Doorstop Canberra: June quarter CPI, Labor’s GST roll-back, Liberal Party leadershipAugust 1, 2000
GST/Interest RatesAugust 3, 2000
SAME OLD LABOR ECONOMICALLY ILLITERATE, IRRESPONSIBLE AND DISHONEST
Claims by Labor that todays interest rate increase was related to GST are
The statement by the Reserve Bank of Australia sets out the reasons for todays
decision. The Bank makes it clear that it will abstract tax changes and base policy on
ongoing inflation. Its decision today relates to the higher growth and stronger activity
in the past 12 months, which it expects to be sustained into the near future.
Even people with the poor economic understanding of Beazley and Crean should be able to
understand that. Of course, blaming the GST is a cheap, opportunistic and reliable
If Mr Beazley really believes that GST is responsible for higher interest rates, he
would pledge to repeal it and re-impose his beloved wholesale sales tax. After three days
of Labor Party conference he has done everything to indicate he is preparing to do nothing
on tax except blame it for everything.
Mr Beazley and Mr Crean can only be judged on their policy record. Under Labor, home
loan interest rates hit a peak of 17 per cent.
Home mortgage interest rates under 13 years of Labor Government were never as low as
they are today.
Their past deeds are signposts for future action, not their hollow words today.
2 August 2000
Contact: Niki Savva