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ABC News Breakfast -

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(generated from captions) with that additional

funding. The bulk of initial

funding will go on TV

drama. Rafael Epstein

time there. The Opposition wasted no

time in attacking last time in attacking last night's

Federal Budget,Joe Hockey

Opposition spokesman joins us

from Canberra. from

What were you hoping to see

last night, did you want to see

a tougher Budget for difficult

times? I want to see a plan for

recoverying something giving us

hope that a Government that is

delivering the biggest Budget delivering the biggest

deficit in modern history, that

is delivering the biggest debt

in our history as a nation - I in our history as a nation -

would have hoped they'd have

had a plan to get us back on

track, to create jobs, there

was nothing there. It was

regrettable. I mean, but, you

know, this is the way Labor

does it. Well according to

Treasury forecasts the recovery

is coming and will come

strongly, we are looking at a

downturn for the next period

and a half and then a very

strong bounce back, indeed, to

above trend recovery

levels. Well, it seems to be a

heroic assumption, both the heroic assumption, both the IMF

and the Reserve Bank which the

Treasurer until last night Treasurer until last night was

always fond of quoting both of

them said it will be a slow

recovery in the case of the RBA

they said from a they said from a recession that

is less severe than 1990, so

they've sort of got the Budget

the wrong way around. They've

spent too much money, they've

spent it unwisely, they claim

that it's the worst that it's the worst recession

since the Great Depression whereabouts, in fact last

Friday the Reserve Bank said it

will not be as severe for

Australia as 1990, yet they

have ambitious jump have ambitious jump out, such

an ambitious jump out that

no-one agrees with them. You

believe the bolts will be shot

as Ros puts it in as Ros puts it in the Sydney

Morning Herald by the time the

recovery comes around. We have

said as an Opposition you have

to have petrol in the tank,

what is clear is that this

Government has not only spent

all the proceeds of the last

mining boom, they are next mortgaging the proceeds of the

next boom, and the fundamental

point here, and it's so

incredibly annoying, of the 188

billion of net debt that billion of net debt that this

Government is accruing in the

Budget, 124 billion comes from

new spending announcements made

by Kevin Rudd since the last

election. So it is a big

spending Budget, in fact spending Budget, in fact the

biggest ever, it is a big, big

debt Budget, and 1 million

Australians will be

unemployed. You said last night

they failed to lay down a path

to invigorate the Australian

economy. Tell me how you would

do that. We wouldn't spend

out there. The interesting recklessly, the cash slashes

thing... Don't tell me what you

wouldn't do, tell me what you wouldn't do, tell me what you

would. I tell you what we would

do, a lot of money hasn't gone

out the door or been spent. The

cash splashes have gone out the

door, they are roughly

equivalent to the

infrastructure spending in the

Budget. Isn't that interesting,

$22 billion passed out obvious

the next few months, $22

billion over four years, the

cornerstone of the Budget last

night. We wouldn't go ahead

with the $3 billion with the $3 billion in pink

bats, or spend 14 billion on

school halls, it's just too

much money. We would always

focus on infrastructure that's

very important as we did very important as we did when

we were in Government, but

importantly you have to grow

the pie, focus on small

business, focus on growing the

fi creating jobs, giving -

growing the pie, creating jobs, giving small business to continue to employ continue to employ people.

There's none of that in the

Budget. It sounds on two key

points like you are in

agreement with the Government.

The focus on infrastructure,

which your critics say wasn't

there during 'The Howard

Years', leaving that to one -

we have heard the arguments and

heard you saying that you heard you saying that you did,

so we'll leave those words

there. No, no, no, The second

agreement, the song thing which

business you agree is the focus on small

business and there's been tax incentives for small business to pull through the downturn. Dealing with the

first suggestion first, under

the Howard Government,

infrastructure increased

spending across the nation from

3% of GDP to 5.3% of GDP which

doubled over 11 years of

Government. There was a Government. There was a massive

increase in expenditure whilst increase in expenditure

we were in Government. The good

news was a lot was funded by

the private sector and didn't the private sector and

have to be funded by the public

sector. The second thing is -

the second question you

had. Clearly you agree with the

Government on supporting small

business to us. Sorry, yes. To

invigorate the Australian

economy because there's been

tax incentives for small

business announced by Wayne Swan. The

Swan. The interesting thing is

in the midyear economic statements the Government

committed to this rebate for

small business at 30%, they

allocated a sum of money, in

the Budget papers it's revealed

it wasn't taken up. They have

increased it from 30% to 50%

for small business. The

problem is they haven't got the

money to buy this equipment.

problem The problem is cash flow, the

problem is they are trying to

keep staff on board whilst

they've got diminishing they've got diminishing income,

and then the Government gives

an incentive to buy a new piece

of equipment, obviously important, where does that

leave the small business, they

won't have the money to take

advantage of this. Joe Hockey,

what strengths, real strengths

do you see in the Australian

economy now. Well, the fundamental strength is our economy now. Well, the

people. The fact that we as a

nation can get through this,

the fact that we went into this

downturn in far better shape

than almost any other country,

we went in with no Government

debt, 4% unemployment, and a

Budget surplus, 18 months later

what has happened? Well, the

surplus has been blown, the

Government is now inheriting or Government is now inheriting or

creating the biggest debt in

living memory, and we are down

a path of endless deficits. The

problem is we don't have a plan

for recovery, it's a problem.

Ultimately all the assumptions

in the Beijing are based in the Beijing are based on

Kevin Rudd not making - Budget

are based on Kevin Rudd not

making one single new policy announcement between now and 2017. No-one believes 2017. No-one believes he won't

do that. Will the Coalition let

the Budget pass the

Senate. We'll be reasonable. Define reasonable. Define reasonable

for us. We are shocked at the

size of the deficit, at the

size of the debt. The total

savings measures in this Budget

represent just 1% of total

outlays, if the Labor Party

spins the line that this is a

tough Budget, you have to have a laugh. a laugh. Total savings measures

are about 1% of all the are about 1% of all the money

they are spending. Will you let

it pass or not? We'll look at

the details and be reasonable,

more reasonable than they were

with us. I'm going to take that

as a yes should I then. No, I'm

saying we'll be very, very

reasonable. Bear in mind, last

time the Labor Party was in,

it's interesting, last it's interesting, last time they were they were in, they opposed us

on tax reform, on Budget

surplus, getting the Budget

into surplus and industrial

relations. They opposed us on

operatisation, even when we had

mandates to do all of those

things. Now they demand that we

support them on initiatives

that they never took to the

Australian people, they are

breaking last year's promises,

and making new promises about things from things from paid maternity

leave to the next election in