Nationals slam govt`s `spending spree`

The next generation will have to foot the bill for the Rudd government's spending
spree, The Nationals say.
Nationals leader Warren Truss attacked Labor over its $42 billion stimulus package.
Along with the massive spending package, the government announced on Tuesday it
expects the budget to sink into a $22.5 billion deficit in the 2008-09 financial
year, a massive deterioration from the $5.4 billion surplus projected in November.
"It's a spending spree which will all have to be paid for by the next generation ...
by our children and our grandchildren," Mr Truss told parliament.
"I can say one thing to you with absolute confidence: this deficit will last beyond
this government."
Mr Truss said the package was the biggest spend now, pay later program that
Australia had seen.
"Today's cash stimulus is tomorrow's cash drought," he said.
Meanwhile, Opposition Leader Malcolm Turnbull isn't yet indicating whether he
supports the economic stimulus plan.
The government has outlined a wide-ranging spending plan on schools, housing, energy
efficiency measures, infrastructure and small business support designed to protect
90,000 jobs over the next two years.
Speaking in parliament less than three hours after the details were made public, Mr
Turnbull said the coalition wasn't against economic stimulus but wanted to ensure
taxpayer funds were used to the best effect.
"We are not opposed to a proactive and creative approach but we have to use the
taxpayers' money wisely," he said.
"We must not overlook the enormity of what we are seeing today. We are seeing a
budget that is going over the course of nine months from a $22 billion surplus to a
$22 billion deficit.
"We are going to see an additional $111 billion to our national debt as a result of
these measures."
Prime Minister Kevin Rudd wants parliament to pass legislation implementing the
stimulus package by the end of this week so that various bonus payments can start
being paid from March 11.
"This plan will only be effective if it is delivered in a coordinated way against
agreed timeframes," he told parliament.
Mr Rudd requested that state and territory leaders assemble in Canberra on Thursday
for a Council of Australian Governments meeting to agree on details to begin putting
in place elements of the package.
"National coordinators will be appointed to each point of the plan to ensure
delivery," he said.
"The timetables are very ambitious but they are deliverable with political will and
total organisation."
Mr Turnbull indicated the coalition wanted to fully scrutinise the detail of the
measures and was prepared for an extended sitting of parliament to accommodate
debate on the legislation.
"I say this to the prime minister, we are prepared to sit all night, we are prepared
to sit all weekend," he said.
"I propose to the prime minister ... we agree to defer estimates for a week and have
the Senate sit next week and focus on this package, making sure that as best we can
that all members of this house and the Senate work together to ensure that it is the
most effective package."
Trade unions say the federal government's $42 billion stimulus package is the right
plan for difficult circumstances but more needs to be done to protect jobs.
"Australian workers at the moment are feeling pretty insecure and this is a plan to
deal with that insecurity," ACTU secretary Jeff Lawrence told reporters.
But more needed to be done to help employers keep existing staff and retrain them
where necessary.
"This (plan) isn't the end of the discussion," Mr Lawrence said.
"We do expect that there are further initiatives that need to be brought forward to
promote skills development, to ensure (that) when the economy does turn up we don't
have the labour and skills shortages we've had in the past."
Mr Lawrence repeated calls for the government to hold a jobs summit with employers
and unions to examine issues around retraining, skills development, the preservation
of entitlements and flexible working arrangements.
"I call on the government today to commence that work in conjunction with us and the
employers so there can be further measures put in place to help protect job
security," he said.
The union boss also said it was not acceptable to hand businesses tax breaks without
requiring them to look after employees.
Labor's second stimulus package includes $2.7 billion worth of small and general
business tax breaks.
"We need to see policies that deter employers from laying off workers," Mr Lawrence
said.
"It's not good enough to give new tax breaks or taxpayer support to business with no
strings attached."
The federal government's stimulus package does nothing to help those people hardest
hit by the economic downturn, a welfare group says.
Close to nine million families and singles will receive one-off payments under the
$42 billion package.
Those earning $100,000 or less, single-income households, drought-affected farmers
and students will receive payments of up to $950.
The package also includes $6.7 billion for 20,000 social housing units.
The Australian Council of Social Service (ACOSS) says the package will help create
jobs and housing, but does nothing to help those on the lowest income.
ACOSS CEO Clare Martin says the government's package should have increased the
unemployment benefit by $30 a week.
"It is only fair that people who are unable to find work get adequate assistance and
support," she said.
Independent policy think tank The Australia Institute agrees.
Executive director Richard Denniss says while the government is forecasting a rise
in unemployment, the unemployed is the only group to miss out.
"The idea that as a response to rising unemployment that the unemployed should miss
out on assistance seems absurd," he said.
A public health advocacy group says the Rudd government was wrong to overlook health
in its latest stimulus package.
The Australian Healthcare and Hospitals Association said that by ignoring the health
sector in the package the government had missed an opportunity to support one of the
most crucial areas of the economy.
"Health and community services contribute to the overall strength of our economy in
a number of ways and should have been a key focus of this stimulus package," the
association's executive director, Prue Power, said.
"The health sector is one of our nation's largest employers with over 10 per cent of
workers being employed in the area of health and community services.
"With widespread workforce shortages, there is considerable scope to train and
employ health care workers throughout the sector, thus creating new jobs and meeting
existing needs for health care."
Ms Power urged the government to expand Tuesday's package to include an injection of
funds into the health sector, with a particular focus on infrastructure and jobs.