PM distances himself from Christopher Pyne Labor recession claim

The Prime Minister and Finance Minister have distanced themselves from a prediction an election loss will lead to recession.

Scott Morrison and Finance Minister Mathias Cormann have refused to back Defence Minister Christopher Pyne’s claim that a Shorten government would plunge Australia into recession.

The Prime Minister this morning distanced himself from Mr Pyne’s claim, merely arguing a Labor government would be worse for the economy.

When asked on Network Seven if the government was engaging in fear mongering by warning of a recession, Mr Morrison said: “I didn’t say that. What I said was there will be a weaker economy under Labor than there will be under my government.”

Mr Pyne yesterday warned a Labor government would create a recession.

Senator Cormann also would not endorse Mr Pyne’s comments.

“What we have said is a high taxing Shorten Labor government will make the economy weaker, will make the country weaker and make Australians poorer, there is no question about that,” Senator Cormann told ABC radio.

Opposition employment spokesman Brendan O’Connor said the government lacked credibility in its claim Labor would damage the economy.

“It seems now there is a fight in cabinet over whether they are supposed to say that there is a recession or not,” Mr O’Connor told Sky News.

“The fact is we have seen this government preside over the lowest wage growth in 25 years, an anaemic economy, household debt is at record levels.

“This government has not provided sufficient opportunities for working people to maintain their standard of living.”

.@MathiasCormann says there is 'no question' that a high taxing @billshortenmp govt would make our economy and country 'weaker' after @cpyne said a @AustralianLabor govt would throw the country into a recession.

MORE: https://t.co/ykweMevBOK #FirstEdition pic.twitter.com/sYX4d6dJn1

— Sky News Australia (@SkyNewsAust) January 28, 2019

Bill Shorten said the government’s “fear campaign” was out of the “Tony Abbott playbook from 2013”.

“Remember, the Liberals said that Whyalla should shut; it’s expanding,” the Opposition Leader said.

“Let’s call out the fear campaign of the government for what it is. They have run out of anything to say about themselves. All they can do is talk about us.”