Rudd campaigned on the promise of signing Australia up for Kyoto and withdrawing Australian troops from Iraq.
Rudd said that troops needed to be withdrawn from Iraq because 'they could be useful elsewhere.' We now know something of how Australian 'assets' are to be deployed. Rudd has decided to send Australian Assets to monitor Japanese whaling vessels.
Australian Assets will not fire upon Japanese whalers, because that would be an act of war. Instead, they will take pictures of whaling activity.
Meanwhile, the whaling activity is not a secret. Nor is it illegal.
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Meanwhile, Rudd has signed Kyoto, but now refuses to commit to targets. A triumph of style over substance. Except the style costs.
Friday, December 14, 2007
New PM Faltering On Issues
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Inflation threatens prosperity, says Treasurer
from news.com.au
Australia faces a long period of high inflation that threatens the country's economic prosperity, Treasurer Wayne Swan has warned.
"Inflation is a major threat to sustained Australian prosperity," Mr Swan said in his first major speech to the Australian business community as treasurer.
"I warn you we face an extended period of elevated inflation."
But he also assured his audience at an Australian Industry Group (AiGroup) lunch that the new Labor Government was ready to meet the challenge, although it would take time.
"Inflationary pressures have been building for a long time and they will take a long time to turn around, as well," he said.
"That's why I've made addressing the inflation challenge one of my top priorities and why we must begin to address the problem right now."
Mr Swan noted the underlying measure of inflation, which discounts the impact of volatile items, was now around 3 per cent.
"And in my discussions with Treasury, they have advised me that, following the September quarter consumer price index and national accounts, inflationary pressures are likely to put further pressure on the underlying inflation rate over the next 18 months," he said.
Mr Swan said the Labor Government would embark on a new era of strict fiscal discipline and replace the "flabby" fiscal policy settings of the past with leaner budgeting to help fight inflation.
"We have already found more than $10 billion of savings, but we need to do more," he said.
"We have already kicked off a process that will see us announce substantial additional savings in the 2008/09 Budget in May.
"Through this exercise we will identify expenditure items in the Budget which do little to expand the productive base of the economy looking very carefully at the effectiveness of current spending."
Mr Swan said high inflation was a result of policy failure by the previous Coalition government, which squandered opportunities to invest in the supply side of the economy and boost productivity.
"In a highly employed economy like Australia's, operating at close to the limits of its capacity, the risk is that the demand created by this very strong growth in income will stoke inflation," Mr Swan said.
"Inflationary pressures have also come substantially from a decade of neglecting the big challenges our government is now charged to meet, and the important investments that have needed to be made."
Australia's infrastructure challenges today included port access, urban congestion and water, Mr Swan said.
During the election campaign, Rudd claimed that the low inflation high growth of Howard's years was due to good luck. Apparently, under Rudd, we are entering a time of bad luck.
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