Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

I thank Senator Whish-Wilson for that question, and I would refer him to the answer I gave to Senator Bushby yesterday, and that is that despite additional global economic headwinds in recent times and despite the additional external challenges Australia has faced the Australian economy is performing very well by international standards. We are growing more strongly than when we came into government, at 3.1 per cent growth in the most recent reported annual period, which is higher than the two per cent rate when we came into government. It is higher than any of the G7 economies in the world are achieving—higher than the United States, higher than Canada, higher than the United Kingdom. Indeed, it is higher than the OECD average.

This government, though, does not sit on its laurels. In this term of parliament we will build on the progress we made in the last parliament, and that of course includes a significant investment in productivity-enhancing infrastructure. I do agree with the honourable senator that incurring debt in order to invest in productivity-enhancing, economy-growing infrastructure is better than what we were forced to do by the Labor-Greens government when we came into government, and that was to continue to borrow in order to pay for our recurrent expenditure. When you continue to spend more on your day-to-day living expenses than you earn, then over time you are going to get yourself into a deeper and deeper problem. To continue to accumulate more and more debt, to continue to borrow from our children and grandchildren to pay for our day-to-day living expenses today, is irresponsible. It puts at risk the sustainability of the benefits and services provided by government. It also means that we are forcing future generations—our children and grandchildren—to accept either higher taxes or deeper spending cuts to pay for our lifestyle today. That is not something we believe is fair, and that is not something we will be a part of. That is why we continue to focus on budget repair as an important priority.