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

My question is to the Treasurer. I refer the Treasurer to his answer yesterday that the government needs to increase the debt limit to $300 billion to manage the 'in-year financing challenge' of the existing debt of $224 billion. Treasurer, why can't the government use existing legislation such as the Loan (Temporary Revenue Deficits) Act 1953 to deal with this matter instead of increasing the debt limit to a record $300 billion?

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

I thank the shadow Treasurer for that very important question. The fact is that we have advice from the Australian Office of Financial Management saying that they think it would be prudent to put in place a buffer. The advice and the budget papers very clearly say that at the end of each year we will be within the $250 billion debt cap. They clearly state that, but the Office of Financial Management have given the government very clear advice that we do require a buffer, for the reasons that I spoke about in the House here yesterday: because the in-year financing requirements mean that we will go over that level.

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

Madam Deputy Speaker, on a point of order: I asked the Treasurer to answer the question about the capacity to use existing legislation rather than increase the limit again.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for North Sydney has made his point of order. The Treasurer is answering the question.

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

First of all, I could refer the member to the minute from the AOFM. He should take the time to read it in full.

Mr Hockey interjecting—

I am happy to table it; it is not a problem at all. This is a very serious issue and it is not an issue with which the opposition should be playing politics, and they know it. The fact is that we will be within the debt cap at year's end in all future years, but the AOFM have said very clearly that they would like a buffer, and that is why we are providing it. They have said this is the best way to achieve the objectives of our program. This is just very typical of the lengths to which the opposition will go to talk down our economy and to exaggerate and run scare campaigns about matters that ought to be the subject of bipartisan political agreement in this House. They really should not. These matters are far too important for the opposition to be playing the sorts of politics that they are playing. So I would refer them to the minute from the AOFM. They should take it seriously and they should desist from this sort of behaviour.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for North Sydney is seeking to have the Treasurer table a document, and the member for North Sydney has a supplementary question.

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

I do, Madam Deputy Speaker. Under the Treasurer's watch, the government debt limit has gone from zero to $75 billion, then to $200 billion and then to $250 billion, and now he wants to increase it to $300 billion. Treasurer, if you do not need to increase the credit limit, why are you doing so?

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

The opposition likes to come into this House and pretend that the global financial crisis and the global recession never happened, and pretend that there were not natural disasters in Queensland and Victoria last year, and pretend that there is no such thing as a European sovereign debt crisis. I would just make this point and I will make it very clearly: for the first time in our history, the very first time in our history, we have a triple-A gold plated credit rating from all three major rating agencies reaffirmed only on Tuesday night. I think that says that we are handling these matters very well, because the three major agencies never gave that to Peter Costello or to the Liberal Party.