Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for her question. It is the case that there is a substantial amount of state debt out there, a very substantial amount. Why are those borrowings taking place? I will tell you why those borrowings are taking place. Those borrowings are taking place for essential economic infrastructure—the sort of essential economic infrastructure that those opposite would not concern themselves with for 11 long years. The Rudd government has made it very clear that it is prepared to work with the states when it comes to critical economic infrastructure because this is a key plank in its platform to put downward pressure on inflation and downward pressure on interest rates. Eleven years of neglect in infrastructure have produced a situation where the states are having to borrow because the Commonwealth would not come to the table and provide the political leadership that was required so that we could develop a modern economy which was capable of tackling the future challenges.

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