Dr LAWRENCE (2:08 PM) —My question is to the Minister for Defence representing the Minister for Industry, Science and Resources. Minister, have you seen today's building approval figures, showing the largest year-on-year decline in building approvals since at least 1984? Isn't this further evidence that your GST has mugged the economy?

Mr COSTELLO (Treasurer) —The government has, of course, seen today's building approval figures which, incidentally, show that approvals, which have been down in the previous quarters in trend terms, appear to have turned. It is always important that, when looking at building approvals and building construction generally, you take into account one-off and transitional factors. Forward indicators in the housing sector, such as building approvals and finance approvals, suggest that the sector is stabilising and returning to growth during 2001.

Mr McMullan —One-off factors?

Mr COSTELLO —Yes, there were one-off factors because, prior to July of last year, I believe that construction had reached its highest percentage in GDP terms on record. Of course, the reason for that was a pull forward as a result of taxation changes, which is what the government said. If you had a pull forward—that is, these figures were greater in March and June—then, consequently, you will have a downturn in September and December, which is what the government predicted and what has actually occurred. Once we get over the transitional factors, we believe that housing construction will start to strengthen, as has been shown by the approval figures which were released today. It will continue to strengthen particularly in a climate of low interest rates. Anybody who is worried about the house building industry or housing construction will support low interest rates. Apart from the previous year, interest rates under this government are now at a 30-year low—interest rates which were never achieved under the Australian Labor Party, which had interest rates at 17½ per cent in the late 1980s.

Mr COSTELLO —The Deputy Leader of the Opposition interjects. I say, where there is no understanding there is no conscience. He understands so little about economic policy that he has no conscience about being part of 17½ per cent interest rates. Imagine what that was doing to the young families of Australia as they watched their interest rates go to 17½ per cent. Anybody who wants to get up here and talk about building construction will commit themselves to a low interest rate environment. I say that to the shadow minister opposite, because I have never heard her champion the policies that would give low interest rates in this country. As I recall, she was out complaining not so recently that the government was not spending enough money on this or enough money on that. The people who want to have low interest rates in this country will be supporting, not opposing, good economic policy and will be giving their support to those things that will keep the Australian economy growing strongly on low interest rates, which is a policy of the coalition government.