"Today the Prime Minister has announced his intention to plunge Australia’s budget into deficit.
The Prime Minister claimed that this would be a ‘temporary deficit’.
Experience tells us that Labor deficits are never temporary.
We have seen what happens when Labor governments drive budgets into deficit.
Like a drug, Labor is addicted debt.
The last ‘temporary’ Labor deficit ran for 6 years until the defeat of the Keating Government in 1996.
Labor’s definition of a temporary deficit is what Australia has to have until a Coalition government makes the tough decisions required to repair the economic damage.
It took the Coalition ten years to pay off the $96 billion debt left by Labor’s last ‘temporary’ deficit.
Australian taxpayers paid an interest bill of $8.5 billion a year on that ‘temporary’ deficit.
On the current growth forecasts there is no reason for the Prime Minister to send Australia’s budget into deficit.
On the Government’s own figures growth next year will be 2%.
12 months ago the Rudd Government inherited a $20 billion surplus.
Today the spectre of deficit looms."
Julie Bishop MP
Deputy Leader of the Opposition