Double Dissolution 2014 The chairman of National Australian Bank, Michael Chaney, has warned the Abbott government’s welfare cuts will not go far enough and suggested that China had a more efficient way of making decisions about the economy. Chaney, who is also chairman of the energy company Woodside Petroleum, said western governments around the world had increased their indebtedness as they delivered welfare benefits on the back of generous election promises. “The more benefits you provide to different people in the economy, the harder it is to take them away,” Chaney told a business lunch in Perth on Wednesday. “The result of that process is that governments have increased their indebtedness to a point in many countries where their level of debt is unsustainable. “The [May] budget was not a very severe budget, but notwithstanding that we had uproar from various parts of the community, people who were affected. “If you think of the things that were mooted – some reductions in family allowances, tighter rules on unemployment benefits, lifting the cap on university fees, a Medicare $7 payment and so on – theyre not major steps. “The problem is that once you propose them various people get up in arms and political opportunists, whether its [Clive] Palmer or the opposition, get on the bandwagon and cry disaster.” Labor, the Greens and crossbench senators have said they are opposed to the reforms, which also include plans to cut unemployment benefits for young people. Chaney, who is also chancellor of the University of Western Australia, added that politicians had been unable to escape the cycle of promising welfare help. Australia could learn something from China’s centrally planned economy. “When I go to China, the Chinese shake their heads,” he said. “They cant believe how inefficient you guys are in your economy. “We all know we dont want their system, but they do marvel at the fact that as soon as a government comes out with a proposal the opposition comes out and condemns it and it does lead to great inefficiencies and compromises in the economy.” He warned that not embarking on economic reforms could lead to much higher debt for Australia, as well as higher unemployment and lower living standards.
Posted on: Thu, 24 Jul 2014 06:41:10 +0000
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