As Europe sits on the cusp of a major recession Penny Wong remains in denial about Labor’s record debt and how vulnerable that leaves our economy.

 

Shadow Finance Minister Andrew Robb said if Penny Wong was serious about “charting the right course” as mentioned on Meet the Press this morning, the government’s actions and words would acknowledge Australia’s vulnerability to the unfolding major European recession and the coming slowdown in China.

 

“Australia’s structural deficit on a per centage of GDP basis is already 30 per cent worse than Italy’s. Labor’s $217 billion black hole of debt is the unmentionable issue by Senator Wong and her colleagues.

 

“Labor has no plan to pay off our massive debt and fix our huge structural deficit.

 

“Government debt has ballooned to unprecedented levels under Penny Wong. We have gross debt at more than $217 billion and net debt of $106 billion and growing. Interest on this alone is costing taxpayers in the order of $6 billion a year,” Mr Robb said.

 

So bad is the situation in Europe that German bonds are not being taken up at auction and if ever there was a warning to government to make some tough decisions in the Mid Year Economic and Fiscal Outlook (MYEFO) this week then this is it.

 

“Instead we hear more lecturing from Penny Wong about the need for Europe to get its house in order, well the time has come for Labor to get its own house in order,” Mr Robb said.

 

“Instead I suspect we will just see more smoke and mirrors in MYEFO, with billions of dollars in spending brought forward or pushed out in a cynical attempt to again manufacture something close to a surplus in 2012-13.

 

“Australians are fed up with political trickery from the Gillard government. It’s time for Labor to pull its head out of the sand and shoulder its responsibilities,” Mr Robb said.

 

Media Contact:        Cameron Hill on 0408 239 521.