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Swan's disappearing debt discovered.



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CHQ Media Release

Authorised and printed by Brian Loughnane for the Liberal Party of Australia Cnr Blackall and Macquarie Sts BARTON ACT 2600

Monday 9 August 2010

SWAN’S DISAPPEARING DEBT DISCOVERED

Treasurer Wayne Swan’s embarrassing failure to remember Australia’s net daily debt is the only one of his interview transcripts not posted on the Labor Party’s campaign website.

The transcript from his interview with MTR’s Steve Price is conspicuously absent, given that all his other interviews from that day have been posted. Even interviews from ousted Prime Minister Kevin Rudd are published, but not this one from the Treasurer.

For Wayne Swan’s benefit, Liberal Campaign Headquarters has recovered and distributed his comments so he doesn’t forget them.

The relevant quotes are attached:

PRICE

This $100 million interest figure that the Coalition continued to talk about, you’ve queried where that figure comes from?

SWAN

Well, they continue to talk about that figure because they don’t want to talk about how low net debt is ...

PRICE

Is it true?

SWAN

They don’t want to talk about how low net debt is. Net debt is 6 per cent of GDP at its peak. Yes, we are borrowing. We are issuing Commonwealth government securities as we go through. But it is relatively small, compared to our national income.

PRICE

CHQ Media Release

Authorised and printed by Brian Loughnane for the Liberal Party of Australia Cnr Blackall and Macquarie Sts BARTON ACT 2600

Can you put a weekly figure on it for me?

SWAN

Well, I don’t think it’s accurate to put a weekly or daily figure on it. We can put a gross figure on it. We can put a net figure on it.

PRICE

Shouldn’t we know out there what it is?

SWAN

Of course we can, of course we can. Of course we can do that. Well, well, well the net figure is $89 billion. But the point is this: compared to our national income, compared to our national income, it is relatively low.

PRICE

So $89 million a week?

SWAN

No, no, $89 billion in total.

PRICE

Billion. OK, so what’s the interest figure that we’re paying on that debt?

SWAN

The interest figure I couldn’t give you. I don’t have it in front of me at the moment. But I’m happy to supply it to you.

PRICE

So, I mean, someone I’m sure will hand it to you. But, I mean, people need to know that figure. I mean, because there is a debate going on in this country, and this whole election is going to end up as you know, and you’re gonna be in the, the eye of the storm in all this, about who can manage the economy better. You’re going to argue, that you got us through the economic crunch, you’ve got us through the global

CHQ Media Release

Authorised and printed by Brian Loughnane for the Liberal Party of Australia Cnr Blackall and Macquarie Sts BARTON ACT 2600

financial downturn and if we turn to Tony Abbott, he’s an economic illiterate and he won’t be able to run the country properly...

SWAN

Too right; and let’s, let’s just go through this ...

PRICE

Voters are saying to you, yes rushed to throw out the money and you built a lot of schools and you put a lot of insulation in roofs. But you did create debt in this country that’s costing all of us a huge amount.

SWAN

And net debt in 2011-12 is $89.4 billion. That’s 6 per cent of GDP. The relevance here is what it means in terms of your national income. The equivalent comparison is that if you had $100,000 worth of income, you’d be borrowing $6,000. That is entirely affordable.

PRICE

OK, the figure I’m after is the weekly payment of the interest on that debt.

SWAN

Well, I can’t give you the weekly payment on that figure on that debt, in terms of interest. But I can give you the gross figure, because that’s the one that really matters, because it is entirely affordable.

- Interview with Wayne Swan by Steve Price, MTR Radio Thursday August 5 2010

The Labor Party have a selective memory when it comes to debt. Only the Coalition will repay the debt and stop the taxes.

Media Contact: John Macgowan 0420 384 925