PM warns on Labor ‘recession’

SCOTT Morrison has ramped up his rhetoric about the economy plunging into recession under a Labor government.

Labor dismissed his revived warnings of an economic downturn as “desperate and dishonest”, but the Prime Minister said it was “the truth” at a business summit in Sydney yesterday.

“I’m saying the economy will be weaker under Labor – that’s exactly what I’m saying,” he said. “They’re going to put $200 billion worth of taxes and take Australia’s industrial relations system back to the times when we had recessions in this country.”

Asked directly whether he believed Australia could plunge into recession under Labor, Mr Morrison said: “Whether it goes to the extent that you’ve said, well, history would show.”

“I’m trying to ensure that we never know the answer to that question,” he added.

Pressed on whether he was being alarmist by raising the prospect of a recession, the Prime Minister said: “I think it’s the truth.”

Labor’s treasurer spokesman Chris Bowen said Mr Morrison was being “highly irresponsible”. “It’s everything we’ve come to expect from a desperate Prime Minister with no economic policy of his own,” he said.

Mr Morrison was later asked to clarify whether he was suggesting Labor would drive the economy into recession.

He initially said “I can’t predict how bad things would get under Labor” but soon sharpened his language.

“Whether that could extend to those types of outcomes (recessions), that will be more likely under Labor than it would be under a Coalition government,” he said.

Mr Morrison (right) also lamented Labor’s plans to ditch some of his planned tax cuts.