"The Australian Financial Review newspaper on Tuesday said Mr. Howard had set “a new land spending record,” at a time when the central bank is warning about growing inflationary pressures, and with economists warning of more interest rate rises to come."
Rupert Murdoch criticizes Australian election promises MARIE MCINERNEY
November 13, 2007 at 6:34 AM EST
ADELAIDE — Media magnate Rupert Murdoch weighed into Australia's election race on Tuesday, warning big spending promises in his birth country and adopted homeland the United States were making people too reliant on welfare.
But the Australian-born Mr. Murdoch refused to choose sides in Australia's election contest, where both major candidates have promised billions of dollars through similar policies if elected.
“I'm finding it difficult, as an outsider coming here for two days, to distinguish between them,” Mr. Murdoch, executive chairman of global media organization News Corp., told reporters.
Mr. Murdoch is one of the world's most powerful media barons with newspaper, television and Internet interests across the globe. He is Australia's biggest newspaper publisher.
Australia goes to the polls on Nov. 24 with conservative Prime Minister John Howard, 68, struggling for support after 11 years in office and with polls pointing to a solid victory for his Labor rival Kevin Rudd, 50.
The contest has been dubbed a “me too” election, with Mr. Howard and Mr. Rudd mirroring each other's policies, with almost identical promises on tax cuts, money for older Australians and focus on education and childcare.
Mr. Rudd has built an imposing poll lead by promising generational change and “fresh thinking” including a commitment to sign the Kyoto climate pact and withdraw front line troops from Iraq. Both sides have promised conservative economics.
Both Mr. Rudd and Mr. Howard have made more than $50-billion Australian ($44-billion U.S.) in election promises, with Mr. Howard on Monday unveiling an extra $9.4-billion in new spending over five years aimed at middle Australian families.
Mr. Murdoch said both sides of Australian politics were making spending promises which would make people more dependent on the state, rather than more self-sufficient, with a similar move happening in the United States.
“The more people become dependent on the State, the less aspirational they become and slow the country down,” he said. “Go to the United States and see the same thing happening.
“And that is not the spirit of certainly this country when I grew up, or the spirit as I understand it to be.”
The Australian Financial Review newspaper on Tuesday said Mr. Howard had set “a new land spending record,” at a time when the central bank is warning about growing inflationary pressures, and with economists warning of more interest rate rises to come.
But Mr. Howard rejected suggestions his spending promises would add to inflation, saying he would continue to deliver a budget surplus of about 1 per cent of gross domestic product.
“We are going to be left with a very big budget surplus. The funding is occurring out of increased levels that are the result of a strong economy,” Mr. Howard said on Tuesday.
Mr. Rudd will deliver his major campaign speech in Brisbane on Wednesday, where he is also expected to unveil new spending, although he has promised Labor's commitments would be more restrained than Mr. Howard's.
Commonwealth Securities chief economist Craig James said on Tuesday the spending promises needed to be kept in perspective.
“The politicians haven't lost their heads, seemingly engaged in a race to see who can spend the most,” Mr. James said, adding the government collected about $250-billion a year in taxes and spent about $240-billion a year.
