Costello Should Take His Own Medicine And Apologise For Record Deficit Bob McMullan - Shadow Treasurer, Shadow Minister for the Arts

Media Statement - 31 January 2003

Today's record monthly trade deficit is another demonstration of Peter Costello's complacency. He's so preoccupied with waiting for John Howard's job, he's dropped the ball when it comes to managing the economy.

The economy is already showing signs of slowing, and the worsening export performance revealed in today's figures will slow the economy further regardless of what happens in Iraq.

Back in 1995, Mr Costello demanded the prime minister apologise for a record current account deficit:

I feel a cold anger on behalf of the Australian people today that Mr Keating could have done this to our country … we have this announcement, at 11.30 this morning, that we've produced the worst monthly number in the history of Australia. It's bad, and it's getting worse, and Mr Keating should come into the Parliament, today … He should apologise to the Australian people for what he's done. [ABC Radio, 30 June 1995.]

Mr Costello should take some of his own medicine and apologise to the Australian people for his own appalling performance.

Today Mr Costello is trying to blame the problem on external factors. What he won't admit is that his budget irresponsibility, and his failure to encourage investment and exports, are key factors behind the trade deficit blowout.

Mr Costello has overseen a boom and bust in the housing industry, which this year is likely to deliver a substantial slowdown in economic growth. There are growing doubts that investment will recover enough to pick up the slack. Combine that with the slump in our export performance and Peter Costello has a lot to answer for.