Fed: Jobless figures good news for economy, Costello says = 2

AAP General News (Australia)
08-11-2000
Fed: Jobless figures good news for economy, Costello says = 2

Mr Costello also said today that the government would not enter a "bidding war" with
the Labor Party to spend future budget surpluses.

Reserve Bank Governor Ian Macfarlane yesterday warned interest rates could rise if
ahead of next year's election the two parties threatened to spend future surpluses.

"The bidding war which the Labor Party has opened with more spending won't be joined
by the government," Mr Costello told reporters.

Mr Costello said Labor Party promises to roll back the GST and spend money on schools
and the regions would all cost money.

"Beazley first of all tries to block savings measures, then he tries to block tax measures,"

Mr Costello said.

"Now he promises to spend money he doesn't have (and this) would be a catastrophe for
the Australian economy."

Mr Costello said the government would concentrate on producing "good economic policy".

"The Labor Party opposed all our efforts to put the budget into surplus, now the great
thing was they failed," he told reporters.

"They are still now trying to block the government's economic moves to strengthen the
economy and the best thing that could happen is if they fail again.

"If we continue to work on economic policy I think unemployment can fall lower."

Mr Costello said next month's Olympics in Sydney were not the only factor in the latest figures.

"I think in New South Wales obviously the Olympics has helped in relation to construction
jobs and so on," he said.

"But actually the good thing about yesterday's figures were there were falls in unemployment
in all states, even states like Tasmania and South Australia which have had higher unemployment
traditionally.

"It is really an outcome of a strong economy."

AAP nl/jlw/cjh/bwl

KEYWORD: RATES COSTELLO 2 MELBOURNE

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