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Cuts not really cuts, just a redirection of waste....

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NewGolconda	Cuts not really cuts, just a redirection of waste....		Lead	[-]
Posts: 859 05/05/08 14:55:59 Administrator	Tags : None THE Rudd Government is moving to break a key pre-election promise and trim defence spending, opposition spokesman Nick Minchin warned yesterday. A promise to maintain defence spending at an annual minimum growth rate of 3 per cent has evolved into a ceiling, Senator Minchin said. Seizing on a speech by Kevin Rudd to the NSW annual Labor conference on Sunday, Senator Minchin accused the Prime Minister of backtracking on earlier defence spending commitments. "Mr Rudd refused to recommit to maintain defence spending yesterday - he only referred to their 3 per cent commitment," he said. "Labor inherited a defence budget from the Coalition that was growing at greater than 3 per cent in real terms." Mr Rudd yesterday moved to head-off Senator Minchin's attack.Next week's budget would contain measures to end "billions of dollars in defence waste", he said, accusing the Howard government of bungling multi-billion-dollar defence programs. "That's why we are delivering a major defence white paper later in the year, to properly prepare for Australia's 21st-century needs in a significantly changing threat environment ... "Prior to the election, we committed to 3 per cent real increases in defence expenditure out to 2016 and in the budget we'll be honouring that commitment over the forward estimates and beyond," Mr Rudd said.
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jim3au		#1	[url]	[-]
Posts: 649 05/05/08 21:31:30	I wonder how shaky the Federal Government think that the economy is? Forecasts seem to have the economy slowing in the second half of this calendar year and into next year. It has really built up a head of steam. unemployment is the lowest it has been for decades. This is in spite of ten thousand 457 visas a month, 140,000 skilled migrants a year and a number of working tourists and students and an unknown number of illegal immigrants but certainly in the tens of thousands. The participation rate is as good as it has been for quite a few years. As I say, the economy is really churning out jobs so it is a fair bet that GDP growth is as high as it can go, plus a bit. My point is that tax receipts are going to be growing as fast as they are likely to grow. Any slow down is quickly going to be reflected in a deteriorating budgetary position and I do not expect that the Shadow Treasurer is going to saying that it is all the fault of the previous government. It is alright to say that the Labor Government inherited an Defence budget that was growing at three percent and above but they did not inherit a dedicated income stream to cover it. In fact exactly the reverse is what they inherited. Mr Rudd's commitment to keep the three percent real growth is as solid a commitment as could be hoped for at this stage. Whether it is enough on its own to purchase all the ordered equipment is a tough question. If you think that the three percent real growth in the Defence budget is enough, then it means that you trust Brendan Nelson's administration of the Department and the ADF purchasing systems. And I suppose that means trusting the various Australian and overseas contractors' estimates. We will all know more soon when the Budget comes out.
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jim3au		#2	[url]	[-]
Posts: 660 05/13/08 14:23:12	The Australian budget seemed OK for Defence. Defence was not a loser in any way that I could see and the fact that various undertakings were given about maintaining spending into the future seemed pretty positive. being a miserable so-and-so, I would have liked a bigger surplus budgeted for as we still require growth over the next financial year of two and three-quarter percent to make budget. On the other hand, I reckon that we will start the financial year 2008-2009 with an economy growing at a bit under four percent per annum and that means we can afford to have the economy slow to somewhat less than two and three-quarter and still make the budget. Public servants got a 2% efficiency bonus to magic up which basically means sacking or reducing numbers by hundreds per department. Why they get stuck in to the Australian Tax Office is a mystery to me. If they want to raise more tax, and they do, more public servants there is a money earner.
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WarshipAdmin		#3	[url]	[-]
Posts: 461 05/13/08 17:33:41	don't want to be rude but if we didn't manage 2% every year we'd be out of business. taxpayers don't buy computers for public servants so they can spend all day on facebook and wiki, they are supposed to use them to increase their productivity.
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NewGolconda	Lean times	#4	[url]	[-]
Posts: 875 05/14/08 13:37:53 Administrator	Lean times ahead for our armed services Font Size: Decrease Increase Print Page: Print Mark Dodd \| May 15, 2008 DEFENCE faces lean times despite the Rudd Government maintaining its election commitment to boost funding, analysts have warned. Labor has pledged to restore defence spending growth to 3per cent in real terms - a commitment now extended out to 2017-18 - after a more modest rise in the coming year. In 2008-09, delayed defence procurements and substantial underspending by the department resulted in the return of budgeted funds to consolidated revenue, with the allocation to Defence rising just 0.8 per cent in real terms to $22.6 billion. Defence Minister Joel Fitzgibbon said the pledged 3per cent increase in the future should provide for greater certainty in defence planning while helping underpin the Government's implementation of the Defence white paper - a blueprint for the nation's defence future - due later this year. The Australian Strategic Policy Institute's Andrew Davies said the budget heralded an end to the high-spending days of the former Howard government. Mr Davies said it was clear from the budget that Defence was being called on to be more self-reliant although spending would likely be lifted 4per cent in 2009-10 to make up for the modest increase next year. "The real increase was not as large as was promised," he said. Opposition Defence spokesman Nick Minchin said the budget had missed an opportunity to sign up for a fourth $2.4billion air-warfare destroyer
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jim3au		#5	[url]	[-]
Posts: 661 05/14/08 15:24:25	Nick Minchin is right. The Government could have signed up for a fourth air warfare destroyer as easy as easy. Almost nothing would have had to be paid this year or next or the year after, so it has a very modest impact on these budgets. Further, a fourth destroyer is not going to cost a third as much again. It will cost considerably less. It will cost more when it gets operational since then it will be crewed and need to be supplied. As a matter of economic fact, money paid overseas does not add to domestic demand so it does not add to demand inflation. A considerable portion of the funding for the new destroyer, especially in the next few years, would be paid overseas so it is completely non-inflationary. Although the Government has around two hundred and fifty billion coming in and nearly two hundred and thirty billion going out, most people are feeling the pinch. Obviously there must have been some big winners besides families but they are keeping quiet [although the Business Council was cock-a-hoop at the prospects of all the big infrastructure projects]. The losers are being very noisy. The Government might not have wanted a noisy lot of unhappy customers pointing at the Navy. However, it would have been as easy as could be to order a fourth destroyer and economically responsible to boot. Of course it would have been at least as easy to order last year and Nick did not order it then.
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Cuts not really cuts, just a redirection of waste....	05/05/08 14:55:59	NewGolconda
Re: Cuts not really cuts, just a redirection of waste....	05/05/08 21:31:30	jim3au
Re: Cuts not really cuts, just a redirection of waste....	05/13/08 14:23:12	jim3au
Re: Cuts not really cuts, just a redirection of waste....	05/13/08 17:33:41	WarshipAdmin
Lean times	05/14/08 13:37:53	NewGolconda
Re: Cuts not really cuts, just a redirection of waste....	05/14/08 15:24:25	jim3au