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Monday, 19 September 1994
Page: 887

Senator SHORT —I give notice that, on the next day of sitting, I shall move:

  That the Senate notes that—

  (a)the Government's assurance, through the Treasurer (Mr Willis) and the Minister for Foreign Affairs (Senator Gareth Evans), that the 0.75 per cent rise in official interest rates would not flow through to home buyers, was proved completely fallacious on 8 September 1994 when the Westpac Bank, subsequently joined by the ANZ Bank, lifted their variable mortgage rate by 0.75 per cent which is equal to an approximate 9 per cent increase in the cost of home interest payments;

  (b)the effect of this large increase in interest rates on an average $100 000 mortgage will be over $50 per month, more than $600 per year;

  (c)economists and analysts are predicting that official interest rates will rise again before Christmas, and this will also undoubtedly be passed on to home buyers; and

  (d)the pressure for interest rates to rise, and keep on rising, is a direct consequence of the Labor Government's high deficit budgetary policy, a policy which has even drawn the criticism of its most senior economic advisers, the Secretary to the Treasury and the Governor of the Reserve Bank.