7/8/07
The Western Australian Government has accused the Prime Minister of running a dishonest campaign on interest rates.
At a joint media conference in Perth today, Premier Alan Carpenter and Treasurer Eric Ripper outlined why John Howard was wrong to blame the States for interest rate rises.
"Mr Howard is treating Western Australians like fools if he thinks his latest attempt to shift the blame for his own shortcomings will work," Mr Carpenter said.
"Since coming to office in 2001, the WA Labor Government has reduced debt levels to record lows, consistently maintained budget surpluses and invested record amounts of money into economic and social infrastructure. This is not a recipe for high interest rates."
The Premier said he hoped the Reserve Bank would not announce another interest rate rise tomorrow.
"However if rates do rise, it is John Howard that will have some explaining to do," he said.
"As his recent biography revealed, the Prime Minister is a serial offender when it comes to fiscal mismanagement.
"He will spend money like a drunken sailor if he thinks it will somehow help him stay in power.
"His use of 'one-off' financial handouts instead of investing in long term infrastructure, especially in WA, has fuelled consumerism and led to pressure on inflation and interest rates.
"Mr Howard is being blatantly dishonest by saying the States are to blame for his mistakes.
"He went to the last Federal election taking full responsibility for interest rates. Now all of a sudden he wants to shift responsibility. I wonder why?"
Mr Ripper said the latest WA State Treasury figures showed net State debt had never been lower.
"Despite record levels of investment by the State Government, our net debt for the total public sector is at record low levels and across the general government sector we became net debt-free for the first time in 2003-04," Mr Ripper said.
Mr Ripper also referred to comments yesterday by ANZ Bank Chief Economist Saul Eslake who noted that the Federal Government had been putting upward pressure on interest rates.
"Mr Eslake is one of the most respected economists in the country and yesterday he made it clear that the last Federal Budget had fuelled consumer price inflation which in turn had put pressure on interest rates," he said.
"At the same time Mr Eslake also made it clear he did not support the assertion that State Government spending on infrastructure was putting pressure on interest rates."
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Premier's office - 9222 9475
Treasurer's office - 9222 8788
