By Online parliamentary correspondent Emma Rodgers
Posted 5 minutes ago Updated 6 minutes ago
Independent Senator Nick Xenophon has dashed the Government's hopes of implementing its $42 billion economic stimulus package by voting to reject it.
Earlier today the passage of the legislation appeared doomed as Senator Nick Xenophon vowed he would not support the package without the inclusion of an amendment to bring forward funds to save the Murray-Darling Basin.
The Government was relying on the Greens and Senators Fielding and Xenophon to pass the package after the Opposition refused to support it.
It earlier had gained the support of the Greens by agreeing to over $300 million worth of changes requested by the Greens.
It also amended the package to reduce the cash payments to single income families and the tax bonus to workers from $950 to $900.
But Senator Xenophon would not budge on his opposition.
The package was comprised of measures including $12.7 billion worth of cash handouts, $14.7 for schools infrastructure and $6.6 billion for new public and defence housing.
The Government had argued a speedy approval of the package was needed to immediately stimulate the economy and protect those facing hard times as economic conditions continued to worsen.
Government Leader of the Senate Chris Evans has blamed the Opposition for the failure of the package.
"They seek to undermine the capacity of this Government to respond to this crisis," he said.
It will now reintroduce the amended package into the House of Representatives and will seek to have the Senate sit on the week beginning February 23 to get the package through.
