Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Hansard source

The temporary deficit has been imposed on us by the rest of the world. The global recession and an unwinding commodities boom has collapsed revenues and pushed the budget into deficit. Borrowings are also needed to fund the Nation Building and Jobs Plan to support the economy and jobs. Let us be clear: the figure that those opposite are identifying is needed for these reasons that I am outlining.

The government has introduced legislation to increase Commonwealth government securities broadly equivalent to the deficits over the forward estimates. The overwhelming majority of the increased borrowing requirement is due to the collapse in revenues and higher payments associated with the global recession. These account for around two-thirds of the increase in the borrowing requirement. The government’s balance sheet remains sound and net debt remains low by international standards. Average net debt across the OECD is currently nine times the level of Australia’s. If the choice is between borrowing to finance the temporary deficit and higher unemployment, we make no apologies at all for choosing Australian jobs and supporting Australian families. If those opposite want to play these short-term political games, the Australian public will judge them on that. This government stands ready to do whatever is necessary to protect Australian jobs and Australian families. (Time expired)