Ms GILLARD (Lalor—Prime Minister) (14:38): I thank the shadow Treasurer for his question. Let me do two things: one, direct the House's attention to the complete paragraph that the shadow Treasurer quoted from; and, two, deal with his question about banks and passing interest rates on. I think it is very important that the House gets the full paragraph. I will refer to the full Reserve Bank statement and then I will refer to the paragraph that the shadow Treasurer referred to. The paragraph says: Information about the Australian economy suggests moderate growth overall. The terms of trade have now peaked and will decline somewhat in the near term, but they remain very high. In response, investment in the resources sector is picking up very strongly, with much more to come. Some related service sectors are enjoying better-than-average conditions. In other sectors, cautious behaviour by households and the high exchange rate have had a noticeable dampening effect. The unemployment rate has increased a little over recent months, though it remains close to 5%. That paragraph of the Reserve Bank statement is pointing to the patchwork economy that the government talks about consistently. When you have a patchwork economy with resources steaming ahead and, as a result, the Australian dollar at historical high levels and sustained high levels, that does put pressure on other sectors of the economy that are trade exposed, including manufacturing. We have been talking about that for months and months and months—talking about the patchwork economy and how we are responding to it. Mr Hockey: Talk, talk, talk! Ms GILLARD: Before the opposition starts its little chant, one of the ways we are responding to it is through the minerals resource rent tax, because that is a pivotal instrument in a patchwork economy where you take more tax from the sector of the economy that is turbocharged and use that to spread economic growth throughout the rest of the economy. The only people in denial about the patchwork economy— Mr Hockey: Mr Speaker, I rise on a point of order. I asked the Prime Minister to guarantee that the banks would pass on in full the cut to Australian households. The SPEAKER: The member for North Sydney has used his point of order to repeat the last part of his question. The Prime Minister is responding to the question in totality. Ms GILLARD: I am responding to the first part of the question. I was concerned that the way in which it was phrased may mislead people about the Reserve Bank statement, and, because we constantly see negativity and misleading from the opposition, I have taken the opportunity to ensure that that misleading does not stand unchallenged. In relation to that negativity by the opposition, my point was— Mrs Bronwyn Bishop: Mr Speaker, I rise on a point of order. I refer you to page 501 of the Practice—words that have been ruled out of order and asking the member to withdraw. Those words include 'misleading' and 'deliberate misleading', which the Prime Minister has been using all through question time. I would ask her to withdraw those remarks. The SPEAKER: On the point of order, I have allowed, in the context of the debate, 'misleading'. I would not have allowed 'deliberate misleading'. The Prime Minister has the call. Ms GILLARD: Thank you very much, Mr Speaker. In concluding on the first part of the question, which refers to the description of the patchwork economy in the Reserve Bank statement, the government has been explaining the patchwork economy to the Australian people for some time now. It proves the importance of the minerals resource rent tax, taxing the sector of the economy that is streaking ahead, to facilitate growth in other parts of the economy and opportunity for all. The Liberal Party are the only people in the nation who really believe that miners are paying too little tax. On the second part of the shadow Treasurer's question, let me be very clear about this: I believe that Australian banks should pass on this interest rate cut in full. I said this morning to the media that, if the RBA cut interest rates today, Australian banking customers would be looking to their banks to cut interest rates in full. I believe that is what the Australian people want to see from the banks that they bank with. We have acted to increase banking competition. We believe that was very important. But let me be loud and clear about this: I believe the Australian community is looking to banks today to announce that they will pass this interest rate cut on in full.