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Tony Abbott set to talk to non-Government senators to prevent $40 billion Budget savings blackhole

HE has been labelled “as cunning as a lab rat”, but Tony Abbott will be forced to woo Clive Palmer if he wants his Budget to work.

Prime Minister Tony Abbott has seized on a report suggesting Australia's borrowing costs could go up.

PRIME Minister Tony Abbott is preparing to negotiate one-on-one with independents and minor parties after the Government today calculated a $40 billion hole could be ripped from its Budget by a hostile Senate.

That includes talks with Clive Palmer, who was today labelled “as cunning as a lavatory rat” by the MP Agriculture Minister Barnaby Joyce.

Mr Abbott said today he personally would discuss Budget measures with “all participants in the parliamentary drama”.

And Treasurer Joe Hockey said the Budget was vulnerable to Labor’s threat to block measures the Government says total $40 billion in savings.

These would include changes to Medicare and age pension indexation.

From July the Government will have to deal with eight cross bench senators including four effectively controlled by Clive Palmer’s Palmer United Party.

The Coalition will have 33 senators, Labor 25, the Greens 10. So the Government could need Mr Palmer’s troops, should Labor and the Greens jointly oppose a bill.

News.com.au understands the Government has not attempted to open discussions with Mr Palmer but that Opposition Leader Bill Shorten has had conversations with him.

Prime Minister Tony Abbott will have to do some negotiations with Independents and minor parties to get his Budget over the line.
Prime Minister Tony Abbott will have to do some negotiations with Independents and minor parties to get his Budget over the line.

Mr Hockey said some Budget measures were contained in Supply bills — funding the regular operations of government — which Labor has said it would not touch. But most measures had to be enacted and so were exposed to blocking in the Senate where the Government will not have a majority when new senators arrive in July.

“But almost all these initiatives require legislation, separate legislation,” Mr Hockey said.

He told reporters in Sydney: “So I would say to Bill Shorten, I say to the independents in the Senate: Think very carefully about your actions.

“Because ultimately if you decide to turn down savings and you offer no sensible or creditable alternative, it will have an impact on every household in Australia in higher interest rates and higher taxes down the track.”

Mr Abbott acknowledged the Government would not have the Senate numbers and needed to woo votes.

“I’ll have discussions with all the participants in the parliamentary drama — the Labor Party, the Greens, the independents, the minor parties,” Mr Abbott told reporters in Canberra.

“I just want to make this point thought: Labor were vandals in government, it looks like they want to be vandals in Opposition.”

Originally published as Tony Abbott set to talk to non-Government senators to prevent $40 billion Budget savings blackhole

Original URL: https://www.adelaidenow.com.au/business/economy/tony-abbott-set-to-talk-to-nongovernment-senators-to-prevent-40-billion-budget-savings-blackhole/news-story/4255538d62bfbbe0e2539557574469a1