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ABC News Breakfast -

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(generated from captions) Given these global forecasts we

are now seeing. And while

world leaders meet in London

for the G-20 talks , this

week's domestic economic

indicators have been a little

gloomy. The Federal opposition

says weakening retail sales

figures and the Reserve Bank's

comments about likely recession

show it sustained criticism of

the government's stimulus

package has been on the mark.

Shadow Treasurer Joe Hockey

join join us from Melbourne.

Good morning. We have got this

acknowledgment from the fed

Treasurer that unemployment

will be higher. Is the

government responsible for

that? , the question is why is

it going to be worse than what

it because their industrial they projected or forecast. Is

relations changes have now

passed through the part. Is it

Emmissions Trading Scheme that now because they have an

is going to unquestionably cost Australians their jobs? It is

one thing for the government to

say that unemployment is going

to get worse. It is another

for them to actually explain

why and what they are going to

do about it. So it looks like

the government's going to

embark on another stimulus

package. Should it?

Government has already spent

too much money and it has been

spent unwisely. It has been

poorly targeted. Unfortunately

spending $3 billion on pink

batts isn't going to say

Australia from recession.

Unfortunately spending $14

billion on school halls is not

recession. And unfortunately going to save Australia from

giving $22 billion out in cash

handouts is certainly not going

to save us from recession. The

fact of the matter is, with

their spend, spend, spend

policies they created a flash

flood and that flash flood has

not solved the problem of

drought. Australians can look

back at this moment and say

"this is precisely when the

Rudd Government let loose and

got it all wrong". You are

continuing to say that but

economists keep telling us that

what the government has done

has cushioned the impact, that

it has worked. Well, Joe

chemist economists will give

you every justification so long

as it satisfies one of the

economic theories and the

fundamental point is the world

got into this problem because

the world spent too much money.

It borrowed too much money and

it spent too much money. Now

we see governments doing it

interesting what's happened at again and it is quite

the G-20 at the moment. As you

can see, Europeans are saying

to the Americans, British and

you Australians "do not keep spending money, you are

spending too much money" and

the Americans and Europeans and

English and British are trying

to blame everyone else for the

global breakdown. It is quite

an absurd situation. Europeans

want more regulation and the Anglo-Saxons community want

more spending. So the

Australian Government should

not be embarking on this extra

round of stimulus that we have

heard reported in the papers

this morning? Well this is - bear in mind this extra

stimulus they are talking about

is in addition, in addition to a massive amount of infrastructure spending that is

coming down the pipeline. So I

ask the question, when is the

Rudd Government going to stop

spending borrowed money? When

is it going to start focusing

on getting the fundamental s of

the Australian economy right

and preserving job? What do you

say it should stop? It should

be wise about the way it spends

money. It should not be - the government... So it should

spend money but it should be

limited to how much? Well, we said for example in relation to

the $42 billion package we said

it should be $15 billion to $20

billion. Quite clearly as the

OECD reported two nights ago stated, Australia is second only to the United States in

the amount of money that it is

spending on the global downturn

and that doesn't take into

account that monetary policy

has eased faster in Australia

and more aggressively than

almost any ore country. So

when you put all those things

together the fundamental fact

is this government has spent

more money than almost anyone

else and it is not working and

Australians will have it pay

this debt. We have got the

jobs network announcement

today. It is expected hundreds

of people will lose their jobs

as a result of that

announcement. Do you - y the

system needs - do you deny the

system needs an overhaul Yes, I

do, I say to you Joe the

government has obviously got

this wrong. The fact is a

poorly performing minister

yesterday could not explain the

changes to the job network and

how ironic it is on the same

day that the Treasurer is

saying unemployment is going

town crease, that the - going

to increase the major network

provided by government to

create jobs, to get people into

work is itself going to find

many of its membersen employed.

The irony is deep in this. The

government has botched a tender

on the job network. They have

botched the tender, the have

got it wrofng and - wrong and

those people meant to help the

unemploy ed will be unemployed today, The tender shouldn't

have gone ahead? The tender

should be cancelled. There

should be an independent

examination of the entire Job

Network tender and the existing operations, the operators in the Job Network should be

allowed to get on with the job,

with helping those people who

are going to unfortunately be unemployed over the next 12

months. Finally this morning

we have got report Fairfax is

reporting that Joel Fitzgibbon

had a third trip paid for by

Helen Liu, back before he was a

politician in 1993. Should

that have any bearing on his

future? It just illustrating a

pattern of - ill illustrates a pattern of behaviour in

relation to this matter. The

bottom line is there are a lot

answered about the of questions that need to be

relationship. It is a fact that the Minister for Defence

has not disclosed a

privately-funded trip to the parliament. In fact two

privately-funded trips when he

was shadow Minister for

Defence. These are very

serious issues. We will be

pursuing this issue when

parliament returns. OK Joe

Hockey in Melbourne thanks very much for talking to us this