Bill Shorten (Maribyrnong, Australian Labor Party, Assistant Treasurer) Share this | Hansard source

All right, but I am sure you regret your question.

Going to the issue of debt, let us go to the alleged opposition narrative on debt. Let us talk some numbers. The member for Goldstein, perhaps anticipating the answer because it is somewhat self-evident, said, 'No doubt the government will talk about percentages.' Do you know what? He is right. Let us talk about the debt; let us see how Australia is going compared to the rest of the world. Let us use net debt, the key aggregate used for international comparisons. At the peak, under Labor's economic stewardship, which is represented in its flagship, the budget, it will be at 7.2 per cent. If you imagine the Australian economy has GDP of $100,000, net debt will be $7,200. That is very good going. And let us have a look at interest payments: 0.4 per cent at its top—or, using this analogy of the Australian economy at $100,000 GDP, net interest under Labor is $400 out of $100,000. Come in spinner—a beautiful set of numbers! No problems.

Now we have had a look at the debt bogeyman, which is just a shadow cast by a mouse, we look at the issue of how tough is the budget. I am happy to draw the shadow finance minister's attention to Budget Paper No. 1. We go to the decisions we have made, and we look at the impact of policy decisions and natural disasters. I draw his attention, in case he has not had a chance to open the book—he does not appear to have one in front of him; he has a good memory—to 3-14, which talks about the impact of decisions. The member has talked about MYEFO and estimates since then. The reality is we have had some natural disasters since then, shocking disasters, and they have had a big impact on revenue. Even so, despite the natural disasters we have had, this government in this budget has made distinct and difficult savings. We are winding back the largesse of the Howard years—the creep of welfare to nearly every family in Australia. Again I would draw the member for Goldstein's attention to the boxes on 3-12 and 3-13: 'Savings in the 2011-12 Budget', 'Family Payments System', 'Health services', 'Tax expenditures'—we are making the hard decisions.

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