Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

My question is to the Treasurer. I remind the Treasurer of his previous statement that servicing foreign debt will place a burden on future generations. I remind him of his claim that Labor’s concern about foreign debt stems from what foreign debt says about our capacity to compete in the global economy and the risk that ever-increasing levels of foreign debt may mean for interest rates. Now that this, the biggest spending government in Australian history, is borrowing $3 billion a week—$2 billion from overseas—what does the Treasurer believe will be the impact on interest rates of this massive increase in foreign debt?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

This is just astounding—a question about foreign debt from the shadow Treasurer! Foreign debt exploded under the Liberal Party. Get this. Between 1996 and 2007 the Liberals left the nation with a 200 per cent increase in net foreign debt, a 460 per cent increase in credit card debt, a 340 per cent increase in household debt, a tripling of private sector debt and a 450 per cent increase in corporate debt. So—with an appalling record like that—they should be the last people to come into this House and lecture anyone about levels of debt.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order. My question was to the biggest spending Treasurer in modern Australian history. I want an answer about interest rates of $2 billion per week.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Treasurer is responding to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I was actually asked about foreign debt. I would just like to go into what has been said by people over time about foreign debt. Who said, back in 1995: ‘Foreign debt is a terrible thing. It is now the equivalent of $10,000 per head for every Australian’? Who said that in 1995? Peter Costello. And what happened to foreign debt from the time that the former Treasurer made that statement? It went up by 200 per cent. There was a massive explosion in foreign debt under the Liberals, and if the proposition being put forward by the shadow Treasurer—

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. The Treasurer is talking about private company debt, not government debt. There was no government debt left by this coalition to this Labor Party.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Dickson will resume his seat. The Treasurer has the call.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

On the point of order of the member for Dickson, Mr Speaker: the member for Dickson was making the point that the Treasurer was asked about net government foreign debt and is answering a question about an entirely different—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Sturt will resume his seat.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

Mr Speaker, there have now been double-digit numbers of points of order during this question time in order not to make a point of order about the standing orders but to make a political point. That is disorderly conduct under the standing orders, and I make the point of order that the standing orders should be upheld in that regard.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

I take note of the point made by the Leader of the House. The Treasurer has the call. He will respond to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I was asked by the shadow Treasurer about foreign debt. Foreign debt back in 1995, according to Peter Costello on radio 5AN on 10 October 1995, was a terrible thing and it was $10,000 per head for every Australian. In September 2007, as Peter Costello left office, foreign debt was $589 billion or $29,450 per Australian. That is actually what has happened to foreign debt, which is what I was asked about by the shadow Treasurer. So that is the answer to your question.