Hockey warns of 'deficit decade'

Updated: 13:06, Monday March 31, 2014

Federal Treasurer Joe Hockey says without deep cuts to spending in the budget Australia is heading for the longest period of continuing deficits in modern history.
Treasury analysis predicts the country's deficits will stretch out to at least 2024 because of continued spending increases.
The warning provides a case for drastic cuts in the May budget, as the government on Monday received the final report from its Commission of Audit.
Mr Hockey said the government had to reduce expenditure, as well as try to increase revenue at the same time.
'Without changes to government spending the budget is in deficit for at least a decade,' Mr Hockey told ABC radio.
'It would be the longest period of continuing deficits in modern history.'
Asked if that meant the budget cuts had to be hard and deep, Mr Hockey said: 'They've got to be fair, too'.
'It is about making sure that everyone, everyone in the community helps to do the heavy lifting on repairing the budget,' he said.
'This is not an ideological drive. This is about whether we want to simply sustain our quality of living, not even improve our quality of living.
'We have to make sure we live within our means.'
Mr Hockey complained that Labor had left the government with 'massive' spending increases in foreign aid and defence, and a poorly introduced National Disability Insurance Scheme.
'If we don't get on top of the proper management of the National Disability Insurance Scheme, not only would it not be sustainable, but it could end up as big a farce as the pink batts program or the $900 cheques program,' he said.
The treasurer said the ageing population was also putting pressure on the budget.
When asked if it was sustainable to give a part pension to those with assets of more than a million dollars, Mr Hockey said 'that's something that obviously needs to be taken into account'.
'The aged pension is growing at a massive rate,' he said.
'But also it's about our ageing population, and the fact is that we're living longer.
'The question is how do we sustain these sorts of payments, and ensure that they are sustainable in 10, 20 and 30 years time.'
Labor MP Bernie Ripoll said Mr Downer's appointment 'smacked of hypocrisy,' accusing the government of shunting former Labor ministers in favour of its friends.
He pointed to the removal of former Labor state premier Steve Bracks as consul-general in New York as an example of the coalition's 'specific program'.
Mr Rann was doing his job well and was 'shoved aside' before his time.
'What we're seeing from this government is jobs for the boys,' Mr Ripoll told Sky News on Monday.
But Liberal senator Simon Birmingham said Mr Downer had proven his skills and ability for the job beyond question.
'This is about putting the best people in the best place,' he said.