Ms MACKLIN —My question is addressed to the Prime Minister. Does the Prime Minister recall that on 13 September 1996 he wrote to all premiers outlining changes to housing assistance? Does the Prime Minister recall that in that letter he said that neither the Commonwealth, the states, nor public housing tenants would be financially disadvantaged? On Friday last the Commonwealth cut specific purpose grants by $400 million. In New South Wales alone, this will mean an additional $150 million taken from its budget and as much as $50 million taken from public housing. Why did the Prime Minister mislead the premiers last year on funding for public housing and is this not just another example of how the Howard government is taking housing from the neediest Australian families?

Mr HOWARD —We did not cut specific purpose funding by $400 million. Never believe Michael Egan when it comes to specific purpose payments. Really! You've got to be joking. Let me make it very clear that there was no cut of $400 million—none whatsoever. We said to the states a very simple thing: `See the figure in the forward estimates? We promise you that the reductions on that, when the final budget figures have bedded down, are not going to be greater than 1.3 per cent.' End of story. Do you know what that amounted to? It was $139 million maximum. You are peddling this silly figure of $400 million. It is disgraceful deception by the New South Wales Treasurer. You, Jenny, oughtn't to believe somebody of the New South Wales Right. Never believe somebody of the New South Wales Right. How can you, Jenny? I tell you what, Daryl will educate you in the ways of the New South Wales Right. Daryl will talk to you.

Mr O'Connor —Mr Speaker, I raise a point of order. I would ask you to draw the Prime Minister's attention to standing order 80. He should refer to members by the name of their electorate.

Mr SPEAKER —I thank the honourable member for Corio.

Mr HOWARD —If Daryl doesn't I will get my brother to do so. So I simply say this: do not ever believe a New South Wales Labor Treasurer about a Premiers Conference—never.

Ms Macklin —Mr Speaker, I raise a point of order. The question I asked was about public housing tenants, and I would appreciate it if he would answer the question.

Mr SPEAKER —The Prime Minister is addressing the question.

Mr HOWARD —The question was about deception, and I am pointing out who deceived you. The truth of the matter is that you believed Michael Egan. Michael Egan was telling whoppers. He knows it, I know it, you know it, and I think most of the Australian public know it.