News 
 National News 
 National 
 General 
 Abbott defends 'black hole' Treasury costings 

Abbott defends 'black hole' Treasury costings

02 Sep, 2010 11:38 AM
Opposition Leader Tony Abbott says the controversy over the Coalition's costings has not compromised his ability to negotiate in "good faith" with the three key independents on forming a minority government.

Despite Treasury finding what independent MP Tony Windsor described as a "black hole" of at least $7 billion, Mr Abbott said the Coalition would deliver "substantially larger surpluses" than Labor.

Mr Abbott said Labor and the Coalition still presented two vastly competing stories on economic management - accusing Labor of waste and mismanagement.

"Certainly, there is nothing in any of this toing and froing that compromises our ability to continue in good faith discussions," with the independents, Mr Abbott said.

Opposition Treasury spokesman Joe Hockey said there were "differences of opinion" with Treasury on some matters, but they had "ticked off" on the vast majority of more than 300 of their policies totalling more than $90 billion.

Mr Abbott called for bipartisan support to set up a parliamentary budget office to ensure that ‘‘these type of arguments don’t happen in the future’’.

‘‘The caretaker prime minister is very much a latecomer to this particular cause, but it is very important.’’

It would potentially scrutinise both the government and the opposition on the same criteria.

‘‘If both parties have access to the same kind of resources, well then, both parties should be costed and judged on the same kind of basis,’’ he said.

Mr Abbott said he was very happy with the way Treasury and Finance Department officials had dealt with the issue and it had been a very constructive and professional exchange.

‘‘This has been a far better process than anything that would have been possible in the heat of an election campaign when we wouldn’t have been able to go backwards and forwards to Treasury and Finance with the sort of discussions we have had,’’ he said.

Mr Abbott said the Charter of Budget Honesty, which allows Oppositions to have their policies costed during an election campaign, was never designed as a weapon for governments to use against the opposition.

‘‘Which is what in fact this government has tried to do with it,’’ he said.

The Coalition's finance spokesman Andrew Robb said the dialogue had given them confidence in their figures.

‘‘We stand 100 per cent behind our costings,’’ he said.

‘‘What it established was there was not an error of costing - there was a difference of opinion on, in one or two cases, government being able to make the decision," her said.

‘‘They conceded that but they still ran their proposition.’’

Mr Abbott said discussions with independents Bob Katter, Tony Windsor and Rob Oakeshott were continuing in good faith.

He said he was confident wall to wall meetings with the trio and the shadow ministry would reassure Mr Windsor the Coalition had nothing to hide. However, it was unlikely Mr Katter would get his wish of reintroducing tariffs to boost the agricultural industry.

‘‘I don’t think we can turn back the clock but supporting and helping rural industries is part of the coalition’s DNA and that will never change.’’

Mr Abbott refused to reveal his offer to Tasmanian independent Andrew Wilkie who wants a new hospital for Hobart and poker machine reform.

But the discussions were good and constructive, and he understood Mr Wilkie’s concerns about problem gambling and pokies, he said.

- Staff reporters and AAP

Print
Increase Text Size
Decrease Text Size

RELATED COVERAGE

comments


Date: Newest first | Oldest first
Which side was it that inherited a debt-free, $60b funds invested for future budget purposes and ended their term with a $60b budget deficit and debt over $100b? Who wasted billions on the "BER" and mismanaged home insulation and other federal government spending programmes? Which side was it that handed over the strong economic and financial position that Labor wasted?
Posted by John, 2/09/2010 11:54:40 AM
I cannot look at this Wingnut without shaking my head.... god help us if he becomes next prime minister...
Posted by bob, 2/09/2010 12:08:16 PM
Reading John's comment, it is unfortunate that so manh people have so quickly forgotten that it was the Labor Government that stopped Australia from sliding into recession and has been lauded by economic experts world-wide for the quick, effective response to the global financial crisis. It is impossible to keep the economy going in these circumstances without being prepared to spend money. What would John prefer - to be like the US and most European countries, with high unemployment and absolutely huge public debt that will take years and years to correct - not just three or four?
Posted by Erasmus, 2/09/2010 12:51:42 PM
@Erasmu, not entirely correct and a gross generalisation. Even a Treasury director has publicly stated that the money handed out was overdone and premature. Our surplus and healthy financial system had a fair bit to do with it, labour have puffed out their chests and taken all the credit. Someone will have to clean up the mess they have now created! Anyone that believes the labour spin that the deficit will be gone in 3 years also probably has fairies at the bottom of their gardens. Surplus is not in the labour vocabulary.
Posted by goodbye joolya, 2/09/2010 2:54:24 PM
Erasmus Why has the miraculous saving by stimulus practised by Labor,not worked for the US?The US has poured billions into their economy and as you say,only to see unemployment rising,and the economy getting worse instead of improving.Some people can see past Labor spin,and realise that the debt created by Labor was not needed.The opposition argued for less stimulus,but no,Labor needed billions to create 17,000 jobs.That's the bare facts.On top of that they want to tax the mining companies,the very companies that pulled Australia out of the minor crash.Who would these economic experts be?The ones that advocated stimulus for the US?Up to 80 billion to be spent on NBN,and whatever Gillard has promised the greens and independents,and you believe the Labor government will have us in surplus in 3 or 4 years?I have a bridge in Brooklyn to sell you.
Posted by Noelene, 2/09/2010 2:59:45 PM
It is easy to see which team John bats for. Is he saying that it is OK to lie to the Australian voters if you are in the coalition. Blind Freddy could have seen his figures didn't stack up. You cannot promise to spend over twice as much and get the budget out of deficit earlier than Labor. No wonder he didn't want his promises costed by Treasury.
Posted by oldtimer, 2/09/2010 5:05:04 PM
Erasmus forgets that those other economies also tried to spend their way out of the hole that engulfed the world. They spent up big as well with stimulus packages all about us. BUT, they didnt have an economy that on all reasonable measures was already the envy of the world. The combined efforts at reform by Federal governments over the past 20 years AND the fiscal responsibility of the Howard Governement enabled the Rudd/Gillard/NSW Right Government to Spend up big. No reasonable sane and economically aware individual would try to defend a position that the stimulus packages were unnecessary and Abbot hasnt. The Coalitions argument has always been that it was too much and that if we dont reduce our waste of public funds and the consequential borrowing then we are not maximising the benefit of the public purse. The continued absolute waste of public money is ludicrous when according to today's figures we are now booming again at 3% growth. But where is that boom coming from, selling minerals etc overseas and from the continued inflated effect of government spending. whatch out for interest rates ...
Posted by Bert, 2/09/2010 7:38:38 PM
What relevance do the costings of promises that won't ever be upheld have any way? Both sides are full of empty promises, does what they coat matter?
Posted by Fj, 2/09/2010 11:46:22 PM
Erasmus has swallowed the labor govt spin hook line and sinker. What is TRUE is that most economies in the Southern Hemisphere escaped the GFC. It truly was a northern hemisphere disaster that had impact on our economy but not as much as many had expected. Labor got it wrong and in the process blew the bank account. They truly are plunderers when it comes to financial matters.
Posted by morespin, 3/09/2010 9:59:22 AM

post a comment


Screen name  *
Email address  *
Remember me?
Comment  *
 
We invite and encourage our readers to post comments. Comments are moderated and will appear as soon as our editor has approved them. When posting comments you agree to be bound by our Terms and Conditions.
Related Coverage
ARTICLES
02 September, 2010

Most popular articles




The Border Mail







Weather brought to you by:

Weatherzone

Front Page

Current Issue
Privacy Policy | Conditions of Use | Advertising Terms | Copyright © 2012. Fairfax Media.
 SEND...
 SAVE...
 SHARE...