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 comment on radio's 2UE on budget night in 2011 that Australia's debt is 'tiny, very tiny' and to his economic note a month ago that stated Australia's debt is 'very low'. Given that Australia's gross debt is now almost $300 billion, does the Treasurer stand by his previous statements that Australia's debt is 'very tiny' and 'very low'?

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

Yes, I do stand by all of my previous comments. What we are seeing here are the tactics of the Tea Party transferred from the United States and now writ large in the Australian parliament. What we are seeing here are these economic Neanderthals saying that there is no level of debt that we should have to support our economy at a time of crisis. That is what they are saying.

We did go into debt to support our economy at the height of the global financial crisis and its aftermath. The consequence of that has been some of the best economic outcomes seen anywhere in the developed world. When there are 28 million unemployed around the world and unemployment in the United States is well over seven per cent and in the Eurozone it has hit 11.5 per cent, it is simply amazing to sit here in Australia and think that unemployment is 5.4 per cent, particularly after that bout of volatility that occurred in the latter part of last year where half of the advanced economies contracted in the December quarter. That has been the environment we are operating in, and what we have done is run a responsible fiscal policy, with a modest level of debt, to support jobs and growth.

We on this side of the House will never apologise to anyone for putting jobs and growth first for Australians. That is what we are doing: we are putting jobs and growth first in our fiscal framework, which is a commitment to surpluses on average over the economic cycle.

Those opposite like to believe there is not such a thing as an economic cycle, that nothing happens in the global economy, that there are not changes in our economy and that there are not challenges. They come in here with no appreciation of the fact that, in the last quarter of last year, there was a very substantial fall in the terms of trade and our dollar is still through the roof. They do not want to pay any attention to the fact that that has had a substantial impact on revenues over and above the $160 billion worth of revenues that we have lost during the global financial crisis. These economic Neanderthals just want to pretend that has never happened.

I tell you what: you cannot make responsible policy when you are operating like some Tea Party politician from the United States. This fear campaign that they are trying to import to Australia is nothing more and nothing less than economic Neanderthal behaviour—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to the question.

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

not facing up to the realities and challenges of our modern economy. We on this side of the House will face up to those challenges. We will put in place responsible policies which support job creation and growth. Those opposite are going to follow the Campbell Newman approach. They will have a commission of audit—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The Treasurer will return to the question.

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

and, if they get elected to government, they will do the same as Campbell Newman: they will get out there and slash and burn when it comes to the social safety net. They will take an axe to jobs. They will never, ever support Australian workers. They will take an axe to jobs and they will go back to Work Choices. There is a very clear choice here. (Time expired)

Mr Danby interjecting—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Melbourne Ports is warned!