FED: Govt to spread growth to rural Australia: Fischer

AAP General News (Australia)
12-06-1998
FED: Govt to spread growth to rural Australia: Fischer

CANBERRA, Dec 6 AAP - The federal government would ensure the countrys economic growth
wave spread into pockets of rural Australia, Deputy Prime Minister Tim Fischer said today.

Mr Fischer said the five per cent annual growth rate for the year to September was "the
sort of figure you normally get when you are coming out of a recession".

"But weve got to now harness that economic growth wave to spread the jobs, create the
jobs, right across Australia," he told the Ten Networks Meet the Press.

"Theres an ongoing effort by the federal government to ensure that the five per cent
economic growth wave spreads right across Australia and picks up those pockets which have been
missing out."

Mr Fischer also praised the Reserve Bank of Australias decision to slice official interest
rates by quarter of a percentage point last week.

"Its a good call by the Reserve Bank," he said. "Peter Costello had a good trifecta this
last week."

To banks which had not passed on the rate cut in full, he said: "Pass it on, and quickly.
You really do have a corporate obligation to do that."

Mr Fischer said the current high level of foreign debt was acceptable because the
government had a long-term debt reduction strategy and a budget in surplus.

He said under Labor, high foreign debt was coupled with a large budget deficit.

"Mind you, the exchange rates will always contribute to the exact level," he added.

Mr Fischer said the GST would help the situation, adding a 10 per cent levy to imports but
with exports free of the tax.

"In some areas it will (make goods more expensive), in some areas it wont," he said.

AAP ear/kr/br

KEYWORD: ECONOMY FISCHER

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