The Coalition: A Plan and few solutions

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It was with some trepidation that I ventured into the Coalition website titled: Real Solutions

According to the 12-points, The Plan (my summary) consists of:

• a stronger, more productive and diverse economy with lower taxes – more jobs, higher real incomes and better services for you and your family.
• Budget back under control, cut waste and start reducing debt – to keep interest rates as low as possible; and to protect the Australian economy from future economic shocks.
• help families get ahead by freeing them from the burdens of the carbon ax – especially rising electricity and gas prices.
• help small businesses grow and create more jobs – by reducing business costs and cutting taxes as well as cutting red and green tape costs by $1 billion every year.
• create stronger jobs growth by building a diverse, world-class 5-Pillar economy which will.. 
• generate one million new jobs over the next five years and two million new jobs within a decade.
• build more modern infrastructure to get things moving – with an emphasis on reducing the bottlenecks on our gridlocked roads and highways.
• We will deliver better services including health services – by putting local communities in charge of hospitals and improving co-operation with the States and Territories.
• We will deliver better education – by putting local communities in charge of improving the performance of local schools.
• We will take direct action to reduce carbon emissions inside Australia, not overseas – and also establish a 15,000-strong Green Army to clean-up the environment.
• We will deliver stronger borders – where the boats are stopped – with tough and proven measures.
• We will deliver strong and stable government that restores accountability – to deliver a better future for all Australians.

Is there anything new here?  Not that I can find.  A condensed version might be:  Stop the Boats, A Green Army, No Carbon Tax, No Mining Tax, to put local communities in charge of health and education and “restoring” accountability. On the latter, given that Mr. Cori Bernardi is chairman of a committee which scrutinises politicians’ declarations, and given Mr. Bernardi’s failure disclose his links to a right wing, pro-tobacco group which is fighting gun controls, that one might need some work.

It appears that not only are the Coalition intending to locate seemingly cyclopean amounts of money for “better services”, plus vastly improved infrastructure (which is to be commended) but also guaranteed are substantial tax cuts to basically anyone who considers that they pay too much tax, i.e. Everyone.  Plus all the while and simultaneously, bestowing on the country a surplus every year for eternity.

The Coalition has reaffirmed its commitment to delivering a budget surplus within its first year of government, despite there being no mention of the promise in a new policy document.

And how are the Coalition going to achieve this?  As per The Plan:  cut waste.  Simple isn’t it..

The figure previously put on this Mr Hockey said he stood by the $52 billion in spending cuts outlined by the Coalition before last year’s election, and dismissed Treasury criticism of its costings.

From an article in Macrobusiness titled Some questions for Joe Hockey :

If Hockey runs a fiscal surplus with falling business investment and a current account deficit, by definition other parts of the private sector must be borrowing to support growth. That either means selling a lot of assets or, more likely, a lot more debt for households, again inconsistent with Hockey’s larger pledge of living within our means.

And,

In short, Joe Hockey has an attractive liberal message that is right for the times. What he lacks (at least so far) is a policy matrix to match. He is basically offering a return to Howard era economic policy, which is for government to save and the private sector dis-save , and he plans financial reform to make it possible.

Today’s National Times leads with the headline:

Coalition sharpens its razor

Details are as always, sparse as to how the Coalition will achieve this, however motherhood statements and trite phrases do abound:

Tony Abbott:  “..but I tell you what … the fiscal position will always be better under the  Coalition because budget surpluses and reducing debt, paying back debt, that’s in our DNA.”

We are also told by an unnamed Liberal MP that we are ”lumbered with unaffordable policies”.  However, to date the only policies which Abbott has promised to axe are the revenue raisers, therefore where savings are to be made remains somewhat of a mystery.

Certainly axing the number of public servants will be greeted with loud applause; a simplistic and somewhat pompous pandering.  But how does one improve the delivery of services by reducing the number of people whose job it is to implement these services?  According to Tony Abbott, sacrosanct is his pet $3 billion paid parental leave scheme, family payments, and defence.  Which begs the question, if Abbott is intending to cut 20,000 public service jobs who will administer these, and where will his “15 thousand strong Green Army” come from?  Would not a Green Army be public servants?

Some clues as to the Coalition’s intended direction comes from previous statements:

Mr Hockey insisted that he supported the NDIS but raised doubts over his committment to delivering the scheme when he said he would not raise ”false hope” by committing to promises a Coalition government could not fund.

Mr Abbott has been critical of the government’s cash payments to families with school children, and yesterday the opposition voted against it in the Lower House.

Joe Hockey declared the “age of entitlement” was coming to an end: Speaking to Lateline, he said that Australia needed to scale back the size of its welfare bill to strengthen the national finances. But he declined to say which benefits would be put on the fiscal chopping block.

Babies are however to escape: Joe Hockey: Trimming Baby Bonus is Like China’s Murderous One Child Policy.