Jan 29, 2016

Slash spending to keep coveted credit rating, says Treasury chief

Treasury secretary John Fraser outlined Australia's economic forecast at a speech last night.

Margot Saville — <em>Crikey</em> Sydney reporter

Margot Saville

Crikey Sydney reporter

Treasury secretary John Fraser delivered an address to the Sydney Institute last night, warning that government spending was too high and tough measures would need to be taken to avoid compromising the living standards of future generations. In a speech widely seen to be a precursor to the federal budget in May, he said that, despite this, “we are not in a crisis” and that Australia has a strong fiscal position by world standards.

However, net debt is approaching levels not seen since the recession of the early 1990s, which, at that time, was the highest since World War II, Fraser said. “We are yet to return to pre-GFC net debt levels.”

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20 thoughts on “Slash spending to keep coveted credit rating, says Treasury chief

  1. Chris Cathel

    No mention of multi-nationals paying almost no tax.

    Nor of the regressive nature of superannuation concessions.

  2. Archie Travers

    Fraser’s every pronouncement shows him to be unfit to manage a jar of threepenny bits. The neo liberal stupidity burns brightly in Fraser with brilliant insights that you have to cut spending in a consumer economy to achieve growth and worrying about intergenerational equity whatever that is.

    For once I would like an economist to talk about Australia being in a downturn in the business cycle and that we need to run deficits to maintain jobs.

  3. Lee Tinson

    Clear example of Morrison heavying his public servants, rather than (a) allowing, and then (b) taking their advice. Thus, nothing Fraser says has any value, particularly since Morrison has no clue.

    This is just leading up to a re-issue of the 2014 budget, except that since Morrison (unlike Hockey) has always looked, spoken and acted like a demented psychopath it will probably be worse.

  4. Norman Hanscombe

    This would of course be an appropriate time for the Crikey Commissariat to give enthusiastic support for the carefully selected areas in which Government spending should be cut; but that might affect its own revenues, so as a good Capitalist Enterprise, it’s not going to do that, is it.

  5. bushby jane

    A good capitalist enterprise would have hung on to, and fine tuned, its revenues like the carbon ‘tax’ and the mining tax.

  6. AR

    ChrisC – not to mention the single greatest cause of “intergenerational inequity’, negative gearing.

  7. zut alors

    ““We do have great good fortune in Australia. Everybody is happy, and God bless us.”

    Quite a claim by Fraser. News flash! the lowest income earners are less than delighted with their plight – not to mention laid-off mining & manufacturing workers. Remember Ford? Holden? Toyota? Is this God’s blessing….

    Dare I suggest Fraser take time out to mix with hoipolloi for a more accurate assessment of the nation’s level of glee.

  8. AR

    What would Fraser, who “After leaving Treasury in the early 1990s, Fraser spent 22 years in London, working at the highest levels of global finance. know or care about we hoi polloi?
    And why, unless he needed his sedan chair carried?

  9. Archie Travers

    AR @8, your quote is a euphemism for, has a hatred for public spending, loathes unions, organised property transfer and share buybacks for upper one percent.

  10. CML

    Can’t wait for the superior economic managers like Moralsnone to bring down their budget in May.
    Talcum Malcum was interviewed on radio in Melbourne this morning, promising to do just that…and sounding like a demented chook on economic matters!
    Agree with Lee Tinson #3…think we are in for a repeat of Budget 2014!!
    They have less than NO IDEA!!

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