Long-term Pain for Little Gain

Two years ago the Treasurer delivered his third Budget claiming a surplus of $2.7 billion and a projected surplus of around $10 billion by 2001. Australians were told this surplus was the result of good economic management, the efficient use of the tax-payer's money and had given Australia the highest growth rates in the developed world.

The Treasurer has now announced a cash surplus of only $2.8 billion based on a projected $2.6 billion raised from the sale of radio spectrum licences. However, there appears to have been little social capital resulting from the economic growth of the past four years. The Australian Catholic Social Welfare Commission has welcomed a number of the Budget's social initiatives but questioned the Government's commitment to deliver a significant 'social dividend' on the fiscal stringency of the past four budgets.

Mr John Ferguson, Acting National Director said, "The Commission welcomes the $240 million Stronger Families and Communities Strategy with its focus on prevention and early intervention. However, this initiative must be seen in light of over $1 billion in cuts to family and community services over previous budgets. The question has to be raised as to whether this adequately fills the gaps in services experienced by low- and middle-income families over recent years.

"We are also concerned over the introduction of more punitive measures for those who have borne the brunt of past budgets. It is disappointing to hear the Treasurer announce that savings of $212 million are to generated by tighter non-compliance measures in regards to Preparing for Work Agreements. The Church and community sector are keen to discuss with Government how this extension of mutual obligation should be balanced with responsibilities of Government, the community and business to provide jobs and opportunities" he said.

"Assistance to rural Australia in health and education in this Budget is welcomed and appropriate. The Regional Health Package's $68 million in the first year, while small in itself, addresses real needs for rural communities. In view of rural disadvantage and the conclusions of the Regional Australia Summit, the lack of rural infrastructure spending will continue to be a source of anxiety."

In conclusion, Mr Ferguson said, "The Treasurer has stated the Australian community has done some hard yards and is starting to see results. However, rural Australia, the unemployed and disadvantaged families expected better and wait for more."