2 Aug 2013

Australian debt? We don't have a problem.

One thing wrong with Australia's debt problem!
We don't have enough!
Gareth Hutchens:Edited S W T Read

The head of one of Australia's biggest banks National Australia Bank chief executive Cameron Clyne has slammed the quality of debate about debt in this country, labelling it ''very immature''.

He said we had a ''unique window'' as a AAA-rated country to issue more government debt to fund desperately needed infrastructure.

''Australia has a debt problem? Yes we don't have enough,''If we continue to have the debate that suggests that all debt is bad, and not a debate on the productive use of debt, we will simply not be able to fund the infrastructure this economy needs to thrive into the future.''

The Business Council of Australia released a 10-year action plan, it listed 10 things it would like the government to do, including developing a national infrastructure plan to ensure the right infrastructure that we need so desperately was delivered at the right time.

We all use debt every day to fund large items and this is no different to how governments should use debt.

''Dedicated annual funding and a clear policy on the use of debt for infrastructure will ensure that Australia's stock of infrastructure grows in line with our economic development and population growth,'' the report said.

Political parties in Australia have an always had an unhealthy attitude about achieving a surplus.

This is why many of our major infrastructure projects are always being shunted into the future, with the result that they are never undertaken.

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