Coalition savings will ease pressure on interest rates and stop Labor’s reckless spending

July 20, 2010

Federal MP Luke Hartsuyker said today the Budget savings announced by Coalition leader Tony Abbott would help ease the pressure on interest rates.

Mr Abbott today detailed a further $1.2 billion in savings which brings the total savings announced by the Coalition to $45.8 billion.  “All Australians are paying the price for Federal Labor’s economic mismanagement and their addiction to spending,” Mr Hartsuyker said.

“In just three years the Federal Labor Government has taken us from $45 billion of net financial assets to a projected peak at $90billion in net debt in 2012-13.  This is a turnaround in the Commonwealth’s net debt position of $135 billion.

“Labor continues to borrow $100 million each and every day to fund its spending binge and they plan to continue that for at least the next two years. These Labor Government borrowings are competing with mortgage holders and small business for funds. Stronger demand for money means more upward pressure on interest rates.

“In the end it will be everyday Australians who will have to pay back Labor’s debt and it is everyday Australians who will have to pay higher interest rates thanks to Labor’s addiction to spending.  “The time has come to stop the waste and start repaying the debt. Federal Labor’s reckless spending is simply unsustainable.

“The taxpayer has every right to expect they are getting value for money. But it’s clear they are not under this Government.  Cowper residents are understandably getting very nervous that their children and grand children are going to be saddled with a mountain of debt that will impact on the living standards of all Australians.”