turnbull bombshell: we'll oppose $42b package

Turnbull bombshell: we'll oppose $42b package
Malcolm Turnbull ... opposing the package.
Phillip Coorey
February 4, 2009 - 10:24AM
http://www.smh.com.au/news/national/turnbulls--bombshell/2009/02/04/1233423268846.html

The Opposition leader Malcolm Turnbull has dropped a bombshell this morning by announcing the Coalition will block the Government's $42 billion economic rescue package.

After complaining that the deadline to have the legislation passed by tomorrow would not allow sufficient time for scrutiny, Mr Turnbull said the Coalition would oppose it in both houses.

"We know that this is not going to be a popular decision but it's the right decision,'' he said.

"Someone has to stand up for fiscal discipline.''

He also said the package was too big and said only about $15 to $20 billion should have been spent.

Speaking in Parliament this morning, Mr Turnbull called Mr Rudd "arrogant'' for not sitting down with his political opponents to discuss the package and the economic situation.

Mr Turnbull did not rule out supporting further stimulus measures down the track.

He accused Mr Rudd of not being prepared to sit down and talk to the Opposition, or of putting his cards on the table or negotiating.

He said Mr Rudd was "so arrogant'' that "he alone is right'', that he is not prepared to do anymore to his political opponents than to "put a gun'' to them and say "stand and deliver''.

He said this was in contrast to Mr Rudd's "current hero", US President Barack Obama, who was prepared to sit down with his opponents.

Liberal sources have told smh.com.au this morning that the mood within the Coalition was to oppose the package and suggest alternative measures instead, including tax cuts.

The Coalition has now cut itself it out of the equation and forced the Government to rely on the Greens, Nick Xenophon and Steve Fielding in the Senate.

Labor deliberately excluded tax cuts from the paxckage because they impose a permanent cost on the budget bottom line and make it harder to restore the budget to surplus.

Furthermore, there are already tax cuts scheduled for July 1 which will act as a further stimulus.

But Mr Turnbull still wants those tax cuts to be brought forward.

He is also unhappy about the $12.7 billion in $950 bonuses to be given to millions of Australians.

"We do not support a further round of cash handouts,'' he said.

He does not believe instant spending measures work to stimulate the economy and repeated his belief that the $10.4 billion in handouts given in December had failed.

But because this element will be tied to the $28 billion in infrastructure spending, then the Opposition will be forced to oppose the entire package.

After going to ground last night and this morning, the position has been reached after the shadow cabinet met twice last night and the party room met once.