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Government must cut spending

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Joe Hockey, MP Shadow Treasurer Member for North Sydney

Government must cut spending


The Government must stop ignoring the warnings of the Reserve Bank, leading economists and the federal opposition and immediately end its reckless spending to avoid putting further financial pressure on Australian families.

Today the Minutes of the October meeting of the Reserve Bank show an interest rate rise is just a matter of time, revealing that the RBA “could not wait indefinitely” due to increased pressure on inflation.

The Gillard government’s refusal to cut back on spending is putting upward pressure on interest rates.

Rising interest rates will cause more pain for all Australians who are facing higher costs as a result of the Government’s failure to deliver on its promise to lower the cost-of-living for working families.

Today, the Reserve has conceded that interest rates would need to rise “at some point”.

Why is the government continuing to spend at recession-like levels and rack up a $41 billion budget deficit at a time when the economy is running at near full capacity?

Labor should heed the words of the Opposition and immediately pull back on its massive spending program to relieve some of the upward pressure on interest rates.

Homeowners, small business and all Australians with a credit card will pay the price for the Gillard government’s refusal to make the tough decisions on spending.