01-August-2011
Portfolio Media Releases, The Economy
Monday, 1 August 2011
AUSTRALIA VULNERABLE – GILLARD OBLIVIOUS
As debate rages in the United States about government debt Julia Gillard remains in a state of denial about how vulnerable her government has left the Australian economy.
Today the prime minister made the extraordinary claim that “all government finances are very strong”.
“This comment demonstrates how disconnected Julia Gillard has become from Australian families and businesses,” Shadow Minister for Finance and Debt Reduction Andrew Robb said.
“We have a prime minister who thinks raising our debt ceiling to an unprecedented $250 billion – a quarter of a trillion dollars – after inheriting zero debt and $70 billion in reserves translates to a ‘very strong position’. It’s just bizarre.
“At a time when Australians understand the importance of tightening the belt, paying off debt and living within their means, you have a government continuing to borrow billions, blissfully ignorant to the external threats our economy faces.
“On top of this it is going to go it alone on a carbon tax which will further weaken our economic resilience,” Mr Robb said.
Ms Gillard also had no answer when asked how the government could afford further stimulus in the event of another global financial shock from a position of deficit.
“Well, I’m not going to speculate in those kinds of terms,” Ms Gillard said.
Mr Robb said it was little wonder there was a real crisis of confidence across the Australian economy.
“Not only is Julia Gillard oblivious to how vulnerable her government has left us, but she has no idea how she would combat any further threats.
“The Coalition has been urging the government for the best part of two years to rein in its spending and borrowing in a bid to restore the economic resilience it inherited, but it just refuses to heed the warnings,” Mr Robb said.
Media Contact: Cameron Hill on 0408 239 521.