Lead Senate Candidates for the Christian Democratic Party have called on the Reserve Bank to cut interest rates when it meets on Monday 5 November prior to the expected Melbourne Cup Day announcement.

Paul Green in New South Wales, Gerard Goiran in Western Australia, Linda Brice in Queensland and Bruno Colangelo in South Australia all believe that interest rates are too high.

In a joint statement following the announcement by the Australian Electoral Commission of the Senate Ballot Paper in each State, the Christian Democratic Party leaders said:

"There should be no thought of the imposition of any rate rise by the Reserve Bank, because Australian interest rates are already too high. For evidence we need look no further than the overvalued Australian dollar, which is already causing severe harm to tourism in every State and Territory, is undermining the profitability of our rural and resources industries, and threatens the death of a broad range of manufacturing, especially in the automotive and electrical industries."

Gerard Goiran drew attention to Western Australian iron ore exports. "The Reserve Bank - and indeed all the Canberra bureaucrats - should understand that our splendid and very welcome boom in minerals exports is in fact very fragile. We face powerful competitors including Brazil and South Africa, and our exporters are very vulnerable to shifts in demand, freight rate increases and changes in currency alignments."

Linda Brice identified Queensland coal exports as potentially losing profitability through high interest rates causing the Australian dollar to be overvalued. "Queensland coal exports are severely constrained by the shortcomings of Queensland Rail and by the failure to open Port Clinton as an export port for coal. The industry can easily be tipped into unprofitability by the rising Australian dollar."

South Australian CDP Senate Team Leader Bruno Colangelo had this to say: "South Australians should not be penalised through the dollar being overvalued. The overvalued dollar gives a free kick to importers of a vast range of Chinese goods which compete forcefully with Australian products for market share. At the same time the overvalued dollar makes South Australia's exports, including our world famous wines, less attractive in overseas markets."

In Sydney Paul Green said "Australians have serious doubts about the theory that the Reserve Bank should fight inflation by restricting demand with the technique of jacking up interest rates. "Higher interest rates increase cost pressures for everyone, and have the effect of pushing up price levels, therefore creating the environment for the next interest rate rise."

Christian Democratic Party candidates who become Senators after the Federal election will all push for a Senate Inquiry into the role of the Reserve Bank in determining interest rates.

The Christian Democratic Party believes that inflation is best fought by strict discipline in the operation of the printing presses.

Christian Democratic Party President Reverend the Hon Fred Nile MLC added: "During an election period while the Government is in caretaker mode, the Reserve Bank should act with special caution. An interest rate rise would be unacceptable. The Christian Democratic Party view is that a zero change in interest rates may be tolerable, but we have sound reasons for recommending a rate reduction."

The statement by CDP Senate team leaders concluded:

"Continuous expansion of the money supply is the reason why prices are chronically subjected to upward pressures. Attempting to suppress the symptoms of inflation by cranking up interest rates represents a fundamentally wrong approach. In the current environment, the Reserve Bank should exercise common sense in implementing an interest rate reduction of at least a quarter of a percent. Now is the time to turn the tide on interest rates."