The economy will be the political battleground in 2012, Prime Minster Julia Gillard said today, as she refused to be drawn on questions regarding leadership tensions with Kevin Rudd.
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In an afternoon news conference today, the Prime Minister signalled clashes between the government and opposition on jobs, manufacturing and the carbon tax this year.
"As the parliamentary year starts tomorrow, it will trigger the start of a year-long debate on the Australian economy," Ms Gillard said
The Prime Minister also restated the government's commitment to return the federal budget to surplus in the next financial year.
"We are determined to bring the budget back to surplus in 2012/13, as promised," she said.
Last week both Ms Gillard and Opposition Leader Tony Abbott made big set-piece speeches about their economic outlooks.
Ms Gillard maintained that the Australian economy is in good health, despite global economic turmoil. In his National Press Club address, Mr Abbott argued that the economy was threatened by over-spending and poor administration.
The Prime Minister's economic comments come the day before the Reserve Bank board is due to meet for the first time this year, where it will decide whether or not to cut the cash rate by a further 25 basis points.
Ms Gillard also used today's press conference to announce disaster relief for flood victims in Queensland and northern NSW. Eligible adults will receive $1000 and eligible children will receive $400.
Ms Gillard said the payment was designed as a "quick cash injection" to help people with immediate recovery needs.
Away from the economy, the Prime Minister was in no mood to entertain chatter about a leadership challenge from Foreign Minister Kevin Rudd.
When asked why she had referred to herself as the "Prime Minister" during a television interview with Mike Willesee last night, Ms Gillard was not amused.
"Don't overread it," Ms Gillard replied. "Don't psychoanalyse it, you'd be wasting your time."
When asked if journalists were writing "crap" about the leadership speculation, the Prime Minister said she would have to check what journalists' new year's resolutions were.
Last year, Ms Gillard urged journalists not to "write crap" with respect to the debate on climate change.
The Prime Minister said she dealt with her Foreign Minister frequently, before adding that she would leave the "fevered speculation" to others.
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