‘Every number you just said is wrong': Chalmers, O'Brien brawl behind closed doors
At the opening of a session on fiscal management, the Coalition representative at the government-run summit made his major first intervention in the three-day event, accusing Chalmers of over-spending and baking in long-term deficits.
A source familiar with the conversation, unauthorised to disclose it publicly, said the argument became 'heated'. NSW Treasurer Daniel Mookhey, who was due to speak next, stepped in and encouraged the pair to move on from the debate.
'Jim [Chalmers] got very defensive and said, 'We're not in question time, Ted',' the source said.
O'Brien claimed Labor's budget deficit would have been about $40 billion better and argued national debt would have been $100 billion lower if Labor had offset its new spending with savings. O'Brien also argued in favour of fiscal rules to mandate budget restraint – a Coalition policy before the election when the Dutton opposition eventually laid out a plan to spend more than Labor in the near-term.
According to the source, Chalmers claimed: 'Every number you just said is wrong.'
The reform roundtable, held around the federal cabinet table, has been a low-key affair until the bust-up on Thursday morning. But the sparring match reflects the political importance of debt and deficits to Australian politics.
The summit will wrap up on Thursday afternoon, when Chalmers is expected to confirm that Labor intends to cut red and green tape to speed up housing and energy project approvals.
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