Senator COLBECK (2:04 PM) —My question is to the minister representing the Treasurer, Senator Minchin. Will the minister advise the Senate of any recent assessments of Australia's economic performance and the prospects for continued strong growth? Is the minister aware of any alternative policies?

Senator MINCHIN (Minister for Finance and Administration) —I thank Senator Colbeck for that good question. Today the International Monetary Fund released its annual report on the Australian economy. I am pleased to report to the Senate that this IMF report is another in a very long list of glowing testimonials to the strength of the Australian economy and to the role of Howard government policy in bringing about that result. The report released today notes the strength of the economy over the past year despite very significant adverse shocks, including the drought and weak global growth. It notes the strength of the labour market, with unemployment falling to 5.8 per cent—below that magic six per cent—in August and our low inflation rate, which is well within the RBA band of two to three per cent. It does cite some risks to growth. There are always risks to growth that governments have to be aware of, including the uncertain global economy, the drought, which has not yet ended, the rise in property prices and the appreciation of our currency. The IMF, in relation to housing prices, concludes:

The IMF says that, overall—despite the risks it cites—the outlook for the economy is sound. It says:

But I think the most important aspect of the report today is the commentary on government policy settings. The IMF in this report said that it:

That is a glowing tribute to our economic policy settings. The IMF was complimentary of the government's long-term fiscal planning, saying that the government's strategy to deal with the ageing of the population was `comprehensive and well conceived'. The IMF had this to say about rising health costs:

We are trying very hard to achieve that outcome, despite Senate obstruction.

The IMF also had some advice on trade policy, which the ALP, through Senator Conroy, has been making some comment on this week. Again I quote from the report:

That is high praise indeed, and contrary to the sniping we have had from Senator Conroy during this week. The report also advocates a further liberalisation of our industrial relations system. So the IMF's report on Australia is positive about our record to date and about our prospects for the future in terms of continuing growth, low inflation and, most importantly, resilience to external shocks. I think it does provide good and timely support for the government's fiscal and economic settings and, I hope, advice to the opposition about the importance of its recognising the reality of the importance of these policy settings if we are to achieve long-term growth and sustainable budgetary outcomes in years to come.