The debt truck crunches its gears

10 March 2010The Coalition’s focus on debt could easily backfire, argues Peter Brent in Inside Story

LAST WEEK it was health, this week maternity leave, but the political issue that persists is debt. Many Australians are worried about the amount the federal government is amassing and the Coalition ramps up the concern at every opportunity.

For much of the worry we can thank the previous government, which hammered a simple message after it took government in 1996: Labor left a huge government debt which took many years of discipline and surpluses to pay off. Now Labor has returned to office and deficits and debt are back. It’s a good story, easy to understand and easily related to everyday experience – and until his elevation to shadow finance the Nationals’ Barnaby Joyce was particularly good at telling it.

But debt works both ways. The gift for Tony Abbott and the Coalition is that Kevin Rudd’s instinctive approach to the issue, like his approach to everything else, is to avoid the topic. Or talk about talking about it. Rudd’s tight grip on ministers sees his strange fear of the electorate debilitate the whole government.

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Photo of Barnaby Joyce: AAP Image/ Alan Porritt

Noticeboard

22 March 2012

The Attorney-General's Department has launched a new inquiry to explore the scope for reforming Australian contract law. There will be a three-month consultation period.

07 March 2012

In May 2011 the Federal Government announced that the Australian Charities and Not-for-profits Commission (ACNC) would commence operations from 1 July 2012 and that it would initially be responsible for determining the legal status of groups seeking charitable, public benevolent institution, and other not-for-profit (NFP) benefits on behalf of all Commonwealth agencies. 

07 February 2012
The Productivity Commission has been asked to report within 8 months on Default Superannuation Funds in Modern Awards. The inquiry covers the design of criteria for the selection and ongoing assessment of superannuation funds for nomination as default funds in modern awards.