David Johnston (WA, Liberal Party, Minister for Defence) Share this | Hansard source

We are desperate to do the right thing by our country in terms of national security and by our Defence Force members. But we must find $1 billion every month to pay the interest on the borrowings that were left to us by the previous government. It is simply not feasible for us to borrow even more for higher wages for directly employed Commonwealth public servants or Defence personnel. No responsible government would do that. We are a responsible government. That is the sort of thing that they did.

Labor turned more than $50 billion in the bank into a projected net debt well over $200 billion—the fastest deterioration in our debt position in dollar terms as a share of GDP in Australia's modern history. When you are in a situation of a $50 billion deficit you cannot be as generous as you would want to be. This is the reality.

Opposition senators interjecting—