Article Categories: Portfolio Media Releases, The Economy, Community, Funding
Business leaders have backed the Coalition’s calls for the Gillard government to conduct a serious review of Commonwealth expenditure, against a backdrop of rising interest rates, and a record exchange rate fuelled by these interest rates, strong coal and iron ore prices and an emerging global currency war.
Acting Shadow Treasurer Andrew Robb repeated his call for the need for a pre-Christmas mini-budget saying: “While there are things the government can’t influence, there are things the government can do and now.
“With interest rates the highest in the developed world and the Australian dollar at a 27-year high, everything should be done that can shore-up the competitive position of Australian industry.
“There is no doubt this government’s continued reckless and wasteful spending and borrowing is contributing to the pressure on interest rates, and our exchange rate, which is harming the competitiveness of our trade exposed manufacturers, farmers as well as tourism and eduction operators,” Mr Robb said.
Last year Treasury advised a Senate committee that there was still $31 billion in stimulus money to be spent this year and next. This was the Government’s response to one quarter of negative growth back in 2008.
The director of Access Economics, Chris Richardson, said in today’s Sydney Morning Herald: “The rough rule of thumb in economic models is that you have to cut by about $13 billion a year to achieve maybe a 1 per cent reduction in interest rates, which might, in turn, make maybe a cent or two difference to the level of the Australian dollar.”
Chief executive of the Australian Industry Group Heather Ridout told The Australian that the government needed to “vigorously assess the quality of its spending and of its spending promises.”
Mr Robb said it was puzzling indeed that Mr Swan would compare the pending Mid Year Economic and Fiscal Outlook (MYEFO) to a mini-budget.
“To compare a mini-budget, which would require significant spending and borrowing cuts, to MYEFO, a mere update of economic numbers under existing policy settings, makes no sense.
“Mr Swan’s attempt to misrepresent the nature of a mini-budget confirms the government’s lack of appetite to rein in its spending – programmed originally for an economy well short of capacity – and to pursue urgent productivity reforms,” Mr Robb said.
Media Contact: Cameron Hill on 0408 239 521
Community Organisation Details
Congratulatory Message Request
Honours, Awards and Medals
For students and schools
Goldstein Media Releases
Articles of Interest
Connect with Andrew