Aust not in midst of budget crisis: Labor

Date
    April 24, 2014
    The Age

Labor has dismissed Treasurer Joe Hockey's warnings about the spiralling costs of welfare, health and other government spending.      

In a speech in Sydney on Wednesday night, Mr Hockey unveiled some details from the soon-to-be-released commission of audit, which shows government spending has almost tripled in the past 40 years.

Over the medium term, the commission expects the 15 largest and fastest growing programs to be welfare, health, education and defence - in most cases growing considerably faster than the economy.

Mr Hockey flagged cuts across the board in the May budget, adding that a greater reliance on means testing and co-payments could be on the way.

Opposition finance spokesman Tony Burke rubbished the treasurer's bleak portrait of the budget.

"Countries that have triple-A credit ratings are not in the midst of a budget crisis," Mr Burke told ABC Radio on Thursday.

"None of the information that Joe Hockey's referring to there is new. They're wanting to pretend that they've just realised this through the commission of audit."

In his speech, Mr Hockey made particular mention of the pension, following speculation the government would increase the retirement age to 70.           

The $40 billion spent annually on the aged pension was more than that given to defence, hospitals or schools, Mr Hockey said.

Mr Burke said the government was simply laying the groundwork for changes to the aged pension, breaking an election promise.      

The commission of audit is due to be released next week.

It report makes 86 recommendations, but Mr Hockey says he will not automatically accept all them.

"Some can be actioned in the short term, others require further consideration and some will be rejected outright," he said in his speech on Wednesday.

Shadow assistant treasurer Andrew Leigh accused Mr Hockey of playing political games with the budget, after blocking the previous Labor government's savings measures when in opposition.      

The treasurer should acknowledge the fiscal impact of coalition decisions to scrap measures such as the mining and carbon taxes, he said.

"What we've got now from Joe Hockey is really the shadow treasurer in drag," Dr Leigh told ABC Radio.

Budget emergency my butt

scrap the $12 B on planes that don't fly ....    there's $12B
scrap the tax benefits to super ................    another $13B
scrap handouts to mining /energy sector ..... another $5B

thats $30 Billion saved just there ... I'm sure if I went through the budget they'd be a lot more

the government is being run by cretins who are only looking to line their own pockets or protect their own future interests

Wow, Labor and the rusted-on are desperate to hide just how badly they screwed up over the previous six years!

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What an idiot Burke is.

This is one reason these stupid Labor R-soles should never be in Govt.

Risk ratings are about ability to service debts.  If you don't balance the books you are eventually going to be insolvent and the rating will sink.

The tripple A was won by the Howard Govt.  Labor did their level best to trash it.

Swagman wrote on Apr 24^th, 2014 at 8:49am:



That is an out-and-out mistruth. It was directly a result of Labor's success in getting us through the GFC.

The only 'budget crisis' we have is that we have a blatantly out-of-his-depth incompetent in charge of it.

Burke is correct, you are not. And nor is Hockey.

Armchair_Politician wrote on Apr 24^th, 2014 at 8:32am:








*Andrew Neil is Chairman of the British publication - "The Spectator"

longweekend58 wrote on Apr 24^th, 2014 at 8:55am:


And have major social disruption and disorder that will have a negative effect on the country for 20 + years, and cause a recession. Excellent  .

And of course you will continue with corporate and middle and upper class welfare and subsidies for inefficient industries. Excellent  .

Abbott is running a fear campaign. It's what he's been taught and knows how to do well.

These new austerity measures are to prepare us for a serious drop in our wages and living standards pushed along by the signing of the recent FTA's and the proposed one with China.

Abbott thinks by stripping away the security of much of the population we'll accept lower wages and pensions and be grateful for whatever we can get. Not a bad idea in theory, but there's going to be a serious backlash.

Gillard shouldn't have given into the protests of the people when she tried to reduce services or cut back on the welfare which Howard had so generously introduced when he was pork-barreling for an election.

Abbott will get the support from the big inter/national corporations for these stringent new measures. If we complain - then they'll just import thousands more 457 visa workers. As these imports will no longer be regulated - we'll have to compete with them or become beggars.

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