The Rudd Labor Government’s $42 Billion stimulus package is a panicked short sighted response to the Global Financial Crisis.
Almost all economists agree that the economic crisis has a long way to go. In
seeking to urgently borrow 42 billion and spend it immediately, on low
quality measures, the Government appears to be panicking, firing all
our ammunition off at once.
This
latest package follows the failure of the first stimulus package of
$10.4 billion (some 1 per cent of GDP) which by all reports was saved
and not spent in spite of Mr Rudd’s urgings to “spend, spend, spend” .
Knowing
that the first stimulus packaged failed to encourage spending, why
would we again resort to the same measures, which have failed to create
jobs or do anything than provide a small increase in spending in select
retail sectors?
Mr
Rudd’s latest package also fails to encourage employment by either
lowering employment costs or reducing regulatory and taxation burdens
on business. In a year where we will see hundreds of thousands of
people join unemployment queues it is unacceptable to not have any
employment measures in a $42 billion package.
Another
concern is that Labor’s legislation seeks the Parliament’s permission
to raise the limit the Government can borrow from $75 billion to $200
billion– debt which would equate to $9,500 for every Australian. I
will not sanction a reckless spending spree that will have severe
consequences for future generations who will be the ones saddled with
this debt and the interest payments that will follow.
I
am also opposing this spending on the basis that there are no long term
infrastructure measures that our North West community so desperately
needs. Labor is willing to borrow billions for short term
politically driven projects like insulating houses but are not willing
to fund key long term infrastructure projects like a North West Rail
line which will have as many, if not more environmental benefits.
I
would appreciate your thoughts on the Labor Governments spending spree
and the Opposition’s stance to stop Australia plunging into a cycle of
debt and deficit.