Senator WATSON (2:05 PM) —Before I ask my question, Mr President, may I thank you very much for your hosting of a special dinner on the occasion of my 25 years in the Senate last evening and for your generous comments. My question is to the Leader of the Government in the Senate, Senator Hill. Will the minister inform the Senate how the responsible economic management of the Howard government is continuing to deliver benefits to Australia and to Australian families?

Senator HILL (Leader of the Government in the Senate) —I would like to take the occasion to congratulate Senator Watson on his 25 years of service to Tasmania and to the Australian Senate. It is important to note that the Australian economy continues to show its resilience against a difficult international environment. The Reserve Bank statement released yesterday began by stating:

The statement goes on to say that Australia is still on target for a growth of around three per cent in 2003, while the latest forecast for GDP growth in the G7 countries is 1½ per cent. I would have thought even Senator Cook would agree that that is a very good record. This is backed up by forecasters surveyed by the Economist magazine who expect Australia to be the fastest-growing industrial economy in 2003, with double the growth rates of the G7 countries. This is an outstanding result. Despite a weak global economy and despite the most crippling drought Australia has ever seen, the Australian economy continues to show its resilience. This is because, unlike the ALP, we are committed to responsible economic management. Unlike the ALP, we are committed to delivering surplus budgets and reducing the appalling debt that we inherited.

Unlike the ALP, we are committed to giving back to Australia the benefits of our hard work. These benefits were only a dream under the irresponsible and reckless ALP government and include benefits like: historically low interest rates, which will allow the Australian family to save $1,300 a month more than they did under the ALP when they suffered under crippling interest rates of 17 per cent; record low unemployment rates and the creation of 1.1 million jobs since the Howard government came to office, meaning that businesses are prepared to invest in the future of more and more Australians; personal income tax cuts worth $15 billion, giving millions of Australians more disposable income; and five budget surpluses, allowing us to spend money where it is needed and not waste it on unnecessary interest payments on accumulated debt. All these benefits are because of this government's responsible approach to managing the Australian economy.

What is the Labor Party's alternative, after seven years in opposition? The Labor Party's alternative, unfortunately, is again to whip out the government credit card. When there is a problem in education, you answer it by spending more. When there is a problem in health, the only answer for Labor is to spend more. How would this be paid for? Obviously, through the old recipe of increasing taxes and borrowing back. That would be back into the old way, which led to high interest rates, high unemployment, high inflation and crushing interest repayments. After seven years, will they ever learn?