Senator FURNER (3:20 PM) —I rise also to participate in today’s debate on the motion to take note of answers given by the Leader of the Government in the Senate, Senator Evans. In particular, I want to focus on the comments made by the opposition about the IMF report and interest rates. Today, the International Monetary Fund released its article IV concluding statement, strongly endorsing this Labor government’s responsible economic and fiscal management. We should put that in perspective, given we have just gone through one of the worst financial crises this country and also the world has ever seen. We entered that period of darkness with a $42 billion stimulus package and we are on the path to recovery due to that package. In doing that, we stimulated the economy and we protected jobs. We protected working families. We protected people who at the time were in need. Also, on the back of that, we increased pensions and pension rates. So, all in all, in the last period of government, a Labor government performed in an economically sound way, in every shape or form.

To stand in this chamber and to claim that in some way we are irresponsible for what we have done for working families is incorrect and not a statement that should be taken for granted and accepted by the wider community. In taking that decisive action and by implementing that stimulus package, we are now on that path of strict spending discipline and we are on a rapid return to surplus in less than the period that we initially felt we would. In less than three years from now we will be in a position where we will be returning the budget back to surplus. We have put a very strong fiscal consolidation in place and we are once again tracking the delivery of that, bearing in mind that around about 1960 was the last time we were in this situation. That is why the IMF has basically endorsed our economic plans to meet the challenges of mining boom mark 2.

Interest rates is an interesting area and an interesting debate that should be had. The limited time that I have this afternoon prevents me from going into much detail. Obviously, everyone in this chamber knows that interest rates are a matter for the independent RBA. We are not going to speculate, nor should we and nor should anyone in this chamber, on future movements. Our focus will be, rather, spent on implementing those economic plans and tackling the capacity constraints that were left unattended in the mining boom mark 1. We also know that, while our economy and job creation is strong, mining booms will also bring significant challenges in capacity and high dollar demands. That is why we are making historic investments to expand our capacity and why we are investing in transport infrastructure, NBN, skills and education.

I spoke widely yesterday in particular about the Building the Education Revolution. Some people really need to get out and experience what is happening in schools and see the joy and satisfaction of those children, those parents and those citizens. Principals and teachers are telling me when I open those Building the Education Revolution initiatives of how they are improving their education. It is not just the children but the community at large that, on the back of those initiatives, are getting opportunities not seen before. I wish some of those people on the other side would go to some of those openings. In Queensland I have been fortunate to have Peter Slipper, the new Deputy Speaker over in the other house, come along to one opening and he was so overwhelmed and so happy with attending an opening he wanted to be in a photograph with me.

Senator Brandis —I don’t believe that.

Senator FURNER —I will send you a copy of that, Senator Brandis. I would love to send you a copy because I sent it to Peter Slipper, and he is happy. I am sure he has got it pinned up on his noteboard in his office. Closing on interest rates, I want to make this final statement and it is all about this inconvenient truth—the inconvenient truth of our having the highest interest rates. We should go back to a period when I understand, as reported, interest rates were 21.4 per cent when John Howard was the Treasurer of the government. (Time expired)