hunter
Ms Judge
Ms Keneally
Mr Lynch
Mr McBride
Mr McLeay
Ms Meagher
Ms Megarrity
Mr Mills
Ms Moore
Mr Morris
Mr Newell | Mr Orkopoulos
Mrs Paluzzano
Mr Pearce
Mrs Perry
Mr Price
Ms Saliba
Mr Shearan
Mr Stewart
Ms Tebbutt
Mr Tripodi
Mr Watkins
Mr Whan
Mr Yeadon
Tellers,
Mr Corrigan
Mr Martin |
Noes, 34
Mr Aplin
Mr Armstrong
Ms Berejiklian
Mr Cansdell
Mr Constance
Mr Draper
Mrs Fardell
Mr Fraser
Mrs Hancock
Mr Hartcher
Mr Hazzard
Ms Hodgkinson | Mrs Hopwood
Mr Humpherson
Mr Kerr
Mr McTaggart
Mr Merton
Mr Oakeshott
Mr O'Farrell
Mr Page
Mr Pringle
Mr Richardson
Mr Roberts
Ms Seaton | Mrs Skinner
Mr Slack-Smith
Mr Souris
Mr Stoner
Mr Tink
Mr Torbay
Mr J. H. Turner
Mr R. W. Turner
Tellers,
Mr George
Mr Maguire |
Pairs
| Mr Ashton | Mr Debnam |
| Ms Gadiel | Mr Piccoli |
Question resolved in the affirmative.
Motion agreed to.
Last modified 05/12/2007 16:33:01 : Update this page