Rudd hints at 3rd stimulus in Budget

[Auzgurl]

Rudd hints at 3rd stimulus in Budget
Posted Tue Apr 21, 2009


'We must continue to provide stimulus': Kevin Rudd. (AAP Image: Alan Porritt, file photo)

Audio: Govt says Opposition's recession diversion claim is ridiculous (The World Today) Audio: RBA flags end of interest rate cuts (The World Today) Related Story: Recession is inevitable: Rudd Prime Minister Kevin Rudd has indicated a third economic stimulus package will be announced in next month's federal Budget.

Mr Rudd conceded yesterday Australia will soon slip into recession, and today in Perth he revealed the Government would act soon to cushion the blow.

"We must therefore, through the Budget, continue to provide economic stimulus," he said.

"Because unemployment will go up because of the global recession.

"The bottom line for us all is simply this, we are all in this together."

Mr Rudd says the extra government spending is needed to protect jobs.

"The challenge for framing the budget is to do as much as possible through continued economic stimulus to cushion Australia from the affect of rising unemployment coming off the back of this global recession."

The Federal Opposition has warned the Government against implementing another economic stimulus package.

Opposition Leader Malcolm Turnbull says Mr Rudd's previous two spending packages have not helped to insulate Australia from the effects of the global recession.

"Mr Rudd's spending and borrowing big has failed, his policies have failed, he doesn't have a plan for recovery," he said.

"We have a plan for recovery. Mr Rudd has a big borrowing big spending project which has failed."

Opposition Treasury spokesman Joe Hockey says all the talk of recessions and stimulus packages is designed to distract people from issues Mr Rudd can not control.

"Such as that relating to illegal immigrants," he said.

Mr Hockey says the Government's spending spree will have long-term consequences.

"They are not being fair dinkum with the Australian people about the need in the future for increased taxes," he said.

Mr Rudd is yet to reveal what form a third stimulus package would take.

[mantra.]

This last stimulus package seems to be a crock. Listening to some news this morning - there are people who haven't worked in years that have received it - here and overseas. Payments have also been going into accounts when people have been dead for years. There are others who are entitled to it and haven't received it and there are double ups. Pensioners who have done a few days work, self funded retirees with a health care card have received double payments from the 1st and 2nd stimulus package. There is no accountability and it's just being thrown around willy nilly. One woman I know has 3 children under 16 received a payment for 4 children.

God knows what this third package will reveal. Maybe Rudd is just distributing the proceeds of turning Australia into a public country - a bit like NRMA when they went public and we all got a piece of the pie.

[Ethnic]

The last stimulus package did something but not enough to do what the Rudd government hoped as far as retail is concerned but JM is right the full impact won't be known until the construction projects are up and running. I think the next stimulus package should focus on infrastructure (bridges, roads and public transport), education (improving teacher training and resources in public schools) and cutting the red tape, taxes and bureaucRATic madness for small businesses. These should have been addressed earlier but weren't and that was my main concern. Rudd needs to get this right otherwise it's more short term gain and long term consequences.

[Jovial Monk]

Yeah more infrastructure will be the go incl some renewable energy projects, then there is so much irrigation improvements along the MD to return water to the river, etc etc.

[Jubial Priest]

Are you kidding?

These fuckheads couldn't organise a root in a brothel. The great broadband plan has been in planning since Kruddy got in and they have all of a sudden decided to move the goal posts. What sane businessman would get on board early and start employing people with these tards in charge.

By the time they can make a decision on anything, the opportunity will have passed and typical for a Labor govt we, the taxpayer will be left holding the bag.

The only thing Kevvy knows how to do is throw wads of taxpayer monies at all and sundry because that is his easy fix and his 'seen to be doing something' strategy. Of course conveniently , it is unmeasurable as an economic stimulus.

The country is not only fucked under a Labor govt it is broke, in debt and fucked. All of Leftys bleatings about 'oh once things turns, we will have greater revenues blah fucking blah is bullshit written be an avowed fucking communist selling the country into debt. The 'spend money to make money' slogan only works when you have the correct management who know their limits and clearly Krudd and assoc have no clue.

Name one major infrastructure project that is underway right now that is providing real jobs to real people?

[Hebe]

Leftofcentresalterego on Wed Apr 22, 2009 9:11 pm
Well that's good news.

Mr Rudd's spending and borrowing big has failed

Get your member out of your hand Turnbull. You know that the government is not borrowing big or small, it is issuing fiat.

They are not being fair dinkum with the Australian people about the need in future for increased taxes

You too Joe. You know that's crap. Tax reciepts will automatically begin to rise when the economy begins to recover and the unemployed find jobs (and start paying tax again) and business expands and new ones are created. But this has nothing to do with anyone actually paying higher taxes.

[Jovial Monk]

Doubt it will be a "cash splash" as the previous cash splashes have improved the buying power of those with little discretionary income: the latest Essential Research poll asked people how they would spend the money and saving wasn't that high on the list! (And yes Mantra I am sure the odd dead person got money paid into his account but that would be 0.1% or less tho I am sure shock jocks would make it sound worse than it is.)

If we look at China, they introduced a huge stimulus package, building a huge railway line. Their economic growth slumped. Why? Because it takes ages before the first ingot of steel is rolled into a section of track and the first bulldozer levels the first bit of ground! The cash splashes were needed! And the quick small infrastructure projects are about to start breaking ground.

Plenty of scope for spending! Our infrastructure is crumbling! The MD should have first priority tho! The Adelaide-Melbourne railway line is a disgrace and train speeds have to be limited on that line! And we are a first world country supposedly!

[mantra.]

Yes our infrastructure is crumbling particularly in NSW where we have an influx of nearly 1,000 people per week - mainly immigrants. Howard did nothing apart from the Ghan Rail which was a joint project with the Haliburton Group and meant specifically for transporting uranium waste to the proposed tip and that's why it's in disrepair today. Once the waste tip is realised - it will be maintained again.

As far as dead people go Monk - that was only the tip of the iceberg. It was only supposed to be people who put in a tax return last year, but it seems that some who haven't worked since 2002 have received it and it doesn't matter in what country they currently live now. There's glitches everywhere in our tax system.

I looked into the insulation thing this morning. I was forced to replace my 10 year old metal roof in December due to bad workmanship. I had a roof blanket put on, but was going to get the R3 batts eventually when I could afford it, but you have to pay up front before the Federal Government gives you a refund. This is going to restrict a lot of people who haven't got that sort of cash lying around and it isn't means tested, which means those who can afford it could be the only ones getting it.

[Jovial Monk]

Jesus, only 10yo roof? Hope you are suing the incompetent pricks that put it on?

[mantra.]

I couldn't. Building claims are only good for 7 years and I couldn't find my original contract. The builder disappeared years ago and the local council who approved it said that a third inspection hadn't been done. I had no idea - but this exorbitantly priced roof had better last me for the rest of the life. Thanks Lysaghts - the only steel manufacturer and wholesale supplier in Australia who has no competition and can charge any outrageous price they choose for their supplies.