Will take years to pay back if they use all that dosh.
By Online parliamentary correspondent Emma Rodgers
Posted 40 minutes ago Updated 39 minutes ago
Debt warning: Malcolm Turnbull (7.30 Report)
Related Story: Rudd to hold stimulus briefings Federal Opposition Leader Malcolm Turnbull says evidence given at a Senate inquiry into the Government's $42 billion stimulus package last night proves it going to run up a $200 billion debt.
The Government has sought an amendment to increase its borrowing capacity from $75 billion to $200 billion and last night Treasury officials told the inquiry almost all of the funds would be needed.
Mr Turnbull opposes the Government's package because he claims it will plunge the country into too much debt.
"Treasury officials last night confirmed they were going to max out the $200 billion in debt and Australians know that somebody is going to have to pay that off - and that will be their kids," he told Sky News.
Treasury secretary Ken Henry also told the inquiry last night that a large stimulus package was needed to keep the economy out of recession, but Mr Turnbull has dismissed his evidence.
"The news that the head of Treasury has agreed with an economic policy of the Government is like saying 'man walks on the earth'," he said.
"Of course they do, that's their job, they put it together for the Government."
Mr Turnbull's high-risk stance has attracted claims from Prime Minister Kevin Rudd that he is trying to shore up his leadership against a possible challenge from former treasurer Peter Costello, who has been outspoken against the package this week.
But Mr Turnbull says Mr Costello is not seeking to return to the frontbench.
"Kevin Rudd would be better of focusing on the economic issues and stop trying to be a political commentator," he said.
'Greening up'
As the inquiry into the package continues today, Greens Senator Bob Brown has indicated that his party will be pushing for changes to the package, including more options for energy efficiency in households and funding for other construction measures such as bikeways.
"It can improve the package by greening it up, which means more jobs, but also by fixing some of the anomalies," he told Radio National Breakfast.
"For example, unemployed people get nothing out of this package and people who are below the taxable threshold miss out as well.
"That includes many part-time students and self-funded retirees."
Senator Brown says he will be putting the changes to the Government over the next few days.
However he has indicated that the Greens will not seek to reduce the size of the package which the Opposition has pushed for.
"If you take Mr Henry's advice [a smaller package] does risk running us into a recession next year and it was very clear that the warning bells are sounding there," he said.
Senator Brown has also described Mr Turnbull's position on the package as "very politically based".
"I really don't think that it is the best solution for Australia," he said.
Liberal Senator George Brandis says he is still not persuaded by Mr Henry's evidence to the inquiry and says the stimulus measures are extravagant.
"We're dealing with not only a $43 billion poorly targeted expenditure package, but we're also dealing with a legislative amendment which would potentially expose the commonwealth the $220 billion worth of debt," he said.
