Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Disclaimer: The Parliamentary Library does not warrant the accuracy of closed captions. These are derived automatically from the broadcaster's signal.
Sunrise -

View in ParlView

(generated from captions) Can you give us some more? More concessions for public transport?

Christmas has come early
for the Opposition with the Government
dumping its key promise to return the Federal Budget
to surplus. Treasurer Wayne Swan
broke the news yesterday, blaming new figures showing

company tax payments
were $4 billion lower than expected. Obviously,
dramatically lower tax revenue makes it unlikely that there
will be a surplus in 2012-13. The Opposition has slammed the move, saying the Gillard Government is the
most incompetent we have ever had.

And the Opposition Leader,
Tony Abbott, joins me now. Good morning. Tony, you say the move is a failure
of competency and a failure of trust but hasn't the Government actually made an economically
responsible decision?

Kochie, we shouldn't be in this position. This is a Government that has been spending like a drunken sailor. It is not that revenue is too low, spending is too high. Revenue is still 6% higher than last year.But as a percentage of the size of the economy, they are spending less than the Howard Government did, under the Howard Government Reign.Well, you Government Reign.Well, we can argue that toss but one way or another they are spending $ they are spending $1 hill billion a year more now than in 2007 and we have got two new taxes, the carbon tax and the mining tax and 20,000 more regulations. So higher spending, more taxes and more regulation. It is why this mob don't get it when it comes to the economy. How would you cut and get it back into surplus.Well, we wouldn't have put ourselves into this position. Most of all, we wouldn't have made these repeated commitments to get us into surplus and on a fundamental breach of trust, dump it on the eve of Christmas.I think everyone agrees it agrees it was a dum dumb promise to make in the first place, US is bad, Europe is a cot case, the world is nervous. It would have to flow through to our revenues.And Kochie, the basic problem in all of these countries is governments living beyond their means. What we've got in this country is yet another year and years to come, when this government will live beyond its means. That's the basic problem. You cannot spend your way to prosperity. You cannot tax your way to prosperity. But this is a government which is always spending too much and taxing too much.Look, there is a time if surplus during boom times, there are times for deficits when governments should be spending more to keep the economy going otherwise more jobs will be lost and more businesses will go broke. Isn't this the time for the governments to be stimulating economies.The Labor party always thinks it is time to stimulate the economy.But is right now the time?Our terms of trade are still at historic highs. They are still considerably today than at any time during the life of the howards government. If we go back to 2004, 2005.You didn't have the global financial crisis.That was four years ago, Kochie.Yes, when the ALP came in.You can't keep using this excuse.No, but you are comparing it to the Howard Government's Reign which was an incredible purple patch.In 2004, 2005, with unemployment 5 per cent, the government delivered a surplus, despite the terms of trade, 40 per cent lower than this time last year when the government gave 3 per cent of GDP deficit.But Europe was booming, b.i.n. booming, B.i.n. booming, -- China was booming. The business council of Australia says it is good to drop it. The OECD monetary fund praising our economic management in this country. We are an economic miracle, we haven't had a recession since 1990 1.Kochie, it is never a good thing for a government to break fundament promises and this government has broken its two covenants with the Australian public. No carbon tax and no mining tax. You can't trust the mob.But it is a promise that needed to be broken in the circumstances. It to be broken in the circumstances. It is --It is a promise that should have been delivered upon. Because as this government has been saying all along, a surplus means taking the pressure off family budgets, because as long as you are in deficit, you are borrowing more and you are taxing more. That hurts families. They're mortgaging the future to try to give themselves the capacity to win next year's election.But you're saying they should be cutting spending. Cutting spending drags an economy down, pushes up unemployment so Australians will lose their job, and pushes up companies going broke? It never makes sense to waste money. This is a government which has consisted wasted money. Look at the $ consisted wasted money. Look at the $6 billion in border protection blowouts. The $ blowouts. The $1. blowouts. The $1.3 billion more they are going to be spending on higher revugey and humanitarian intake?So cut all that? Cut refugee intakes, border protection spending? The whole lot?We certainly said we wouldn't go ahead with the increase in the up take from 13 thousand are 40,000. But this is a government who said yesterday they rented the premises for the department of clime change for -- climate change for 15 years for God's sake. Why?It is a red herring.--It is a red herring. They are mortgaging our future to try to try to secure their own political future at the next