RATE RISE A SIGNIFICANT BLOW
8 August, 2007

Bob Debus, Federal Labor Candidate for Macquarie, said today’s interest rate rise is a significant blow to Bathurst families whose budgets are already stretched to the limit by record high mortgage repayments and cost of living pressures.

Today’s interest rate rise was the ninth in a row under the Howard Government.

It is the fifth rise since the last election – the election when John Howard promised all families that he would “keep interest rates at record lows”.

Mr Debus said Bathurst families could not afford to believe John Howard’s promises.

“After 11 years John Howard has lost touch with working families,” said Mr Debus.

“Today’s news will hit families throughout the Central West at a time when they are already dealing with record mortgage repayments and soaring grocery and petrol prices.

“Despite this, when the interest rate increase was announced this morning this is all John Howard could bring himself to say:

I am aware and the Government is aware that this decision will hurt some home buyers and we’re very conscious of that and it will have an impact on some household budgets.
(John Howard 8 August 2007)

“The fact is, Mr Howard, this ninth interest rate increase in a row will affect all families with a mortgage,” Mr Debus said.

“And let’s not forget these are the very same families that John Howard said recently ‘have never been better off’.”

Rather than take responsibility for their interest rate failure, Mr Howard and Treasurer Peter Costello have resorted to more finger-pointing and blame-game excuses.

“Mr Howard and Mr Costello should give their excuses and the blame-game a rest and get back to work with policies to put downward pressure on inflation and interest rates,” said Mr Debus.

Mr Debus said Federal Labor had committed to economically conservative policies that will be directed towards keeping interest rates as low as possible:

* We are committed to keeping a tight rein on the economy and disciplined spending - we will run budget surpluses on average over the economic cycle.
* We are committed to the independence of the Reserve Bank and its inflation targeting regime.
* We will implement policies to fight inflation by tackling skilled labour shortages and infrastructure bottlenecks that push up business costs.