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Costings black hole 'a difference of opinion'

02 Sep, 2010 11:44 AM
Opposition Leader Tony Abbott says Treasury costings showing his election promises were off by between $7 billion and $11 billion are just a matter of a ``difference of opinion''.

Mr Abbott refused to issue his policies for costing by Treasury and Finance during the election campaign, blaming the leak of details of the cost of his proposed paid parental leave scheme.

However, he agreed to requests from the three Independent MPs who will decide who forms government, and let the public service look over his numbers after the election resulted in a hung parliament.

Key independent Tony Windsor has expressed concern about what he described as a black hole.

''We probably understand now why he wasn't interested in releasing the numbers,'' he said.

''One of those things that we have to establish is trust in what they're actually saying.''

Fellow independent Rob Oakeshott has also expressed concern this morning.

The Treasury costings were issued late last night and showed the Coalition's policies would boost the budget bottom line by between $900 million and $4.5 billion, not the $11.5 billion claimed during the campaign.

Treasury also found Labor's promises would improve the bottom line by a slightly better than expected $106 million, not the about $44 million claimed during the campaign.

Mr Abbott said the bottom line from the costings was that the Coalition would still deliver larger surpluses than Labor and is standing by his figures. He said he would deliver $11 billion more in surpluses than Labor.

''Certainly there is absolutely nothing in any of the toing and froing over the last 12 hours or so that compromises our ability to continue to engage in good faith discussions with the independents about forming a stable and competent government for the next three years,'' he said.

He was very happy with the way Treasury and Finance had dealt with his costings.

Opposition treasury spokesman Joe Hockey said about $5 billion of the shortfall - which was not a black hole because it was coming from surpluses, not from deficits - was a matter of a difference of opinion with Treasury.

''We emphatically stand behind our numbers,'' he said.

Finance spokesman Andrew Robb said those differences reflected different data and models, for example, they had used different interest rates to calculate savings.

Mr Abbott said an ''arcane debate about costings'' and what interest rate was used in calculations was not the most important issue in the negotiations with the independents.

The parties' competing economic records were also fundamental to the discussions, and he said Labor's involved waste and mismanagement and debt and deficit, compared with the Coalition's history of responsible economic management and paying off debt.

However, Labor has pointed to strong economic data issued yesterday showing good growth while the rest of the developed world is still recovering from the global financial crisis.

Treasurer Wayne Swan said the Coalition had opposed the stimulus measures that protected the economy, and Treasury's revelations about their costings showed ''just how bad their economic judgment is and how unqualified they are to run the economy''. He accused them of being either deliberately dishonest or incompetent or both.

''They set out to deliberately deceive the Australian people and the verdict is in from the Treasury,'' he told the ABC.

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Date: Newest first | Oldest first
Check the Treasury figures yourself, and then decide who is the better econoc etc. manager. According to the Treasury's own checked and ree-checked figures, the Gillard Labor Government will end up with a credit of $106 million. The Coalition will end up with a credit of $4.6 Billion !! That's a difference favouring the Coalition of $4.4 Billion !!!! So who is now sitting in a Black Hole ?
Posted by geoffm, 2/09/2010 12:29:26 PM, on The Canberra Times
On the issue of "opinion", when I last checked Treasury is the department that will implement the policies of the government. The opinion or rhetoric of a politician is irrelevant. The Coalition will not be executing their policies, Treasury will. Treasury is God when it comes to governance. Please!
Posted by andrew, 2/09/2010 12:57:03 PM, on The Canberra Times
of cause treasury would have a different opinion than the coalition,after all the treasury at the moment still belongs to the labor party
Posted by eggles, 2/09/2010 1:49:41 PM, on The Canberra Times
These "independent" blokes have been given the chance to show the courage of their conviction. The truth is that it won't make one iota of difference. Don't trust an independent who joins a union at the slightest whiff of opportunity. What they care about most is a minimum 3 year income and a generous super package - topped with an opportunity to control others.
Posted by Graham Smith, 2/09/2010 2:32:20 PM, on The Canberra Times
I voted for responsible goverment not smoke and mirrors!
Posted by CrossVoter, 2/09/2010 2:50:13 PM, on The Canberra Times
It's hard to imagine that any Federal political party would try to fudge a Budget outcome to an extent of between $7 and $11billion. And that simply serves to highlight an ongoing problem: there does not appear to be a standard and consistent format of accounting and presentation that all political parties have to follow in respect of their construction and public presentation of a proposed Budget.
Posted by eyespi, 2/09/2010 3:00:38 PM, on The Canberra Times
The independents have had 3 years to make a judgement on the Gillard Government and they should stop wasting their time and taxpayer money and declare who they are going to support. From comments by Windsor and Oakeshott they appear to have more in common with a labor/green coalition then with a Tony Abbott led government. If they are not prepared to support either party they should declare their hand so the nation can return to the polls. They have their 15 minutes of fame and they should now consider the welfare of the nation and make their decision without further delay.
Posted by don campbell, 2/09/2010 3:07:43 PM, on The Canberra Times
It is time for the labor/green coalition to submit all their policies to treasury for costings. This would enable the independents to have a true picture of their impact upon the budget bottom line..
Posted by don campbell, 2/09/2010 3:10:47 PM, on The Canberra Times
[That's a difference favouring the Coalition of $4.4 Billion !!!! So who is now sitting in a Black Hole ? ] Typical Liberal remark!, what in the process have we LOST, National Broadband Network, GP Clinics, computers in schools, a reduction in Company Tax, an increase in superannuation, infrastructure in the mining districts. Liberals have NO brains, they build nothing, and give TAX cuts!.
Posted by colindale, 2/09/2010 4:42:50 PM, on The Canberra Times
Treasury isn't exactly an indepentent source to have any figures costed, nor is Treasury generally accurate with their costings, take a look at the budget which is normally nothing like the actual results because they are mostly nothing more than a complete guesstimate. If they were serious about having proper costings done for all parties, then they should have created a specific body of experts to review them. Given that Labor will break every single promise, their promised cuts and spending mean absolutely nothing. The independents should focus on the 3 years of doing nothing and the fact that the majority of people wanted the current government gone, but the alternative is not quite perfect. On that basis, the independents should be working with the opposition to make the alternative viable, not sitting there thinking about themselves.
Posted by Dave, 2/09/2010 4:50:18 PM, on The Canberra Times
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Tony Abbott says the Coalition still offers economic management. File photo: GLEN MCCURTAYNE
Tony Abbott says the Coalition still offers economic management. File photo: GLEN MCCURTAYNE
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POLL
Q: Do you think the independents should support Labor given the Coalition's costings 'black hole'?

Yes
(54.1%)

No
(45.9%)

Total Votes: 2108
Poll Date: 02 September, 2010

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