Minister doubts support for debt ceiling

A federal government minister doubts a call from Tasmanian Eric Abetz to restore a debt ceiling will get support.

Liberal Senator Eric Abetz

A federal minister doubts a call from Eric Abetz to restore a debt ceiling will get support. (AAP)

A federal government minister doubts Tasmanian senator Eric Abetz will get support to reintroduce a government debt ceiling.

Senator Abetz, a former Liberal government frontbencher when the $300 million debt ceiling was scrapped in 2013 by then treasurer Joe Hockey with support from the Greens, now believes a limit should be restored.

He says Labor, the Greens and the Senate crossbench have voted down budget repair measures, preventing the government being able to return the budget to surplus and start paying off debt.

He said he would introduce a private members bill to reintroduce the measure.

Infrastructure and Transport Minister Darren Chester doesn't expect the senator to get much support for his bill.

Asked on ABC television on Sunday whether Senator Abetz is wrong, Mr Chester said: "I will rely on economic and financial forecasting advice from the ministers responsible, being the treasurer and finance minister.

"Eric can have his opinion, he's welcome to it. I don't agree with him."

When the coalition came to power in 2013, government debt was just under $300 billion.

It is now fast approaching $500 billion and is predicted to balloon to $650 billion in 2026/27.


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Source: AAP



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