Christian Porter (Pearce, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister inform the House why it is important to reduce Australia's debt burden and how will tackling Labor's debt-and-deficit legacy strengthen the economy for the long term?

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

This is an important question from the member for Pearce and I thank him for it. The sad truth is that Labor's debt is costing this Commonwealth $1 billion every single month just to pay the interest on the borrowings. In 10 years time, had members opposite continued in government, it would not have been $1 billion a month it would have been $3 billion a month in dead money, spent in interest repayments on the borrowings.

Mr Albanese interjecting—

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

The member for Grayndler will desist!

Tony Abbott (Warringah, Liberal Party, Prime Minister) Share this | Link to this | Hansard source

That is $1 billion, even now, that is not available for schools, for hospitals and for roads. If we did have that saving of $1 billion a month, because were not paying for Labor's debt and deficit, in three months we could build the Western Sydney infrastructure package, in six months we could duplicate the Pacific Highway from Newcastle to the Queensland border, in little over 12 months we could fully build the East West Link in Melbourne and in just one month we could almost conclude the Perth Gateway and the Swan bypass. But we just have not got that $1 billion a month, because that is paying Labor's debt bill. That $1 billion a month is paying Labor's debt bill.

They gave us the six biggest deficits in our history. They would have given us, had they been re-elected, four more years of record deficits. They would have given us a decade of deficits, had they been re-elected. Every year of deficit is just more debt for our children to repay. They were stealing from our future. It was intergenerational theft from members opposite. The budget is this government's plan to fix Labor's debt. Where is Labor's plan to fix Labor's mess? Let's face it, we had the good Bowen from the Parliamentary Budget Office give some advice to the bad Bowen, just the other day. The good Bowen said: 'It is time to start coming out of debt and deficit; otherwise, the longer you leave it the more exposed you become and the harder it is to wind back.'

This government has taken tough decisions today so that we do not have to take even tougher decisions in the future. Australians expect their governments to take the tough decisions, not to squib them.