Turnbull says ‘recession not inevitable’

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Recession is not inevitable despite the federal budget heading for deficit, Opposition Leader Malcolm Turnbull said on Monday.

His comments came after Prime Minister Kevin Rudd and Treasurer Wayne Swan earlier admitted the budget would go into deficit, collapsing by $115 billion amid a growing global recession.

“I wouldn’t say it (recession) is inevitable at all,” Mr Turnbull told reporters in Canberra.

He called on the government to make each part of its reaction to collapsing financial markets “effective” before repeating earlier criticism about the stimulus package delivered late last year.

Mr Turnbull also upped his direct attack on Mr Rudd, labelling him a “born-again socialist” who did not understand the financial crash.

“Over the holidays a lot of people read fiction,” the Liberal leader said.

“It sounds like Mr Rudd spent his holidays writing fiction,” Mr Turnbull said, referring to a lengthy essay written by the prime minister.

In the essay, the prime minister promises greater government intervention and regulation in the market.

“His remarks about regulation are truly bizarre. From what I’ve read of his essay it sounds like a feat of imagination,” Mr Turnbull said.

“There should always be more good regulation and less bad regulation.”

“The critical thing is getting regulation right.”

Mr Turnbull reiterated a long list of coalition plans to attack the economy including wide-ranging tax cuts.

AAP

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2 COMMENTS

  1. Is Mr Turnbull in the same country? Australia is already in recession, there is no economist or government leader in the world that believes tax cuts are a useful tool for the cuuent problems, and January retail figures suggests the government’s first stimulation package worked.
    He has got to ditch his investment banker mentality, which has proved to be a flawed one, if he wants to run a viable opposition.

  2. In The Know…
    It is only logical that we will head into a recession; it is known fact and historically proven that we here in AU suffer the global effects approx 18 months after the US and a downturn doesn’t necessarily mean it is the end of capital markets. I do believe we are in much better shape than many expected. It is proven that we later prospered soon after global markets pick up also. However to put the blame entirely of Mr. Rudd is unfair as he is not the one that landed the country in this predicament. He and the party are simply cleaning up the mess left behind, although i am neither way inclined labor or lib and can swing quite easily based on logic, but that is not the question. It is not diplomatic for Mr. Turnbull to suggest it is the fault of the labor party; instead he seeks future election by smothering the Government with insults. I dont feel this will do the country any favors, quoting one of his lines “The critical thing is getting regulation right.” . This yes is the case, that one of their policies should create a mutual resolve for all concerned instead of rubbishing. Mr. Turnbull should instead aim his anger at drawing up a paper of resolve creating solutions not just spite, along with some also long awaited tax cuts for the government to consider. The country needs senior leadership and should be run like a profitable corporation not a school classroom. Either way you vote or look at things; Governments are meant to be on the same side to prosperer together not take aim at each other. I think this has been the problem Australians have faced and still do from the very start, trying to make the Gov grow up and pull their fingers out. When will they Stop waiting for the rest of the world to dictate terms to us and implement change themselves; otherwise a recession is indeed on the way.
    Dan Isaak
    Redilend Australia
    http://www.redilend.com.au

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