Labor’s Budget fails Wide Bay
11th May, 2011
The 2011-12 Gillard Labor Government Budget is a directionless shambles that fails families, businesses and community groups, Federal Member for Wide Bay Warren Truss said today. After delivering the former Coalition Government’s tax cuts in its three previous Budgets, for the first time in eight years no tax cuts are offered in Labor’s latest Budget. Higher taxes plus the new flood tax and mining tax come at a time when rising cost of living pressures are biting.
After warning of a tough Budget, Labor has delivered an old style big taxing, big spending Budget,” Mr Truss said.
The Government is launching a $2 billion assault on families by freezing the indexation of key family tax payments and income thresholds for three years.
Regional Australia has again been short changed by a city centric government that’s cut $500 million in regional funding. New projects in regional areas will depend on the passage of Labor’s new super tax on miners.
There is no new money in this Budget for road or rail projects across Australia.
The new arrangements for taxing company cars will slug small business operators, tradesmen and farmers with increased costs at a time when they’re already doing it tough.
Since coming to power, Labor has employed 24,000 additional public servants. The Government asks the Australian people to tighten their belts, but refuses to do the same itself.
The Budget doubles foreign aid over the forward estimates and allocates an extra $1.7 billion to cover cost blow outs in processing asylum seekers.
“A tough Budget is one that controls spending and invests wisely. In contrast, Labor’s Budget borrows $135 million per day and imposes higher taxes to fund its wasteful spending that will cause extra pain to families and businesses. Higher inflation and bigger Government borrowings will add to pressure on interest rates,” Mr Truss said.
Wayne Swan’s Budget deficit this year has hit an incredible $49.4 billion and the forecast deficit in 2011-12 has blown out by $9.6 billion to $22.6 billion.
Net Government debt has climbed to a record $107 billion in 2011-12 and is forecast to remain above $100 billion across the forward estimates. This amounts to a debt of more than $4,700 for every Australian.
“Interest on the debt means that there will be less to spend on hospitals, roads and the environment in future budgets,” Mr Truss said.
Mr Truss also warned that there would be more pain to come.
“The Gillard Labor Government deliberately excluded details of its planned Carbon Tax from the Budget, rendering many of the Budget forecasts meaningless. To avoid scrutiny, details of the Carbon Tax will only be announced in July when there is a new Senate that will be controlled by Labor and The Greens,” Mr Truss said.
“Labor’s Budget reveals how weak, unstable, and directionless Labor is. Labor clearly lacks the leadership to do what’s right for Australian families and businesses.”
