Federated Farmers has awarded the Government’s 2010 Budget a score of 6.5 out of 10, saying it offers great tax incentives but little else for “Vote Agriculture.”
The Feds support the Government’s push for growth, based on productivity and competitiveness, and its decision to rule out a land tax.
But they’re slamming the impact that higher Government charges, especially the Emissions Trading Scheme, will have on inflation.
Among the Feds criticisms: $5.25 million for biosecurity too little to protect $25 billion worth of annual exports;a looming $527 million impact on farmers because of new ETS charges; broadband money favouring urban over rural communities; and inflation climbing to 6% soon adding pressure on the export sector.
Philip York, Federated Farmers economics and commerce spokesperson, says they’re concerned core Crown expenses will increase by nearly $6 billion or 9% over the coming year.
“But $1 billion of this increase arises from the ETS and rams home Federated Farmers deep unease that it’s a fiscal black hole,” said Mr. York.
“Though the fiscal outlook is improved, it is still going to take several years before we return to surplus in order to bring Core Crown Expenses back to below 30% of GDP, which is where we think it must be,” said Mr. York. “ The Greek tragedy is a warning where spending swings out of control.”
But Agriculture Minister David Carter is defending his Government, saying tax cuts will offset any new costs for ETS compliance.