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More evidence of economic mismanagement



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Peter Reith

MORE EVIDENCE OF ECONOMIC MISMANAGEMENT

The latest budget estim ates for the 1990-91 financial year that were released today provide further graphic evidence of the Hawke Government's economic mismanagement.

The preliminary budget outcom e of $1.8 billion dollars for 1990-91 issued by the new Treasurer, John Kerin, and the Finance Minister, Ralph Willis, m eans that the Government m ade a $6 billion error of judgem ent in its last budget.

It m eans that the Commonwealth surplus falls miles short of offsetting the effect of State borrowings on financial markets, and m eans that public sector borrowings are a significant drain on national dom estic savings.

The blowout in total public sector borrowings is the worst fiscal result since the time of the Whitlam Government.

It is the last thing a foreign-debt ridden country can afford.

The $8 billion surplus the former Treasurer, Mr Keating, promised for Australia h a s b een whittled down to $1.8 billion by the Hawke Government's deliberately engineered recession.

This incom petence h as robbed the Hawke Government of all economic credibility.

If the accountant at the local football club ended up with a balance sheet like this he'd be thrown out on his ear.

It is particularly disturbing to notice that Mr Keating's successor, John Kerin, is now admitting the "starting point* for the 1991-92 budget deficit is no longer $4 billion a s we were told only a few short w eeks ago, but $5 billion.

This prediction is the strongest indication of how severe the current recession is. It indicates the extent to which the revenue b a se of the budget h as collapsed a s people lose their jobs and

businesses go bankrupt.

In one year, the Hawke Government has m anaged to turn a predicted surplus of $8 billion into a predicted deficit of $5 billion.

The Prime Minister prom ised a much needed surplus of $8 billion which would help deal with Australia's serious foreign d eb t problem, but he delivered th e m ost painful recession Australians have experienced since the Great Depression.

5 July 1991 Gold Coast

Contact: David Turnbull (06) 2774277 D91/91