Featured Services: Asbestos Removal, CNC Machining & Milling, Commercial Electricians, Crane Hire, Electronic Design & Engineering, Fire Safety & Protection , Forklift Training & Licences, HVAC Cleaning, Industrial Design, Office Fitouts, Plumbing, Road Freight, Safety Consultants, Sheetmetal Fabrication, Structural Engineering, Warehousing & Distribution, Welding Services
Abbott "irresponsible" for likening economy to Greece: PM
05/10/2012 - Prime Minister Julia Gillard has accused Tony Abbott of being "grossly irresponsible" for likening the future fortunes of the Australian economy to crisis-struck Europe. Colin Brinsden, Ehssan Veiszadeh
Find related suppliers
The opposition leader backed comments by former Commonwealth Bank of Australia boss and Future Fund head David Murray Australia risked a European-style economic downturn if debt was not addressed.
Abbott said Murray's comments were a "timely reminder" for Australia.
"The lesson of Europe is that countries can go very quickly from a strong position to a parlous position if things aren't well managed," Abbott told reporters in Melbourne on Thursday.
He said the government had "completely mishandled" the mining sector that had kept Australia going through all the international economic difficulties of the past few years.
Gillard said such comments were "absurd".
"Markets listen to what political leaders say. This can have repercussions," Gillard told reporters in Hobart.
"To compare our circumstances, as the leader of the opposition has done today, to Greece, is grossly irresponsible and wrong."
She said Australia was growing, unemployment, inflation and interest rates were low, public finances were strong and the economy was rated triple-A by every major credit agency.
Treasurer Wayne Swan weighed in, saying Abbott had sunk to "new depths of negativity and economic recklessness".
He said while Australia's net debt was at 10 per cent of gross domestic product (GDP), net debt in Greece was expected to peak at a "staggering" 165 per cent of GDP.
Murray told ABC TV on Wednesday that Australia's dependence on the rest of the world for trade and capital financing made it "easily possible" to follow the path of countries like Greece which face problems repaying their sovereign debt.
But Australian Chamber of Commerce and Industry chief executive Peter Anderson said the domestic economy was nowhere near experiencing the problems faced by Greece, Portugal or Spain.
"I don't think that we need to talk ourself into a pathway that we're going to go down towards the Greece or the Spain or the European disease," he told reporters in Canberra.
Australia needed to cut red tape, boost its productivity and reduce its debt in order to strengthen its future economic security.
Retailers just want commercial banks to hurry up and match this week's cash rate cut by the Reserve Bank of Australia (RBA) after new data showed the sector remains subdued.
Retail spending made only a modest 0.2 per cent recovery in August, after tumbling 0.8 per cent in July, as the stimulatory impact from budget handouts to households faded.
Australian Retailers Association executive director Russell Zimmerman said the RBA's rate decision had given retailers some hope heading into the busy Christmas season, but they are disappointed none of the major banks have yet honoured the rate cut.
Other data showed building approvals rose 6.4 per cent in August, but only as a result of a jump in the volatile "other dwellings" component which includes private flats and townhouses.
Housing Industry Association chief economist Harley Dale warned the absence of recovery in leading indicators, such as building approvals, risks a third consecutive yearly decline in dwelling commencements.
Browse the IndustrySearch directory: Business Finance & Insurance
Les Parsons | 5/10/2012 11:52 1
Maybe our Prime Minister should listen properly. Tony Abbott did not liken our economy to Greece. He said David Murray's comments were a timely reminder that we could go from a strong position to a parlous position if things were not well managed. He did not even mention Greece. I suggest Gillard, Swan and Wong listen to people who are from a successful business background and not a Trade Union or a politician staffer job, such as the three mentioned.
alf | 5/10/2012 11:52 2
What can you say, Toni has only commented on what it is, the truth . Every one with a brain can see what Labor has done to this country but Juliar and the lame Duck have no idea, What I ask is are they just stupid or is there a hidden agenda somewhere to destroy this country. Toni might not be good with words but he does tell it as he sees it, and 98 % of the time he is right.
john | 5/10/2012 13:28 3
98% eh? does Greece have iron ore? nope does Greece have gas? nope does Greece have uranium? nope does Greece have gold? nope does Greece have coal? nope does Greece have wheat? nope does Greece have wool? nope does Greece have manufacturing? nope does Greece have a tourism industry? not since the Euro came in anyway (insert Spain where Greece is for Spanish result) Greeks don't like to pay tax Greeks love early retirement on full pay Greeks have an openly corrupt public service sector (insert Spain where Greece is for Spanish result,once again for the dummies) so tell me HOW DOES THAT COMPARE TO US?
Lou Furbadamo | 9/10/2012 09:54 4
Naturally one wouldn’t expect political denial, hope & hype economists Juliar & Suwannee to sensibly support or endorse David Murray’s critical warning comments, because he essentially pee pees and dampens, their fanciful, utopian, hitherto sustainable “Boom Boom” nonsense & spin. So it’s no surprise they’re on their devious, misrepresenting defensive? Yes! "Markets listen to what political & “expert” leaders say”, unless they’re economic ding bats that clearly can’t, or conveniently won’t understand sound advice or follow logical arguments. They watch competency, behaviour & achievements. So, it’s soon obvious if the countries economy is in safe competent hands, or notably otherwise. But, it’s puerile & ignorant to repeatedly suggest that a misplaced or negative word can spook a nation into recession or worse, unless the incompetent ingredients and irresponsible debt & deficits, global sell-out, deindustrialisation, failing business & industry and wasteful snorting management haven’t already been recklessly politically convened and started baking! As Australia has been classically doing in recent times, particularly under Labor. The greatest “Personality Spooks” to Australia’s economic roost, confidence & future prosperity is the minor electoral possibility of our clueless lefty dynamic duo continuing to damage Australia further. Most Aussies know & feel this Government’s incompetent actions, economic mismanagement and deliberate massive hikes in cost of living and dramatic drop in living standards. Their pain is punishingly real and not caused by some Furbo or advisor’s loose, well meaning, “truthful” words. Therefore, the PM’s fabricated criticism to discredit wise & pertinent professional comment, won’t endear her to serious industry, business and informed people. The truth, is the enemy of liars & devious types! So they don’t want light to shine on the facts! Their supporters, need to continue through life more ignorant & clueless, so as to never catch them out, nor hold them accountable, nor appreciate just how destructively bad they’ve become. No surprise then, that dopey lefty sympathisers & supporters have little idea of the arguments & facts, except usually just enough to be dangerous! Take for example, the bland argument here, that Australia has all these in ground minerals & mines that Greece doesn’t have, etc? Is that supposed to mean our economy is immune from atrociously bad governments, sending us for a six, as our “fibbers & tossers” have been doing? You hear this simplistic dribble, from those considering themselves patriotic. But they do the next worst national disservice after snorting political incompetents & dastardly sell out Global Traders, by effectively supporting their insane economic & strategic damage. Seeing eternally “Sustainable Boom”, is now receding & not so Boomy, responsible adjustments are justifiably required! Tackling this contentious issue, we can be pedantic & strict about the definition of a LIE, but anything that deliberately detracts from the known truth is arguably a lie, no matter what the motive. Annoyed & angry with what’s happened to an otherwise, good Australian Jonesy , thanks to habitually lying and irresponsibly smart, deceptive politics. I took the time & interest to keep these Don Chipp B’s honest, by objectively watching the full David Murray interview on the 7.30 - ABC report on: 03/10/2012, with reporter Leigh Sales. And made sure there was no misunderstanding, by clearly assessing and confirming the inappropriateness of the PM’s slanted recount. As if there was ever any doubt? Unlike most of their dangerous, pandering, politically crawling economic advisers. Finally a respectable one, who mostly seems to know what he’s talking about, Continued 2/4
Lou Furbadamo | 9/10/2012 09:56 5
Continued 2/4. from whom they could’ve got clues & advice to deal with the uncomfortably cooling Aussie Economy. But typically, with anything sensible and reasoned, they come out deviously misrepresenting and sensationally “Greek” discrediting, regardless. When it should’ve been an opportunity to come clean & explain our economy’s changing fortunes and why responsible restructuring, belt tightening, tackling competitiveness and their “Dr. Boom’s impossible Shock”, etc. is urgently needed. Instead, their signature denial puke. If the lying dynamic duo were my children, I’d vicariously put my supporting arm around them, pull them aside and quietly chastise “Sweet heart, I thought we taught you better than to sinfully deceive, lie & be insincere”. Aggravatingly, it’s a pity that some of these corporate companies seem to worry more about political correctness than content & untruths, that destroy the economy & really hurt confidence & their sales. One wonders whether the German car importers, will be sales better off, in a booming profitable economy or a Labor prone recession? Anyway, Happy New Deutsch Mark for your pandering do goody cynicism! I know I won’t be buying a new imported German Car, because I support Aussie made. But if I was, it would now be a BMW and perhaps like minded, principled conservative thinkers should also sort out their motoring marquis badge priorities & do the same? Cause you know that to “harm one family is a sad tragedy, but Labor’s harm to thousands of Aussie’s living standards & ”political sympathy gone mad” is only an unpunishable statistic. Whose signing petitions for the hundreds of thousands, now struggling to pay their burdening electricity, water bills & other living expenses, that have skyrocketed because of uncaring, deceitful, lying, mongrel Government policies? Don’t all those poor statistical suckers deserve sympathy & representation? Symptomatically, humiliatingly desperate, petty Geriatric crime has incredibly gone up by nearly 30% recently and far more than for any other age groups. As the now extremely poverty stricken, discarded & forgotten retirees & oldies struggle, on effectively diminishing pensions, to pay for basic necessities! Such wonderful reason for their Pappies & families, to all be proud happy chappies, with Labor? What would these formerly “ decent, hard working, retired ordinary Australian mums & dads” do without that Juliar & Suwannee? Methinks, live more comfortably, happier and respectfully longer, Vre! Who’s going to vouch for these abused & abandoned Aussie battlers when the snorting lefties won’t, or are too busy saving their grotty re-election hides and feeling sorry for themselves? Definitely not “How I love you, How I love you, Dear old Juliar & Suwannee”? No wonder, I’d walk a thousand miles to avoid “one of their devious, “Malocchio” smiles!” Having irresistibly, economically discredited & throttled, we should fairly get to justifying the “critical assessment” and substantiating the case of their lying slants! When Murray was asked if currently “the Australian economy was weaker than the official figures suggested?” He “bullishly” replied, “There are some unhelpful signs at the moment, but there's no immediate sign of a big downturn in the economy, but there is serious concern about China and about inaction of governments in Europe in particular”. Now that doesn’t sound like Juliar’s & Suwannee’s Greek, Spanish or Double Dutch version to multi lingual me! Clearly Murray’s comments were a warning of future consequences and he only initially mentioned Europe in general, with no Juliar desirous peddled retro Greeking! What he correctly criticised, as many concur, was successive government’s poor handling & management of the resources boom proceeds, Continued 3/4
Lou Furbadamo | 9/10/2012 09:58 6
Continued 3/4 because they hadn't addressed the “fundamental shape of the Australian economy.” and we’re too reliant on “capital from the rest of the world to satisfy our high welfare driven operating leverage problem.” Fundamentally, seeing we’re so highly funding dependent on volatile boom prices & income. As “sellers of commodities we are price-takers, whereas we have a high fixed-cost in our budget, mostly in welfare, which is now up to 100 per cent of the personal tax take. So, with those problems and a persistent current account deficit, Australia is not a country that can afford very much public debt, yet the public debt's been rising.” Conveniently our dynamic duo never acknowledge these key damming critical facts in “Gallipoli dispatches”? Nor that Southern European Gov’s don’t pay unemployment benefits! Nor that pensions are about a quarter of ours! Nor that if you’re unemployed & have no money, you live with family, or you go on the streets begging and selling! So despite the fact that we despicably means test to deny aged pensions to many former hard working Aussie retirees, our overall social security bill to cover dole, single mothers pensions and a multitude of other more generous “due handouts” you need a degree course to unravel, monumentally dwarfs theirs! Specifically, he criticised governments for squandering surpluses which, “should have been much higher and more should have been put away than was” and that there was inconsistency at the time of the GFC, given the “rhetoric ..China boom not ending... If that was the case then we should not have had handouts and not start increasing the size of government debt and putting more pressure on the budget”. Fair enough? “Therefore the Government now has to say, Look at Europe, debt-funded entitlements, more regulation, more centralisation of government doesn't solve this problem. The cheapest way out of this problem is once and for all to get hold of the productivity issue and become more productive.” ? Admittedly, even he doesn’t have the answers and filler defaults to the Productivity Furphy and avoids distinguishing between productivity jargon and being outright competitive enough to successfully stay in business! His & other classic inexperienced boffin favourite “Improved Productivity”, which has been inevitably going backwards over the last 15 years, does not guarantee naively implied, business viability & success, without external grants, funding or assistance! Just watch the conniving snorters conveniently jack up the Wayward GST rate before you know it, the thieving mongrels! Disappointingly for Juliar, still no mention of Greece until later in the interview, when distractively pretty Leigh leads: “Given though that we have so many differences in the way our economy is structured though to somewhere, say, like Greece, how would it be possible for us to end up going down that route?” And, “For us to experience a downturn of that magnitude?” Still not uttering the Greece word, Murray wisely replies: “Easily possible. If we keep doing what we're doing, we'll get there.” Fair enough, I’d have thought? But Leigh insists with parochially gratifying, Greek leading in again with: “But we've got so many things that are different - Australians pay more tax than Greeks, our public sector's more accountable, we have our individual currency, so, what would be the par?” Personally, it’s a somewhat inaccurate, biased, even slightly conceited question, but Murray acknowledges & replies: “We're not a highly productive economy, our net foreign liabilities as a percentage of GDP are very high in the world, they're not low and we have this persistent current account deficit. In short, all the entitlements we want to have are not ours; Continued 4/4.
Lou Furbadamo | 9/10/2012 10:01 7
Continued 4/4. they're being funded at the pleasure of some people who save and live offshore. And there comes a time.. when these people say, "No, I don't want to finance that anymore," and that's what's happened to Greece” Of course this reasoned logic may all be strange, foreign, Greek humbo jumbo to our scheming duo. But sounds spot on to me! So, where’s the deserving sensationalised Greek beat up in that? Other than, if they keep denying reality, we’ll get to our own, Furbo promoted Big Aussie “Bananananana Republica”. Where there's lots of beautiful warm, white sand to burry our heads in to escape worries & woes and not get nose, brain & ear burnt, but riskily leave slippery butts exposed! Objectively, there’s 27 European member states they could have picked on. But typically, our misrepresenting Duo thrusters, naturally gravitate to the lowest common denominator for ”intimidatory comparison”, without justification for unbalanced harking on poor basket case, Greece? It’s advantageous for them to stir up outrage at the comparison of supposedly Peter Perfect Australia, with the worst European economic embarrassments. Many defensive Dah! patriots, would automatically jump on the one eyed p*ssed up band wagon & support Juliar’s Australia! But it’s not the truth, rather contrived misrepresentation with victims! One is the intended Abbott credibility and the rest collaterally, Murray, naïve Australia and ultimately the truth and future Aussies, who’ll later pay the price for our current apathy & gov. mistakes. Remarkably with the aroused, now punished & vanquished, “Careless Hurtful Jones” controversy? You’d think she’d have eased off, on blatant, incitement enticement & free ammunition? But, ultimately she has the public responsibility of being truthful and can’t rely on sympathy & pity to protect her, while she fibs & deceives away! So, who’s looking after our best interests? They think they can indefinitely fake their touted orgasmic boom. But the rot has started setting in sooner than pessimists thought. Come budget time, their hollow, pathetic farce will be abundantly clear and the election is a long time coming, to carry their festering economic lie, that even irrepressible Suwannee won’t have the stomach for. Their best advice is to resign, or “face up try their luck”, calling an election now! Cause boom finances aren’t going to come back like before, seeing they’ve sold large chunky assets already, and lots of juicy profits will now be sucked out by luciferous foreigners. With third world competitors, also screwing down prices and tax take. Wishing & hoping won’t bring it all home, to financial fiasco Duo’s arms! So yes, we do have the mines & the country, but much more of good juicy profits now belongs to ravaging foreigners, that don’t give a toss about Australia’s shafted predicament. Cheers & hoping for a Born Again Aussie El Dorado, to keep everyone happy, healthy, clothed, entertained , lobster fed, summer air conditioned cool and all abandoned canines properly sheltered, cause our Lying Duo won’t! St Francis A‘Furbo!
dave d | 10/10/2012 13:20 8
John ,we having something much more destructive and fearful than Greece or Spain - We have Ju-LIAR and the DUCK to stuff the country
Related Feature Articles
Former Howard-era industrial relations minister Peter Reith has criticised...
Struggling Finnish handset giant Nokia has unveiled its next-generation of...
Business groups are urging the federal government to spare the manufacturing...
Despite everything you've heard, the federal government is expected to...
The federal government's pre-budget preparations got a boost after more than...
Hay Trailer Onboard WeighingSend Request
Emergency ManagementSend Request
Invoice Discounting | Logistics ServicesSend Request
Lockwood Padde ES2100 Series Monitored Electric StrikeSend Request
Lovato Modulo PM Series of Protection RelaysSend Request
Laser Engraving Machine | Speedy 400 fiberSend Request