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May 15, 2009
I watched Malcolm Turnbull's Budget reply address last night whilst cooking dinner. It was a strong presentation or performance in Parliament that was undercut by thin content. He looked a strong leader who had his finger on the pulse of things.
Apart from the tobacco tax proposal, Turnbull confined his comments to previously announced policies including tax relief for small business, an attack on red tape and reform of insolvency law. He also proposed the parliamentary budget office to advise governments and the creation of a Commission for Sustainable Finances to determine responsible spending levels.
Debt debt debt. Deficit deficit deficit. Labor is economically irresponsible was the campaign message for voter land. There was very little about how the Coalition would reduce government expenditure to bring it into line with the large fall in revenue die to the collapse of the boom. Debt debt debt. Only the Coalition had the courage to take the tough decisions, and they up to the task and were ready to take on the job. Bring it on. etc etc etc. The rhetoric remains the same.
What was offered amidst the debt/deficit rhetoric was a proposal to increase in tax on cigarettes as a substitute for removing the government's mean test for the private health insurance rebate. The Coalition was going to stand their ground on private health insurance and oppose it in the Senate. This was done in the name of both individual self-reliance and independence (no mention of the 30% rebate or subsidy of course) and good public health measure to reduce smoking (no mention of the Coalition's entrenched opposition to the alcopops tax of course).
These kind of policy contradictions do not worry the Coalition backbench. They just paper over them with the debt/deficit rhetoric. Nor are they worried that the means test on the private health insurance rebate is reasonable and generous — cutting in for couples at $150,000, and it is only at a combined income of $240,000 that a couple gets nothing by way of a subsidy.
The 'bring it on now' rhetoric---Turnbull is ready to fight an early election over the Coalition's decision to block Labor's plan to cut private health insurance rebates--- is political huff and puff. As Michelle Grattin points out in The Age:
Although it is improbable that Rudd would go to the polls very early, the threat could destabilise the Opposition. It is in the worst of shapes to have to even contemplate fighting an election — without money, without policies and without its leader having built up credibility with the public.This is a shoot-from-the-hip gesture that is badly conceived in both tactics and substance.
No matter. Opposing the means test on private health insurance rebate is a strongly symbolic issue in the Liberal heartland and it gives committed Liberal partisans something to fight for to defend their self-reliance values.
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It was only a year ago the Coalition (under Brendon Nelson) was furiously defending UTE MAN from a tax on his pre-mixed Bundy and coke or a scotch and dry. (Doesn't UTE Man drink beer? Aren't pre-mixed drinks for girls?) Now the Coalition is now proposing to tax UTE MAN cos he smokes cigarettes. Isn't that the heavy handed nanny state denying UTE MAN his pleasures and his choices. Poor UTE MAN. Serfdom is his lot in life.
The Coalition is a comedy show---one of the best on free-to-air television. Hockey is the amiable clown. I just love him doing economic outrage!