07-December-2011
Portfolio Media Releases
At a time when the National Accounts show the economy is growing strongly it beggars belief that Wayne Swan has just delivered a $26 billion blow-out in debt and a $15 billion blow-out in the deficit in just six months.
"The welcomed solid levels of growth we have seen for consecutive quarters following the floods show that there is simply no excuse for Labor driving the budget deeper and deeper into the red," Acting Shadow Treasurer Andrew Robb said.
"The Gillard government has demonstrably failed in making the most of the current opportunities we are blessed with to help fire-proof the economy by paying off debt and getting the budget back to surplus.
"As a consequence we are extremely vulnerable to any contraction resulting from a major recession in Europe and any reductions in commodity prices stemming from moderating growth in China," Mr Robb said.
"The Gillard government has proved incapable of restoring the budget resilience it inherited. We need a government that understands the vital importance of living within its means, by making the most of its current Chinese opportunities, not one that talks about surpluses but continues delivering record debt and deficits," Mr Robb said.
"The national accounts also show that productivity growth remains weak. GDP per hour worked rose by just ¼ per cent in the quarter and remained below the level of two years earlier.
"With productivity the key to long-run economic performance, this shows that the government’s productivity agenda has been a joke, and that a real strategy for lifting Australia’s productivity like the Coalition’s six-point productivity plan is urgently needed," Mr Robb said.