REPORTER: Acting Treasurer, Lindsay Tanner.
LINDSAY TANNER: Both the OECD and the IMF have said consistently that stimulus through spending is far superior to the alternative advocated by the Liberal Party, namely tax cuts. The position of the Liberal Party on these issues is completely fraudulent. Malcolm Turnbull accepts that borrowing has to occur in order to cover the huge loss of tax revenue caused by the global recession, and he accepts there need to be a stimulus; he just says it should be a little bit smaller than what the Government's doing. So, the vast bulk of the borrowing that is going to be required in order to deal with the global financial crisis and the recession is something the Liberal Party supports.
REPORTER: Mr Tanner says 30 per cent of the Government's latest stimulus package is based around cash payments, but that 70 per cent is earmarked for infrastructure.
LINDSAY TANNER: There's an important place for cash payments, because they get money moving quickly and they help sectors like retail. But the bulk of the Government's stimulus package does relate to building infrastructure; leaving a productive legacy for our nation's future.
REPORTER: And Mr Tanner's confirmed the Government's taking the unusual step of outlining long-term forecasts for the nation's finances in next month's Budget, beyond the usual four years.
LINDSAY TANNER: We certainly intend to idl… illustrate exactly how the later years will unfold based on our projections, and chart a course to returning the Budget to reasonable health. That's something that will be outlined in the Budget. The question of detail of course will not be of the same magnitude as you would get with the four years that immediately face us, because the further away any given year is, the harder it is to give any detailed forecast.
REPORTER: One thing that might end though is the temporary boost to the First Home Owners Grant.
LINDSAY TANNER: It's widely acknowledged that that's been very successful in helping sustain activity in the construction sector and sustain activity in the real estate sector. The question of when that grant returns to normal, of course, is something that will be addressed in the Budget. The position, as stands at the moment, of course, is that it will conclude at 30 June, and therefore the First Home Owners Grant will return to its normal position.
TONY EASTLEY: The Acting Treasurer, Lindsay Tanner, ending that report by Sabra Lane.
- ENDS -
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