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The Forum > Article Comments > Debt and deficit Downunder – a view from Europe > Comments

Debt and deficit Downunder – a view from Europe : Comments

By Alan Austin, published 30/4/2013

Australia's Prime Minister has just delivered a speech similar to that of most of her counterparts across the globe. Though with notably brighter news.

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Slasher, no I am not too arrogant to take criticism. It is quite possible to form different conclusions on a whole matter of issues. Fortunately in a liberal democracy we are free to form our own arguments in accordance to a personal summary of the facts.

But before you bag my scholarship and blame our awful media, even though my argument will be published by a third tertiary institution, take note that the policy destroyed existing businesses as many rogue and new businesses emerged; ignored public service, trade union and business concerns about safety; and wasted hundreds of millions of dollars of taxpayer money.

Given you have a university education, feel free to refute my thesis that the HIP was a policy debacle. However, I expect your summary to be on the wrong side of history. I think the argument that the govt just had to put money out there to offet GDP decline is actually a disgrace for a sophisticated liberal democratic govt. Given the events of the HIP, it may as well just paid out $1400 cash.

At a time when the public role is being questioned by some, I ask you just how do you expect the public to have trust in public institutions when you defend the indefensible. Do you honestly think bagging Aust’s media, which I believe is still quite good when we take account of the electronic and internet components, is a way to win public debate?

The HIP debacle was enough to have me not vote Labor at the federal level for the first time.

But hey, you accuse me of being a poor scholar despite my careful examination of all submissions at the Senate inquiry, and suggest I
was poorly educated through my experience at Monash.

Come on you can do better than that. The HIP was largely the baby of the Labor govt. The debacle, which is largely accepted by most, is therefore its responsibility.
Posted by Chris Lewis, Wednesday, 15 May 2013 8:24:06 AM
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chris. you still have not responded to central premise why does the funding source for pink bats assume responsibility for employers breaking the whs laws, yet no one suggests the funding source for construction loans has responsibility for whs on construction sites, you also sheet home blame to the federal government to bad installations yet the regulation of this activity at the time was solely the responsibility of the state government, is the federal govt to blame for whs incidents on a farm because the farmer gets drought relief?

suggest that you look at the constitution to look at which level of govt is responsible for whs.

the business operators were at fault, is it the govts fault that someone drinks drives and kills someone no it the driver at fault, just as it is the business operator who broke the whs laws
Posted by SLASHER1, Wednesday, 15 May 2013 9:44:00 AM
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AA,

Just in Tasmania alone School halls closed:

Acton Primary School in 2011.
Brooklyn Primary School in 2011.
Upper Burnie Primary School in 2011.

Juliar's own task force investigating the efficiency of the school halls debacle:

The third and final report into the BER, conducted by former investment banker Brad Orgill, has found Victorian and NSW, have not delivered value for money for public schools under the program with public schools charged an average of up to 60 per cent more for school buildings, despite no differences in quality.

The taskforce has found the Victorian and NSW Governments - who delivered more than a third of the BER program - did not provide value for money in delivering projects and had in many cases delivered buildings of poor quality. The report also made it clear that much of the BER money did not start flowing until after the global financial crisis had officially ended.

Mr Orgill heavily criticised the Victorian government’s handing of the scheme saying the state had delivered a “slow roll out” with “systemic quality issues”.
Posted by Shadow Minister, Wednesday, 15 May 2013 10:00:58 AM
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I am sorry, but article indciates that state govts were also pressured by Rudd Govt to accept a hastily arranged HIP.

SM is right, following shows how BER implemented after GFC ended.

Table 3: Number of P21 Programs, BER Expenditure and Interest Rates, 2009/11
Month Number of project started $ spent (000) RBA interest rate (%)
March 09 2-3 - 3.25%
May 09 48 - 3.00%
July 09 900-1,000 - 3.00%
Sept 09 2,000 600 3.00%
Nov 09 4,000 1,300 3.48%
Jan 10 5,700 2,400 3.75%
March 10 7,000 3,600 3.98%
May 10 8,000 5,200 4.48%
July 10 9,000 6,800 4.50%
Sept 10 9,600 8,200 4.50%
Nov 10 10,000 9,500 4.73%
Jan 11 10,100 10,700 4.75%
March 11 10,300 11,500 4.75%
May 11 10,400 12,000 4.75%
Sources: BER (2011, p. 11); RBA
Posted by Chris Lewis, Wednesday, 15 May 2013 11:11:31 AM
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Cont

As for the pink batts, my error was in using your figures which appear to have changed.

Assuming the savings are $250 per household p.a. (up from your previous $200) the total household savings would be $300m p.a. For a $2.5bn project this would yield a 12% return.

This of course ignores the following:

The $2.5bn only covered a portion of the cost of insulating most homes,
The $500m spent fixing shoddy and dangerous work is not included,
the cost of the 185 houses that burnt down are not included.
Up to 90% of household energy prices are in distribution costs, and savings today will be recovered tomorrow with increased prices, (leaving the net tong term savings at closer to $30m p.a.)

Next I get this drivel:

"Only if you look at the rate as a % of the total population. Why not the working age population? And only if you compare “final months” and exclude all other data."

The reason I use the % of total population is because it is the standard benchmark used world wide not some obscure measure that you have cherry picked from a report.

The final months are used precisely because they are the outcomes the government has achieved. If you want to compare the difference between starting and finishing for the coalition ahd Labor governments, the coalition performance looks even better, as each time they have picked up a financial mess and fixed it up, and labor has done precisely the opposite.
Posted by Shadow Minister, Wednesday, 15 May 2013 11:15:45 AM
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chris, did not realise Monash were handing out degrees in basket weaving. why is the funding source (fed govt) responsible for installers breaking the law, the regulators of whs are state governments, if the fed govt funds the construction of a road are they responsible for people speeding? thats right you have drawn conclusion of federal govt blame because others have drawn this conclusion. are you capable of independent critical thought or do you just insert the needle where others have created the hole?
it must be patterned basket weaving courses being run not originally designed basket weaving courses.
Posted by SLASHER1, Wednesday, 15 May 2013 12:21:20 PM
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