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Thursday, 04 December 2008

Crisis means budget must pass: Gillard

5/10/2008 12:45:00 PM.  | 
Deputy prime minister Julia Gillard has stepped up her attack on the federal opposition for not passing some budget measures, as the global financial meltdown takes hold.

"We have to get our budget bills through, the last thing we can afford in uncertain global times is uncertainty at home about the delivery of the government's budget," Ms Gillard told the Nine Network.

She said the government had created a buffer against future uncertainty with a $22 billion surplus in this year's budget, but the opposition was threatening this.

"What of course is the short term problem for the surplus is the attitude that the Liberal party has taken in the senate to delivering the budget legislation," she said.

The opposition has opposed some key budget measures such as a hike in the tax on luxury cars, and helped knock back proposed changes to the Medicare surcharge levy.

Setting aside $20 billion for infrastructure is due to be debated in parliament soon. The opposition has some concerns about the fund.

Ms Gillard went on the attack on Sunday.

"One would wonder why anybody would be opposed to infrastructure development in this country .. but apparently the Liberal party is," she said.

Ms Gillard said the government would be "very tough" on waste and mismanagement in next year's budget. Some savings had already been found, she said.

Ms Gillard added the government would not fast-track any increase to the aged pension, which the opposition is promoting.

The government's review of the pension and other welfare measures should be allowed to run its course, Ms Gillard said.

The government, she said, was committed to getting any changes to the pension right.

Ms Gillard also said the government would continue to tell the truth on rates, even if it resulted in unpopularity.

"We're prepared to take a poll hit to do the right thing," Ms Gillard told the Nine Network.

The Reserve Bank of Australia will meet this week to decide on official interest rates.

Ms Gillard said the government wanted to see Australians benefit from an official interest rate cut, but she stopped short of saying the banks should pass on any cut in full.

"We also know these are difficult times around the world, we want to make sure that our banking sector stays strong," she said.

"A lot has changed in global credit markets in the last few weeks."

The opposition says the banks are profitable and can afford to pass on any rate cut in full.

Ms Gillard attacked this stance.

"We're going to act in the national interest, no cheap politics for us, we'll leave that to Malcolm Turnbull," she said.

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