Senator O'CHEE —My question is addressed to the Assistant Treasurer. Minister, it is well accepted that, unlike the previous government, this government is interested in small business. I ask the minister to outline to the Senate the further excellent news, in terms of lower interest rates and increased financial sector competition as a result of the policies of this government, for those Australians who are involved in small business.

Senator KEMP —I thank Senator O'Chee for that important and perceptive question, which will assist us to indicate the considerable benefits which the policies of this government are delivering to small business.

Opposition senators interjecting—

Senator KEMP —The Labor Party continues to yell out when we speak about interest rates—they were the high interest rate party. They were the party that delivered interest rates of up to 20 per cent to small business.

Senator Cook gets up and pretends to be concerned about small business. I don't recall Senator Cook ever saying anything in this chamber when interest rates for small business soared towards 20 per cent, under the Labor government. There was never a word from Senator Cook.

Senator Cook —Rubbish!

Senator KEMP —Senator Cook, you can get up after question time to tell us how you complained about the interest rates under your government. We will all wait for you.

The news on the interest rate front gets better and better. I am pleased to report to the Senate that the variable interest rates for small business have fallen to their lowest levels since the relevant data began to be collected in 1996.

In the 13 years of the Labor government—some of those years under Captain Keating; Captain Wacky, as you now call him but, in those days, he was the Prime Minister, Mr Keating—small business never enjoyed interest rates as low as they are enjoying now. As I said, to remind them, under Labor, the interest rates available to small business soared towards 20 per cent. The reductions that have been delivered under this government are worth hundreds of millions of dollars per annum to the small business sector.

This is, of course, great news for small business and great news for job creation. It comes on top of the big reductions in home loan and fixed interest rates, providing very substantial benefits to home buyers and taxpayers via lower public debt interest.

Let me state again, and remind the Senate, that the government is currently repaying some of the Labor debt which was issued at 14 per cent per annum, while issuing new debt at around 6.5 per cent per annum. Last week, fixed rate home loan rates were cut significantly. For example, the ANZ cut its three-year fixed interest rate by some 0.26 per cent to 6.99 per cent. The ANZ's Chief General Manager said that the new three-year fixed rate is an extremely good way for customers to lock into a rate below seven per cent until the year 2000. That is good news for home buyers and news which the Labor Party could never deliver.

There are a number of reasons for this very sharp fall in interest rates. One is low inflation. We have locked in a low inflation performance. Another factor is fiscal responsibility. When we inherited $70 billion worth of deficits over the last five or six years from the Labor Party—(Time expired)

Opposition senators interjecting—

The PRESIDENT —Order! The behaviour on my left is quite disorderly.