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 May 10 2007

BUDGET FAILS THE FUTURE TEST FOR WERRIWA

 Member for Werriwa Chris Hayes said that the 2007 Federal Budget failed the future test when it comes to the electorate of Werriwa. 

Mr Hayes said that while Howard Government MP’s are praising the Budget, saying that there is something in it for everyone and waiting for the real spending to occur during the election campaign period, a closer examination of the Budget documents reveals that it contains little for local residents in terms of investment in the future. 

“The tax cuts for low and middle income earners are welcome and will help take the pressure off local families who are struggling to pay the mortgage and make ends meet after four consecutive interest rate rises since the Prime Minister promised to keep interest rates at record lows, rising grocery prices and rising petrol prices but it won’t do much more. 

“The changes to the Child Care Benefits and Child Care Tax Rebate will also help make it easier to make ends meet but families will still bear the brunt of increases in childcare fees which are regularly four or five times the increase in the cost of living.  

However, it needs to be remembered that the average payment under the Child Care Tax Rebate is only $813 per family per year which is well short of the much publicised $4,000 cap”, Mr Hayes said. 

Mr Hayes said he was disappointed that, apart from a headline grabbing project in Queensland which had already been announced, the Budget papers did not include details of the road and rail projects proposed under AusLink II. 

“The Budget provides no details on whether the $16.8 billion AusLink II, a package dedicated to developing and maintaining the national transport network, includes any money for the widening of the F5 south of Brooks Road despite three major AusLink reports recognising the need for the project. 

“This is something that I have taken up with the Minister already as I am very concerned that the Government will simply use AusLink II to buy votes rather than invest in the links between major population and economic centres and the productive capacity of local businesses. 

“Investment in road and rail infrastructure must be guided by productivity goals not election goals”, he said.

“The Budget also doesn’t contain any initiatives to help increase the number of GPs in outer metropolitan areas like ours and the initiatives on dental care fall well short of the mark and will do nothing for the vast majority of people on the public dental health waiting list”, he said.

 Mr Hayes also expressed some concern about the education initiatives announced by the Government, particularly the removal of the cap on the number of full-fee paying university places.

 “The education endowment fund for is a good start but there is still plenty more to do to improve early childhood education, schools and vocational education and the Government’s position stands in stark contrast to Labor’s Education Revolution”, he said.

 “The Government has not matched Labor’s commitment to universal access to pre-school for all four year olds meaning that Australia will continue to rank dead last in the OECD on investment in early childhood education. There is also very little for schools.

 “I am also concerned that access to university education in the future for the many talented young locals could be reduced now that the cap on the number of full-fee paying degrees has been lifted”, Mr Hayes said.

 “Many degrees already cost upwards of $100,000 and I would hate to see these policy changes result in either HECS or the cost of degrees spiral out of control and access to a university education suffering as a direct result”, he said.

 “The one message I have for local residents about this Budget is don’t believe all that you are told, this Prime Minister has a track record of big promises and little delivery”, Mr Hayes said.

 “Four of the eight big election promises made by the Prime Minister during the 2004 election campaign – promises covering water management, childcare, entrepreneurs and schools infrastructure – have all fallen short of their billion dollar price tags”, he said.

 Mr Hayes said many of the expenditure items detailed in the Budget were not new but merely re-announcements and that the Prime Minister’s election pork-barrelling has not yet begun.

 

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