Don Argus: More Public Debate And Scrutiny Is Needed…
Australian Communities To Re-Assess Coal And Gas Boom
May 17, 2013Journey To Recognition Starts Sunday, Fed Square, Melbourne
May 24, 2013At a closed door discussion in Melbourne yesterday, concern was expressed that our ‘boom’ could be over very quickly.
‘Things Can Deteriorate Quickly’
Don Argus has examined the government’s cashflows which he says is the best analysis of the budget and he finds:
- Interest rates have grown 26% pa over the last five years
- Revenue has grown at 3.6% annualised over five years
- Recurring spending costs have grown at 7%
The comment:
“Things can deteriorate quickly both because of bad luck and bad policy design”.
He says about our political will in regard to spending and taxing policies:
“There is a big difference between borrowing money for infrastructure spending that will benefit our children, and borrowing money to spend on ourselves today with no future benefits.”
Low Level Of Public Debate And Scrutiny
In a speech described as a ‘devastating critique’ concern is expressed over the low level of public debate and scrutiny about large investments such as $5bn increase to Australia’s contribution to the International Monetary Fund quota – which helps bailouts of countries like Greece – and a $2bn yearly contribution to the Clean Energy Finance Corporation for five years from 1 July.
“If a CEO of a corporation produced numbers like that he wouldn’t be there after the second budget..
The community has become accustomed to receiving payments and services from government..
We need political leadership that can clearly explain to the electorate why tough adjustments must be made and they will need courage to implement change.”
Who Is Don Argus?
Don Argus is a former BHP Billtion Chairman, NAB Chief Executive and Co-Chair of the government’s policy transition group on the mining tax.
It is being said that relations between business and the government have continued to deteriorate and that some lobby groups are being less critical of the Coalition in the expectation of a change of government.
The call for a public conversation is coming from several quarters
1 Comment
I would take Dons points with a grain of salt as most of his points in his speech contained factual inaccuracies, some examples include:
Dons speech: National Broadband Network (NBN) – $50 billion but no cost benefit analysis.
Fact: NBN, $37.4 Billion budget, approval by government was based on a cost benefit analysis, expected return is 21.1 Billion within the first 7 years of rollout. (refer to parliament QON website). Further returns are expediential due to high internet conectivty which is seen as a “commerce must” for the future of white collar economies.
Dons speech: Home Insulation Plan (Pink Batts – Failure of government as it was dumped after deaths and injuries.
Fact: Home Insulation Plan (Pink Batts) – Deaths resulted from lack of electricity quality control in Queensland (refer to ANAO report available on their website). No fault of the Federal Government, just that of poor regulation in that state.
Dons speech: Digital set top boxes – Cheaper at Harvey Norman and now going obsolete.
Fact: Digital set-top boxes – Cost was inflated incorrectly by the Australian to $350 each, actual cost is $90-$100. Refer to media release on DBCDE website. Obsolete or not, they work.
Dons speech: Take a “meat axe” to the public service, 24,000 public servants added.
Fact: Defence 3,000 public servant jobs axed during 2011-13, more to come, other departments are reducing their staffing by 1-2% on average. No positions have been added anywhere in the public service.
Dons speech: Defence Family Healthcare Clinics – 12 promised, none delivered.
Fact: Cancelled and not scrapped, due to defence reform program, total budget cuts are 6 billion over 10 years. Refer to DRP homepage.
Dons speech: Using cheap Chinese fabrics for Defence uniforms – Ditched.
Fact: Non-issue, this relates to a subcontractor arrangement by which involvement by the government is inappropriate.
Dons speech: Six Submarines – none operational.
Fact: Not really sure what your point is here, all current Collins Class submarines ARE operational, further number promised by the Rudd government were done so before the GFC. Obviously these have now been cancelled due to the GFC and subsequent Defence Reform Program.
Looks like Don got a lot of basic factual information wrong and if he came to those conclusions stated above on this information, well, I wont bother reading it.