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Chris Bowen argues for 'responsible' cuts as part of budget surplus strategy Chris Bowen argues for 'responsible' cuts as part of budget surplus strategy
(about 2 months later)
Labor says it will deliver its forecast budget surplus, and has attempted to make a virtue of looming spending cuts ahead of the release of a new pre-election economic statement on Thursday or Friday.Labor says it will deliver its forecast budget surplus, and has attempted to make a virtue of looming spending cuts ahead of the release of a new pre-election economic statement on Thursday or Friday.
After a meeting of cabinet’s “razor gang” on Monday morning the treasurer, Chris Bowen, said the government would stick to its budget strategy, which includes returning to surplus by 2016-17. He did not specify whether the figure would be the same as the original May forecast.After a meeting of cabinet’s “razor gang” on Monday morning the treasurer, Chris Bowen, said the government would stick to its budget strategy, which includes returning to surplus by 2016-17. He did not specify whether the figure would be the same as the original May forecast.
Bowen softened the ground for some cuts in the statement, and made a virtue of Labor’s transparency. He conceded that proposing another round of budget cuts so close to an election was politically challenging. But Bowen said governments were not in a position to avoid difficult calls.Bowen softened the ground for some cuts in the statement, and made a virtue of Labor’s transparency. He conceded that proposing another round of budget cuts so close to an election was politically challenging. But Bowen said governments were not in a position to avoid difficult calls.
“If you are returning to surplus, and you have a reduction in revenue, then there are decisions that need to be made responsibly to get to surplus,” Bowen said to ABC News 24 in an interview on Monday afternoon.“If you are returning to surplus, and you have a reduction in revenue, then there are decisions that need to be made responsibly to get to surplus,” Bowen said to ABC News 24 in an interview on Monday afternoon.
The release of the economic statement late this week is tipped to be the final act of significant deck-clearing prior to the calling of the election. The latest speculation in Canberra suggests Kevin Rudd will seek an election on 7 September. The economic update is an attempt by Labor to frame the national economic conversation on favourable terms before the election contest.The release of the economic statement late this week is tipped to be the final act of significant deck-clearing prior to the calling of the election. The latest speculation in Canberra suggests Kevin Rudd will seek an election on 7 September. The economic update is an attempt by Labor to frame the national economic conversation on favourable terms before the election contest.
Labor’s decision to switch leaders ahead of the election has thus far been rewarded by voters in major opinion poll surveys. Another major opinion poll, published on Monday, suggests that Labor’s recent punitive policy shift on asylum seekers has also gone down well with voters.Labor’s decision to switch leaders ahead of the election has thus far been rewarded by voters in major opinion poll surveys. Another major opinion poll, published on Monday, suggests that Labor’s recent punitive policy shift on asylum seekers has also gone down well with voters.
The new Essential Report shows 61% of the sample approve of Labor’s dramatic announcement that all asylum seekers arriving in Australia by boat will be sent to Papua New Guinea for processing, with none to be resettled in Australia.The new Essential Report shows 61% of the sample approve of Labor’s dramatic announcement that all asylum seekers arriving in Australia by boat will be sent to Papua New Guinea for processing, with none to be resettled in Australia.
Opinion polls published over the weekend also indicate that Rudd has pulled ahead of Tony Abbott on the management of boat arrivals, an area of traditional strength for the Coalition. A Galaxy survey shows 40% of voters believe Kevin Rudd is best to handle unauthorised boat arrivals, compared with 38% for Tony Abbott.Opinion polls published over the weekend also indicate that Rudd has pulled ahead of Tony Abbott on the management of boat arrivals, an area of traditional strength for the Coalition. A Galaxy survey shows 40% of voters believe Kevin Rudd is best to handle unauthorised boat arrivals, compared with 38% for Tony Abbott.
Essential’s new numbers on the question of which party has the most effective approach on asylum seekers are Liberal party 26% (down 12% since June) and Labor 25% (up 12%). The biggest result is for “no party” at 28%.Essential’s new numbers on the question of which party has the most effective approach on asylum seekers are Liberal party 26% (down 12% since June) and Labor 25% (up 12%). The biggest result is for “no party” at 28%.
The weekend Galaxy poll has Labor and the Coalition at level-pegging on the two-party preferred measure. Monday’s new Essential survey has Labor on 49% to the Coalition’s 51%.The weekend Galaxy poll has Labor and the Coalition at level-pegging on the two-party preferred measure. Monday’s new Essential survey has Labor on 49% to the Coalition’s 51%.
Former Liberal leader Malcolm Turnbull also continues to be popular with voters. Thirty seven percent of the Essential survey sample (up 7% since April last year) say Turnbull would make the best leader of the Liberal party; 17% (down 6%) prefer Tony Abbott and 10% (down 4%) Joe Hockey.Former Liberal leader Malcolm Turnbull also continues to be popular with voters. Thirty seven percent of the Essential survey sample (up 7% since April last year) say Turnbull would make the best leader of the Liberal party; 17% (down 6%) prefer Tony Abbott and 10% (down 4%) Joe Hockey.
Labor wants to change the conversation this week to the economy. The government is attempting to inoculate itself in advance against the impact of the cuts in the economic update in two ways.Labor wants to change the conversation this week to the economy. The government is attempting to inoculate itself in advance against the impact of the cuts in the economic update in two ways.
It’s signaling the cuts won’t include health or education or essential things for families. And it’s also attempting to make a political case that the Coalition is failing to be transparent about its fiscal intentions.It’s signaling the cuts won’t include health or education or essential things for families. And it’s also attempting to make a political case that the Coalition is failing to be transparent about its fiscal intentions.
Bowen pointed on Monday to the opposition’s recent indications that it will not rely on Treasury forecasts to produce its election costings.Bowen pointed on Monday to the opposition’s recent indications that it will not rely on Treasury forecasts to produce its election costings.
Last week, the shadow treasurer, Joe Hockey said he believed the government had “bullied” the Treasury into providing unreliable forecasts, and so the Coalition would use the resources of the parliamentary budget office and private number crunchers to produce its figures.Last week, the shadow treasurer, Joe Hockey said he believed the government had “bullied” the Treasury into providing unreliable forecasts, and so the Coalition would use the resources of the parliamentary budget office and private number crunchers to produce its figures.
Bowen contended that the Coalition was following this course of action in order to hide its tough decisions from voters. “Are you going to be up-front and open about these tough decisions like we are … or are you going to hide behind some sort of post-election commission of audit and run away from the charter of budget honesty?" the treasurer said on Monday.Bowen contended that the Coalition was following this course of action in order to hide its tough decisions from voters. “Are you going to be up-front and open about these tough decisions like we are … or are you going to hide behind some sort of post-election commission of audit and run away from the charter of budget honesty?" the treasurer said on Monday.
Campaigning in Sydney, the opposition leader, Tony Abbott, countered that Labor was struggling to get its act together on the economy.Campaigning in Sydney, the opposition leader, Tony Abbott, countered that Labor was struggling to get its act together on the economy.
Abbott suggested Labor’s economic statement had been delayed because of internal divisions over whether to ditch the surplus pledge to avoid unpopular cuts. Abbott said the country needed a clear plan to boost Australia’s economic growth.Abbott suggested Labor’s economic statement had been delayed because of internal divisions over whether to ditch the surplus pledge to avoid unpopular cuts. Abbott said the country needed a clear plan to boost Australia’s economic growth.
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