Fed: Labor threat to future prosperity: Loughnane

AAP General News (Australia)
08-06-2007
Fed: Labor threat to future prosperity: Loughnane

CANBERRA, Aug 6 AAP - State government debt demonstrates that a federal Labor government
would be a threat to Australia's prosperity, the Liberal Party's federal director Brian
Loughnane says.

The federal government is blaming Labor for putting upward pressure on interest rates
by racking up too much debt, ahead of this week's anticipated interest rate rise.

The attack on the states is part of a broader strategy produced by the coalition's
internal pollster Crosby/Textor in order to reverse dwindling government support ahead
of the election.

The dossier advises the government to paint the states as ineffective but Mr Loughnane
said state debt was a real concern.

"It's not commonly known but the level of state government debt is already up above
$70 billion ... that is a significant pressure on interest rates," Mr Loughnane told
ABC radio.

"It's a significant pressure on the future prosperity of the Australian economy so
we believe it is an important factor.

"It will be an important factor in the coming election and I think it's a clear contrast
between the two parties."

The confidential dossier paints a damning critique of Mr Howard as old and dishonest,
advising the government to highlight Mr Rudd's inexperience.

But Mr Loughnane, borrowing a line from former US President Ronald Reagan, said it
was not the government's intention to focus on Mr Rudd.

"It's not our intention to make Mr Rudd's youth and inexperience an issue at this stage,"

he said.

"I think that John Howard is the most experienced political figure in Australia."

In 1984, the then 73-year-old Reagan brushed aside barbs about his age by jokingly
promising not to "exploit for political purposes my opponent's youth and inexperience".

AAP sld/mfh/maur/de

KEYWORD: ECONOMY LOUGHNANE

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