Interest Rate Relief for Northern Territory Homeowners and Businesses

THE HON WARREN SNOWDON MP

Member for Lingiari

SENATOR TRISH CROSSIN

Senator for the Northern Territory

 

1 November 2011

Federal Labor Member for Lingiari, Warren Snowdon and Senator for the Northern Territory, Trish Crossin, have welcomed the Reserve Bank’s decision today to cut official interest rates, as a win for every small business and family with a mortgage across the Northern Territory.

“This interest rate cut is great news for local families and small businesses, no matter which horse they backed in the Melbourne Cup, they’ve had a win thanks to the Reserve Bank," Mr Snowdon said.

“A mortgage is the biggest burden on most family budgets, so this is some very welcome relief for a lot of families facing cost of living pressures.”

Today’s interest rate cut means an average family in the Northern Territory with a $300,000 mortgage will now pay about $50 less a month in interest repayments – that’s a saving of almost $600 a year.

That same family will now be paying around $200 a month or $2400 a year less in mortgage repayments than when Labor came to Government in November 2007.

 
“This rate cut is also welcome news for more than 16,300 small businesses owners across the Territory, who are the backbone of our community,” he said.

Mr Snowdon said that the Federal Labor Government’s disciplined budget management means that the Government has created space for the economy grow without adding to price pressures in the economy.

“Our determination to bring the budget back to surplus by 2012-13 is just one of many examples of the Gillard Government’s responsible economic management. 

“While other countries are in recession our economy remains strong, meaning more people are in jobs and there are more opportunities for young people,” he said.

Senator Crossin said there have been 750,000 jobs created since the Labor Government was elected – that’s three quarters of a million more Australians bringing home a pay check each week.

“The Government’s budget discipline has meant the Reserve Bank has extra room to move on interest rates – and it has taken the decision to do so today”.

“The Reserve Bank has acknowledged our strict budget policy on several occasions and we’ll continue to play out part in this regard," Senator Crossin said.

We are also putting in place vital investments to expand the productive capacity of our economy to ensure we can have strong growth with low inflation for the long run.
 
Investments such as the $3 billion skills package in the Budget and major productivity-boosting infrastructure like the National Broadband Network are all about creating a stronger economy.

“The Gillard Labor Government will keep managing the economy responsibly in the interests of everyday Australians, just like we did when we fought off recession and kept Australians in jobs at the height of the global financial crisis,” she said.

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