Mr BARTLETT (3:24 PM) —My question is addressed to the Treasurer. Will the Treasurer advise the House of the results of the June quarter manufacturing survey released this morning by the Australian Industry Group? What does this survey show about the strength of Australia's manufacturing?

Mr COSTELLO (Treasurer) —I thank the honourable member for his question. I can tell him that the Australian Industry Group survey of Australian manufacturing for the June quarter was released this morning. It showed that manufacturing production in this quarter is at an eight-year high. On the basis of the survey results, AIG expects manufacturing to grow strongly on a national account basis. The strongest influence on production in the June quarter was increased demand, with stronger new orders improving exports. The net balance of 31 per cent reporting stronger sales in the June quarter is the highest result recorded by the survey. A net balance of 28 per cent of firms reported stronger new orders in the June quarter. Interestingly—and I am sure both sides of the House will welcome this news—employment and overtime both increased in the June quarter, suggesting continued strength in the labour market.

Dr Lawrence —Those bad unions!

Mr COSTELLO —My goodness, the member for Fremantle is still with us! A net balance of eight per cent of firms reported rising employment in the June quarter, and this rate is expected to continue into the September quarter. That is good news for the manufacturing industry. The manufacturing industry is reporting increased demand, demand for labour and increased overtime and production, and that is consistent with a strongly growing economy. The Economist magazine forecasts Australia to be the strongest growing economy in 2002 and 2003, with a low inflation regime, low interest rates and a new taxation system, which has taken all taxes off exports.

It does not take much of a memory to remember two years ago, when the then Deputy Leader of the Opposition used to come to the dispatch box day after day, telling us that if the GST did not give us interest rate rises it would give us interest rate falls, and if it did not give us an overheating economy it would give us a recession, and whatever else was going to come down upon us in plague and pestilence upon the land. But the good news is that Australia has come through that period. Our economy is strong, we have survived the US downturn, and manufacturing is looking optimistic. Economic management is important for giving people jobs, and that is what the coalition government remains committed to.

Mr Howard —Mr Speaker, on that very good note for Australia, I ask that further questions be placed on the Notice Paper.