Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

This is just ridiculous scaremongering by the Labor Party. If Senator Sherry is talking about international confidence in the Australian economy, I would refer him to last year’s IMF article IV report, which noted that Australia’s vulnerability to adverse external shocks remains low and:

… the economy remains well placed to manage adverse external shocks.

Standard and Poor’s noted in May last year:

The very strong financial position of the public sector mitigates the effects of the high external debt. We also take comfort that the country’s foreign exchange exposures are adequately managed.

I repeat that the debt servicing ratio—which is what matters; that is, can you service the debt?—is now nine per cent and it was 20 per cent under the former Labor government.