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ABC News Breakfast -

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(generated from captions) founding of the people's

Republic of China. Tom

Iggulden, ABC News, Beijing. Nearly a third of

Australians have not spent

their Government stimulus

package mean incorporated 6

billion of the $21 billion

handed out is still in

accounts or wallets. Reserve

Bank Governor Glenn Stevens

faces the house economic

committee and is sure to be

questioned on this and other

economic matters. The

Opposition housing spokesman

Scott Morrison is a member of

that commission and he joins

us from Sydney. Welcome.

Nice to be with you. An interesting figure the

amounts of money still in people's bank accounts. According to some reports

that is being represented as

a very good thing for the

Australian retail sector,

that might be the thing that

props up the retail sector

through the next 6 months of

the year. What is your

view? Some may say that but I

think one of the issues going

forward is how the Australian

economy moves from a sugar

diet to a protein diet and

gets back on the a

post-stimulus footing and

that is one of the things we

would seek to get the

Governor's views on today as

we look out over the horizon.

The Governor has said he has

a far more robust view about the performance of the

Australian economy go forward

and one of it reasons for

that is that we have said

before is that we have come

into this crisis better than

anyone else so we should

emerge from it better than

anyone else and there are

questions now about how much

you can over stimulate an

economy and what that can

mean for interest rates

because interest rates

largely are now more likely

the rise than fall so that

creates a fairly big agenda

for us today with the Governor. You may not

necessarily get from Glenn

Stevens what you want of

course which I imagine is for

you hoping he says the

stimulus economy is a bad

idea. You do not expect him

to say that? I expect him to

tell us what he this is. Only

a few days ago b a week ago

he made some statements about

a housing bubble and I think there are very real questions about whether there is a

housing bubble or not but

statements of that nature can

do all sorts ever things in

terms of banks being

reluctant to lend to housing

projects and so on so I think

very clear statements from it is important we get some

the Governor today stow the

markets can have a clear

understanding about where he sees the risks and the

opportunities in the

Australian economy and what

that means for rates going

forward. If I interpret you

correctly it sound like you

will play tough with the

Governor with Glenn Stevens

today. There has long been a

that division in Australian

politics, a bipartisan one

you lay off in that

situation, you do not play

the man rather than playing the ball or playing the

issue. Are you playing the

man? No of course not. Glenn

Stevens is a constituent of

mine! You cannot afford to

have him vote against you!

We will have I think an honest discussion as we should about Tess things.

When the Reserve Bank

Governor comes before the

house economics committee it

is a important opportunity to

has a very responsible discuss these matters and he

position as I now he

appreciates and we will look

to understand his sue on a

range of matters today. Let

me get to one of them in the

limited time we have left to us. The chair of the committee Craig Thompson says

he is interesting in hearing

from Glenn Stevens about how

Glenn Stevens would cot gore

rise and would define a

normal interest rate for Australia. Is that a question

you are interested in hearing

answered too? Absolutely.

Because a normal freight the

implication of what he is

saying is higher than what it

is today so that means in

bank competition particularly

for first mortgages being at

the lowest level ever, I mean

non-bank mortgages today are

about 1 in 10 under the Coalition Government they

were 1 in 5 so with rates likely to rise and the level

of competition in our banking

sector at a historic low then

I think home buyers and

mortgage owners have to have

some serious questions about

how this banks and how others

are going to operate in this

environment an what that

means for their hip pocket

solely be keen to understand

how the Reserve Bank Governor

sees that playing out in the

near term. But you could not possibly argue given you have

very low rates new and they

are clearly rates that you

would prefer that that would

abnormal rate range when we

are not living in in normal

economic times and when the

Australian economy is not

operating as its normally

much more elevated level? I

have no doubt that probably

one of the biggest influence

other than the fact we came into this crisis stronger

than anyone else that it has

happened on the Australian

economy has been the

significant fall in the cash

rate. That has been a

positive thing, it has been a

helpful thing but clearly

that is going to go up and

one of the concerns I have

particularly in the housing

sector is the competition for

finance and the competition

among the banks. We already

saw than the way down bank

does not pass on those rates

so with rates rising likely

over the next 12 to 18 months

and the markets factoring as

much as 150 basis point into

all of that over the next 12

to 18 month then I think

homeowners and mortgage

owners need to have some

competitive pressures that assurance about the

will exist Ting Tings market

and the banking market and

there will be greater opportunity to get good deals

from the banks and a fair

deal from the banks. On a

different subject. Like many

others I understand you have

been to Kokoda and walked

that Kokoda Track. Can you

tell us when you were there

and whether it was evident to

you at that time that the

transport infrastructure in

particular the airstrip there

needed to be upgraded? I was

there with my Col eedge the

Member for black town, we

were talking people there for

a bridge-bidding colleague the Memb for black town, we were talking people there for a

bridge-bidding operation. The

Kokoda airstrip is grass and

the weather play as major factor. Terrain is

unbelievable and my heart

just goes it to those

families and particularly for

those who have lost their

lives. You pay honour to them

because they were going to

pay honour and respect to a

very sacred place in

Australian history and this

is a horrible tragedy and for

someone who has walked it, it

connects a little deeply but

for those families I can only

say I'm dreadfully

sorry. Scott Morrison thank

you. Get in touch if you

have views on opinions on our