Senator CHAPMAN —My question is directed to the Assistant Treasurer. Will the minister inform the Senate of the major gains for Australian workers and families achieved as a result of the government's sound economic policies? Is the minister aware of recent reports by commentators which underline the success of the government's strategy?

Senator KEMP (Assistant Treasurer) —I thank Senator Chapman for this important question. Senator Chapman has shown a long interest in policies relating to the economy and has made a great contribution over the years. I welcome the question from Senator Chapman.

The government is very proud of its achievements in relation to the economy and in relation to the benefits that have been provided to Australian workers and families. These benefits can be summed up briefly as more jobs, better pay, lower mortgage costs, and, of course, major tax cuts on the way. These have all been delivered in the context of Australia's very strong economy, which I think is the envy of the region and possibly the world.

We are very proud of our record on jobs. There are more people in employment now than at any other time in Australian history. Almost half a million new jobs have been created in the 3½ years since this government has been in office. Jobs growth has translated into lower unemployment. Australia's unemployment rate this July of seven per cent is the lowest since July 1990. Not only are there more jobs but also wages are increasing faster than inflation, meaning that more workers are getting ahead. This reflects the very strong productivity performance of the Australian economy in recent years.

Not only are there more jobs, not only are real wages higher, but also home mortgage rates have fallen very substantially. When Labor lost office—the unlamented Labor government—home mortgage rates were at 10.5 per cent. And we all remember when home mortgage rates were at an incredible 17 per cent during the term of the Labor government. Basic home mortgage rates are now in the order of six to 6.5 per cent and these are delivering very substantial savings in payments of interest by Australian families. And the good news does not stop there. We are delivering, as a result of the tax reform package, the largest tax cuts in Australian history—tax cuts of the order of $12 billion on income tax paid by Australian families.

More jobs, lower taxes, lower interest rates—this is a great record of achievement, and I am very pleased to say that other commentators have noticed that. Many in the Senate will remember former Senator Richardson, a former powerbroker of the Labor Party.

Senator Bolkus —Who?

Senator KEMP —He is recalled with varying degrees of affection in this chamber. Senator Faulkner has one particular view of the former senator, and others have other views. But this is what this former Labor powerbroker said on the record of the Howard government: `The Howard government has had some major success on the economic front and that ought to be acknowledged.' This is what he went on to say and I think it is worth recording. If I had a supplementary I could go on. (Time expired)

Senator CHAPMAN —Madam President, I ask a supplementary question. I did ask the Assistant Treasurer if he would enlighten us on any recent reports by commentators. I note that he had started to do that, and I would appreciate additional information on the opinions expressed by those commentators.

Senator KEMP (Assistant Treasurer) —Thank you, Senator Chapman. That is a very good supplementary, I might say, which shows a great quickness of mind. Former Senator Richardson said, `If there is one thing that flourished under the Labor government, it was unemployment.' This former Labor powerbroker has acknowledged the success of this government in managing the economy. He has recognised the problems which occurred under the previous government—as indeed people like Mr Graham Campbell have recognised a fall real wages. We have a very proud record of achievement, and that is why I believe that the Labor Party, in its policy-free zone, will be out of office and over that side of the parliament for a very long period of time.