Senator CHAPMAN —I direct my question to the Assistant Treasurer. Minister, in response to repeated attempts by the opposition to be economic doomsayers by talking down the economy, can you advise the Senate of the implications of the national accounts released yesterday? Do the accounts show that the economy is growing solidly in a low inflation environment, consistent with the budget outlook? How will recent reforms, including industrial relations reform and the government's deficit reduction program, contribute to improving the Australian economy?

Senator KEMP —I thank Senator Chapman for that astute question. Senator Chapman, the national accounts confirm two things: the economy continues to grow solidly and the opposition continues to show its economic incompetence.

Senator Sherry —Which way have the growth figures gone in the last two quarters?

Senator KEMP —I was speaking about Mr Gareth Evans, not you, Senator Sherry, on that particular occasion. Do not get sensitive. I was not attacking you; I was attacking the shadow Treasurer. Mr Evans, in particular, has shown he is completely out of his depth as shadow Treasurer. For example, on 7 November, he said—and I am quoting your shadow Treasurer:

It is not an exaggeration to say, as I have been saying, that the Australian economy is dead flat—flat as the Nullarbor Plain and flat as a billiard table . . .

That is what your shadow Treasurer said. Wrong again.

The national accounts show that the economy continues to grow solidly, with GDP rising 0.8 per cent in the September quarter and 3.8 per cent in the year to the September quarter. The growth occurred despite the opposition's efforts to talk down the economy. Growth was underpinned by particularly strong investment growth and net export growth, with non-farm stocks and private consumption also contributing.

Private business investment grew by around eight per cent, reflecting strong growth in both the equipment and construction sectors. Strong investment is, of course, needed for future strong growth. Export growth was strong as well, up 1.2 per cent, while imports fell.

The accounts show that the manufacturing, transport and communications sectors continue to grow strongly while retail trade growth has moderated, as expected at budget time.

Senator Conroy —`Moderated'!

Senator KEMP —The national accounts are consistent with the budget forecasts more generally.

All this is happening at a time of low inflation. The non-farm GDP deflator rose by 1.9 per cent in the year to September. Solid growth, investment led growth, low inflation and the lowest home mortgages in years—all in all, good news for the Australian economy. I know you hate it, Senator Conroy, but it is good news for the Australian economy.

Senator Conroy —Just keep kidding yourself.

Senator KEMP —Moreover, Senator Conroy, the outlook for the medium term is enhanced by the overdue reforms the government is now implementing. We have had the passage of the workplace relations bill, the budget—a very responsible budget—ending Labor's deficit debt approach, taking the pressure off interest rates and easing the tax burden on small business, and the micro-reform across a broader front, including, of course, the telecommunications sector.

Senator Chapman, in answer to your question, all in all it is a very good story for the Australian economy. We have a budget on track and the economy growing at a solid rate.