A lift in sales from retailer Westfield indicates the federal government’s efforts to refloat the economy are working, Treasurer Wayne Swan says.

Mr Swan said fresh data showed Westfield’s retail sales were up four per cent in Australia while sales had dropped in the US.

The government has set aside tens of billions to spend on infrastructure and cash handouts to try and ward off a recession.

New opposition treasury spokesman Joe Hockey says it’s too much money and the han-outs are a waste. Mr Swan rejected that criticism.

“He’s got a real hide hasn’t he, because the previous government in 12 years didn’t make any substantial investment in critical economic infrastructure,” Mr Swan told Network Ten on Sunday.

He also said the government’s plans to spend up big on infrastructure had not been derailed by the financial crisis and the ensuing sharp drop in government revenues.

$26 billion had been set aside for infrastructure and it would get spent, Mr Swan promised.

“We think that we’ve got plenty of capacity to make that investment as we move through the (infrastructure) assessment process,” he said.

Mr Swan also commented on homeowners who locked in fixed interest rates on their mortgages last year - only to watch rates tumble due to the crisis.

“These people are certainly in a very difficult position,” he said.

The government has been criticised for focusing on the dangers of inflation last year, which gave some people the impression the Reserve Bank would have to keep interest rates high. Inflation and rates have since declined sharply.

But Mr Swan said the real problem for homeowners was that rates got “out of control” under the previous Liberal government.

AAP