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Tony Abbott: voters should have expected my budget's sweeping cuts Tony Abbott: voters should have expected my budget's sweeping cuts
(4 months later)
The prime minister insists voters should have expected the sweeping budget cuts unveiled last week, despite his often repeated pre-election promise that there would be “no cuts to education, no cuts to health, no change to pensions, no change to the GST”.The prime minister insists voters should have expected the sweeping budget cuts unveiled last week, despite his often repeated pre-election promise that there would be “no cuts to education, no cuts to health, no change to pensions, no change to the GST”.
Focusing on a different pre-election mantra, Tony Abbott told the ABC’s Insiders program people had been clearly “on notice” about what was coming.Focusing on a different pre-election mantra, Tony Abbott told the ABC’s Insiders program people had been clearly “on notice” about what was coming.
“You might remember the mantra – it was stop the boats, repeal the carbon tax, build the roads of the 21st century and get the budget back under control,” he said.“You might remember the mantra – it was stop the boats, repeal the carbon tax, build the roads of the 21st century and get the budget back under control,” he said.
“So people, I think, were on notice that we were going to do what was necessary to ensure that we were not being a burden on our children and grandchildren,” he said, and the Coalition had done “precisely” what it had promised.“So people, I think, were on notice that we were going to do what was necessary to ensure that we were not being a burden on our children and grandchildren,” he said, and the Coalition had done “precisely” what it had promised.
But the state premiers, meeting in Sydney on Sunday, insist they did not expect $80bn to be cut from forecast future federal grants for hospitals and schools and are demanding a share of federal income tax to make up the difference.But the state premiers, meeting in Sydney on Sunday, insist they did not expect $80bn to be cut from forecast future federal grants for hospitals and schools and are demanding a share of federal income tax to make up the difference.
Rallies were planned for several capital cities on Sunday by voters angry at unexpected proposed cuts to the real value of pensions and family payments, a new $7 co-payment for visits to the doctor, an extra $5 co-payment for medical scripts, the reintroduction of fuel excise indexation and dramatic changes to deny unemployment benefit to under 30s for six months of the year.Rallies were planned for several capital cities on Sunday by voters angry at unexpected proposed cuts to the real value of pensions and family payments, a new $7 co-payment for visits to the doctor, an extra $5 co-payment for medical scripts, the reintroduction of fuel excise indexation and dramatic changes to deny unemployment benefit to under 30s for six months of the year.
A Galaxy poll for News Ltd papers published on Sunday showed 75% of voters thought the budget left them worse off, but did not record a shift in the standing of the major parties – with Labor leading the Coalition 53% to 47% in two-party-preferred terms. A Galaxy poll for News Ltd papers published on Sunday showed 75% of voters thought the budget left them worse off, but did not record a shift in the standing of the major parties – with Labor leading the Coalition 53% to 47% in two-party-preferred terms.
The poll showed increased support for the Palmer United party.The poll showed increased support for the Palmer United party.
The government appears to be adopting a “two tranche” strategy for legislating the budget, with the appropriation or “supply” bills and the new 2% temporary deficit for those earning more than $180,000 already introduced in the lower house, so these bills, and the reintroduction of fuel indexation, could be pushed through the current Senate.The government appears to be adopting a “two tranche” strategy for legislating the budget, with the appropriation or “supply” bills and the new 2% temporary deficit for those earning more than $180,000 already introduced in the lower house, so these bills, and the reintroduction of fuel indexation, could be pushed through the current Senate.
That would leave time to negotiate over other controversial measures that don’t start for some months with the new Senate, which sits from July.That would leave time to negotiate over other controversial measures that don’t start for some months with the new Senate, which sits from July.
So far, Labor, the Greens and the Palmer United party have said they would block the Medicare co-payment, the changes to the pension and the changes to unemployment benefits for under 30s. Labor is set to back the temporary deficit levy and the Greens had said they would back the reintroduction of fuel excise indexation, although they now say they want the money to go to public transport, not just to roads.So far, Labor, the Greens and the Palmer United party have said they would block the Medicare co-payment, the changes to the pension and the changes to unemployment benefits for under 30s. Labor is set to back the temporary deficit levy and the Greens had said they would back the reintroduction of fuel excise indexation, although they now say they want the money to go to public transport, not just to roads.
Having taken a fairly hardline position on possible Senate roadblocks last week, Abbott on Sunday adopted a softer tone.Having taken a fairly hardline position on possible Senate roadblocks last week, Abbott on Sunday adopted a softer tone.
“I’m confident that the minor parties and the independents in the Senate will understand that we could not go on living the way we were, we could not go on mortgaging the future,” he said.“I’m confident that the minor parties and the independents in the Senate will understand that we could not go on living the way we were, we could not go on mortgaging the future,” he said.
“Now, if they don’t like what we’re putting up, what are they going to put up as an alternative?“Now, if they don’t like what we’re putting up, what are they going to put up as an alternative?
We’re not doing this because we are somehow political sadomasochists. We are doing this because it is absolutely necessary for the long-term welfare of our country.We’re not doing this because we are somehow political sadomasochists. We are doing this because it is absolutely necessary for the long-term welfare of our country.
“Obviously we’re happy to talk about different details with minor parties and independents in the Senate, but they’ve got to accept that we are the government, we were elected to run the country, we’ve got to make tough decisions as well as easy decisions.”“Obviously we’re happy to talk about different details with minor parties and independents in the Senate, but they’ve got to accept that we are the government, we were elected to run the country, we’ve got to make tough decisions as well as easy decisions.”
He said he expected the parliament would run its full term.He said he expected the parliament would run its full term.
“This is precisely what we are doing and I believe we will be able to say to the people at the next election whenever it is – and I expect it in the middle of 2016 – we’ll be able to say to the people, ‘We said this is what we’d do, we’ve carefully, purposefully, methodically done it, now it’s in your hands.’ ”“This is precisely what we are doing and I believe we will be able to say to the people at the next election whenever it is – and I expect it in the middle of 2016 – we’ll be able to say to the people, ‘We said this is what we’d do, we’ve carefully, purposefully, methodically done it, now it’s in your hands.’ ”
And having shocked premiers with the withdrawal of funding, Abbott said there was also time to talk through changes in federal-state responsibilities and revenue raising.And having shocked premiers with the withdrawal of funding, Abbott said there was also time to talk through changes in federal-state responsibilities and revenue raising.
“We're not talking about next week or next month or even next year. We're talking about changes in three years' time.“We're not talking about next week or next month or even next year. We're talking about changes in three years' time.
“We've got an enormous amount of time to sit down and work things out, but what we're not going to do is continue unsustainable spending with borrowed money.”“We've got an enormous amount of time to sit down and work things out, but what we're not going to do is continue unsustainable spending with borrowed money.”
All premiers and chief ministers except Western Australia's Colin Barnett are meeting in Sydney to talk tactics about how to fight the federal government and cope with the funding shortfall.All premiers and chief ministers except Western Australia's Colin Barnett are meeting in Sydney to talk tactics about how to fight the federal government and cope with the funding shortfall.
The Queensland premier, Campbell Newman, is pushing for the states to get a proportion of federal income tax instead.The Queensland premier, Campbell Newman, is pushing for the states to get a proportion of federal income tax instead.
“We believe it's time to reinvent the federation and ensure a long-term funding stream if the states and territories are to take that responsibility,” he said.“We believe it's time to reinvent the federation and ensure a long-term funding stream if the states and territories are to take that responsibility,” he said.
“What we are pushing for is that the income tax that is paid by mums and dads in this state comes back to the mums and dads of this state on a fair, ongoing basis.”“What we are pushing for is that the income tax that is paid by mums and dads in this state comes back to the mums and dads of this state on a fair, ongoing basis.”
Abbott insisted he was not trying to force the states to argue for an increase in the GST, although he did not propose any other way to make up the funding shortfall.Abbott insisted he was not trying to force the states to argue for an increase in the GST, although he did not propose any other way to make up the funding shortfall.
“Let’s wait and see what happens here,” he said. “We’ve got three years and this idea that there is some kind of an emergency because things are going to have to be adjusted in three years’ time is not right, but I’m looking forward to having lots of discussions with the states over coming months and years.”“Let’s wait and see what happens here,” he said. “We’ve got three years and this idea that there is some kind of an emergency because things are going to have to be adjusted in three years’ time is not right, but I’m looking forward to having lots of discussions with the states over coming months and years.”