Senator COOK (Deputy Leader of the Opposition in the Senate) (2:00 PM) —My question is to Senator Kemp, the Assistant Treasurer. Does the Assistant Treasurer agree with Mr Costello's statement on 30 January 1996:

In light of this statement by Mr Costello, how can the Prime Minister also be right when he recently told a group of Brisbane retirees that the value of the Australian dollar `doesn't matter at all for people living in Australia'? Who is correct: the Treasurer in claiming that the falling dollar does matter or the Prime Minister in saying that it does not?

Senator KEMP (Assistant Treasurer) —Let me make a couple of observations. Firstly, Senator Cook will be aware that I am always somewhat loath to take quotes from the Labor Party because they are often quoted completely out of context. The record will show that on numerous occasions in this chamber exact and full quotes have not been given and the context of those quotes has not been appropriately shown. Let me make a couple of observations in relation to the first quote. When the Australian dollar falls quite clearly it does affect the price of imports, as Senator Cook said. Equally, the falling dollar can have the effect of boosting the export sector. As Senator Minchin has said on a couple of occasions, there are issues you have to put on the negative side and there are issues that you have to put on the positive side, and that is correct.

In relation to the second quote by Senator Cook, the performance of the government in delivering higher living standards to Australians is virtually without parallel in the last 30 years. The government have delivered a prolonged period of growth. Equally, we have delivered rising real wages, which the former government failed to deliver. Let me also make the observation that we have been able to increase the real level of pensions and benefits. Those points have been made on many occasions by my colleague Senator Amanda Vanstone. The Prime Minister has quite rightly drawn attention to the fact that the government have lifted the real level of pensions. Equally, he pointed to the fact that, because of the performance of the economy, we have delivered real rises in wages and salaries, the likes of which were not parallelled by the previous government.

Senator COOK —It is as if Ryan never happened! Madam President, I ask a supplementary question. Was the Treasurer correct when he stated on 30 June 1995:

Given Mr Costello said this when the dollar was valued at US71.08c, and he has now driven the value of the dollar to below US50c, what does this say about the level of impoverishment that he has now forced on all Australians?

Senator KEMP (Assistant Treasurer) —Again, let me make a number of observations about Senator Cook's comments. It is quite true that every time Senator Cook and his colleagues get up in this parliament they attempt to talk down the Australian economy. That is the Labor Party's approach—to talk down the Australian economy. The reasons for the changes in the value of the Australian dollar have been explained on many occasions. It is quite clear that we have seen a surge of support towards the US dollar, which has affected the level of currencies valued in American dollars.