Senator SHERRY —My question is to Senator Hill, the Minister representing the Prime Minister. Is the minister aware that a former Liberal leader, Mr Hewson, has accused the Prime Minister, Mr Howard, of showing—

Senator Tierney —Doctor to you.

Senator SHERRY —Dr Hewson, a well-known economist—of showing a clear lack of leadership on economic and race issues? Is Dr Hewson correct in asserting that the government is operating on a political formula of `prejudice, populism and pragmatism'? Is that just a case of sour grapes from another failed Liberal leader or is it Dr Hewson reflecting the views of the business elites?

Senator HILL —I did see some press reports yesterday that, apparently, a tape recorded by Dr Hewson, to be played at some meeting of a Liberal forum, was alleged to contain the content along the lines of that which Senator Sherry said. It was not actually a quote of Dr Hewson in the newspaper at all. But I think the important thing is that this is not only a pragmatic government but also a principled government. It is dealing with a whole range of major national issues in a sensible and rational way, and in a way that will bring both short-term and long-term benefits to the Australian community. I think of the hard decisions that we have had to take on the economy—

Senator Bolkus —Prejudiced and vindictive, and you know it.

Senator HILL —It was a very good decision on tariffs, Senator Bolkus, which I presume that you would applaud, in recent times. We have real leadership for a change, Senator Bolkus, to keep Australians in jobs and give our industries the chance to be efficient and prosperous in the years ahead. I simply take the opportunity to reiterate that this government is about principle as well as pragmatism. In fact, I think it is going very well.

Senator SHERRY —Madam President, I ask a supplementary question. Talking of Liberal principle, Minister, is Dr Hewson correct in saying that the government attempted to ride on the wave of the Hanson phenomenon and that members of the government had boasted how successful the strategy was? Are members of the government still boasting how successful this strategy is?

Senator Carr —They are deeply involved with Hanson.

Senator HILL —Of course that is not true. Members of the government are not doing that, and I doubt if Dr Hewson said that. If he did say it, he obviously does not understand the position.