16-August-2011
Portfolio Media Releases
Topics: the state of the economy, savings measures, Fair Work Act.
E&OE
MARIUS BENSON:
Andrew Robb the Treasurer is going to be addressing the parliament on the state of the global economy the assessment of the world and of Australia, it’s been a pretty rough ride on global markets, the outlook is grim we are going to be told is going to be the message from the Treasurer that the United and Europe that you can’t look to them to contribute to growth over the next several years. Would you argue with that fairly pessimistic assessment?
ANDREW ROBB:
No I wouldn’t, I suspect the way we have seen Australian households for the last 12 months with unprecedented levels of savings paying off their mortgage and paying down the plastic and putting deposits in the banks has been a sign that most people in Australia have had a sense that we are vulnerable and that something else could happen again on world markets.
The only group that hasn’t had that sense I think is the federal government for that matter.
MARIUS BENSON:
The government accuses you of talking down the economy it is a fine line for an opposition between rubbishing the government and rubbishing the economy isn’t it?
ANDREW ROBB:
Well we have been warning for 12 months now that if there is another double-dip or downturn in the world economy that we are vulnerable and that we should be living within our means now despite that, that is what the government has called talking down the economy.
What we have been doing I think quite sensibly is waring that things aren’t in good shape around the world that the debt levels around the world are just astronomical and there’s likely to be a further adjustment, well we are now starting to see it and the chickens are coming home to roost for the government.
They have spent for political purposes they have been reckless unlike households around the country that are living within their means and they are the ones who have been irresponsible in their management of the economy and I think all Australians are going to pay for it.
MARIUS BENSON:
It’s likely the Treasury will also have a swing at your plans announced by Joe Hockey to cut $70 billion from public spending and to cut 12,000 positions from the public service can you clarify is that opposition policy now?
ANDREW ROBB:
Well it is opposition policy to put a freeze on public servants appointments now that will mean over a period of two years that by not reinstating those that leave the public service there will be 12,000 less positions that’s correct.
Secondly, the $70 billion is an estimate of the sort of challenge that we will have if we are to get this government position back to living within its means. This government, the $70 billion just highlights how wantonly this government has been living beyond its means.
That’s the sort of order of magnitude which over four years which is quite achievable when you consider that this government has spent $150 billion more than it has raised over the last four years. And we are saying that we need to identify up to $70 billion over the next four years if we are to get this economy back in some sort of shape that we can be, so that we can weather any economic storm that might come at us from other parts of the world.
MARIUS BENSON:
Mr Robb you are chairing a general review of opposition policies at the moment there is a lot of talk about the need to cut penalty rates, John Alexander the N.S.W. backbencher the latest contributor to that debate. Is that part of opposition policy review at the moment or can you rule out any moves to cut penalty rates?
ANDREW ROBB:
We are waiting to see what industry says are the failings of the Fair Work Act.
MARIUS BENSON:
So if industry says as it often does that penalty rates are costing jobs, will you review penalty rates?
ANDREW ROBB:
We are reviewing the Act so we will wait and see where the problems are, we will assess if they are legitimate and damaging actions within that Fair Work Act and when we’ve made that assessment we’ll look for practical solutions to it.
MARIUS BENSON:
Andrew Robb, thank you very much.