Mr TURNBULL (2:19 PM) —My question is addressed to the Treasurer. I refer the Treasurer to the statement of the Reserve Bank Governor, Glenn Stevens, on 11 December last year when he said:

Does the Treasurer accept that his statement the day before the Reserve Bank met in February that ‘the inflation genie is out of the bottle’ served to fuel inflationary expectations? Does the Treasurer really understand what he is doing to the Australian economy?

Mr SWAN (Treasurer) —I thank the member for his question. No, I do not accept that at all. I absolutely do not accept that. We have a plan to modernise this economy. We have a plan to deal with the legacy that was left to this government by the previous government—the highest inflation in 16 years. Inflation just did not suddenly commence at 9 am on 26 November, as the member opposite would pretend. There is an inflationary problem in this country and, when we see a problem, we have to correctly identify that problem and we have to deal with it, and that is what this government has been doing. We have been dealing with the inflationary problem left to us by those opposite by putting in place our five-point plan, by reining in reckless expenditure. We had the report from the Treasury the other day which identified the fastest increase in spending in any four years in the past 16 years. Of course, the member for Wentworth, as usual, went into denial. The member for Wentworth is in denial about the inflation rate. He cannot agree with the ABS. He cannot agree with the RBA.

Mr Turnbull —Mr Speaker, I rise on a point of order. I ask the Treasurer to table that report from the Treasury, which he knows is not a Treasury report at all.

The SPEAKER —Order! There is no point of order.

Mr Turnbull —Table it!

The SPEAKER —Does the member for Wentworth wish to allow us to proceed now, or is he above it?

Mr Hockey —Mr Speaker, I think that comment was uncalled for.

The SPEAKER —Regrettably, if it takes those sorts of comments to get members of the chamber to respect the chamber, even if people are offended, that might be the problem.

Mr Adams interjecting—

The SPEAKER —The member for Lyons is not helping.

Mr SWAN —This country does face serious challenges—the highest underlying inflation in 16 years, and predicted by the Reserve Bank to stay there for two years. This government will not stick its head in the sand like those opposite. We had the member for Wentworth some weeks ago say that inflation was a fairy story. Tell that to the people who have had eight interest rate rises in the last three years. It is not a fairy story. Last year we had the member for Wentworth say that interest rate rises had been overdramatised. He does not have a clue about what life is like around the kitchen table—because inflation is the enemy of working Australians; it erodes their savings and it erodes their living standards.

This government has put its hand up from day one to tackle the inflation challenge that was left to us by the member for Wentworth and the member for Higgins. The member for Higgins said in July last year that inflation was right where he wanted it. Well, heaven help us if inflation was right where he wanted it. It was at a near 16-year high, as it turns out, when he made that statement. So we have put up our hand to accept responsibility. Everyone on this side of the House accepts responsibility for dealing with the inflation legacy left to us by those opposite. We have put up our hand to accept responsibility; why won’t they just put up their hand and accept responsibility for creating it?