Question Time

INTEREST RATES

Mr HAMILTON-SMITH (Waite—Leader of the Opposition) (14:12): My question is to the Premier. Can the Premier reveal the extent of the success he expects in writing to the governors of the Reserve Bank asking that they resist raising interest rates? Why does the Premier believe he can exert political pressure on a body that he claimed in this house was truly independent?

The Premier told the house in November 2006 that he had written to the Reserve Bank. Since that time there have been five interest rate rises. The Premier announced in February 2005 that he had written to the Reserve Bank to urge against interest rate rises. Well, guess what? Since that date there have been eight interest rate rises. The Premier told the house in February last year that the Reserve Bank was a model of independence that he wanted replicated in his model for an independent Murray-Darling commission. When questioned about the impact of his letters to the Reserve Bank, the Premier proudly boasted: 'Yes, we did write to them, and they ignored our position.' 'They must be fairly independent,' he said.

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:14): That is the difference, because members opposite supported those interest rate rises under the Howard government. That is the difference. The opposition does not give a damn about homeowners, it does not give a damn about those who have housing affordability problems, and that is the difference between us.

I believe it is the responsible thing for the Premier of South Australia to do, to let people at the highest level in the Reserve Bank know what another round of interest rate rises would do to the economy of this state and to homeowners in this state. The fact that you constantly defended interest rate rises under John Howard shows the difference.