Business not keen on “dull budget”
Business groups have rounded on the Abbott government for a seemingly relaxed approach to its second budget.
Responding to Prime Minister Tony Abbott’s prediction of a “quite dull” budget on May 12, Australian Industry Group boss Innes Willox says the government can’t afford to stand still.
It must pick appropriate targets to continue reform, Willox said on Monday.
“The last thing we need … is another year of paralysis,” he said.
Business Council of Australia chief Jennifer Westacott is of a similar mind, saying the government needs to get the policy design and detail right and explain it to the community.
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As well, the Senate could not just bat back legislation without at least suggesting alternatives, she said.
Social Services Minister Scott Morrison acknowledged the government’s bold approach in last year’s budget had not been as successful as hoped.
The aim this time around was to get all budget measures through the Senate, as opposed to the 50 per cent that cleared the upper house in the past 10 months.
“I don’t know what the suggestion is – that we should put up measures that would be defeated?” he said.
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Abbott has promised the budget will be in “broad balance” in five years.
But a Treasury document, obtained by The Australian under the Freedom of Information laws, shows rising government payments will not return to their long-term average as a proportion of the economy until 2021 at the earliest.
Finance Minister Mathias Cormann says December’s mid-year budget review did highlight the challenges facing the budget but insists it is now heading in the right direction.
There are also reports the budget will contain another cut to foreign aid, something Foreign Minister Julie Bishop intends taking up with Treasurer Joe Hockey.
Labor continues to lampoon Abbott’s suggestion that government debt levels near 60 per cent of GDP are acceptable.
Shadow Assistant Treasurer Andrew Leigh said when debt was a seventh the size of the economy under Labor, Abbott used to drive around in debt trucks to make a political point.
“Frankly you would expect Mr Abbott will have to have a debt aircraft carrier in order to reflect his turnaround,” he said.
But junior defence minister Stuart Robert said the government has made a “cracker of start” compared to where the budget would have ended up under Labor.
“Labor should be coming out and saying `thank you prime minister’,” he said.
