Swan Confirms Surplus Claim A Con

Tuesday, 28 August 2012


Wayne Swan confirmed this morning that his wafer-thin, cook the books surplus of $1.5 billion in 2012-13 is a shameless con.

This morning Mr Swan finally admitted iron ore prices are down further than the Government forecast at the time of the Budget:

“If you take the spot market at the moment they are down more than we had forecast.”

(Source: Wayne Swan, Press Conference, 28 August 2012)

Yet only last week Wayne Swan was claiming that reduced commodity prices were already accounted for in the Budget:

“In terms of our budget estimates we have already budgeted for commodity prices to come off.”

(Source: Wayne Swan, Joint interview with The Hon Tanya Plibersek MP Minister for Health, 24 August 2012)

Wayne Swan must immediately come clean with the Australian people about the true state of the Budget.

The Budget bottom line has already been hit by Labor’s $5 billion blowout on border protection since Labor abolished the proven policies of the Howard government. Labor is now spending $2.1 billion establishing Nauru and Manus Island detention facilities.

Labor’s Budget will be further hit because of their multi-billion dollar unfunded commitments in disability services and defence.

Labor has three choices to plug their multi-billion dollar black hole – cut spending, increase debt or raise taxes.

Labor has shown it is incapable of cutting spending. In 2012-13 the Government will be spending around $100 billion a year more than in the last Howard/Costello budget. Over the forward estimates Labor’s spending never returns to the level of spending, as a percentage of GDP, seen in the last year of the Howard/Costello government – that being 23.1% of GDP.

But Labor is addicted to increasing taxes and increasing debt – Labor has introduced or increased 26 new taxes since they came to power, and the national debt is at record levels.

Wayne Swan wants to be known as Surplus Swan, but he will forever be remembered as Wasteful Wayne.