While driving today I have been thinking about Senator Conroy’s answer to my question to him in the Senate on Thursday about the interest bill on Labor’s $200 billion debt, said Senator Barnaby Joyce, the Leader of the Nationals in the Senate.

“Senator Conroy’s answer gave a net interest figure of $2.6 billion on projected government borrowings. The Government has gone to the parliament and asked for lending approval for up to $200 billion.

“If the interest bill on a $200 billion debt is, as suggested, $2.6 billion, they are doing very well and should be congratulated because they have managed to get their hands on money at 1.3 per cent in which case they should make those funds available to all Australians and put real pressure on the banks. Unless there is a monumental amount of interest earned elsewhere to net this amount off, then Senator Conroy’s figures are highly suspect.

“The Rudd Government needs to come clean on their projected borrowings and interest debt given that this figure seems low in view of likely budget deficits in coming years. The government must give us a schedule of interest repayments, a schedule of projected debt and a schedule of proposed repayments of that government debt. Any ordinary Australian would want to know that and would be given that information when borrowing from a bank to buy a house or a car. They certainly deserve it when their future and their children’s future are being mortgaged.”

Senator Joyce said the $200 billion facility will be fully drawn in the near future as confirmed by Treasury officials in the Senate inquiry on Thursday night. We should ask Senator Conroy the question again in the coming week. What will the interest bill be on Labor’s $200 billion debt?

“The good thing about this question is that there is a real answer which will be confirmed in the fullness of time and we will hold Senator Conroy and the Rudd Government to account for it. In the short term we have to look forward to the government’s requirements for excess liquidity in the market to have implications for all other individuals and corporations competing for access to the same funds. What is the long-term premium that they are going to pay because of this farcical plan of Mr Rudd’s.”