Australian Economy Slips Again, As The Labor Party Profits From Destroying The Rescue

Posted on Thu 02/05/2015 by

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Bolt New 01By Andrew Bolt ~

Whoever leads the Liberals, the grim challenge remains – and grows:

THE federal budget faces further massive writedowns, with some estimates suggesting that up to $40 billion will be added to the deficit over four years as commodity prices fall and the economy slows. The softening economy in the lead up to the May budget will add pressure on Joe Hockey to find new savings at a politically fraught time for the Abbott government.AustralianEconomy

The government is coming under increasing pressure to ditch the 1.5 per cent levy on big business intended to pay for the now-­abandoned paid parental leave scheme. The Treasurer revealed yesterday that Reserve Bank governor Glenn Stevens had flown to Canberra after Tuesday’s surprise rate cut to brief cabinet on the bank’s increasingly gloomy view about the economic outlook…

The RBA will tomorrow release new economic forecasts showing growth is unlikely to reach 3 per cent either this year or in 2015-16. Treasury’s pre-Christmas budget update assumed growth would reach 3 per cent in both years….

Stephen Anthony, a former Fin­ance Department official and principal of the consultancy Macro­economics, estimated that a half-percentage-point cut in growth would add $2.5bn this year and $4bn next year to the deficit…

Treasury included what were considered excessively conser­vative estimates for the iron ore price when it was preparing the budget update in December, tipping it would fall from $70 at that time to average $60 over the year ahead, but the spot price in China is down to $63…

A new Liberal leader will get no mercy from the Labor and the Greens, cock-a-hoop at toppling Abbott. I fear that the new leader will even feel pressure to back off on the challenge, for fear that what was done to Abbott will be done to them.

And so the rescue of Australia founders, to the cheers of Labor, the Greens, Palmer United, Jacqui Lambie, the unions and much of the media.

Remember this turning point…

Andrew Bolt is a journalist and columnist writing for The Herald Sun in Melbourne Victoria Australia.

Andrew Bolt’s columns appear in Melbourne’s Herald Sun, Sydney’s Daily Telegraph and Adelaide’s Advertiser. He runs the most-read political blog in Australia and hosts Channel 10’s The Bolt Report each Sunday at 10am. He is also heard from Monday to Friday at 8am on the breakfast show of radio station MTR 1377, and his book  Still Not Sorry remains very widely read.

Read more excellent articles from Andrew Bolt’s Blog . http://blogs.news.com.au/heraldsun/andrewbolt/