Former prime minister Malcolm Fraser says the Federal Government has used the politics of fear to damage traditional Australian values...He says Australia's international reputation as a force for good has been greatly diminished.

Mr Fraser says the Howard Government has demonised "boat people" and tried to turn the wider community against Muslims.

"What we do not know, we often fear," he said.

"What we do not understand, we fear, or can be led to fear. People from a different religion we often fear, and what we fear can be made to become a threat.

"The politics of these issues was exploited by the Government and has bitten deeply into the Australian psyche.

Labels: damage, new fascism