Senator SHERRY (3:13 PM) —We can all reflect on the legacies and records of past governments. I recall that when Mr Howard was Treasurer in the Fraser government he—at the time of their defeat in 1983—left a government deficit of $22 billion in today's money.

Senator McGauran —In today's money.

Senator SHERRY —Twenty-two billion dollars, Senator McGauran. That is what the Treasurer of the day, Mr Howard, left in 1983. But let us deal with the issues of today, the difficulties that are fronting Australians, of which we have seen evidence in the last year, particularly. We have seen higher petrol prices. The Prime Minister promised that the GST would not increase the price of petrol. He clawed back 1.5c in GST revenue from higher petrol prices. Higher petrol prices are in part brought about by a lower dollar. The Prime Minister promised that the price of a glass of beer would not increase by more than 1.9c. It went up by 8c—again, because of the GST. We have had pensioners rightly very angry at the clawback of half the pension increase. We have had pensioners also very angry because they believe they were promised a $1,000 bonus and the majority of them got nothing like that.

Small business, who have become the new tax collectors in the Australian economy, have been slugged by the business activity statement paperwork and their cash flows have been throttled, all as a result of the introduction of the GST. National debt has gone from $170 billion six years ago to over $300 billion as of the last national accounts. That is $15,000 for every man, woman and child in Australia. The Australian dollar was valued at US70c when this government took office. It is now down to US49c. The recent quarterly national accounts show that the Australian economy hit the wall and declined by 0.6 per cent in the last quarter.

Mr Howard, the Treasurer, Mr Costello, and the Assistant Treasurer, Senator Kemp, ascribe the problems of the Australian economy to the so-called `transitional impact'—the `confidence-sapping annoyances'—of the GST. If you pick up the 500-page ANTS document, you will not find any reference to the so-called transitional impact of the GST that slugs pensioners and that slugs Australian motorists. You will not find any reference to the GST's slugging of small business. You will not find any reference to the increasing national debt. All we got from the Liberal-National Party was how great the GST was going to be for the Australian economy. Look at what has happened! Ask pensioners, ask motorists and ask people in small business about the impact of the GST on them and on the Australian economy. Many Australians who believed the government propaganda campaign that the GST was going to be good for the Australian economy—and I have been doorknocking recently and listening to their concerns—

Senator McGauran —Oh!

Senator SHERRY —Senator McGauran, those who are in small business or elderly and a pensioner have suddenly discovered that, when they assess the impact of the GST, they are worse off. They ask their neighbours, and they are worse off as well. They have rightly come to the conclusion that the propaganda line that the Liberal-National Party ran, spending well over $100 million of taxpayers' money, along the lines that the GST was good for the Australian economy was a big lie. It was the big lie that you delivered to the Australian electorate. The GST has not been good for the Australian economy. Mr Howard blames the United States, he blames Japan, he blames the Reserve Bank, he blames the media, he blames the tax office and now he blames the Labor Party. Apparently, the Labor Party in opposition is responsible for all the problems confronting pensioners, small business, the national debt and the dollar. Apparently, the Labor Party is responsible. Apparently, the Labor Party should be out there selling government policies.

Senator SHERRY —If you think that is the problem, Senator Calvert, move over. We will happily take the reins of government. If you think the problem is poor communications and the Labor Party talking down the economy then you seriously mislead yourself. The Labor Party have been telling the truth about the Australian economy. (Time expired)