Labor unwilling to look at consequences – Turnbull


Federal Opposition Leader Malcolm TurnbullFederal Opposition Leader Malcolm Turnbull has stepped up his attacks on the government’s handling of the credit crisis, declaring Labor unwilling to discuss the consequences of its actions.

Last week Prime Minister Kevin Rudd announced the government would spend $10.4 billion trying to stimulate spending in a bid to head off any impact on the real economy from the global financial woes.

The opposition has said it would support the package through parliament but has raised questions about the level of advice the government received prior to developing the plan.

“They’re not being transparent,” Mr Turnbull told ABC TV today.

“They’re not prepared to discuss the consequences of their actions.”

Mr Turnbull challenged the government’s decision to guarantee all bank deposits.

“The consequence of that has been that the short-term money market has been severely curtailed, the commercial paper market has been curtailed.

“Commercial paper, if you like, issued by Telstra or BHP now has a lower credit rating than a deposit with the smallest credit union in Australia.”

Mr Turnbull said the government had overstepped its intervention.

“When governments intervene in free markets they need to make no more intervention than is absolutely necessary because you can have unintended consequences that are adverse.”


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