A big budget, Dutton’s test and cattle call
FEDERAL budget week has arrived with some savings, more spending and several key tests for all sides of politics. BUDGET WILL SAVE TO SPEND TO ONE DAY GROW Clawing back about $21bn in savings in the budget is no small feat, though Labor will spend almost half that to meet its election infrastructure commitments alone.
Add the cost of delivering their childcare policy, cheaper medicines, skills and NBN investments and there’s not really anything left as consolidated revenue.
But the test Labor has set for itself is whether its spending will deliver the productivity dividends it is relying on to help grow the economy.
At the same time, global “headwinds” are contributing to Australia’s slower than expected growth in the short term.
It’s a gloomy picture that illustrates the need for deeper reform beyond shaving grant programs and “productivity” initiatives that won’t be felt for some time.
WOMEN ARE UNTAPPED POTENTIAL
Helping women reach the level of work and hours they want is the fastest way for Australia to meet its skills shortage and fill the huge vacancies in the labour market.
By putting gender at the centre of the federal budget, the government has rightly identified an opportunity to get the economy moving without having to wait for visa applications to be processed or students to graduate.
Flexible and remote work are no longer a novelty of the early Covid pandemic, but now a genuine asset to the economy that women are poised to make the most of if only given the support to do so.
EARLY TEST FOR DUTTON
In a week of budget firsts, it would be remiss not to highlight a major milestone for Opposition Leader Peter Dutton looming. Mr Dutton will step up to the dispatch box in the House of Representatives on Thursday evening to give his first budget reply speech only five months after the Coalition’s election loss.
It’s a stark contrast to Anthony Albanese, who due to pandemic delays, gave his first reply opposition speech in October 2020 – some 17 months into his leadership tenure.
This will be a significant keynote of Mr Dutton’s time as leader, and while it is likely to draw on the attack themes the Coalition have pushed in Question Time – including Labor’s relationship with unions, and concerns about high energy prices – it is also a chance to signal positive ideas.
CATTLE PLEDGE NEEDS MORE THAN HOT AIR
Vowing to reduce methane emissions by 30 per cent this decade is the easy part for the federal government. Now the real work of keeping the nation’s $24bn livestock and dairy industry onside and flourishing begins. Some graziers fear reducing methane emissions by 30 per cent will effectively “cap” the number of cattle and sheep in Australia.
Farmers aren’t traditional Labor constituents, but now the methane pledge is signed, there’s a reasonable expectation that the federal government drives investment in the technology required to get there.