Senator IAN MACDONALD (Queensland) (16:40): As always, I will try to bring a reality check to this debate. I am not going to indulge in the populist political rhetoric that all others on the other side have engaged in in this debate and which one particular senator continually engages in. I want to bring reality back to the situation. On Remembrance Day, I attended a lunch at the RSL in the garrison city of Townsville, the home of Australia's biggest army base and a place where there are more than a proportionate number of veterans living. I spoke to people at the dinner about this particular issue because I, like everyone, was a little concerned about it. The people at the dinner—admittedly, senior officers and heads of organisations—said to me, 'We, the senior officers, understand the reason for this. We understand that the government has no money and that the government is borrowing $1 billion every three months to pay interest on Labor's debt. We understand that this is not a time for a big increase in pay.' They also said to me—and I agree with them on this—'But if public servants and politicians are going to get an increase beyond 1½ per cent then there will be an uprising in the streets.' I said to them, as I say now, 'I will be part of that.' If politicians and public servants get an increase above what has been offered to the Defence Force then we should all protest—and I will. I make that very clear now. We all have to play our part in addressing Labor's approaching $600 billion of debt which costs us $30 million a week in interest. We all have to play our part. When I raised this with some of my colleagues, they said, 'You will recall, Senator, that your pay was frozen on 1 July.' I must say that I had not focused on that. I had not realised it. But politicians have been told that they are accepting a pay freeze for one or two years. I am not quite sure which it is. You can look it up yourself. But politicians are getting a zero per cent increase— Senator Ludwig: Two years. Senator IAN MACDONALD: for two years. Thank you, Senator Ludwig. So the politicians are doing their bit in not accepting increases. My Labor their friends have talked about the Public Service union and their outrageous decision to strike on Friday because they want a 12 per cent increase over the next three years, well beyond inflation. They are not prepared, it seems, to play their part in addressing Labor's debt problem. This government has to do it. Why? It is not because we want to be martyrs in fixing Labor's problem. It is because, every time we borrow money for pay increases for the Public Service, politicians, judges and the Defence Force, we are borrowing against our children's future. And it is our children and our children's children that have to pay back the money we will borrow to pay for increases in pay for politicians, our defence forces, judges, agency heads or the Public Service. That is why most in the defence forces that I spoke with do not like it. I did not like it when I heard of their predicament. As I said, coming from Australia's garrison city, I hear these things. I was concerned. But I understand and I appreciate that most of the leaders of our defence forces understand. And I am sure the troops also understand that, as well as defending their country, they have to do something for their country with this financial mess we are left in by the previous government. This is something costing them. It is not me or the government. The government does not have money; they only use the money of ordinary citizens of Australia. It is the ordinary citizens of Australia that have to eventually pay back the borrowings and to pay back the $30 million a week that we borrow to pay interest on money we have already borrowed. I know the defence forces when this is put to them will realise that they not only have to defend the country militarily but—like politicians, judges and, I hope, the Public Service—have to do their bit to protect the country from the ravages of continuing to borrow to pay interest on borrowings by Labor to meet Labor's insatiable appetite for borrowing money for give-away projects. I hope that makes it realistic. I understand, perhaps more than most, the disappointment of the defence forces. I claim, coming from the garrison city, to get a fair appreciation of these sorts of things. But most people will understand that we have a crisis—not a military crisis, but a crisis of a financial type—caused by the previous Labor government. It has to be addressed. Politicians are doing it. I hope judges and agency heads—and others who the government has suggested should not get increases—play their part. I certainly hope the Public Service play their part. I will be devastated if they get a 12 per cent increase over the next three or four years. If that happens, I will be out there with the troops. They are a very important group of people, who do more for our country than almost any other group. I well appreciate that. And I will appreciate their anger—which will be mine, if we succumb to union pressure for a huge increase for unions or judges or politicians. But the politicians have stopped; there are no increases for politicians. That has been agreed. I will be very disappointed if the unions get that and our defence forces do not. We all have to play our part in defending our country from Labor's profligacy.