Tony Abbott's $70 billion black hole a threat to local public service jobs

Date:  22 August 2011

The Coalition would slash thousands of public servants to cover its $70 billion budget black hole, if elected to Government.  $70 billion is the amount required to cover the Coalition's own policy proposals, which is $70 billion on top of the current federal budget.

“Mr Abbott and Mr Hockey have dug themselves into such an incredible budget black hole,” said Member for Eden-Monaro, Mike Kelly.

“It concerns me how they would come to justify such a position and how this would affect the people of Eden-Monaro”.

It has been confirmed by the Coalition that they would engage in a significant slash and burn of the federal public service.  The shadow treasurer has confirmed that at least 12000 public service jobs would be cut under a Coalition government.

“The threat by the Coalition to slash public service jobs and entire agencies will have significant implications for those members of the community who are public servants,” said Dr Kelly.

“Mr Hockey has already confirmed that, if elected, the Coalition would disband the Department of Climate Change and has not ruled out axing further departments.”

“Residents of Jerrabomberra, Queanbeyan and Bungendore would be most affected, but so would many in our region who are employed in providing a range of Commonwealth services. The Coalition plan would also put under threat the major call centre and shop front project in Bateman’s Bay and the call centre in Cooma for example. I am concerned for the future of our community if the Coalition takes away their livelihood.”

“Additionally, Mr Hockey has refused to rule out axing vital jobs from the Department of Defence, jobs of people who provide support to the men and women of the Australian Defence Force.”

“I call on Mr Hockey and Mr Abbott to make a commitment that no jobs will be cut from the public service, including vital Department of Defence positions”.

“The wholesale cuts to jobs in our region would send us into recession as it did when they followed a similar path in 1996.”

The $70 billion budget black hole will require the Coalition to make significant funding cuts in order to get the economy back to a surplus.  Where the Government’s surplus will be delivered by 2012-13 with no loss of jobs, to achieve surplus the Coalition would be required to make large cuts, including axing public service jobs.

“To put it in perspective, $70 billion is the equivalent of ending Medicare payments for four years.  It’s the equivalent of stopping paying aged pensioners their pensions for two years.  It is the equivalent of significant job cuts.  They’re the kind of measures you’d need to enact to save $70 billion” said Dr Kelly.

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