With the budget only a fortnight away, the media is awash with speculation about what is in store for the country.
This week, the Prime Minister finally admitted what many have been saying for many months: the financial cupboard is bare and 'all options are on the table'. This is political speak for ‘new taxes are on the way’.
Despite a healthy 7 per cent rise in tax takings over the past year, the government committed to around a 12 per cent increase in spending. For some inexplicable reason they thought the nation would cough up the extra even when the economy is so clearly struggling. This assumption (which Labor defends as being based on Treasury modelling) clearly brings into question the value and wisdom we are getting from our public service advisers.
If families, business people and members of the Opposition knew that things were tough outside of the rarefied air of the bureaucracy and executive, how did our highly paid specialist advisers sign off on such dodgy modelling? One can only assume that political influence was brought to bear.
If this is true, it makes the credibility of Swan, Gillard and Wong sink to an even lower level than it was. For many months they have been steadfastly assuring the nation that things were on track and a surplus was on the way. When this rhetoric changed, they claimed it was justified because income had fallen short of estimates - the dodgy estimates that they possibly insisted should be used in the first place.
And yet amazingly, these people still want to be taken seriously as credible financial managers.
Click here to keep reading
Senator Cory Bernardi a Senator for South Australia.