Turning down the economic turbo boost

And the PC found Rudd's 20 per cent renewable energy target (RET) will not achieve any further carbon abatement above the emissions trading scheme but would impose further costs borne by consumers through higher electricity prices.

This combination of policies will lead to a higher NAIRU. This is a sub-optimal result of more inflation, higher interest rates and lower labour utilisation than should be the case.

We are already seeing evidence for the raising of interest rates by the RBA amid a period of continued labour under-utilisation by business.

This is equivalent to turning down our economic turbo boost on medium-term growth.

Treasurer Swan should take note before nearly three decades of hard won gains are lost!