THE government has called for the dismissal of Barnaby Joyce from the opposition frontbench after the shadow finance minister cast doubt on whether Australia could repay its debt.
And the government has stepped up its demands on Tony Abbott to say where the money was coming from after Mr Abbott confirmed a policy promising six months' paid maternity leave was in the pipeline.
Railing against the debt caused by the government's economic stimulus spending, Senator Joyce said: ''We are getting to a point where we can't repay it.''
The government said the comments were as irresponsible as those Senator Joyce made earlier about the possibility of the US defaulting on its debt.
''He brings into public debate the Commonwealth public debt repayment ability,'' the Prime Minister, Kevin Rudd, said.
''This is a most fundamentally irresponsible remark by someone who puts himself forward as the alternative finance minister of Australia.''
He said Mr Abbott should repudiate the statement and sack Senator Joyce. ''It is coming, as sure as night follows day.''
Australia's net debt is budgeted to peak at $153 billion in 2014-15, which would be about 9 per cent of gross domestic product. This is much lower than the debt-to-GDP ratios of other developed nations, including the US (85 per cent) and Britain (92 per cent).
Senator Joyce accused the government of being sensitive about its debt level.
The government is trying to focus attention on the Coalition's economic team of Mr Abbott, Joe Hockey and Senator Joyce, saying it is the weakest of any major political party.
Yesterday Mr Rudd told his caucus that Labor was now the party with stronger economic credentials because it had kept the recession at bay. ''The economy is our strength,'' he said.
Mr Abbott told his party room the government was on the back foot and ''we can win'' the next election so long as people put aside past differences, treated each other respectfully and concentrated on going after the government.
Mr Abbott confirmed a report in yesterday's Herald that the Coalition planned a policy that would provide six months' paid parental leave. It would trump Labor's taxpayer-funded 18-week scheme, which begins on January 1.
Mr Abbott has abandoned plans to fund the scheme with a levy on business but was coy yesterday when asked whether taxpayers would fund it.
''It will be a very good policy; it will be much better than Labor's Mickey Mouse scheme and it will be announced shortly,'' the Opposition Leader said.
But the government said it was another example of Mr Abbott making a promise without saying how he would fund it.
''Mr Abbott and his other economic ministers are not doing the hard work that's needed to make these objectives a practical reality,'' the Treasurer, Wayne Swan, said.
Business and industry welcomed the concept of a six-month parental scheme yesterday so long as they did not have to pay for it.
''It makes good economic and social sense to have a workforce which can more effectively juggle the dual roles off caregiver and breadwinner,'' CPA Australia said.
Email a friend