01-December-2011
Portfolio Media Releases
Agreeing on a policy to bring the Gillard government’s spiralling record levels of debt under control should have top billing at the ALP National Conference rather than the likes of same sex marriage.
“The fact that Labor’s net debt has blown out by $26 billion in just six months amply demonstrates that under Wayne Swan and Penny Wong Labor has lost control of Australia’s finances,” Shadow Finance Minister Andrew Robb said.
Today the Australian Financial Review has also revealed that more Labor budget fiddles are being used in a desperate bid to avoid the government crashing through its unprecedented $250 billion borrowing limit.
“Labor is borrowing about $73 million more per day over this year than it said it would just six months ago at the time of the Budget,” Mr Robb said.
Since coming to office Labor has lifted the government’s borrowing cap from $75 billion to an unprecedented $250 billion in order to fund its reckless spending and waste.
Mr Robb said Labor last lifted the debt limit in May and refused to let the parliament vote on what amounted to an arbitrary decision despite strong protestations from the Opposition.
“Labor now runs the very real risk of exceeding this quarter-of-a-billion-dollar limit, yet has the temerity to point to an imaginary $1.5 billion surplus next year as a sign of fiscal rectitude. It will be a ‘borrowed surplus’,” Mr Robb said.
“To be this close to the wind so soon after the debt ceiling was last raised beggars belief. It would be a company board’s worst nightmare having a chief executive and chief financial officer running amok like this while making outlandish predictions that are never realised.
“The fact we have a Labor government again on the verge of running out of money on account of the borrowing ceiling means this should be front and centre at the ALP Conference.
“Penny Wong and Wayne clearly have no credible plan which would see the borrowing stop and debt repaid. This is a serious policy problem that needs to be front and centre at the ALP Conference instead of peripheral issues that are well down the list of national priorities,” Mr Robb said.