2 November 2012

Hockey's hollow words on surplus, rates

Shadow Treasurer Joe Hockey has underscored the importance of a surplus but won't commit to backing the Government's savings measures.

Mr Hockey also tried to shamelessly suggest that interest rates are currently high, completely ignoring the fact that rates are now lower than at any time during the last Liberal Government.

Mr Hockey said today:

"… the best thing you can do for a high Australian dollar is help get interest rates down, you run a surplus that takes some of the upward pressure off interest rates."

(Sunrise, 2 November 2012)

But the biggest risk to the surplus is Mr Hockey, who is refusing to say whether he will support savings measures announced by the Government in MYEFO, like reforms to make the Baby Bonus sustainable.

The fact is the Gillard Government is returning the Budget to surplus ahead of any of the major advanced economies.

And official interest rates, at 3.25 per cent, are lower than at any time under the Liberals, saving Australians on a $300,000 mortgage around $4,500 per year in interest payments compared to when the Liberals left office.

If Mr Hockey is serious about a surplus and wants to keep interest rate pressure off families, he should back up his words with action and support the Government's savings measures.