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Opposition tax tactics 'to hurt' $20b fund

01 Sep, 2008 01:00 AM
A senior Federal Government minister has accused the Opposition of threatening funds set aside for its transport, health and education spending by opposing Government taxation measures in the Senate.

Infrastructure and Transport Minister Anthony Albanese said the $20billion the Government set aside for the Building Australia Fund in the May budget could fall short if the Opposition continued to oppose the passage of key revenue measures.

Last week, the Government got its first taste of the new recalcitrant Senate where it faces having to negotiate with five Greens, one Independent and one Family First senator if the Opposition refuses to support Government bills.

The Opposition and Independent senator Nick Xenophon have already refused to support the 70 per cent increase in the excise on alcopops, effectively killing off the measure which would have raised $3.1billion over five years.

The proposed increase in the Medicare surcharge and the luxury car tax increase are also being opposed by the Coalition, as is the Government's plan to remove the excise exemption on crude oil condensate, which would have raised $2.5billion over four years.

Prime Minister Kevin Rudd pledged last week to take a ''hard line'' on the economic and budget implications of the Opposition's blocking tactics.

Mr Albanese said yesterday the Opposition's actions would hurt the Government's $22billion surplus which is being used for future infrastructure development.

The Government had put $11billion into a fund for education, $10billion into health and $20billion into the Building Australia Fund to fund long-term transport infrastructure projects.

''You can only put funds from a surplus into these long-term infrastructure funds if the surplus remains intact, and the irresponsible position of the Opposition in blocking more than $6billion ... will take money from those funds,'' Mr Albanese said.

''It would appear that we have an Opposition that is determined to wreck the budget and determined to be irresponsible.''

Mr Albanese and the chairman of Infrastructure Australia, Sir Rod Eddington, called yesterday for ideas from the public and business community for national building projects.

Mr Albanese said they would take submissions up to October 15 for ideas for projects on roads, railways, ports, water and energy utilities and telecommunications for possible inclusion on the National Infrastructure Priority List.

''I urge the community to take this opportunity to have their say. After all, the quality of the nation's infrastructure affects the bottom line of all businesses and the quality of life of all citizens,'' he said.

''We are asking people to look beyond their own street or neighbourhood and to put forward ideas and suggestions that will strengthen the national economy.''

Sir Rod said he would issue a discussion paper today to stimulate ideas.

Infrastructure Australia's immediate tasks were to conduct an audit of the nation's transport, energy, communications and water infrastructure, produce a priority list and develop guidelines for public private partnerships.

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