A 'sorry' budget - about $3 billion

We’re not even a month into the term of the Rudd’s administration and still there is enormous interest and conjecture on this singular debate that commenced as government policy at the turn of the 19th century and involved forcefully removed mixed race children from their Aboriginal parents.

I firmly believe that Rudd needs to say the word “sorry” as a starting point and then set up a specific pool of money to remunerate those affected for their loss and suffering.

So what is the magical dollar figure that would go a long way to putting closure to this darkest and disturbing chapter in Australia’s history?

The answer is simple - a $3 billion capped budget.

I believe this is achievable and very cost effective and will not cost a single cent of tax payer’s money as I will show.

I also believe the $15+ billion surplus that the frugal Howard government created will be maintained, if not exceeded, every year for the next three years and beyond by the self confessed “economic conservative” Kevin Rudd.

Howard secured this outstanding financial surplus windfall through the GST (10 per cent of all economic transactions) and the large mining boom in Western Australia and Queensland that has fed the insatiable appetite of India and China for our natural resources, especially iron ore and coal. Those two super powers are only in the early stages of their grand economic plan and as such their demand for our natural resources has a lifespan of another decade at the very least.

I recommend the government place $5 billion as an endowment (bequest) fund in a fixed term interest bearing account for a period of six years (capped) for those who identify as being victims of the stolen generation. The $500 million that it would generate (in interest at 10 per cent) each year for the six-year term of this government would be $3 billion (capped) and would be expended within the time frame of this governments term of office.

After that term the government, which Labor should will hopefully hold for two terms, can simply withdraw the $5 billion from the interest bearing account and redistribute the money into another project - preferably an Indigenous specific one.

Under this proposal the government will not lose any tax payer’s money to fund this project - but will simply quarantine a third of its surplus for a fixed time. Remembering of course the following year an additional surplus of $15 billion plus will go into their coffers to adequately address any tightening of the belt that may have occurred as a result of this generous but necessary action to put closure on the stolen generation issue.

If you wish to look for a precedent of funding of a similar cause in Australia - check out the Redress Scheme currently operating in Queensland. The Queensland Government has introduced the Redress Scheme to provide ex gratia payments to people who experienced abuse and neglect as children in Queensland institutions.

Up to $100 million will be available for payments, legal and financial services to applicants and for practical assistance in completing applications.

The Queensland government acknowledged that while neglect and abuse was found to have occurred in some institutions covered by the Forde Inquiry into the Abuse of Children in Queensland institutions, this was not necessarily the case with all institutions.

Rudd should head the words of the famous American cultural anthropologist Margaret Mead who once said; "Never believe that a few caring people can't change the world. For, indeed, that's all who ever have."