Media Release

TRANSCRIPT: ABC Newsradio

Monday 6th July 2009

Introduction: Well there’s more concern this morning about the Rudd Government’s cash splash. The Financial Review is reporting that the $20 billion of direct bonus payments fell short by $800m because 270,000 people failed to lodge their tax returns and didn’t get the money to spend. But the Shadow Local Government and Housing Minister Scott Morrison says the government spending, particularly on infrastructure, frequently misses the mark.

Scott Morrison: The Government has basically signed up Australians to a generation of debt in an attempt to buy five minutes of economic sunshine, and whether it’s the school halls programme or the social housing programme, we are just not seeing the money hit the mark in the way they said it would; and of course Australians have reason to be concerned with so much money being racked up in debt for the future.

Steve Chase: But according to the indicators last week we had good consumer confidence, and other figures seem to be giving credence to the fact that the cash splash in some respects is working.

Scott Morrison: Look, I think the most significant contributors to how Australia’s performing globally is how we went into this crisis. We went into this crisis the best of all nations but the question remains – will we emerge out of it as the best of all nations? We have had interest rate cuts and a range of factors which have been influencing our economy and all of those things are welcome and the Coalition welcomes a strengthening economy, but I think we have to be honest about the reasons for it. We went into this crisis well prepared and we should be emerging from it strongly.

Steve Chase: Now as far as allegations around that there is pork barrelling, can you pinpoint that or is the Government just doing its duty as a government and informing people as to where the money is being spent as far as infrastructure is concerned?

Scott Morrison: Well I think it is unprecedented, that level of investment that’s been made in government communications to publicise this spend. I mean the website that’s been set up in particular – it looks pretty much what a political party would do in advance of the campaign, and the suggestion they don’t have a political eye on these things I think just defies belief. The Labor Party is using this expenditure for all it’s worth and that’s what we have seen them do at state government for many many years, particularly in New South Wales, and the Bob Carr/Mark Arbib model which has worked in NSW and is being applied now federally – so if people want a view of their future across the country look no further than the State of NSW.

Steve Chase: But you could equally mount a case for saying that the Government is merely trying to explain to the public where its money is being spent.

Scott Morrison: I am sure the Government will come up with all forms of justification for how they are using taxpayers’ money, and to go out there and run an election campaign effectively for them on the back of this spending – but the truth is I think people really see through these sorts of things and at the end of the day they want value for their money. What they’re seeing is money is not well targeted. I mean at the end of the day we are seeing less spending on roads and ports and rail than we are on things like cash splashes – over $20b in cash splashes and around $20b in school halls and public housing. They are only spending $8b on roads, rail and ports and the question is when they have spent all that money we won’t have money left over for the real economic priorities.

Steve Chase: And what feedback are you getting from local councils as to the efficacy of this money being spent?

Scott Morrison: Well I have got a lot of frustration from local councils. No councils are sending the cheque back but the councils have taken ages to receive those cheques from the Government, particularly the first one that was announced in November when the Prime Minister said it was “…ready to go now. It’s immediate and by ‘now’ I mean now.” Well those councils were still waiting for those cheques some five, six months later and many councils just went ahead and spent their own money hoping the cheque would turn up later. So what they are finding is a real frustration in the bureaucracy process attached to all of this spending. Noel Pearson was making a similar point and this goes back to intervention funding which the Government has failed to deliver for remote housing in indigenous remote communities. So the Government has a real problem with how they spend this money, not just the fact that they are spending too much, but their process for spending it is clogged up and is catching our economy in a bog.

Steve Chase: It would be remiss of me if I didn’t ask you the next question concerning the Liberal Party. You are a former Party State Director in NSW. There are reports around this morning that Tony Abbott and Tony Smith are waiting in the wings to take over from Malcolm Turnbull should he fall over in the opinion polls. What’s the official line on that?

Scott Morrison: I love my Tonys but I think you can file that one under fiction.

Steve Chase: Why is it fictional? Isn’t Malcolm Turnbull in trouble if he goes down in the polls again?

Scott Morrison: Look, Malcolm Turnbull is one of the most resilient people you ever met, and people are always quick to write Malcolm Turnbull off as they have in the past, but Malcolm is an incredibly strong individual who can take everything that comes at him, and I think you can expect to see Malcolm Turnbull rebound and come back stronger than ever.

Steve Chase: And will there be a reshuffle and are you a contender?

Scott Morrison: Look those are matters for the Leader.

Presenter: That’s the Local Government and Housing spokesperson for the Opposition, Scott Morrison, speaking to ABC NewsRadio’s Steve Chase there.

(ends)