John Williams (NSW, National Party) Share this | Hansard source

On 15 September last year I made my first speech to the Senate. In that speech I drew an analogy of running the family farm and running our nation. I said:

The family farm cannot carry too much debt: otherwise, when the tough times strike, the farm will be in financial trouble. So too with our nation. If governments build debt, they are mortgaging our children’s future away. It pleases me that the previous government paid off our huge debt. This is something that as a nation we can be proud of. It is surely the envy of many.

Look at what is happening today with the mismanagement of finance, the blatant abuse of borrowing that this government has now undertaken. We are looking at a debt by 2011-12 of some $220 billion. They have already admitted that the budget will not go into balance or into the black by even the smallest amount until 2015-16. So we are looking at a debt of some $300 billion that the federal government will owe, and the reason it will go that high is that from 2011-12 they have forecast economic growth to be a massive 4.5 per cent, and to continue the following year. In their dreams, I say, to think that in 2011 and 2012 we are going to have 4.5 per cent growth continuing and that that will perhaps bring in extra taxes for the government. They will run us to a $300 billion debt. We are already looking at $220 billion. With the money they will put into the National Broadband Network, if they do not get private investment especially, there is $43 billion committed. They want a guarantee of another $26 billion for the so-called Ruddbank.

Let us just look at $300 billion worth of debt. We know one thing is for sure: money is just like any other commodity or service. When demand exceeds supply, the price rises. What they are doing is contributing to higher interest rates in the future. That is exactly what is going to happen. So if we have got a $300 million debt in the year 2015, at 6.5 per cent you are looking at $20 billion a year just to pay the interest bill—$20 billion until you pay one nurse in an aged-care facility anywhere in Australia, until you carry out one small obligation of the federal government’s responsibility. It is $20 billion just in the interest. I say: how are we ever going to pay it back? When I made my maiden speech in this parliament last September, it was pleasing that this nation was debt-free. And to think that in the matter of four or five years we are going to be drowning in debt of some $300 billion. As I said, this is mortgaging our children’s future away.

But this is what you expect. When we look across to the other side of the chamber, of the 32 Labor senators 26 come from the union movement. They slotted their way into here by being active in their unions. What is their business experience? Here they are running the biggest business in the nation today, and most of them have probably never run a business. So what hope would they ever have of actually controlling and managing the finances of this nation?

This is an absolute disgrace, to put us into this much debt. They are skiting and gloating about the infrastructure. What is the big rail infrastructure for New South Wales, that proud state I represent that has a government hell-bent on putting it down the tube? We have got $91 million for the West Metro line in Sydney. There is virtually nothing for inland New South Wales. Anywhere west of the divide there are no projects of substance in roads or rail. What have they done for water? Surely if we are to get out of this debt and pay the interest we need industry and exports to do that, and the agricultural industry has taken the biggest hit in this budget, abolishing Land and Water Australia to actually plan, prepare and conserve our natural resources, to go on with research and development in the agricultural industry. That is after Prime Minister Rudd commended the Chinese government for their stimulus package and the way they are focused on their primary industries. Here he is doing exactly the opposite.

It is with deep regret that I see that the financial mess this mob are putting this nation into is just going to ensure tough times for our children’s future, and that is frightening.

Question agreed to.