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New taxes and more debt will fund Labor's desperate promises



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THE HON ANDREW ROBB AO MP Shadow Minister for Finance, Deregulation and Debt Reduction Chairman of the Coalition Policy Development Committee Federal Member for Goldstein

M E D I A R E L E A S E

Monday, 20 August 2012

NEW TAXES AND MORE DEBT WILL FUND LABOR’S DESPERATE PROMISES

Another big new tax and more debt are all but guaranteed under a re-elected Gillard government given the massive unfunded commitments Labor continues to roll out.

Today the prime minister is out making new multi-billion-dollar funding commitments to schools while yesterday she promised to provide billions of dollars for the National Disability Insurance Scheme.

“Labor has reached the desperate point where they are promising the world to everybody without any idea how they will pay for their growing list of ongoing funding commitments,” Shadow Finance Minister Andrew Robb said.

In regard to funding massive new commitments Julia Gillard laughably told Sky News Australian Agenda yesterday: “This is a government that has been off-setting spending, new spending with savings as a routine part of our approach … you’ve got to be prudent with every dollar and we are.”

The prime minister needs to be reminded that:

o Net debt is now set to peak at $145 billion when just two years ago the government said it would peak at $94.4 billion, a $50 billion blow-out.

o The government is now spending $100 billion more per year - around 35 per cent more - compared to the last Coalition budget.

o The government has delivered the four biggest budget deficits in history totalling $174 billion.

Mr Robb said the record shows that the Gillard government is simply not capable of finding real savings or reining in spending to pay for new initiatives.

“If this government happens to be re-elected it is patently obvious that the NDIS will be funded with another big new tax and other big commitments on education will be funded from continued borrowing and debt,” Mr Robb said.

Media Contact: Cameron Hill on 0408 239 521.