Gillard, Swan begin Budget hard-sell

May 14th, 2013

Treasurer Wayne Swan says jobs would have been at risk if spending had been slashed to achieve a surplus.

PRIME Minister Julia Gillard has defended her government’s budget as the shadow treasurer refused to commit to a position on the baby bonus.

Joe Hockey said the coalition will look closely at the details before announcing its position on the baby bonus.

“I think I owe my colleagues and the Australian people a commitment that we’re going to look very carefully at what is in this budget before we make rash, knee-jerk decisions,” he told ABC radio.

“There are a whole lot of cost pressures on families. The reason why we’re in this position is because the government just hasn’t done its job.”

Gillard defends tough choices

Earlier Prime Minister Gillard defended her government’s budget and said she is happy to argue for tough decisions like cutting the baby bonus.

Business and economics stalwart Terry McCrann delivers his verdict on Wayne Swan’s sixth federal budget.

“I said to the nation that I wanted to make new big structural spends…more money going into school and more money going into disability,” Ms Gillard told Sky News’ David Speers this morning.

“What you’ve got to do is make some choices … making room for the big investments, the wise investments that our nation needs, including education,” she said. “And I said to the nation very clearly in order to make those new big spends, I’d be asking the nation to make some big structural saves.”

Ms Gillard said she was prepared to stand and argue for some of the budget’s key savings including getting rid of the baby bonus introduced by the Howard government as they will fund long-term projects like the NDIS.

“I am prepared to stand and argue that getting rid of the baby bonus, making changes in family benefits, making changes in business tax is the right way of supporting children’s education at the highest possible standard.”

The prime minister again pointed to the “big hit” suffered by the Australian economy in the face of a high dollar which led to tax collections that failed to meet forecasts.

Julia Gillard and Wayne Swan before the Treasurer delivered his budget speech to parliament. Picture: Gary Ramage

“The big hit has been from the revenue writedown,” she said. “Any prime minister sitting in this chair would have to deal with that.”

“Voters will make their decision on September 14. This budget is right for the nation.”

Ms Gillard’s comments came as she and Treasurer Wayne Swan began the hard sell of Labor’s election year budget this morning.

The pair are today embarking on a media blitz, doing the rounds of radio and television interviews ahead of Mr Swan’s post-budget address in the Great Hall of Parliament House in Canberra.

Abbott on surplus

Meanwhile, Opposition Leader Tony Abbott can’t say how long it would take a coalition government to get the federal budget back into surplus.

Mr Abbott this morning said the coalition is still looking at last night’s budget.

“The government has had 12 months to put a budget together, we’ve had less than 12 hours to analyse it,” Mr Abbott told the Seven Network.

He said it was too early to commit to a timeline for getting the budget back in the black.

“We’re not putting a timeline on it now,” Mr Abbott said.

But he said the coalition would get the budget back to surplus “as quickly as possible”, he said.

Key savings

The Treasurer has delivered a higher-than-expected deficit of $19.4 billion for this financial year followed by a shortfall of $18 billion in 2013/14.

Read: What the budget means for you

Mr Swan has axed the baby bonus for new parents, although some may be eligible for a replacement increase to the Family Tax Benefit Part A.

The government says it has delayed the return to surplus so it can support jobs and growth, and set the funding course for the national disability care scheme and schools funding programs.

Opposition Leader Tony Abbott will deliver his budget-in-reply speech on Thursday night.

But the Coalition says the Budget shows the nation’s finances are in “complete chaos” and that Labor can not be trusted.

Opposition treasury spokesman Joe Hockey said the flawed strategy included more broken promises on family payments, higher taxes, debt levels above $300 billion and “no credible path back to surplus”.

“Budget 2013 delivers more debt, more deficits, more taxes, more broken promises and more uncertainty from an incompetent Labor Government that can’t be trusted,” Mr Hockey said.

“(It) confirms that Labor’s financial and budget management is in complete chaos.”