Lets get a few things straightCut disability pensions to pay for floods, says Business Council of Australia
* By staff writers
* From: The Courier-Mail
* February 14, 2011 3:07PM
* 116 comments
HE Business Council of Australia has urged the Government to consider making cuts to the disability pension to pay for flood damage in Queensland and Victoria.
Julia Gillard is pushing for a $1.8 billion levy, but her plan faces fierce opposition.
Although recent polls indicate public support for the levy, MPs and business groups are not convinced and have called for budget cuts to fund the relief effort.
The Business Council president, Graham Bradley, urged the Government to review its budget plans and consider cuts to the disability pensions and foreign aid. Council president Graham Bradley today told ABC radio that spending on disability pensions should be reassessed.
"It is one of the large budget items," he told ABC Radio's AM.
"And if you look at what countries overseas are doing in this regard ... for example in the United Kingdom, they are taking a really hard look to make sure that there aren't people currently incentivised to be on disability pensions who really would be much better off going back to work, even if it is only part-time or less rigorous work.
"We need to be doing everything we can to reduce the incentives, including the tax disincentives for people to go back to work."
The suggestion to cut disability pensions has copped criticism from the welfare sector.
Catholic Social Services Australia executive director Frank Quinlan slammed the suggestion.
“It is a false economy to think you can cut support to people with disabilities to fund flood relief.
“You don’t help people to find work by pushing them further into poverty.
“People actually need the skills, the training and assistance to re-engage in the workforce.
“Employers should encourage workforce participation of people with disabilities by making workplaces more accessible and supportive.”
In its pre-Budget submission released overnight, the BCA has also proposed a Commission of Budget Integrity - to "provide a more critical focus on getting value for money out of spending programs while highlighting fiscal sustainability over the long term".
Mr Bradley said the upcoming Budget "needs to combine short-term spending discipline with a long-term strategy to lift productivity and restore confidence in Government".
Mr Bradley said: "Uneven growth in our economy, uncertainty in the global economy and the need to respond to the recent natural disasters all have major implications for the Budget and require a greater than usual degree of judgment on the part of the Treasurer."
He said the need for fiscal policy to stimulate the economy had passed. The main objective should be to move back into surplus in 2012-13.
But Mr Bradley said tight fiscal policy needed to be combined with measures to boost workforce participation and productivity to complement monetary policy and thus take pressure off interest rates.
"Our submission emphasises the need for Governments to focus on sound long-term financial management."
Mr Bradley said the BCA recognised the prominent role the Federal Government "will need to play in rebuilding efforts in response to the recent floods and cyclone", but said savings rather than levies, even if temporary, should be the first recourse.
"A carefully measured response is needed so as to avoid possible price spikes on materials and labour costs," he said. "A carefully staged response to disaster-related rebuilding (is needed) to avoid the risk of price surges on materials and labour costs, as well as consideration of a new natural disaster fund to assist in the budgeting of future catastrophes."
For the longer term the submission calls for:
Renewed funding and a refreshed mandate for Infrastructure Australia accompanied by a long-term national infrastructure plan to promote productivity and growth in Australia's economy.
A three-pronged strategy to meet Australia's pressing skills needs, including a new enterprise migration program for certain large national investment projects.
A commitment to greater transparency in Budget documentation on the sensitivity of tax revenue to movements in commodity prices to support better fiscal management.
The establishment of a new independent fiscal authority, the Commission of Budget Integrity, to provide additional independent advice on fiscal sustainability.
The time was right to offer greater transparency around spending decisions to reassure the broader community, including business, that taxpayers were getting value for money.
Mr Bradley said that while the Government had committed to establish a Parliamentary Budget Office, the BCA's submission outlined a strong case for going much further.
1. The $ 1.8 billion levy is only 1/3 of the total costs. The other 2/3 have already been made up by cutting other spending.
2. Why should we cut pensions of those who are already struggling? Hey, lets tax the rich dudes instead. Oh I forgot, fuck the poor. And the thing is, a lot of Australians buy into this attitude of not "penalising" the rich. See the mining tax scare campaign.
3. Cutting foreign aid, like the millions going into Indonesian schools is certainly something to look at. I am not saying we should, only that we consider it with accurate facts. These are that the money to Indonesia isn't just because we are nice people ( I am sure some of us are), but its set up to fight Islamic extremists by educating people. Thus there is a cost involved for us to delay funding as the Liberals are proposing, and cutting funding as the Aussie Business Council is.
It seems even some members of the Liberal party realise that this type of policy is pandering to the red neck vote. Liberals pandering to racists, say it ain't so.
3 a. I read comments on a similar article from news.com.au that Indonesia apparently has 10 x the GDP of us.
China, the second largest economy by GDP nominal and PPP doesn't even have 10 x the economy of Australia (by nominal, although it does by PPP). Indonesia's economy is actually smaller than ours by GDP nominal, but bigger by PPP, and definitely nowhere near 10 x our economy no matter how you cut it. I suppose this type of ignorant shit is par for the course for what passes as political discourse in this country. How sad.4. this seems about as funny as when Gerry Harvey, Australian billionaire cried poor and wanted a tax on internet purchases.
