Govt pressures Abbott to detail savings

The federal government is confident it has killed off the coalition's debt and
deficit scare campaign and is now trying to lay a trap for Tony Abbott when he gives
his budget-in-reply speech.
Labor is demanding the coalition explain how it would fund its election promises,
putting pressure on Mr Abbott to provide details of planned savings in his speech on
Thursday.
Prime Minister Kevin Rudd and Treasurer Wayne Swan blitzed the media on Wednesday to
sell their third budget - a document short on giveaways but which promises an early
return to surplus and a halving of debt.
"The key thing that I believe in is responsible economic management," Mr Rudd told
ABC radio.
The government will use the budget to lay claim to the title of the safest pair of
hands for the Australian economy - a key battleground for the forthcoming election.
It has resisted the temptation of a pre-election spendathon and is promising to keep
spending capped at two per cent until the surplus reaches one per cent of gross
domestic product.
The budget appears to be a much-needed circuit-breaker for a government that's taken
a recent hammering in the opinion polls but Mr Rudd wouldn't speculate on whether it
would provide a bounce.
"How people judge that and assess that politically will be a matter for them," he said.
Aside from giving Labor economic authority, the relatively well-received budget
effectively neutralises a major part of the coalition's attack on the government.
"The infamous debt and deficit scare campaign is dead," Finance Minister Lindsay
Tanner told parliament.
"The opposition has a single financial strategy ... block, blame and bluster."
The coalition plans to block a central element of the budget - a 40 per cent tax on
mining super profits.
Mr Tanner challenged Mr Abbott to explain how he'd fund his policies.
"(Mr Abbott) has a big test on Thursday night. That is to come up with some detail,
to come up with some specific, costed savings," he said.
Mr Abbott promises his spending will be fully funded but won't say whether those
details will be revealed on Thursday night.
As for the government's promises, he is sceptical of Mr Rudd's renewed embrace of
fiscal conservatism.
"(The government is) asking us to believe that it can change its nature from Paris
Hilton to Uncle Scrooge, and that's the problem with this budget. I just don't think
it's believable," he told ABC radio.
Mr Abbott remained suspicious of Labor's promises of fiscal prudence.
"Why does the prime minister only become an economic conservative at election time?"
he asked during question time.
His other main criticism is that the projected economic rebound is built on the
mining tax, a claim rejected by Mr Swan.
"This budget completely depends upon a great big new tax on mining. All of the
government's figuring depends upon this great big new tax and high growth.
"The danger is that the new tax will strangle the growth that it's depending on."
The government maintains it will push ahead with the tax, which was condemned by the
boss of mining giant Rio Tinto.
Rio Tinto chief Tom Albanese told an American conference the tax was a risk to
future Australian investment.
"I've already asked our managers to re-evaluate all new capital projects under
worst-case tax scenario," he said.
"Anything that reduces competitiveness and increases country risk will undoubtedly
affect that country's investment."



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