Opposition dismisses economy plans

The opposition has dismissed Labor plans to use its handling of the economy as a major campaign platform for the next federal election.

Prime Minister Kevin Rudd flagged his government's approach during the second of a series of speeches around the country in Hobart yesterday.

"It is crucial that as a nation, we sustain fiscal discipline as we confront the long-term challenge of an ageing population," Mr Rudd said.

"Some of the steps we must take to ensure fiscal sustainability will not be popular, but they will pay dividends over the longer term."

He vowed to rein in the growth of government spending during the next four years, limiting it to two per cent, saying that was half the rate achieved during the Howard years.

But opposition treasury spokesman Joe Hockey has described that as a laugh.

He told ABC Radio that it's a bit rich for the Prime Minister to try to rewrite history, as it's him who's gone on a spending spree.

Mr Hockey says this government has no appetite for hard reform.

Fiscal plan

Opposition finance spokesman Barnaby Joyce was just as dismissive of Mr Rudd's fiscal plan, saying the Prime Minister had delivered one of the most profligate spending packages in Australia.

"This is the man who has said he was a fiscal conservative, but he's taking our nation towards $256 billion gross debt," he told ABC Radio.

"This man is like the fireman who said the house is on fire but because I told you about it you've got nothing to worry about."

“Selective amnesia”

Former coalition finance minister Nick Minchin accused Mr Rudd of having "selective amnesia" on economic policy.

"He totally ignores the fact that the former Howard government was left with a horrendous legacy of $96 billion of net Labor debt," Senator Minchin said in a statement.

Mr Rudd liked to deliver sanctimonious lectures about the need to rein in government spending, he said.

"But the reality is the record shows that he leads the biggest spending government in our nation's history."