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The flood levy - panic and politics do not make for good policy

By Bruce Haigh - posted Monday, 31 January 2011


Urgency has been contrived by Gillard and Swan as a means of railroading the levy. There is no urgency that cannot be met from and by the Treasury. The amount sought by the levy is said to be $1.8 billion over a twelve month period, the government can carry that and a lot more and in any case, it will take eighteen months before any of the levy funds find their way into the Treasury.

The Independents and the Greens should use the opportunity created by Gillard to examine all federal government expenditure and find savings. The opposition will use their examination of federal expenditure as an ideological exercise to recommend axing programs they do not like such as the NBN.

Gillard’s response lacked self confidence; it is unimaginative and weak willed. The Swan /Gillard combination is poor. Swan and Rudd panicked in the face of the GFC and the same paucity of moral fibre, fear and lack of understanding of the electorate has driven this latest financial fiasco.

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Rudd was a dud, Gillard is no better, federal politics is turning us all into losers.

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About the Author

Bruce Haigh is a political commentator and retired diplomat who served in Pakistan and Afghanistan in 1972-73 and 1986-88, and in South Africa from 1976-1979

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