Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to revelations this morning that his own department now says that Australian government debt will reach $290 billion by Christmas this year and will breach the $300 billion limit next year. Given that the Treasurer told parliament just 12 months ago that 'we would be at the end of each year within the $250 billion cap', will the Treasurer now apologise for breaking yet another promise made to the Australian people?

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

Once again we have had more fiction from the shadow Treasurer about debt. I want to go through all of the facts. The first fact is that net debt at 11.4 per cent is a fraction of debt levels of other countries right around the world. In fact, it is one-eighth the level of major advanced economies. I make that point because those opposite are on this fiscal fear campaign that somehow our debt levels are not responsible and not sustainable. We have very low debt and sustainable debt in this country and it performs a very important role. When events occur in the international economy, we support jobs and growth, and that is what this government is doing. Of course, those opposite do not want to do that.

I was questioned by the shadow Treasurer on those matters in the House only a few weeks ago, the week after the budget, and I made a number of important points. I said that the borrowing limit did not need to be lifted in either this financial year, 2012-13, or next financial year, 2013-14. I did that in the face of the shadow Treasurer running around mixing up market value and face value—he did not know what he was doing at all.

Mr Hockey interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for North Sydney has asked his question.

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

I said we will also review that in the usual way and amend it as required. Face value was never provided by those opposite when they were in government; it was never published. But today face value was provided to Senate estimates. I talked with the Treasury. It was the most open and transparent thing to do and it was provided to the opposition today. So the government has been completely open and transparent in providing the face value figures, which have never been provided by those opposite. The face value in 2012-13 and 2013-14 is below the debt cap. I also made the point that these matters are considered on a budget to budget basis in the usual way and we would review it in the usual way and amend it as required. That is actually what I told the parliament when these matters were raised with me in budget week.

But what is this all about? What this is really all about is that debt is the Trojan Horse that those opposite are trying to use, trying to exaggerate its impact so that they will be able to justify if elected savage cuts to the bone when it comes to health and education and a massive impact on jobs and growth in our community. Debt in this country is low. Our public finances are in great shape, and the problem that those opposite have got is that this is what the rating agencies say about these matters. This demonstrates how those opposite want to talk down our economy day in, day out. This is what Standard & Poor's says about Australia: 'The government continues to demonstrate a commitment to prudent fiscal policy over the medium term given the low level of public debt in Australia.' This is what Moody's says about it: 'Australia's relatively low level of government debt has been one of the factors supporting the AAA rating.' (Time expired)