Abbott Government’s Backflip on Debt Crisis a Win for Palmer United

Federal Member for Fairfax

Media release

The Abbott Government has reversed its position on Australia’s debt problem in the face of overwhelming evidence presented by the Palmer United Party that our economy is one of the strongest in the world.

After prolonged fearmongering over a so-called debt emergency, Tony Abbott and Joe Hockey have made a stunning about face on the state of the Australian economy saying debt levels were now manageable.

Federal leader of the Palmer United Party and Member for Fairfax, Clive Palmer, said the Australian Government’s admission that there was no debt problem was a significant win for the Palmer United Party.

“Since entering parliament I have been campaigning that we don’t have a debt problem and we should be growing and expanding our economy,’’ Mr Palmer said.

“Finally the government is admitting the truth about debt and yet its policy settings do not reflect what they are saying by pushing ahead with major budget cuts that will hurt all Australians.

“Joe Hockey still has his head stuck in the sand by insisting on these tough budgetary measures which will only impede growth and see any hope of achieving a surplus drift further away.”

Mr Palmer said the Abbott Government needed to stimulate and expand the Australian economy rather than implement policies based on the false impression that our debt level was too high.

The Why Australia Benchmark Report 2015 confirms that Australia’s debt level is one of the lowest in the world

The Australian Government report quotes the International Monetary Fund that Australian debt would be 16.6% of GDP in 2015, well below the 74.1% forecast average for advanced economies.