Politics podcast: John Hewson on the budget climate

John Hewson, a former Liberal leader and chair in the Tax and Transfer Policy Institute at the Australian National University, describes the uncertain economic climate into which Treasurer Scott Morrison will deliver next week’s budget.

John Hewson.

“I think it’s an occupational hazard for treasurers that they’re always optimistic – always try to put a better gloss than is the case,” Hewson says.

“I’ve been analysing and forecasting economies since the late ‘60s and I picked up most of the big turning points over that period. But I’d have to say that right now I think it’s harder than it’s ever been to say what might happen next.”

Hewson nominates the after-effects of the global financial crisis, geopolitical tensions, and environmental challenges as some of the factors driving his doubt.

There is also the matter of Donald Trump.

“He’s quite unpredictable and his capacity to govern in the United States is really quite limited. Although he might have been a reasonably successful property developer, it’s not easy to run a government off that skill-set in Washington and he’s finding the reality of that.”

Listen to the ABC podcast in which Michelle Grattan talks with John Hewson - “Politics podcast: John Hewson on the budget climate.”

Prof Sachs gives good advice, but sadly "no one" is listening

Prof Jeffery Sachs.

Professor Jeffrey Sachs is a man of good advice.

Sadly, those who should be listening, from Australia’s PM, Tony Abbott, down don’t appear to be listening.

Prof Sachs, who is presently in Australia, talks about his disillusionment with Australia’s behaviour in a story in today’s Age headed: “Abbott out of step on climate change, says Professor Jeffrey Sachs”.

The Professor said the Abbott-led coalition was surprised by the sharp reaction to its recent budget, and then added that Mr Abbott would be further surprised by global reaction to its climate policies.

'This way?' 'That way?' Budget takes Australia the wrong way

Dr Liz Hanna.

A healthy and prosperous future for Australia is “this way”, but driven by last night’s Federal Budget, the Tony Abbott lead coalition is headed “that way”.

Concerns about the coalition’s disruptive decisions that will ultimately disable Australia have been voiced by the Melbourne-based Climate and Health Alliance (CAHA).

In a story on Medianet headed: “Federal budget an investment in climate and health damages” the alliance has expressed alarm at the removal of important policies with health, social and environmental benefits.

However, although the budget has disabled those for health, social and environmental benefits, it has maintained subsidies for polluting industries and even expanded some.

CAHA President Dr Liz Hanna said: “The budget would be better served if the federal government reversed its decision to scrap policies such as a price on carbon pollution, or by taxing the profits of mining companies.