Today’s tiny 0.1% fall in the unemployment rate to 6.1% can’t mask the stiff economic challenges facing the federal government as the global commodities rout worsens — with copper the latest to plunge overnight following oil, coal and iron ore.
The jobs shake-out in the resources industry, underway since 2012, has a way to go yet, and hopes that Australia’s $200 billion investment in new LNG production would pick up where the coal and iron ore miners left off have been shaken by the oil price crash. Projects are already being shelved amid write-downs and stricken share prices.
Fears for the economic outlook were underlined today with ANZ economist Warren Hogan following Westpac and tipping the RBA to cut rates by 0.5% by June this year, although other pundits point out cheaper petrol could spur growth and reduce the need for rate relief. It wasn’t long ago we were talking about possible rate rises in 2015.
Although the most recent economic growth figures surprised on the upside — coming in at an annualised rate of 2.7% to December — it was a year of two halves and, as The Australian pointed out today, Tony Abbott’s hopes of creating a million jobs in his first five years are increasingly out of reach.
Only the lower Australian dollar is a source of confidence for exporters and manufacturers. With its budget strategy in tatters — made worse by the Medicare rebate cuts abandoned today after another policy backflip — the Abbott government has already gotten off to a bad start in 2015.
Some of the earlier changes by Labor which helped the Australian Economy were supported by the Coalition. Might a similar cooperation be helpful now?
The current circumstances prove how right the previous govt was to try and impose the MRRT and how with a charge for Carbon renewable energy would have been a growth sector
The previous Govt faced a high AUD, high oil prices and the GFC and managed it well. Not my opinion only but that of independent non-partisan experts.
Abbott nows has a falling AUD and collapsing oil prices. Both these facts should be huge positives for growth and manufactured exports yet all we hear is Abbotts bleating about his budget failures.
Abbott continues to peddle the lie about “repairing the budget” No repair is needed but there are challenges.
Rather than addressing the issues he says the opposition should provide the answers. A demonstration on how large a failure he is as PM.
Well here’s some suggestions
Start by have socially just policies. It is better for the economy and the fabric of society.
Try some sound policy ( for example the $20 GP fee is bad policy without even going into the inequity of it)
Address the billions of Superannuation rorts going on
Eliminate the 50% discount for Capital Gains
There is some work that can be done regarding Negative Gearing impact on Tax revenues.
And don’t for that huge tax break he gave to the large corporates almost immediately on election.
None of this is like as Abbott is to busy sucking up to the big end of town.
If he brought down a fair budget then I am confident that it would pass easily despite it being Abbott himself who said that the job of opposition was to say no and actd accordingly. LNP apparent support of the previous govt legislation was only because it was going to pass anyway and they were otherwise irrelevant and gave some seeming defence against their negativism. The current opposition is far more ethical , honest and competent
Norman,
Would be like the support the then Opposition gave for Australia chairing the UN Security Council?
A move that has enabled Bishop to strut her stuff on the world stage although she was the most scornful of critics?
It would have been nice if she had had the decency to now acknowledge both the error of her ways and the achievement of the previous Govt. Be a good way of starting to repair the partisanship and excess of division that her leader has created
And remember the effect on employment of the closure of the car industry is yet to be felt
Pav, I wrote repeatedly on how the Australian Car Industry could have been helped, and I’m well aware of the effects of its closure. I can’t agree the bribes we offered to win the Security Council position were beneficial. I can’t see any evidence you understand what a “fair” Budget means.
If ever you write something deserving of praise, I’ll be rushing to give it.