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$42b Package Senate Vote On Thursday
The Senate inquiry has prompted submissions from a series of economists, with News.com.au reporting that many raised concerns that the $950 handouts would simply “be blown on pokies and plasma televisions”. Outspoken Reserve Bank Board member Warwick McKibbin feared that the cash payment will only temporarily stimulate demand with no real benefits in the long run. He reiterated his recent remarks that bringing forward tax cuts or a temporary cut to the GST would have the desired effect. This was reiterated in the Herald Sun by Sinclair Davidson, an Economics professor at RMIT, who called for “a GST holiday”. Meanwhile, Richard Evans of the Australian Retailers Association has suggested that the last round of cash handouts were used to pay credit card debt rather than being injected back into the economy. He recommends “a voucher system, redeemable at retail outlets” (News.com.au). With the Federal Opposition certain to oppose the plan, Government attention has turned to convincing the Greens, Family First Senator Steve Fielding, and Independent Nick Xenophon of the virtues of the package. The Age today reports that the Greens “said discussions with the Government remained positive but nothing had been resolved”, however News Ltd media are suggesting that the minor party is less supportive; “The Greens took aim at the fact that people earning more than $80,000 would get a payment saying it seemed like every player wins a prize.” Senator Fielding reportedly met with Treasurer Wayne Swan yesterday and reiterated his push for greater protection for the unemployed. This is particularly topical given that Thursday’s Senate decision is also going to coincide with the release of the latest unemployment figures, expected to rise to 4.5%. Senator Fielding told The Age “The Treasurer was left in no doubt that I am determined to help those productive Australians who, within a year, will be without a job and without government support from this package and who will desperately need a lifeline”. Meanwhile ABC Online reports that Independent Nick Xenophon plans to “fight for the Murray Darling Basin...because if we allow the river system to wither and die, you’ll literally see tens of tens of thousands of jobs being lost…” Malcolm Turnbull has remained steadfast in the Coalition’s opposition to the package, however the opinion polls have not reacted well to this news. The Age reports that Labor has widened its two-party preferred gap from 54% to 58% approval, with only 28% of people believing that the package would be bad for the economy. Continue to visit HelpMeChoose News for further developments on this story in the days to come. www.helpmechoose.com.au Article Directory: http://www.articledashboard.com |
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