Budget Analysis

I wrote this prior to Nelson delivering the Opposition’s response to the Treasurer’s budget. And ended up posting something not too dis-similar to this post in some aspects. However, this still remains relevant now that Nelson’s response has been given.

After a day of budget analysis and commentary from supposed experts (although the Herald Sun’s Glenn Milne isn’t an expert in my opinion, but then it is the Herald Sun) it seems like most punters have given the budget a kind of thumbs up. Having spent a few hours pouring over the details of the budget papers there are still some glaring holes.

As I said in my initial post about Budget 2008, the devil in the detail of the budget papers have confirmed that the budget contains very little for tackling climate change. The federal government continues to pay lip service to taking real action on climate change when it provides funds to continue research into ‘clean coal’, and ‘cleaner’ energy technologies.

Here’s the problem, there’s no such thing as ‘clean coal’. No matter what you do it, burning a lump of coal produces greenhouse gas emissions. And making ‘cleaner’ energy technologies does nothing to ensure that we’re taking the immediate steps needed to combat climate change. This kind of action will only ensure that we remain ill-prepared for the impacts of positive feedback in the globe’s natural systems. As I mentioned, the fact that the rebate for taking up solar energy will be means-tested may ensure that people remain slow to act on doing things around the home that can mitigate a household’s greenhouse gas emissions. The funding also seems to indicate that the government remains unwilling to introduce regulations required to better manage and enforce initiatives aimed at curbing greenhouse gas emissions.

Predictably the Nelson Opposition wants to vote down tax increases for luxury vehicles, which happen to be the large, suburban all-wheel drives; and some of the worst fuel efficient vehicles, guzzling gas like there is no need to worry about dwindling oil reserves and climate change. However, the Victorian ALP and Liberals conspired to reduce the tax on luxury all-wheel drives last year.

It is also very disappointing being unable to find something about funding for accessible and affordable student-oriented services, especially independent representation and advocacy. This was something that I had at least thought would have been included given the intensity of the activity that Youth Minister, Kate Ellis put into receiving submissions and conducting consultations surrounding the impacts that Howard’s voluntary student unionism had on student organisations; student services; extracurriular activity; and a general reduction in the full university student experience. However, the funding made available for universities is very welcome and much needed.

Rudd’s insistence, however that the Coalition’s promised tax cuts (which the ALP supported to the hilt in the election campaign) be delivered, they have proven they are willing to provide unnecessary pork-barreling. Although these tax cuts would have best served Australia, and all Australians, would have been to put the funds towards education and health, Indigenous health and education, and other existing government initiatives. This would have ensured an even greater level of restraint of that run-away inflation rate.

The response from the Reserve Bank of Australia will be interesting and will be the actual test of how inflationary Swan’s first budget is.

At least Budget 2008 has given Nelson something to focus on, rather than rooting out the rats in the Victorian Liberals, keeping the Seat Sniffer, (and now apparently has questionable relations with quokkas) intact as the Liberal leader in WA, how to reverse his appaling run of polling results and protecting his own back while the likes of Bishop, Turnbull and Abbott are circling.

There have been some rumours that Costello is just holding out, rather than succumb to the terrible choices for a replacement within the Victorian Liberals, and could be waiting out and biding his time.