Senator FERGUSON (3:07 PM) —The words that come out of Senator Carr’s mouth never cease to amaze me. It must be Melbourne Cup week, because the Labor Party want to have a couple of bob each way. One minute they are complaining because the price of houses is too high and then, in the same breath, Senator Carr is saying the cost of houses is coming down, so people are losing their equity. You had better make up your mind. It is about time you started backing some of these horses on the nose, Senator Carr, because you cannot have two bob each way on interest rates. Either you are unhappy because the cost of houses is rising or you are unhappy because the cost of houses is falling. You cannot be unhappy about both; you must decide which one.

Senator Carr goes on about the four rises in interest rates since the last election. The Labor Party did not worry too much about a 0.25 per cent rise when they were in power—0.25 was not even considered. They went straightaway to a 0.75 per cent increase and then, only a few months later, another 0.75 per cent increase. So you were not talking about the smallest incremental rise possible, which this government has been faced with—0.25 per cent each time. The Labor Party—the party that Senator Carr belongs to—preferred to put it up by 0.75 per cent and then another 0.75 per cent until we reached the stage where people were paying 17½ per cent. That is only on a house loan. As I have said to the Senate before, I distinctly remember paying 24 per cent under Labor.

And, if you want to talk about people going to loan sharks and people borrowing money offshore, I can say that it was because of the pressure of 24 per cent interest rates that two of my neighbouring farms were lost. Because of the 24 per cent interest rates, they went overseas to borrow money at a cheaper rate and then, with the changing rate of the Australian dollar, they lost their properties—thanks to the Labor Party.

Can I also say to those people who are borrowing money for houses that one of my children bought a house six months ago—the first house they have ever owned. The first thing they did was ask, ‘How much can I afford in repayments?’ They worked it out and then locked the interest rate in so that if interest rates went up or down they would know exactly how much interest they would have to pay on the loan, because it was locked in for three years. Senator Carr makes no mention of the many people who chose to fix their interest rates. They are not affected by the interest rate rises. The only ones you are talking about are those—

Senator Sterle interjecting—

Senator FERGUSON —Senator Sterle, you have not been in this place long, but I am sure that you remember plenty of people in the trucking businesses that you were involved in who were also paying 24 per cent interest rates and for longer. They paid 24 per cent under a Labor Party—the very Labor Party that you belong to—and they lost their trucks. I did not hear you speaking too loudly back in those days about the Labor Party, with its high interest rate policy of up to 24 per cent.

The Labor Party ought not come in here and talk about loan sharks. The very people they did not protect when they were in government suffered the indignity of losing their businesses because of 24 per cent interest rates. So, Senator Carr, you can come in here and talk about those people who have lost faith in the government. Let me tell you this: the last time the Australian public were tested at the ballot box, they rejected the Labor Party in a way not seen for a long time. And you, Senator Carr, were one of Mr Latham’s great supporters and you supported his policies. You supported all of those things which drove the Labor Party to the worst defeat it has had for some time. If you try to tell us that the Australian population have lost faith in the Howard government, you have a very short memory, because the last time they were tested they rejected outright the Labor Party for the sorts of policies they were proposing, both economically and in a lot of other fields, such as bringing home troops immediately. When you come in here and start raising the issue of interest rates, remember your history—and the people of Australia will never forget your record—in relation to interest rates. (Time expired)