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 his statement just three weeks ago to the House:

… it is not necessary to do anything about the debt cap at all …

Given that we now know that the $3 billion debt cap will be broken next year as a result of the budget he delivered just three weeks ago, why will the Treasurer not accept responsibility for his actions and now increase the debt cap for the fifth time in just six years under Labor, instead of leaving it to 'someone else', as he said a little earlier this year? (Time expired)

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

Can I say that I do welcome these questions. I hope I get 10 on this question, because what we have had now is further deception from the shadow Treasurer. What he has done is quote selectively from the Hansard. I went on to say:

… we will review it in the usual way and, if it were necessary, we would lift it.

That is the bit that he did not actually quote today, because this is part of the continuing deception. And the continuing deception is that somehow Australia has an unsustainable level of debt, when in fact net debt peaks at 11.4 per cent of GDP in 2014-15—about one-eighth of the level of major advanced economies.

We have to stand back and look at where Australia is, because with our low and responsible levels of debt our economy has grown 14 per cent since the end of 2007. I will tell you what that means: 950,000 jobs! That is because we on this side of the House had the guts to support our economy, unlike those who came into this House and the Leader of the Opposition, who slept through the critical vote on the stimulus package and would not support jobs and growth in our economy. We are prepared to take the responsible decisions, as the ratings agencies have said, to have a low level of debt to support jobs, growth and employment security in our economy.

What he is really saying today is that he is outing their hidden agenda, and their hidden agenda is to run a gigantic scare campaign about debt as their excuse for cutting to the bone.

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

Madam Speaker, I rise on a point of order: it goes to relevance. Why does he leave it to 'someone else' to clean up his mess? Why?

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

There is no point of order. The member for North Sydney will resume his seat.

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

Both the finance minister and I spoke with the Treasury and said that it would be a good idea for them to put them on the record in estimates because these have never been provided in this way before. They were never provided by those opposite when they were in government. So, once again, another deception. It is all part of their fiscal fear mongering.

What this is all about is an attempt to bully the Australian nation into the unwinding of the social safety net, and massive cuts to health and education a la Campbell Newman. His commission of cuts was all about hiding the truth before the election. What they want to do is go to the election pretending Australia has an unsustainable level of debt and that therefore there will have to be very big cuts to public expenditure after the election.

Now, there are just a couple of problems with that. The rating agencies recognise how responsible our fiscal policy is, which is why we have a AAA rating from the three global rating agencies—with a stable outlook for the first time in our nation's history. That fact is very embarrassing for those opposite because we understand the importance of good, strong fiscal policy to support jobs and growth, unlike those who want to cut to the bone in health and education and to cut jobs. (Time expired)

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

Hear, hear!

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

The member for North Sydney is warned.