Fed: ACOSS calls for curb on upper class welfare

AAP General News (Australia)
12-07-2001
Fed: ACOSS calls for curb on upper class welfare

By Debra Way

CANBERRA, Dec 7 AAP - Australia's peak welfare lobby group today warned the government
against a Budget razor gang, but called for curbs on what it termed wasteful upper class
welfare.

Australian Council of Social Service (ACOSS) president Andrew McCallum said it was
the wrong time to cut overall spending on social programs.

"With unemployment rising and the international economy faltering, now is not the time
to cut social spending," Mr McCallum said.

Treasurer Peter Costello this week signalled the government would cut spending in the
May Budget to achieve future surpluses.

Mr Costello said the domestic economy remained robust but Australia would not remain
immune from the global downturn.

Prime Minister John Howard said today the government would be aiming for a modest cash
surplus next year and that could be achieved without cuts to programs such as social security.

He said there would be no return of the infamous razor gang, although the government's
Expenditure Review Committee would scrutinise government spending.

"We want to have a cash surplus next year. It doesn't need to be big. There is no economic
argument to have a big surplus," he said on Melbourne radio 3AW.

He said any government which wanted a surplus would need to contain expenditure growth
in areas where it could be curtailed.

"We have set over the last five or six years a number of parameters. We support the
social security safety net. We are not going to re-enter discussion in areas like that,"

he said.

"But obviously there are some areas where the growth of programs has been very strong
and if there are ways in which you can curtail that growth without hurting the social
security safety net, well we are going to do it."

Mr Howard backed comments by Reserve Bank head Ian Macfarlane, who said some businesses
were too ready to sack staff in tough times.

"Some are like that. I broadly agree with what Mr Macfarlane has said," he said.

"There is a medium-term interest, both for a company and the economy generally, in
companies trying to avoid the retrenchment option."

Mr McCallum said ACOSS would help Mr Costello in his hunt for waste, as long as the
Budget continued to meet pressing needs in public health and community services, better
employment assistance and income support for the jobless.

"The biggest area of waste in the federal Budget is the burgeoning growth of upper
class welfare."

Mr McCallum said the government should target tax breaks for employer superannuation
contributions, the 30 per cent health insurance rebate and tax breaks for company cars.

"These perks for the better off should be at the top of Mr Costello's list," he said.

"We welcome the prime minister's commitment that the social safety net will not be undermined.

"However, social programs for low income people should not be cut at all, especially
while upper class welfare remains in place."

AAP daw/cd/sb

KEYWORD: BUDGET NIGHTLEAD

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