Australia should learn EU lessons: Abbott

Source: Breaking National News

OPPOSITION Leader Tony Abbott says former Future Fund head David Murray’s warning that Australia risks a European-style economic downturn if debt is not addressed is a “timely reminder”.

Mr Murray said on Wednesday Australia’s dependence on the rest of the world for trade and capital financing made it “easily possible” to follow the path of countries like Greece, which face problems repaying their sovereign debt problems.

“I think that’s a timely warning from David Murray,” Mr Abbott told reporters in Melbourne on Thursday.

“The lesson of Europe is that countries can go very quickly from a strong position to a parlous position if things aren’t well managed.”

The federal government had “completely mishandled the mining sector” by loading it with extra costs, such as the mining tax and carbon tax.

“This is a government which just assumes that rivers of gold will keep on flowing into this country,” Mr Abbott said.

“Well, I’m afraid you can never make that kind of assumption.”

Assistant Treasurer David Bradbury said earlier on Thursday that while it was important to balance the national budget, the comparison between Greece and Australia was “frankly reckless and irresponsible”.

“(It’s) like telling Black Caviar if she didn’t watch out, next year she’d be giving kids pony rides at the St Marys Spring Festival,” he told Sky News.

“This is the sort of thing that you hear if you listen to Alan Jones on 2GB.”

Greece’s economy has been contracting for the past six years but Australia has had 21 years of ongoing growth, Mr Bradbury said.

Liberal frontbencher Bruce Billson said Mr Murray’s comments showed the government’s economic management strategy was unsustainable.

“This government is not only spending all the money that’s coming in, they’re borrowing $100 million a day,” he said.