Brett Mason (Queensland, Liberal Party, Shadow Parliamentary Secretary for Education) Share this | Hansard source

Mr President, I seek leave to speak for up to 20 minutes on the adjournment.

Leave granted.

I thank the Senate for its indulgence. There is a new dichotomy in Australian politics. We have today in the opposition economic conservatives. We have in the government former economic conservatives. But they are much happier today because no longer do people in the government have to live a lie. Friends like Senator Carr can tax, they can spend and they can send the nation into debt as much as they like, and they are much happier about that. Senator Carr’s old boss, former Premier Joan Kirner, said the other day that she was so happy that debt was no longer out of fashion. Debt in effect for Ms Kirner is the new black; debt is again fashionable.

The former economic conservatives, the government, have a very interesting solution to the current economic crisis. All of us in this chamber know this: the current economic crisis was caused by individuals and indeed by companies borrowing and spending far too much. In the United States, and indeed elsewhere, far too much money was borrowed and far too much money was spent by individuals and companies. What is the solution offered by the government? It is for governments to borrow and spend even more. That is the solution of the government. After companies and individuals have spent too much and borrowed too much, the nation, the government, should borrow and spend even more. That is the solution. It is a bit like drinking to cure a hangover. That is the analogy. That is the idea the government has: to keep on spending and borrowing even more and more and more.

There has been a lot of talk over the last two weeks about political DNA, about what makes political parties and political leaders tick. A quick look at history will tell us about every single Labor government since Federation. What does it tell us? It tells us this: every single federal Labor government puts our nation further into debt—every time. There have been 10 Labor prime ministers and they have put this nation into further debt every time. There is not one exception. Every time you have a Labor government they put the country further into debt. Debt is always higher when Labor governments leave than when they arrive—every single time. The farewell gift of Australia’s previous nine Labor prime ministers is more debt. That is the iron rule of Australian federal politics: every Labor government, more debt.

Go right back to the first one: Chris Watson. He was only there for a short time, but there was more debt. Andrew Fisher—he spent a lot; he created a lot more debt. Billy Hughes—again, he created a lot more debt. James Scullin—there was much, much more debt. John Curtin and Ben Chifley—again, they left far, far more debt than there was when they turned up as prime ministers. Then, of course, there was Mr Whitlam. We know what he did. What did he do? He borrowed and borrowed, and there was more debt. At least it is consistent. There is always more debt.

The one thing that is in Labor DNA is debt—every single time. Then, of course, there were Mr Hawke and Mr Keating. It is funny, you know. They did not start off so badly, but in the end the DNA came out. Mr Hawke and Mr Keating left this country in debt—$96 billion. Then, finally, there was Mr Rudd. Mr Rudd also, after six months, spent $50 billion and put the country into debt again. That is 10 Labor prime ministers: Watson, Fisher, Hughes, Scullin, Curtin, Chifley, Whitlam, Hawke, Keating and Rudd—10 out of 10, more debt. There is not one exception. Every Labor Prime Minister creates further debt for this country. It is a disgraceful record. In war and peace, in good times and bad, there is always debt. Debt is in the Labor Party’s DNA—not jobs; but debt. The excuses change, but it is always the same rationale—debt, debt, debt and debt, from every one of the last 10 Labor prime ministers.

There are some who doubted Mr Rudd’s commitment when he first came into parliament. They doubted whether he would be a good Labor prime minister, because he did not come from a union background—he was a former diplomat. They were concerned that he might not know the Labor Party’s ways. But the Labor Party need not have worried, because he has the DNA. He has the debt gene. He has it; the Australian Labor Party need not have worried. Mr Rudd knows how to spend and he knows how to put the nation into debt. He has never forgotten that. Mr Rudd fits in perfectly with the other nine former Labor prime ministers in creating further and further debt. This country must never forget that when Labor left office they left this country and its people with $96 billion of debt—paying about $8 billion of interest each year to service that debt. That is what Mr Hawke and Mr Keating left this country, just like all the other Labor prime ministers did: debt. And they left it.

It has taken just six months for the Labor Party to spend over $50 billion and, of course, to extend a credit line of $200 billion. If it ever happens—and it will—that Labor spends the $200 billion, we will start to have the problem of structural debt. That is where, every year, the budget gets consumed by interest on debt—just like in western Europe. It becomes part of the political culture, the fabric and the way of life of, let us say, France. And 10 per cent of the budget is taken up on interest payments on debt. That is the problem. This credit line of $200 billion signifies the fact that the Labor Party will do it if they feel it is necessary.