Former federal treasurer Peter Costello urges governments to rein in spending to avoid burdening younger generations

Former treasurer Peter Costello has pleaded with governments to stop overspending and consider the rising debt of future generations at a prestigious conservative conference in London.

Former federal treasurer Peter Costello has warned that government overspending will damage future opportunities for younger generations and said it must be stopped.

Speaking on the final day of the Alliance for Responsible Citizenship conference in London on Wednesday local time, Mr Costello interviewed former US Republican candidate Vivek Ramaswamy and said financial restraint by governments around the world must return before it’s too late.

“When I was paying off federal debt in Australia, that debt is not just an economic problem, it’s a moral problem,” he said.

“By running up debt a society is consuming its resources on itself and sending the bill to the next generation and young Americans, young Brits, young Australians are all going to have worse opportunities because their predecessors run up debts”.

Peter Costello was federal treasurer from 1996 to 2007 and is Australia’s longest-serving treasurer. Picture: Supplied

Mr Ramaswamy said debts are growing at a rapid rate and it needs to change to protect younger generations.

“We’re punting the problems to our kids and their generation,” he said.

“Interest payments on federal debt are themselves growing ... and it will require some level of discipline.

“Your government is built around constraints to be able to preserve its commitment to its own North Star and if we do that, the national debt problem, I think, more or less melts away”.

Mr Costello was federal treasurer from 1996 to 2007 and is Australia’s longest-serving treasurer.

He delivered 12 budgets including ten surpluses.

Peter Costello interviews American businessman and politician Vivek Ramaswamy at the Alliance for Responsible Citizenship (ARC) conference in London. Picture: Supplied

On Tuesday, Reserve Bank of Australia governor Michele Bullock cut the cash rate by 25 basis points and it was the first reduction since the beginning of the Covid-19 pandemic in 2020.

Mr Costello and Mr Ramaswamy also spoke about the problem with diversity, equity and inclusion policies and Mr Costello said it has been dominant in big business and also warned of the dangers of political influence and government does not need to be involved in all aspects of people’s lives.

“Not everything is political, there are pieces of life that are completely outside politics,” he said.

“There’s private conscience, there’s corporations, there’s sports, there’s arts (and) we don’t have to have everything politicised and the government doesn’t have to be in every political or every personal space”.

Earlier in the week other speakers at the politically-conservative conference included former Australian prime minister Tony Abbott, UK’s Conservative Party leader kemi Badenoch and Reform UK leader Nigel Farage.

Originally published as Former federal treasurer Peter Costello urges governments to rein in spending to avoid burdening younger generations