Mr CHARLES (6:15 PM) —I rise tonight to congratulate the Treasurer (Mr Costello) and the Minister for Finance and Administration (Mr Fahey) in bringing down the third Howard budget under this government that will continue, I am certain, following the next election. In question time today, the Prime Minister (Mr Howard) talked about security, safety and stability. I heard the member for Canberra (Mr McMullan) repeat those words tonight in his contribution. I think that describes this budget and, indeed, the situation that Australia finds itself in today to a T.

As the member for Canberra commented, the budget was not a headline issue today, as it was both the day before and the day after the budget was brought down. That is because it was such a responsible document and because Australians are basically happy with the budget. They are happy with a government that knows how to give them economic security, stability and safety.

Fancy the people of Australia wanting to return to the high profile, high rhetoric time when Paul Keating was Treasurer. We all remember it, don't we: `This one is as good as it gets,' and `This one brings home the bacon.' We did not hear the Treasurer on budget night say that this was `as good as it gets'. He did not say, `This is the one that brings home the bacon.' What he said was, `This consolidates Australia's position in the South Pacific.' He said that we inherited a deficit of $10.3 billion and that by the end of June 1999 the Commonwealth should be in a budget positive position of $2.7 billion. That is a turnaround of $13 billion in three budgets. That is a phenomenal outcome, and one which even the Labor opposition ought to applaud.

The member for Canberra talked a bit about Labor's spending priorities. He certainly implied that we need to stimulate the economy. He said that there were too many economists who were concerned that perhaps the growth rates in the budget, if not overstated, will not be met. He implied that the unemployment rates were impossible to meet because of a slight fall in growth in the overall economy, and yet there has been a decrease in unemployment. He seemed to cast doubt on the figures.

If Labor feel it necessary to stimulate the economy in order to keep all the promises that shadow ministers are making—which the member for Canberra denies are costed promises; nonetheless they keep making them—and they are going to keep all of these commitments, then this implies only one recourse. Because Labor would no doubt spend more were they ever to get back to the treasury bench again, that outcome, that achievement, will be through tax increases. That is really what Labor are saying. They would increase taxes so that all Australians pay more tax—not less tax, but more tax— and somehow that would stimulate demand in the economy and make Australia grow faster and be fairer.

Our interest rates are the lowest they have been since 1970. Our inflation is as low as it has been since the early 1960s. The interest rates paid by small business today are the lowest they have ever been in recorded history. And there is a turnaround of $13 billion in three budgets. Do you know that by the end of June 1999, this government—the first Howard government—will have paid back $31 billion of Commonwealth debt, down from about $96 billion we inherited in March 1996? It is a huge turnaround. For Australia it is a comfort budget—stability, safety and security.

There are a number of priorities that the budget sets out that I think are worth mentioning in the few minutes I have available to me. This budget extends the Commonwealth seniors health card to low income, self-funded retirees who are over the age pension age. It is considered that those who have provided for their own retirement should have some assistance with their most important issue of concern—and that is the cost of their health care. This is another benefit to self-funded retirees.

An additional benefit is taxation rates which recognise that those who provide for their own retirement, who provide for their own income once they have ceased active working life, should be treated no differently tax-wise than those who are on the age pension. It is this government that has done that for self-funded retirees. It has now given them the Commonwealth seniors health card, which is the one thing that that group has been speaking for, asking for, begging for, year after year. In my electorate of La Trobe, the extension of the gold card to World War II veterans who served with the Australian armed forces, at a cost of about $500 million over the next four years, has been warmly received. The veterans are very pleased that that recognition has been given.

The budget includes an aged care package that will provide greater assistance to our elderly to stay in their homes, while providing greater support for their carers as well. This is an important initiative that would not make headlines day after day, but it is important to consider, as we think about the whole issue of health, that increasingly those who are elderly would prefer to stay in their own homes as long as possible; they would rather not go to hostels and nursing homes if they can avoid it. So it is incumbent on us to help them to stay in their homes, to make sure that they have proper medical attention, to make sure that they do not fall ill and become unable to communicate with those outside their own homes.

Small business, which has been a major beneficiary of a number of initiatives of this government, will now have the provisional tax uplift factor reduced once again—now down to five per cent. That is half the rate that applied under Labor when I was elected to this parliament in 1990. It is a saving for business and individuals in the order of $75 million in provisional tax payments in the coming year. I would think that small business would be absolutely delighted with that initiative, as I am certain they are delighted with the low interest rates.

I remember that, in 1990 when I came into this House, colleagues of mine were talking about paying 24 per cent overdraft rates or 24 per cent interest rates on investment properties. It was killing the industry. A lot of businesses are not here today because of those punishing interest rates in 1990 and 1991. Labor absolutely decimated small and medium sized business during those times. When Australians come to the next poll—whenever it is; some time between now and next May—they are going to remember what Labor did to them in the recession that we had to have, and they will vote appropriately.

I return again to security, safety and stability. In 1998 the highest-ever number of fully funded undergraduate student places in university will be made available: 361,925 places—10,000 more than the total number of places made available in 1996 under the former Labor government. There is $176 million for literacy programs for school students, including some $25 million for the national literacy and numeracy plan—the aim of which is have every child reading and writing properly by the end of primary school. I applaud the continuing efforts of the Minister for Employment, Education, Training and Youth Affairs (Dr Kemp), because he has taken up the literacy issue with an absolute determination and dedication to get it right. This is an issue that the member for Brisbane (Mr Bevis), who sits at the table, knows that I have fought strong and hard on for a very long time. I compliment the minister on maintaining the pressure on the states and on the school system to make sure that every child learns to read and write the English language at the proper level at the proper age.