Mr SWAN (2:45 PM) —My question is directed to the Prime Minister. Prime Minister, why has average annual multifactor productivity growth fallen from 1.6 per cent last decade to just 0.7 per cent this decade?

Mr HOWARD (Prime Minister) —There are a number of reasons why productivity will vary from time to time. One of those reasons is that you can have—and it is happening in the case of the resource industry—an extraordinary increase in employment in advance of an increase in the product brought forth by the investment, which accounts ultimately for both the product and also for the gains in employment. It is true that changes to the Australian economy over the last 20 years have produced increases in productivity and it is also true that changes recently made are going to lead in time to further increases in productivity, and I refer in particular to the workplace relations changes. If they flow through, Mr Speaker, I believe—

Mr Swan interjecting—

The SPEAKER —Order! The member for Lilley has asked his question.

Mr HOWARD —They will make a contribution to productivity growth. There is one obstacle of course and that is the election of a Labor government, which will stop that happening because Labor has pledged to tear up Work Choices.