❓ Question regarding the impact of predicted interest rate rises on WA families, with the Treasurer blaming the federal government for failing to keep interest rate promises.
AnsweredQoN 799Legislative Assembly
QuestionView source ↗
INTEREST RATE INCREASE
Some senior economists are predicting a fifth interest rate rise in February next year. What impact would this have on Western Australian families, and who is to blame? Several members interjected. The SPEAKER : Members! Mr E.S. RIPPER
Some senior economists are predicting a fifth interest rate rise in February next year. What impact would this have on Western Australian families, and who is to blame? Several members interjected. The SPEAKER : Members! Mr E.S. RIPPER
AnswerView source ↗
Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Several members interjected. The SPEAKER : Members! Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
The SPEAKER : Members! Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Several members interjected. The SPEAKER : Members! Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
The SPEAKER : Members! Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr E.S. RIPPER replied: Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Members opposite protest because they know who is to blame. They know it is John Howard’s fault. They know he promised to keep interest rates at record lows and they know he has failed to honour that promise. They know he promised to manage the economy and to manage inflation so that people with home mortgages would not be hit by interest rate increases, and they know he has failed to deliver. I have been concerned that after three interest rate increases, commentators have been predicting a fourth interest rate increase. What is of even greater concern is that the commentators are predicting not only a fourth interest rate increase since John Howard made that promise and advertised the promise on television during the election campaign, but also a fifth interest rate rise in February. I want to refer again to Bill Evans, the chief economist of Westpac, who said that this result means that it is almost certain that the Reserve Bank will raise rates by 0.25 percentage points on 8 November. He said it also raises the significant risk of a follow-up move in February. I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
I think members of the opposition should listen to these figures because this is about family budgets in their electorates and also in the electorates that we represent. If we have a rate increase in February after a rate increase in November, following the three that we have already had, average mortgage payments will jump to $15 298 a year. That is an extra $1 746 a year, or $36 a week more than when John Howard made his promise. Members should think about that - a $36 a week impact on family living standards since John Howard made his promise. Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr G. Snook : Almost as much as stamp duty! Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
Mr E.S. RIPPER : This is something people pay every month. They will be paying an extra $36 every week. We usually get a question from the other side, but members opposite have not come in on cue and I am a bit disappointed. They usually say something about interest rates in the early 1990s. I think it is worthwhile comparing the circumstances at the moment with those that existed in the early 1990s. We have to acknowledge that this is a matter of concern. Members opposite should not laugh. Debt levels are much higher today than they were at that time. For example, this is what the data from the Reserve Bank shows: interest on housing debt in 1990 represented 5.9 per cent of disposable income. In June this year that figure had risen to a record 9.1 per cent of disposable income. People have borrowed a lot more, they are much more vulnerable to interest rate increases and they are paying a much bigger proportion of their disposable income in interest on their housing loans. That is why a fourth and fifth interest rate increase after the three we have had already will be so damaging to the living standards of Western Australian families. I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
I know what the Prime Minister will be hoping. He will be hoping that there will be an interest rate cut just before he has to go to a federal election in the second half of next year. Even if that should happen, Western Australian families will not be fooled. They know what promise was made and they know what promise was advertised during the last election campaign. They know that even an interest rate cut before the next election will not wipe out the damage that has been done to family living standards by three rate increases already and another two in prospect.
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