Left Field

Headline: 'Temporary' deficit until 2016

Australian Financial Review, pg 5. David Crowe. 6 May 2009.

Treasurer Wayne Swan has warned that a sharp drop in federal tax revenue will force the government to post deficits for at least six years. Mr Swan, who will deliver a record deficit in next week's federal budget, has challenged Opposition Leader Malcolm Turnbull to outline how he plans to counter the global recession. Mr Turnbull is due to deliver his alternative agenda today. Shadow treasurer Joe Hockey said 'it is by no means inevitable that we need to suffer these huge deficits.'

Headline: Brumby charts road to recovery

Australian Financial Review, pg 1. Matthew Dunckley. 6 May 2009.

Victorian Treasurer John Lenders yesterday unveiled the state’s budget which included a $20 billion investment in infrastructure over the next four years. Mr Lenders forecast a $165 million operating surplus for fiscal 2010, aided by a $3 billion increase in Federal Government funding. However, Mr Lenders also flagged a rise in borrowing to $31.3 billion by 2013. Premier John Brumby described it as the most difficult budget to frame since we have been in office.’ Meanwhile, Standard & Poor's reaffirmed the state's AAA credit rating. Deutsche Bank questioned the government's decision not to use the federal government debt guarantee unless if offered best value. Shadow treasurer Kim Wells said there was something 'seriously wrong' about debt levels. Businesses would be disappointed at the lack of tax relief, according to the Victorian Employers Chamber of Commerce and Industry.

Headline: Labor slides five percentage points over recession: Newspoll

The Australian - online. Matthew Franklin. 5 May 2009.

There has been a five percentage point slide in Labor's primary vote as electors begin to question Kevin Rudd's handling of the global recession. Forty-seven per cent of voters interviewed on the weekend for a Newspoll said the Prime Minister should reduce the size of the 2009 budget deficit by scrapping tax cuts to take effect on July 1.

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Headline: Reshaped tactics put heat on Turnbull

Australian Financial Review, pg 6. Laura Tingle. 5 May 2009.

The Federal Government's amendments to its climate change package have been designed to put political pressure back onto the Federal Opposition and its leader, Malcolm Turnbull. Prime Minister Kevin Rudd's new 25 percent reduction target may be meaningless, but it will force Mr Turnbull to respond.

Headline: Rudd's climate compromise

Australian Financial Review, pg 1. John Breusch. 5 May 2009.

Prime Minister Kevin Rudd yesterday announced sweeping changes to the proposed emissions trading scheme and delayed its commencement until 2011. Business concerns over the impact of the scheme and the impact of the economic crisis were cited by Mr Rudd as the primary reasons behind the decision. But in recognition that the government's greenhouse targets were too weak, Mr Rudd said he was prepared to cut emissions by 25 percent by 2020. Opposition Leader Malcolm Turnbull described Mr Rudd’s move as a humiliating backdown’ and reiterated the coalition was not yet prepared to vote for a scheme. The Minerals Council of Australia said the delay was 'little more than a temporary stay of execution for thousands of mining jobs.' The Business Council of Australia and Australian Industry Group urged the government to finalize the policy this year.

Headline: Budget deficit blows out to $68 billion

Australian Financial Review, pg 1. Laura Tingle and David Crowe . 4 April 2009.

The federal budget deficit has reached $68 billion, according to an analysis based on last week’s briefing by Federal Treasurer Wayne Swan to state treasurers. Mr Swan told the states that the revenue deterioration included a $50 billion write down for 2009-10 and spending decisions made before the February budget update. Mr Swan has warned that the government will be taking unpopular decisions’ in next week’s budget to cover the cost of its commitments. Mr Swan told ABC Television it would be difficult to meet some tax cuts promised by Prime Minister Kevin Rudd during the last election. Opposition leader Malcolm Turnbull has insisted the tax cuts be made. It came as Health Minister Nicola Roxon said the budget would contain $600 million for drugs to treat bowel, breast and kidney cancer. Cancer drugs Avastin and Herceptin, both made by Genentech, and Sutent, made by Pfizer, will be listed on the Government’s pharmaceutical benefits scheme later this year.

Headline: Ministers split over Antarctic ice shelf claims

The Australian- online. Michelle Singer. 29 April 2009.

A split over global warming has emerged in Kevin Rudd's cabinet after it was revealed that a 13-month-old photograph was published this month to support the view that a catastrophic melting of Antarctic ice was imminent.

Federal government sources said Climate Change Minister Penny Wong was disappointed with the way her ministerial colleague, Peter Garrett, weighed into the debate about global warming, claiming sea levels could rise by 6m as a result of melting in Antarctica. Senator Wong yesterday pointedly refused to indicate whether she supported Mr Garrett's view.

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Headline: Budget to forecast weak pre-election growth

Australian Financial Review, pg 1. Laura Tingle. 28 April 2009.

The federal Treasury advised the government to change its forecasting approach in next month’s budget to indicate a faster return to surplus. The budget’s prediction that Australia is faced with tough economic conditions for at least the next two years was shown in a note prepared for Treasurer Wayne Swan by Treasury secretary Ken Henry and sent to state treasurers yesterday. The note outlined changes to the forecasting methodology that involve making official forecasts for the economy in 2010-11 as well as 2009-10, and changing the basis for budget projections of the budget position in 2011-12 and 2012-13. The Government aims to officially predict a recovery in 2010-11, while it forecasts a recession in 2009-10, as it moves towards a 2010 election. The news came as forecaster Access Economics said the budget deficit was expected to blow out to $50 billion in 2009-10 due to a collapse in the tax take from corporate profits.

Headline: Swan detects glimmers in the gloom

Australian Financial Review, pg 5. Tony Walker. 27 April 2009.

Treasurer Wayne Swan said global economies are stabalising but said there remains some risk of further upheaval. His stance matched that of a statement released by the G7 countries following their meeting during the spring session of the International Monetary Fund and World Bank. United States Treasury Secretary Timothy Geithner has adopted a similar stance.

Headline: States agree $32bn boost for transport

Australian Financial Review, pg 1. Annabel Hepworth, Louise Dodspn and Matthew Dunckley. 27 April 2009.

The state and federal governments have signed a $31.7 billion road and rail infrastructure deal, as big business steps up pressure on the Council of Australian Governments to push ahead with critical national reform in education, business regulation and infrastruture development.