Thursday, July 31

coflicting policies make australian budget unsaleable

In “Put up or shut up, Mr Hockey” (Letters AFR 29th July 2014) Des Moore concludes the time has arrived when Mr Abbott should take over the selling of the budget and, in the first instance, present a revised budget when Parliament resumes at the end of August. That should include changes in existing spending proposals as well as the missing explanations.

But it is now reported Hockey is urging his Liberal and Nationals Party member’s to rally together and use the winter parliamentary break to shore up support and sell the budget. He has cited Standard and Poor's confirmation of Australia's 'AAA' credit rating to convince the Senate to pass his first budget. The agency has stated the budget deficits are expected to reduce in line with eventual agreed compromises on the proposed budget measures.

The reason the budget is so difficult to sell is due to conflicting measures ; a $7 medical co-payment only partially repairs the budget shortfall as part of the proceeds are earmarked for the grandiose medical research fund.  Similarly, applying a six monthly waiting period for those under 30 for unemployment benefits in the absence of labour structural reform to allow lower wage categories for the unskilled is equally poor policy. Such measures, and those announced recently mandating 40 job applications per month for the unemployed to continue to be eligible for benefits and the provisions of “work for the dole” only serve to add more "red tape" with highly dubious benefits.


susan said...

I don't know anything about the Australian budget but I do know that insisting unemployed people apply for that many jobs in a month likely means they won't.

Lindsay Byrnes said...

Hi Susan
I doubt if many of the provisions will pass the senate as they stand. The ridiculous idea of mandating the number of job applications forces recipients to comply, otherwise they lose their benefits.
Best wishes