ALEX KIRK: Lindsay Tanner, the Government's urging people to spend, spend, spend. Why shouldn't they be using the extra money to reduce, for example, their credit card debt, or save for their children's education?
LINDSAY TANNER: People will be making their own choices about how to use this money, but we hope that those who can will spend the money, whether it's buying a new washing machine, some more presents for the kids, or a little trip away. All these things are really important to keeping the Australian economy ticking over, to keeping jobs and growth in good shape while we're getting these very negative pressures from the international economy. People will make their own decisions, but the Government certainly hopes and expects that the bulk of the money in the economic security strategy payments will be spent.
ALEX KIRK: But a lot of people are in debt as a result of, until recently, high interest rates, cost of living pressures and so on. Isn't it wise for them to use the extra money that they'll get in the next few days to reduce their debt?
LINDSAY TANNER: I wouldn't give advice to individuals about how to deal with their own circumstances - people are entitled to make their own choices. But interest rates of course have come down significantly, petrol prices have come down very substantially.
ALEX KIRK: Though still they are - there's a lot of debt hanging over them.
LINDSAY TANNER: There are obviously some people who have very significant debt, but people can make their own decisions, their own choices. And it's also necessary to bear in mind that this money is additional money, people weren't budgeting for it. It's money that has been provided deliberately by the Government in order to stimulate spending, to stimulate economic growth and to keep jobs ticking over. We want to ensure that we can keep people in employment - that's our number one priority - and that the very powerful negative pressures that are bearing down on the Australian economy from an emerging recession around the world can be kept at bay. Individual families can make their own choices, and some people will need to use some of that money to pay down debt, but overwhelmingly we believe, we expect it will be spent. And that spending will be good for the Australian economy.
ALEX KIRK: Unemployment is expected to rise when the figures come out later this week. How worried are you that that could undermine the consumer spending spree, if people save the money because they're worried about their own job security?
LINDSAY TANNER: There's no question that confidence has taken a battering over the course of the year as the dreadful news from the rest of the world has impacted on Australians - that's a significant problem. People will be making their own choices, of course, about how they handle the family finances and their own employment circumstances will be influenced by that of course also. So, we would hope that people would take a balanced view of the circumstances. There's still a lot of strength, a lot of vibrancy in the Australian economy. We are expecting further unemployment increases, we are already seeing the economy slow. But what people do now is extremely important. If everybody retreats into their shells, then that will make the situation much worse. So it's very important that we keep ordinary economic activity ticking over, that we buy the presents for Christmas, that we go on the little trip away, that we buy the new washing machine or DVD or whatever it might be. Because those are the things that keep our economy moving, that keep jobs growing.
TONY EASTLEY: The Finance Minister Lindsay Tanner, speaking there with Alexandra Kirk.
- ENDS -
| Media Contact: | Website: |
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