Mr NEVILLE (2:06 PM) —My question is addressed to the Deputy Prime Minister in his capacity as Minister for Trade. Would the Deputy Prime Minister and Minister for Trade outline to the House how Australia’s strong economic performance is contributing to our export growth?

Mr VAILE (Minister for Trade) —I thank the member for Hinkler for his question and acknowledge his close interest in the growing strength of the Australian economy and what it does for the many great Australian exporting industries, including those in the seat in Hinkler, particularly in Gladstone. A strong Australian economy is required to provide a stable and strong platform off which Australian exporters can launch themselves into the international marketplace and compete in that marketplace. The economic platform at the moment in Australia is arguably in the best condition that it has been in for decades when you consider that Australia has incredibly low levels of interest rates, sustainable economic growth, low unemployment—arguably the lowest unemployment for about 30 years—low inflation and that the government continues to produce budget surpluses.

Over nine years we have paid off Labor’s debt, which is the responsibility of the Australian taxpayers to service. We have paid off almost $96 billion worth of debt. Combined with that and off the back of that, in 2004-05 Australia’s exporters achieved a new record, both in value and volume terms, of $162.3 billion worth of exports of goods and services out of Australia. Today the national accounts for the June quarter of 2005 were announced. They showed a 1.3 per cent growth in the economy in the June quarter, which accumulated a real growth of 4.6 per cent over the financial year. That indicates the Australian economy is continuing to strengthen. That is good news for exporters, but it is also as a result of that export growth that we have experienced. They have made their contribution to that economic growth.

It is interesting to note that exports rose by 1.6 per cent, rural exports rose by 3.9 per cent and, even more interestingly, manufacturing exports rose by 7.9 per cent in the June quarter. That was a great outcome for the manufacturing industries in Australia. But, most importantly, Australia’s terms of trade increased by 5.8 per cent in the June quarter. This was the highest quarterly growth in the terms of trade since September 1988. All this shows that, while our government continues to manage the Australian economy well and provide that platform for Australia’s exporters, Australia’s exporters will continue to take advantage of that platform to compete in the international marketplace and increase our exports.