Mr BARTLETT (2:47 PM) —My question is addressed to the Treasurer. Would the Treasurer inform the House of data released today on Australia's international trade figures and on recent building approvals? What do these figures indicate about the importance of sound economic management?

Mr COSTELLO (Treasurer) —I thank the honourable member for Macquarie and I acknowledge the contribution that he makes to economic debate in this parliament, as a one-time economics teacher and as somebody who follows the debate very closely. Today the Australian Bureau of Statistics released the international trade in goods and services figures for the month of February. They showed a $154 million improvement on the January figures, with a balance in deficit of $1.716 billion. That was an improvement of around $742 million on the December figures.

There was a substantial fall in imports, driven by an 11 per cent fall in the import of consumption goods, and there was a fall in exports, although of a lower dimension. The export of travel services rose strongly in the month of February, no doubt the result of good tourism policy here in Australia, and rural exports were quite reasonable—certainly higher than they have been over the course of the last year. But in relation to other areas, including minerals, exports were down. What that probably shows is that demand is slowing in the Australian economy. Imports of consumption goods were down. There was also a reduction in imports of capital goods, but they vary enormously with the importation of civil aircraft.

The Australian Bureau of Statistics today also released building approvals figures. Dwelling approvals rose 3.2 per cent, but that was determined largely by the fact that in one state in particular, New South Wales, medium-density approvals went through in the month, and the medium-density increases in approvals were consequently up 16.9 per cent. That is a notoriously volatile series. What the figures do show is that private sector house approvals fell by 3.1 per cent, which is the fifth consecutive monthly fall, and approvals are now 11.3 per cent lower than they were in September 2003. That confirms a slowing in the Australian housing market, which I have been commenting on for some time. The government are not concerned by slowing in the housing market. It is our view that the housing market has grown very strongly for a period of time. If the housing market were to plateau in terms of prices, that would be in the longer term interests of the Australian economy.

I will finish with this observation: in terms of economic management, it has been a difficult period over the last five years. We have had a US recession, the worst drought in Australian history, the outbreak of SARS, September 11 and a war in Iraq. Most countries of the developed world have been in recession, and Australia almost alone has been able to weather those difficulties. But I want to underline again that economic management in difficult periods is very important—there is no room for error. It takes dedicated commitment of purpose. Economic management is not done by having air-bubble thoughts, putting them up and then airbrushing them away as we move on to the next issue. It is not done by taking the latest fad from a computer download. Economic policy requires constant, determined purpose to make sure that the future of Australians, which depends on strong economic management, is looked after. That has been the hallmark of this government—discipline and commitment in relation to economic management—and it will continue to be the hallmark of this government.