LOL how old are you Wayne?
Do you remember that the NSW government entered into contracts with Private enterprises which made it more expensive to end those contracts than let them run their course?
Are you unaware that if you can control the senate that legislation can be amended or not amended to suit your agenda?
Promises to states in COAG; eg Gonski NDIS etc where signed agreements are made are also methods to lock in expenditure into the future.
Stacking groups with ideological warriors who cannot be removed by government.
The list goes on and on... these are just a few ways to lock in legislation and processes.
IT’S reasonably well known that the Rudd-Gillard government burdened taxpayers for decades to come by locking up in legislation massive unfunded spending. What’s less well recognised is how Labor, in government, also sabotaged the broader economy to benefit the unions.
The common element is Labor’s determination to make itself the natural party of government by entrenching both social spending and union power.
The previous Labor government committed more than $100 billion extra over the next decade to schools and public hospitals. Then there was another $100 billion extra for the National Disability Insurance Scheme.
Some of it was justified and most of it was legislated but none of it was funded.
Bill Shorten feels compelled to oppose the restoration of the Australian Building and Construction Commission, even though it would add at least $5 billion a year in productivity gains, because this is the blood price demanded by the building union in return for the $3 million the CFMEU has given Labor over the past four years. Abolishing a tough cop on the beat for the construction industry was the most obvious product of Labor’s dependence on the union movement, but there were many others.
The Gillard government is planning to lock-in spending on education and disability insurance for ten years in an attempt to protect these reforms from future economic pressures.
Almost $100 billion is expected to be spent across the National Disability Insurance Scheme (NDIS), now known as DisabilityCare, and the Gonski education reforms over this ten year period. This unprecedented move is designed to guarantee the survival of these reforms and to force the hand of Opposition Leader Tony Abbott.
Over time money is often taken from reforms such as these and diverted when governments feel they need the money elsewhere. ‘Locking in’ this funding will help to ease doubt over the long-term success of both DisabilityCare and the education reforms.
Treasurer Wayne Swan explained that this ten-year plan was a test for Mr Abbott. “If he supports DisabilityCare, then he needs to support the responsible saves we’re making to fund it over 10 years – or tell us where he’ll cut.”
Mr Swan will be announcing the Federal Budget this evening, although much has already been leaked to the public. After the Labor Government had to abandon its pledge of a budget surplus just before Christmas last year, it is expected that Mr Swan will be trying to win over those who no longer feel secure about the Labor Government’s economic promises.
As well, to help the unions, the former Labor government stacked the Fair Work Commission with former union officials, passed laws deeming non-unionised contractors to be workers, and made it much easier for unions to enter workplaces to recruit new members. Every one of these changes has imposed additional burdens on businesses and made it harder for them to create jobs.
By starting early and running projects over a longer period of time Australian governments can better plan how they will run. It will also make it possible for future governments to plan around and build from reforms which are already in place, rather than thinking they can start with a clean slate every three years.
What do you think? Is it dangerous tie up Australia’s money by locking in funding for reforms which may be faulty, or is this the bright future of Australian politics?
