It’s not so much the size of government spending that counts - it’s the quality, writes Brian Toohey in Inside Story

FOLLOWING the brief excitement of the global financial crisis, Australian politics is back in a familiar groove. A Labor government is trying to demonstrate its commitment to fiscal discipline by imposing yet another “efficiency dividend” on the public service. The latest example to attract the public limelight was a plan to close the National Archives offices in Adelaide, Hobart and Darwin, saving $1.4 million a year out of annual government spending of around $345 billion. Faced with public opposition, the government last week decided to retain an archival presence in each city, but co-locate them with the offices of similar bodies such as state public records. It isn’t clear how much, if anything, will now be saved.

Meanwhile, the Coalition is lambasting Labor for its alleged addiction to “big spending” and “spiralling debt,” while blocking its attempt to save money by means testing the rebate on private (or, more accurately, semi-private) health insurance. Never mind that John Howard’s Coalition government was no slouch on the spending front (see Treasury’s Economic Round Up, Summer 2008). Likewise, since becoming Coalition leader in December, Tony Abbott has announced over $6 billion in spending initiatives without accompanying funding measures...