Campaign Media Release

Campaign Spokesperson Penny Wong

CONFIRMATION OF COALITION CUTS AND THAT ABBOTTS PPL SCHEME IS A DUD The first independent economist to quantify the cost of the Coalition's policies has found a $30 billion hole in its spending announcements and costings so far. Merrill Lynch Chief Economist Saul Eslake also criticised Tony Abbotts Paid Parental Leave scheme saying, we are sceptical of the Coalitions assertions that the scheme will be good for the economy at large. Mr Eslake says the Coalition has so far committed to $28.4 billion of tax cuts and $14.8 billion in new spending in the next four years, a total of $43.25 billion. But he estimates the nine savings measures the Coalition has announced so far would save only $13.44 billion over the same period a gap of $30 billion. He states: On our estimates, (the Coalition) will need to find another $30bn or thereabouts over the four years to 2016-17 in order credibly to claim that it will produce a bottom line no worse than that most recently forecast by the Government. "Given its persistent opposition to attempts to restrain growth in entitlement programs, its commitment to introducing its own big new entitlement program (paid parental leave), its equivocation about the GST, and its general commitment to cutting taxes, it's unclear whether and how a Coalition government would deal with the longer-term challenges confronting Australia's public finances. Mr Eslake calls out the Coalitions claims about their extravagantly generous Paid Parental Leave scheme: We are sceptical of the Coalitions assertions that the scheme will be good for the economy at large We are even more dubious about the Coalitions claims that its scheme will boost productivity Mr Eslake also dismissed the Coalitions scare campaigns on debt:

Australias net public debt is, as a proportion of GDP, relatively low by advanced economy standards. The savings task is even larger, as Mr Eslake takes Tony Abbott at his word that his Paid Parental Leave scheme is fully funded, despite Mr Abbott refusing to release the schemes costings. This all makes it clear that Mr Abbott has hidden cuts in store to pay for policies such as his unfair and expensive Paid Parental Leave scheme. Mr Eslakes $30 billion hole is well short of the $70 billion savings task that Joe Hockey and Andrew Robb have both stated exists in the Coalitions budget more announcements are expected from Tony Abbott before election day that will worsen his bottom line even further. Weve already seen cuts that will hit families with Tony Abbotts promise to rip away the Schoolkids Bonus. Weve already seen cuts that will hit the retirement savings of 8.4 million workers with Tony Abbotts cuts to superannuation. Weve already seen Tony Abbotts promise to cut more than 12,000 jobs. Where will Tony Abbotts hidden cuts come from next? The time has come for Tony Abbott to release the costings he has had done by the Parliamentary Budget Office in full.

MELBOURNE 22 AUGUST 2013