5 Aug 2013

NAB chief urges Australian govt to borrow more

7:28 am on 5 August 2013

National Australia Bank chief executive Cameron Clyne is calling on the Australian government to take on more debt. He reckons the federal government's problem is not too much debt - but not enough.

Strong public finances thanks to the commodity boom of the past decade have earned Australia AAA debt ratings from all the agencies and a debt burden lower than other major economies.

In the meantime, though, Australia's public infrastructure has declined and it is unable to fully exploit strong global demand for minerals because its road, rail and port links are antiquated.

With foreigners lining up to buy Aussie government bonds, Radio New Zealand's Sydney correspondent reports Mr Clyne reckons the government should use its funding strength to modernise the nation's infrastructure.