FED:Economy in doldrums under Labor: opp'n

AAP General News (Australia)
08-03-2010
FED:Economy in doldrums under Labor: opp'n

CANBERRA, Aug 3 AAP - A likely decision to leave interest rates on hold recognises
parts of the economy are "in the doldrums" under Labor, coalition frontbencher George
Brandis says.

The Reserve Bank board on Tuesday is expected to keep its cash rate unchanged at 4.50
per cent following benign underlying inflation data.

Senator Brandis said no move would acknowledge that times were still tough in some
sectors, such as tourism and retail.

"I think that will in part reflect a recognition that there are some parts of the economy
particularly here in Queensland ... where the economy is absolutely in the doldrums,"

he told Sky News on Tuesday.

Small Business Minister Craig Emerson said Labor had achieved a good "economic story",
with low net debt and lower interest rates.

The coalition's planned spending cuts would ruin that, he said.

"We need to maintain some stimulus.

"Tony Abbott's economic prescriptions would plunge the Australian economy into recession,"

he said.

AAP gd/rl/maur

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