Portfolio Media Releases

NO NEW YEARS RESOLUTION FROM LABOR TO CUT GOVERNMENT SPENDING

12th January 2010

As the new year begins, I once again call on the Treasurer to pull back on the government’s reckless and wasteful spending which is putting upward pressure on interest rates.

Australia’s economic recovery continues to gain momentum and yet the Rudd government is continuing with its recession-like levels of expenditure.

Figures obtained from the Department of Finance show that there are 32 programs across various government departments which will have annual average real growth blowing out to more than 2 per cent (see table attached).  This is despite the government’s commitment to contain overall growth in government expenditure to 2 per cent in real terms once the economy returns to trend growth.

These programs include:

·         21.2 % annual average real growth in the Department of Defence Capability Development program

·         17% annual average real growth in the Research and Development Tax Offset

·         13.7% annual average real growth in Maternity Payments and Care Incentives program

These are further examples of the Rudd government’s inability to prudently manage the public purse.

MYEFO, released late last year, also revealed a series of cost blow outs.  In addition to an overall increase in government spending of more than $4 billion over the forward estimates, MYEFO showed massive blowouts in specific programs including:

·         $5 billion extra in interest costs on the Rudd government’s massive debt – even though total government debt is forecast to be lower;

·         More than $1.5 billion under the BER to build more Julia Gillard Memorial Halls;

·         More than half a billion dollars in additional expenses for solar panels  - a program that was terminated in June 2009 due to cost blowouts;

·         $1.4 billion cost blow out in Medicare expenses; and

·         $1.8 billion cost blow out in pharmaceutical expenses.

The mounting evidence is clear - Labor cannot manage taxpayers’ money. 

Wayne Swan will never deliver a surplus Budget and the Rudd government will never pay off the massive debt with which it has burdened Australia.