Mr HOCKEY (2:31 PM) —My question is to the Treasurer of the biggest spending government in modern history.

An opposition member—Temporary Treasurer!

Mr HOCKEY —Temporary Treasurer! I refer the Treasurer to the fact that the government has increased its borrowings now to around $3 billion a week to fund its record spending budgets. Will the Treasurer confirm that more than two-thirds of that is being borrowed from overseas?

Mr SWAN (Treasurer) —In terms of the government’s borrowings, roughly the same percentage is being borrowed overseas now as was borrowed overseas when those opposite were in government.

Mr Robert interjecting—

The SPEAKER —Order, the member for Fadden!

Mr Hockey —The biggest spending finance minister in Australia’s history—that’s you! You get the title.

The SPEAKER —Order, the member for North Sydney!

Opposition members interjecting—

The SPEAKER —Order, the member for O’Connor! The Treasurer has the call and he should be heard in silence. Order, the member for Paterson!

Mr SWAN —When those opposite were in government and when they left office I think there was something like $55 billion worth of Commonwealth securities on issue. I know it is a bit inconvenient for those opposite to acknowledge that but that is the fact.

Mr Robert interjecting—

The SPEAKER —Order! The member for Fadden is warned!

Mr SWAN —About two-thirds, or a little less than that then, was borrowed overseas and the same percentage, roughly, is the case today—about two-thirds. What we have seen on display here is just monumental hypocrisy. Those opposite know that the government is borrowing because revenue write-downs have hit $210 billion and the alternative to borrowing that money is to savagely jack up taxes or savagely cut services. If they are sitting here today saying that they are not going to borrow then the Leader of the Opposition has to come into this House tonight and show where he is going to cut $210 billion from the revenue write-downs. That is what he has to do tonight. If he does not do that he does not have a shred of economic credibility. Nothing could better demonstrate how out of touch the Liberal Party has become than their proposition that in the middle of the sharpest contraction since the Great Depression that a government should not borrow to support employment in the economy. What we are doing is in the national economic interest.

Our budget is all about nation building for recovery, nation building for jobs and building the productive capacity of the economy for the future, particularly to deal with the ageing of the population. To do those things to protect our people from the ravages of a global recession we are borrowing responsibly. But the thrust of the questioning in here day in and day out is somehow to make us believe that if they were in government today they would not have to borrow one cent. If that is the proposition that is being advanced then the Leader of the Opposition must tonight show how he is going to make up for the revenue that has been lost to this country—that is, a revenue loss that has been imposed on this country by the rest of the world. Revenue of $210 billion has been lost, which is the equivalent of all the spending on health and hospitals over the forward estimates.

Mr Hockey —Mr Speaker, I rise on a point of order on relevance.

The SPEAKER —The Treasurer is responding to the question that referred to increases in borrowings. It went to percentages of the borrowings of $3 billion a week. Has the Treasurer concluded?

Mr SWAN —This evening the Leader of the Opposition has to indicate to the Australian people where he is going to make the savings to make up for the revenue loss or what taxes he proposes to dramatically increase to make up for the revenue loss. That is what he has to do this evening; otherwise he will be endorsing the responsible borrowing that this government is doing.