Labor resorted to a rather unusual tactic in question time yesterday — asking Treasurer Scott Morrison detail about his portfolio, including how much revenue had fallen between the Coalition’s 2014 and 2015 budgets.
Morrison’s response was to criticise Labor for “playing games” — and he got himself into quite a tangle when Chris Bowen asked him if he agreed with Ken Henry that more than half of the budget deterioration was because of falling revenue.
“[Labor] think[s] the way to address the country’s budget challenges is to pull more money out of the pockets of Australian taxpayers, that you need to tax businesses more, that you need to tax the savings of people more,” Morrison railed, perhaps forgetting that under the budget he inherited from Joe Hockey, this year’s tax take will be nearly a full 1% of GDP higher than it was during Labor’s last year in power.
He then went on:
“Those opposite had the best commodity prices of all time. They had the best of all time, but they drove our budget into dire deficit and they put this country into a debt legacy that will take a generation to pay off. The reason they did that is that they always believe that you can spend taxpayers’ money like there is no tomorrow.”
Let’s ignore the financial crisis, as Morrison did, and check out that claim: the iron ore price indeed peaked in February 2011. What was happening fiscally that year? Wayne Swan actually cut spending in real terms by 0.4% — which helped prevent an inflation break out caused by the mining boom — the first cut in real terms since Keating’s “bring home the bacon” budget in 1988. Payments fell by 1.4% of GDP to 24.6%, the biggest fall since Keating’s 1987 budget.
In comparison, how much is the Coalition spending this year? The budget forecasts 25.9% of GDP in payments, or 1.3% higher than 2011, and it will remain above 25% for years to come.
Who’s spending taxpayers’ money like there’s no tomorrow, Scott?
your probably in banana republic territory when the only government spending that has kept us from negative growth is military…
If only our politicians realised that not letting the fact stand in the way of a good story confirmed, at least to an informed mind, that they are unworthy of our trust and confidence.
Well what did you expect? Moralsnone wouldn’t know the first thing about economics judging by the rubbish he keeps spouting to the media.
Not only do we have Turdbull with no change from the rAbbott, but we have Scum who, if it is possible, is even worse than Hockey!
We need to be saved from this mob ASAP. Election now!!
It has been said that there are three orders of lies. Lies, damned lies and statistics.
GDP is driven not only be economic activity but also by government spending. To argue that “falling revenue” is the issue indicates that Bowen thinks that raising revenue – increasing taxes is the way forward. I am pretty sure he does not think this and with Australia’s delicate transition away from the resources led boom, a fool, and maybe a Corbynite, would rush to raise taxes.
So Bowen got Morrison on a slick political point to which Morrison’s answer was quite OK.
When you wrap this little exchange with the vacuous and meaningless statistical mumbo jumbo that follows, as though grand themes of economic philosophy divide the ALP and the Coalition, you look pretty foolish.
And very Green – NSW Green that is
I am waiting for the day when Morrison declares the budget, and treasury generally, to be business-in-confidence matters and refuses to tell us anything.
I have always thought he was the least moral of a ethically challenged cabinet when he was minister for immigration. His attitude towards Australian people is dishonest and demeaning. Hockey was a fool but at least we could see that as he was an open person. I wouldn’t trust a word Morrison says.