Rudd's $42billion NationBuilding and Jobs plan

[neddy]

Key points: The spending plan
February 03, 2009 01:05pm

Government's $42 billion Nation Building and Jobs plan is aimed at stimulating the economy and supporting up to 90,000 jobs during the next two years.

Under the economic stimulus package:

FROM March,

families eligible for Family Tax Benefit Part A will receive a $950 Back to School Bonus for each eligible child.

One-off $950 payments will also be made to:

- Around 1.5 million single-income families who receive Family Tax Benefit Part B;

- Farmers and rural-dependent small business owners receiving exceptional circumstances assistance;

- Youth Allowance, Austudy, Abstudy and Education Entry Payment recipients;


FROM April,

- workers earning up to and including $80,000 will get a $950 tax bonus;

- Those earning $80,000 - $90,000 will get $650;

- People earning between $90,000 - $100,000 will receive $300.

The Government will also:

- INSTALL free ceiling insulation in 2.7 million homes;

- CONSTRUCT 20,000 public and social housing dwellings and 802 Defence houses;


- DOUBLE the rebate to landlords who install insulation in rental properties to $1000

- INCREASE the Solar Hot Water Rebate from $1000 to $1600;

- SPEND $850 million on fixing roads, building boom gates for rail crossings and building community infrastructure such as town halls, libraries and sport centres.

Schools will also benefit:

- All 9540 Australian schools will receive up to $200,000 for maintenance and building works;

- Every primary, special and combined Prep - Year 12 school will receive money for large-scale infrastructure such as libraries and multi-purpose halls;

- About 500 new science laboratories and language learning centres will be constructed in high schools.

- Meanwhile, businesses will be eligible for a share of $2.7 billion worth of investment tax breaks.

 

[depeche]

OZ resilience package (part 2)...

 

[neddy]

300,000 jobs to go despite Kevin Rudd's economic stimulus

The Daily Telegraph
February 04, 2009 12:01am

MORE than 300,000 Australians will lose their jobs in the next 18 months if the Rudd Government's latest unemployment forecast is realised.

The Government is tipping the jobless rate to hit 7 per cent next year, taking the number out of work to almost 800,000.

The gloomy figures coincided with Harvey Norman announcing it was closing five of its OFIS stores - four of them in NSW - and rumours that Qantas was on the verge of another round of extensive job cuts, The Daily Telegraph reports.

The fears remain despite Mr Rudd pledging to save at least 90,000 jobs through the Government's stimulus package.

However, some economists believe the Government has drastically underplayed the anticipated job losses.

JP Morgan chief economist Helen Kevens told The Daily Telegraph an unemployment figure of 9 per cent was more likely in 2010, with 7 per cent to be reached before the end of this year.



Under that scenario - last seen under the reign of former Labor PM Paul Keating - the number of Australians out of work would climb to just short of a million.

"In our forecasts, we are going to see a significant slide in local labour market conditions over the next 12 months," Ms Kevens said.

"We are expecting the unemployment rate to double by the end of 2010 ... to just under 9 per cent."

Commonwealth Bank senior economist Michael Workman said a dramatic surge from current unemployment levels of 4.6 per cent to 7 per cent was not unprecedented.

"It's gloomy, but it's quite realistic. Seven per cent is quite feasible," Mr Workman said.

"The shift from the low fours to 7 per cent, that's almost three percentage points and that's in line with what happened in the 1990s recession."

Harvey Norman chairman Gerry Harvey, who hinted last week he would shut up to 10 underperforming stores, highlighted the dire jobs outlook, saying his newly opened OFIS office supply stores were not making money.

"They will be starting to close down now and they will be closed before the end of June," Mr Harvey said and added that some staff would be redeployed.

Meanwhile, Qantas refused to rule out cuts as it prepares today to announce a weakened profit result and plans to raise more capital barely six months after chopping 1500 administration jobs.

The airline's shares were placed in a trading halt yesterday while "capital management initiatives" are finalised.

 

[neddy]

Many Aussies cruising through financial crisis
By Chelsea Mes
NEWS.com.au
February 03, 2009 12:01am

INTEREST rates are tipped to fall to the lowest levels in more than 40 years, but that will make little difference to a large number of Australians who will cruise through the financial crisis.

Experts argue a one percentage point cut – taking rates to 3.25 per cent - is vital today to revive the slowing domestic economy, ravaged by an ever-deepening global recession.

More than 44,000 full-time jobs were lost in December alone, pushing Australia's unemployment rate to 4.5 per cent. That figure is tipped to rise steadily in coming months.

But for a section of workers who are experiencing falling petrol prices, hefty discounts in shops and living costs not rising as quickly as usual, they're wondering what all the fuss is about, says economist Craig James of CommSec.

"For Gen-Y type staff, they are just scratching their heads to work out how the global financial crisis is really impacting them," he says.

Young workers who fit into this category are in a position to come out better than before, Marinis Financial Group's Theo Marinis says.

"Pretty much anyone who can maintain their job and their income," he said.

Mr Marinis said a large percentage of the population were "blissfully unaware" of dire economic predictions for the year ahead.

"Most punters aren't really aware of what's going on, and maybe that's a good thing."

He says a boost to the first home owners grant and the Government's attempts to encourage spending mean more young people have an opportunity to enter the property market.

As part of the stimulus package unveiled late last year, the Federal Government will give you $14,000 to buy your first home and more than $20,000 if the house you're after is newly built.

And that's not including state government help. If you're in Victoria, you could be eligible for another $8000 depending on where and what kind of house you buy.

Mr Marinis says the gloom is never as bad as it's made out to be. Even if unemployment hits 12 per cent, it still means more than 80 per cent of the workforce is employed.

"It's the minority of the population that will get hurt."

A downturn meant less demand for goods and services, which means lower prices across the board.

"Everything is cheaper, if it's not cheaper, it's not going up as fast as it would have."

Mr James says the constant doom and gloom headlines had made people cut back spending, even if they didn’t really need to.

"There not seeing any real impact causing them to cut back - they're being influenced by their environment."

"A lot of people are probably looking at the situation saying if this is what a recession looks like, then we should have more of them."

At least in Australia, unemployed can get help from Centrelink !!!

 

[Satan]

Seems very much that the opposition is not exactly in favor of it.

http://au.news.yahoo.com/a/-/newshome/5300237/rudd-savages-decision-block-stimulus/

Rudd savages decision to block stimulus
ABC - February 4, 2009, 3:14 pm
Related Articles


The Prime Minister has blasted the Opposition's decision to block his $42 billion economic stimulus plan, accusing the Coalition of being "out of touch" with Australian families.

Earlier today Opposition Leader Malcolm Turnbull vowed the Coalition would block the package in the Senate, saying it was too large and that the proposed $12 billion worth of cash payments to families and workers would not be as effective as tax cuts in stimulating the economy.

Mr Turnbull also opposes the $14.7 billion allocated to upgrading school infrastructure, instead advocating just $3 billion to be spent over three years.

During Question Time, Prime Minister Kevin Rudd branded Mr Turnbull's decision to block the package as "rank political expediency".

"What you have embarked upon today is to vote against the biggest building program in every primary school in the nation," he said.

"Either you act and government intervenes to help stabilise financial markets, to help increase growth, to help support jobs and to help families deal with the consequences or you vacate the field as recommended by the Liberal Party.

"This Liberal Party is out of touch with mums' and dads' basic needs right across the country."

Families, Housing and Community Services Minister Jenny Macklin has also accused Mr Turnbull of threatening jobs by blocking the payments to families of up to $950.

"He doesn't care about the millions of jobs under threat if families don't get these tax bonuses and payments," she said.

"Every time an Australian parent loses their job the Opposition Leader will need to answer to those parents about why it is that he's opposing this nation building and jobs plan."

Ms Macklin also says that today's retail figures which show that sales for December were 3.8 per cent higher than November proves the Government's first stimulus package worked.

"The figures don't lie - the economic strategy payments in December did their job and [Mr Turnbull] should make sure he supports the Government's actions," she said.

But Mr Turnbull has accused the Government of panicking in rushing to have the six bills needed to implement the package passed by tomorrow.

"The Government is looking increasingly like a frightened soldier who fires off all his ammunition in a panic in the first minutes of an engagement," he said.

Mr Turnbull says Mr Rudd is "vain" and "arrogant" for not negotiating with the Opposition over the package.

"He is not prepared to do any more to his political opponents than hold a gun to their head and say, 'stand and deliver and you've got two days to do it'," he said.

Mr Turnbull did not rule out supporting further stimulus measures if required but wants the 2010 scheduled tax cuts brought forward instead of cash handouts to low and middle-income earners.

The Government wants to pass the legislation by the end of the week in order to deliver the payments by March but will now have to rely on the Greens, Independent Senator Nick Xenophon and Family First Senator Steve Fielding.

However the Greens have signalled they will push for the laws to be debated into next week and Senators Xenophon and Fielding are both arguing a Senate inquiry is needed to scrutinise the legislation.

 

[neddy]

Seems very much that the opposition is not exactly in favor of it.

http://au.news.yahoo.com/a/-/newshome/5300237/rudd-savages-decision-block-stimulus/

Rudd savages decision to block stimulus
ABC - February 4, 2009, 3:14 pm
Related Articles


The Prime Minister has blasted the Opposition's decision to block his $42 billion economic stimulus plan, accusing the Coalition of being "out of touch" with Australian families.

No dramas. This is democracy at work.

Let them trash out the details in parliament. I am interested to know Malcolm Turnbull's reasons as well. He used to be a banker and is a millionnaire.
(OK, Kevin Rudd also mllionnaire)

I just hope the more they argue, the better the package becomes.

It will be interesting to see how many opposition members support their leader, Malcolm Turnbull.

 

[neddy]

Just checking ... any idea how many points before Aussie Prick can lock me out of this forum. Maybe I can take a holiday when that happens.

My Infractions: 2/9 (23)

 

[Satan]

Just checking ... any idea how many points before Aussie Prick can lock me out of this forum. Maybe I can take a holiday when that happens.

My Infractions: 2/9 (23)

No idea. Guess you have given him as well as the PAP regime sleepless nights. But I'm sure you have sufficeint points to give him back the infractions.

 

[neddy]

No idea. Guess you have given him as well as the PAP regime sleepless nights. But I'm sure you have sufficeint points to give him back the infractions.

No need to. I am not a bully or a dictator, and there are better ways of dealing with him.

Thanks for replying, anyway.

 

[imperialarms]

all pretty useless, without US recovery u can pump trillions and its useless

 

[neddy]

all pretty useless, without US recovery u can pump trillions and its useless

That will take 5 to 10 years. Meanwhile, Rudd will out voted out of office for not doing anyway.

 

[Satan]

all pretty useless, without US recovery u can pump trillions and its useless

Unfortunately, that's what the Yankees have made all of you believe. Just look at the G7 nations, they are all countries with debts. I wouldn't be suprised if they were to get China as one of the G7. If that happens, the Yankees could just go back home and sleep.

 

[Satan]

That will take 5 to 10 years. Meanwhile, Rudd will out voted out of office for not doing anyway.

The Rudd government takes care of the working class at the expense of the rich class and though people might like hand out packages, the rich and the business men might not be very happy. The Howard government on the other hand supported the rich class and that was where investments and the economy grew and there were more opportunites for the hard working guys and it was just too bad for the lazy guys. So which one is better? Hmmmm.... looking at countries like the US, UK and China, I wonder.

 

[neddy]

Unfortunately, that's what the Yankees have made all of you believe. Just look at the G7 nations, they are all countries with debts. I wouldn't be suprised if they were to get China as one of the G7. If that happens, the Yankees could just go back home and sleep.

Obama is praying that China will continue to buy US treasury bonds, but China need the money to help 20 million jobless Chinese.

The US economy has not reach rock bottom yet. They have to be nice to China.

Recently, everyone seems to be asking China for help, esp the worst hit economy, UK. The UK govt is in danger of defaulting on their bonds.

 

[IWC2006]

all pretty useless, without US recovery u can pump trillions and its useless

Pump trillions from where - taxpayers money? reserve? Look, most countries are not convinced with US recovering anytime soon with its failed banking system and millions losing their jobs, they had to do something and not waiting for the falling star to be shining anytime soon.

 

[imperialarms]

Unfortunately, that's what the Yankees have made all of you believe. Just look at the G7 nations, they are all countries with debts. I wouldn't be suprised if they were to get China as one of the G7. If that happens, the Yankees could just go back home and sleep.

at this date there is no way that China can stop buying US treasuries despite some misguided opinions of some nutters out there, the chinese govt simply needs to continue to buy up US treasuries to maintain the RMB peg, where else are they gonna put their USD? some pple say they will dump them, but dump them and CHina's economy which is export driven will be completely fucked, rmb/USd rate will go to 4to1! . they tried to buy up some indon banks for exmaple paying in USD, but that acccounts for very little of it, they have no choice but to pump it back into the USA.

much has been talked abt china and japan's holding of US treasuries, but whats the bigger picture?foreign holdings only account for 25% of all US debt. most of it is held by the federal reserve as dictated by monetary policy, mutual funds pension funds liek calpers are HUGE holders. as long as the USd is the de facto reserve currency, they can simply print money and buy up their own debt. everything commodity of significance is denominated in USd, OIL, sugar, corn wheat, everything!

not accounting for the US consumer, the USA is still a nation of vast natural resources. Australia produces wheat? but usa is still by far the largest producer of wheat, not only wheat, but corn soybeans the entire midwest is the bread basket of the world!
as for oil, they cant drill on the continental shelfs and alaska because of environemntal concerns, but if they lift that and congress is debating this right now, recoverable oil reserves is 100 billion over barrels, same as iran!
china is the largest producer of coal int he world, but who has the largest reserves by far? they have not even begun to tap it because there is no need for that...yet.

i could go on and on, but it is not the new world for nothing.

the only way for china to overtake usa, is for chinese consumption to rise so high as to absorb all its manufactured goods and for the usd to lose its reserve currency, but that wont happen in the immediate future.

 

[imperialarms]

Obama is praying that China will continue to buy US treasury bonds, but China need the money to help 20 million jobless Chinese.

The US economy has not reach rock bottom yet. They have to be nice to China.

Recently, everyone seems to be asking China for help, esp the worst hit economy, UK. The UK govt is in danger of defaulting on their bonds.

the UK is fucked because unlike the USA the pound has no significance, and besides the North sea oil which will run out very soon, the Uk has virtually no resources to speak of unless u count football hooligans!

 

[neddy]

The Rudd government takes care of the working class at the expense of the rich class and though people might like hand out packages, the rich and the business men might not be very happy. The Howard government on the other hand supported the rich class and that was where investments and the economy grew and there were more opportunites for the hard working guys and it was just too bad for the lazy guys. So which one is better? Hmmmm.... looking at countries like the US, UK and China, I wonder.

The government spent 15 hours overnight debating about this stimulus package. It was passed by the Lower House this morning.

At least, the government ministers are doing their job.

 

[neddy]

This is an example of a real opposition MP doing his job.


A debt burden to shame Keating
By Malcolm Turnbull
The Daily Telegraph
February 05, 2009 12:01am

EVERY time I meet a school group visiting Parliament House, I tell them how every MP and senator is working hard to make Australia a better place for them to grow up. As of today, there is nobody who can look those children straight in the eye to tell them their economic future is secure.

Not when the Rudd Government's latest $42 billion spending package includes provision to borrow up to $200 billion - that is, a total of $9500 for every man, woman and child in Australia.

It is important we understand exactly what Mr Rudd is threatening here: the single biggest spending binge since the Whitlam years, and a debt burden that would put the Keating Government to shame.

And it is a package that doesn't do enough to protect and create jobs, support small business and strengthen the economy.

When in government, we in the Coalition delivered 2.2 million jobs. This was the result of rigorous, well-crafted policies to create one of the strongest, most successful and prosperous economies in the world.

We sought to remove financial burdens from coming generations, and we did so. We recognised that every billion dollars spent, every billion dollars of extra debt incurred, would have to be repaid by our children.

So, from 1996, we paid off $96 billion of Labor debt. This was hard work, involving tough decisions.

Mr Rudd has made not one hard decision since coming to office. He has wanted to be Santa Claus - everybody gets a prize.

The problem with everybody getting a prize today is that our children will be carrying a very heavy penalty in the years to come.

This is why we will vote against this package. That is why we do not support a further round of cash handouts.

We know this will not be popular. But it is the right thing to do. Somebody has to stand up for future generations, and not cruel their chances in life by weighing them down with staggering levels of debt.

We in the Coalition do not reject the need for a stimulus at this time. But our judgement is that $42 billion is too much right now.

The Government is looking increasingly like a frightened soldier who fires off all his ammunition in a panic in the first minutes of a battle. This downturn may be very long lasting. We cannot afford to spend so much all at once.

We need to keep a few shots in the locker.

A more appropriate stimulus would be in the order of between $15 billion and $20 billion dollars. As part of that, we would support the bringing forward of the July 1 tax cuts to January 1 this year.

Our plan would benefit all taxpayers, most significantly those on low and middle incomes. It is very well targeted.

It would not put $950 in everybody's pocket today. But it would increase permanent income and create greater incentive to work and to invest, providing a bigger economic boost than public spending.

We have said again and again that we are prepared to sit down and discuss with the Prime Minister the range of responses to deal with the economic challenges we face. All of our offers have been rejected.

For my part, I am committed to ensuring every dollar is spent wisely. Most Australians will know in their hearts nothing comes for free and that, one day, somebody has to pay.

 

[depeche]

This situation shows that OZ government is willing to be in financial debt to "favour" the local aussie...whereas the SG government would always wanted to have huge reserve and "humtan" the local sgpean...so which country would you like to be in during these crisis?