Posted by: peterhact | May 3, 2012

The Budget must be in surplus. We all have too much debt. Companies are closing…

The doom and gloom of the news today made me wonder whether we actually were shielded from the GFC, or was it really a delay till it hit. The government has announced cuts in spending and the removal of projects in defence. It has also announced the creation of a whitepaper into defence. It has also told us that we need the budget to be in surplus. Let’s not forget that the way to make a budget surplus is to cut budgets, spending and, when no-one is looking, staff.

How will the government create a surplus?

Here are my ideas as to what will happen. I don’t have “inside information, or a link to someone who can influence decisions,” these are all of my opinion.

1. very old public servants will be retired. <- Saving.

2. projects that have never actually been acted upon will be cancelled. <-Saving.

3. reviews, reports and whitepapers will be commissioned to find savings. <- what?

4. people who are new in the public service, or who can be replaced by a junior person in the role, or the role can be abolished, or the department can be merged, or its portfolio pruned will be. <- you would think its a saving, but it isn’t. It is right now, it isn’t later on.

5. Those pesky consultants and contractors will be let go. <- replaced by no-one with the skills required to do the job efficiently.

6. The Carbon tax and the Mining Tax will come in. <- the tax benefits will be cancelled.

7. Welfare will be cut. <- here it comes….

8. The medicare rebate will be cut. <- nearly there…

9. all ICT spend across government will be reduced. <- ah…

10. the market will be constrained, out of panel purchases will be closed off, the departments will tighten their belts. <- and where do the hundreds of companies get the revenue to sustain their business?

The carbon tax is like the grim reaper for business. trucking companies are already getting into difficulty. One closed today. Ask yourself this: Which organisation is solely responsible for the current deadlines that put trucking companies into difficulty? I will give you a hint, they are a public sector organisation.

Give up?

It is the federal government.

So here is what I think will happen. Trucking companies will tell the government that the deadlines cannot be met. freight movement will be constricted, so as to allow safety to be above deadlines. The carbon tax will take a chunk out of all diesel using industry (which includes organisations using generators), power from coal stations, in fact any power that is derived from fossil fuels. Profits will slide and where are we headed? recession. History repeats and the government gets thrown out.

The Government announced that we will be researching new submarines. It also announced that the fighter jet purchases will be delayed. After pillaging the defence spend, we are told that the people out in the field in defence won’t be affected. yes, they will.

Every department that has a project that the ministry can deem unnecessary will be cut. why not just cut the super payments for ministers, make them drive their own cars, catch domestic flights, eat in canteen areas instead of dining rooms, and really scrimp and save like the rest of the country?

All of the reports that are being produced, all of the reviews and whitepapers about departments, when is the last time the examination was trained on the ministers themselves?

I am told that the PM earns far less than a CEO of a private enterprise firm, that they could be making more money in the private sector, so how about we run the government like a private enterprise? travel allowances, meals allowances, expenses, frivolous purchases being denied by finance or the treasury, purchases that are not for the benefit of the company by staff on trips being paid for by those staff members, not on expenses?

At the end of the day, the government ministers gain free accommodation, meals, travel, expenses. Private enterprise CEOs do, but they have responsibilities to their shareholders. In the case of the government, the shareholders are the Tax Payers. make the government responsible to us, make their decisions responsible full stop.

Or the next predictable thing will be the removal of this government at the next election.




Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s


%d bloggers like this: