Kelly O'Dwyer (Higgins, Liberal Party) Share this | Link to this | Hansard source

My question is for the Treasurer. Will the Treasurer outline how raising the debt ceiling to a prudent level is an imperative for the next sitting fortnight of parliament?

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

I thank the member for Higgins for that question. For the first time, we have received phone calls now from international investors and rating agencies concerned about Australia possibly reaching—

Opposition Members:

Opposition members interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The honourable members on my left have been asking their questions. Now there is one from the government. We will hear the answer from the Treasurer.

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

The rating agencies have for the first time contacted us concerned about possibly reaching the debt limit in the next few days. It was the Labor Party—the member for McMahon—that introduced the debt limit of $75 billion, pledging it would never be reached. Then Labor introduced a debt limit of $200 billion, saying it would never be reached. Then they introduced a debt limit of $250 billion, saying it would never be reached. Then they introduced a debt limit of $300 billion, and Labor said it would never be reached. Yet they budgeted a debt limit of $370 billion peak debt and, at the same time, the member for Lilley laid on the table of this parliament advice to say that there has to be an additional $60 billion buffer. So I would say to the members opposite: this is the debt that Labor created. Labor is offering a partial solution of a debt limit of $400 billion when they left us with a debt—

Mr Shorten interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will desist. I give the call to the honourable Treasurer.

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

that is well going to exceed, as the Secretary of the Treasury advised the Senate, over $400 billion.

The fact of the matter is this. I know the Leader of the Opposition has a shadow Treasurer who does not understand the difference between net debt and gross debt, but I would say to the Leader of the Opposition—

Opposition members interjecting—

Come on.

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

There will be quiet. The honourable Treasurer is giving important information as to legislation which needs to be dealt with in the House, so it would help the House and the business of the House if we could hear his answer. I give the call to the honourable Treasurer.

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

I would say to the Leader of the Opposition—

Mr Snowdon interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Lingiari will withdraw his comment.

Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

I withdraw.

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

I say to the Leader of the Opposition and I say to the Greens as well: this is unprecedented territory. If the Labor Party is going to prevent us from trying to fix the problems they created then they will wear this. It will be their responsibility. Labor created the debt of over $400 billion, and now at a cost to the nation they are preventing us from dealing with it. This is a test for the Leader of the Opposition.

Mr Dreyfus interjecting—

Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The member for Isaacs will desist.