THE federal government is paying more than $30 million a day to cover a net debt of $245 billion — or enough to build the WestConnex more than 20 times. 
 
Prime Minister Tony Abbott yesterday said Australia was at risk of becoming a “second-rate country” if budget saving measures were not passed to ease the out of ­control debt, with annual ­interest payments adding up to nearly $11 billion.



Senior business figures have called on the government to make a 10-year ­budget plan to get Australia back in the black.

Business Council of Australia chief executive Jennifer Westacott yesterday delivered a keynote speech to Australian Unity Great Australia Day Breakfast desperately urging political leaders to ­reform the budget.

She highlighted the $40.4 billion deficit, $244.8 billion in net debt and $10.8 billion in payments on interest on the debt as evidence for Mr Abbott and Opposition Leader Bill Shorten to look at ­landmark reforms similar to Gough Whitlam, Bob Hawke and John Howard.

Ms Westacott said ­politicians needed to prepare “the community for the ­enormous social and economic change that must take place in our society’’.

“The $11 billion interest we are paying this year is not a bookkeeping entry, it is money we cannot spend in areas that the community is crying out for,” she said.

“For example that’s about $2 billion more than we spend on higher education.”

Mr Abbott said thanks to the debt left by back-to-back Labor governments, the children of Australia were on track to be slugged with debt for decades in a dangerous parallel with the continued economic crisis threatening the eurozone. “We are storing up billions of dollars in debt for our children and their children to repay,’’ he said.

“If we aren’t capable of making tough decisions, this country, even this great country, could succumb to the European disease and the point I’ve been making is that without tough decisions, the risk is we will become a second-rate country, living on our luck.”

His grim warning follows the battle to get key savings measures through the senate.

The government still has Medicare and education ­reforms before the senate which appear unlikely to be approved, despite the fact the health reforms would save about $3.5 billion from the budget bottom line. Higher education reforms are expected to save $400 million, $3 billion less than the original plan blocked by the senate.

http://www.dailytelegraph.com.au/news/nsw/paying-30m-a-day-in-interest-abbott-wa...

Poll.

Armchair_Politician wrote on Jan 27^th, 2015 at 7:02am:

Yep, they are cleaning it up with a $40.4 BILLION DEFICIT this year

Well done Idiot tony and the smokin hog.

Nowhere does it say it's Labor's debt.
Or is the abbott mobs new debt Labor's debt too ?

Desperation from teaspoon when the abbott mob realise their leader is an idiot.

____ wrote on Jan 27^th, 2015 at 7:07am:


So Abbott ran up that debt during Labor's six years in office? Just stop embarrassing yourself, fool.

Armchair_Politician wrote on Jan 27^th, 2015 at 7:06am:

Well that's precisely it knuckles, why would this government waste its time trying to get peanuts from the sick, when they ought to be looking at the overall revenue side of the equation? you know - get some balls and actually reform the tax system as a whole? 

Not to mention all the wonderful nonsense spending form the Howard era that can simply be gone away with. Remove Family tax benefits and all of a sudden you save double in the first year than what medicare co payments will bring in over 4 years. D'uh. 
This government is pathetic. Time for a DD.

Armchair_Politician wrote on Jan 27^th, 2015 at 7:07am:


Senate is a review house, which reviews the legislation coming in. If they don't agree it's up to the government to negotiate. It's a pity this government is full of absolute nice people with an ideology that doesn't suit this country.

Plus, if the senate is being obstructive, the government has ability to trigger a DD.  Off they go, let's get a DD. Why not?

Thank heavens for the good people in the senate.