Opposition should back budget: govt

The federal opposition's new leadership has an opportunity to show its economic credibility and help pass the budget intact through the Senate, the government says.

In a two-pronged attacked, Acting Prime Minister Julia Gillard said Opposition Leader Malcolm Turnbull could show he is not an "economic vandal", while Treasurer Wayne Swan said new treasury spokeswoman Julie Bishop could "turn over a new leaf" and support the budget.

But the opposition coalition parties are showing no signs of toeing the line. Ms Gillard said in these uncertain times around the globe the last thing the country could afford was uncertainty around the delivery of the government's budget.

She said the budget was designed to provide a buffer in difficult circumstances, and
was endorsed by the International Monetary Fund (IMF).
"In these uncertain global economic times we need budget certainty, and that's why
the actions of the Liberal party in the Senate is so damaging," Ms Gillard told
parliament.
"It would be damaging in ordinary times, they would be economic vandalism in
ordinary times. But in these times of uncertainty they are the height of
irresponsibility."
The Senate is blocking budget measures worth $6.2 billion during the next four years
- including a tax on alcopops, an increase in the luxury car tax and a tax on fuel
condensate.
"Instead of endorsing this irresponsibility adopted by the Liberal party immediately
after the May budget, (Mr Turnbull) has an opportunity to actually engage in a
responsible economic strategy and make sure the budget can be delivered," she told
parliament.
Mr Swan said the country needed a significant budget surplus and reiterated that
Australia was not immune to the global financial market volatility.
Already concerns over the effectiveness of the US government's proposed $US700
billion bailout of the financial sector sent the wobbles under Wall Street
overnight.
The Australian stock market followed suit, falling almost two per cent and ending
two days of strong gains.
"The new shadow treasurer has a chance to turn over a new leaf, understand the
importance of the surplus in these circumstances and to get her party to change
their tune in the Senate so that we can protect the surplus and have it there as a
buffer against these uncertain conditions," Mr Swan told parliament.
But Ms Bishop said in the current economic circumstances, the last thing economy
needs were tax hikes.
"Apart from being bad policy, which should be enough reason to vote them down, the
government does not need a bigger tax take at present," Ms Bishop told Sky News.
Nationals Senate leader Barnaby Joyce said the government should actually be
spending its $21.7 billion budget surplus to lessen the impact of the global
financial meltdown.
He predicts some home owners will be in for a shock as the values of their
properties decline while others will struggle with big drops in their superannuation
accounts.
"We have a $21 billion surplus sitting out there for infrastructure funds, let's
start nominating exactly where we're going to do it," he told reporters in Canberra.
"Let's start giving the Australian people a prospect of a cash flow into the future."