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

My question is addressed to the Prime Minister. This afternoon the Prime Minister has said that gross debt will peak at $300 billion and a few minutes later the Treasurer has said that it will peak at $315 billion. If the Prime Minister and the Treasurer cannot agree on these figures in the budget, what confidence can the Australian people have that they are able to manage our trillion dollar economy?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

As the honourable member will know, there is nothing inconsistent with what the Treasurer has said and what I have said before—none whatsoever. On the question of debt, though, I really enjoy the questions on the part of those opposite, because one of the matters which is relevant on debt is, of course, foreign debt, and foreign debt is something which those opposite seem to be very reluctant to discuss in this place. If we look carefully at what was—

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

Mr Speaker, I raise a point of order regarding relevance. The Prime Minister was asked a question about government debt and inconsistencies between himself and the Treasurer, not a question about foreign debt.

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

The member for Sturt will resume his seat. I will listen carefully to the rest of the response from the Prime Minister and remind him of the need to be relevant to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. And of course, on the question of net debt, presumably the basis of the question being asked by those opposite is their concern about the overall assessment by international credit-rating agencies. I draw to the attention of those opposite, in their desperate attempt to talk the Australian economy down, that Standard and Poor’s, the international rating agency, said just after the budget was released a week or so ago that Australia’s AAA rating was reaffirmed. Those opposite then disappeared at a thousand miles an hour, realising that their core political attack in fact had no basis in substance whatsoever, because they knew that they were engaged in a negative scare campaign—a fear campaign with one objective, which was to talk the Australian economy down.

Malcolm Turnbull (Wentworth, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order that goes to relevance. The question relates to a discrepancy of $15 billion between what the Treasurer has said and what the Prime Minister has said. That is all he has to speak to.

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

The Leader of the Opposition will resume his seat. The question is related to gross debt. The Prime Minister, as I have said, knows of the requirement to make his response relevant to the question.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you, Mr Speaker. Therefore, on the question of net debt, the statement made before by the Treasurer and our public commentary on this has been consistent, and that is that net debt would peak out at around 200 and gross debt would peak out at about 300. That is what we have said consistently. For those opposite who are interested in it, they should find it so in the budget papers.