Budget puts freeze on MPs’ salaries as Tony Abbott slashes up to 70 government agencies
MPs will have their pay frozen for the next year as the Abbott government aims to “lead by example” in what will be a tough Budget.
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MPs will have their pay frozen for the next year after a request from the Abbott government to the Remuneration Tribunal.
The tribunal has revealed it was already going down that path before the government penned a letter asking for a salary freeze.
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The government requested parliamentarians and senior bureaucrats “lead by example” in what will be a tough Budget.
Treasurer Joe Hockey yesterday said he was confident the Tribunal would agree “in due course”.
“We have got to send a clear message to the electorate that, whatever we are asking the electorate to contribute to the Budget repair task, we are going to contribute ourselves,” he told Channel Nine.
“The Tribunal has decided to determine no annual adjustment to remuneration for offices in its jurisdiction from 1 July 2014,” it concluded.
Labor said it supported a freeze, but Shadow Treasurer Chris Bowen described the move as just a “stunt” ahead of tomorrow’s budget.
Up to 70 government agencies will be scrapped or merged in a Budget plan to eliminate waste, as Prime Minister Tony Abbott seeks to demonstrate big spending cuts.
The Daily Telegraph reports more than 36 agencies, bodies or advisory councils, many which perform functions few Australians would have ever heard of, are to be scrapped on top of 40 already slated for closure.
Six government agencies will go completely, nine other government bodies will cease to exist, dozens more will be amalgamated or privatised and 150 Commonwealth programs will be scaled back or streamlined.
Government sources said this will save almost $500 million to the taxpayer over the four-year budget forward estimates in a drive to reduce the size of government.
Mr Abbott will also rip more than $1.3 billion out of one of Julia Gillard’s failed flagship green schemes as a part of the Budget chop and axe the renewable energy agency completely, in a move that is likely to spark a bitter Budget showdown with Labor and the Greens in the senate.
Nine other government bodies set for the chopping block including the Prime Minister’s indigenous Business Policy Advisory Group as well as obscure bodies such as the Abalone Aquaculture Health Accreditation Working Group, the Grape and Wine Research and Development Selection Committee and the Wine Australia Corporation Selection Committee.
Industry Minister Ian Macfarlane would not speculate on the axing of government agencies when asked at Canberra airport.
“Let’s see exactly what’s in the budget first,” he said.
But Mr Macfarlane insisted the Coalition will set the budget up to grow the economy.
“People understand that something has to be done to fix the problem that Labor’s left us.”
Nationals Senator Ron Boswell conceded tomorrow night’s budget will be a tough sell for the government, but he’s sure it can be done.
“I made my money out of selling. I’m a great salesman. First I sold insurance, then I sold garbage bins and paintbrushes. I’m sure I can sell the budget,” he said.
People know they have to tighten their belts a bit, he argued as he arrived in town.
The public service cuts are among a swathe of unpopular Budget measures expected to be introduced by the Prime Minister and Treasurer tomorrow night in an attempt to boost the economy and expand revenue.
Greens MP Adam Bandt is worried lots of workers will lose their jobs as a result of abolishing agencies.
“It looks like Tony Abbott and Joe Hockey are going to take the axe to renewable energy,” he said.
Mr Bandt argued the government was more interested in “slashing the public service” than raising the revenue needed.
“In the long run that’s going to cost us.”
Opposition frontbencher Jason Clare admitted there is always room to make budgets more efficient but “the problem with this budget is that the priorities are all wrong”.
“Tomorrow night will be the night of the long noses. Tomorrow night Tony Abbott will break most of the promises he made at the last election,” Mr Clare said after jetting into Canberra.
But he was willing to help in the repair job by copping an MP pay freeze for a year.
“Happy to do that, but the big problem with this budget is it’s ordinary people that are going to cop it in the neck not the politicians”.
Bill Shorten refused to say whether Labor will help pass the deficit levy but said “broken promises” shouldn’t be rewarded.
“Tony Abbott made himself before the last election the saint of not breaking promises. His halo has well and truly slipped,” the Opposition Leader told reporters at Canberra Airport, after declaring it was his birthday.
“I’ll be judging the budget on how many people are losing their jobs courtesy of Tony Abbott,” he said.
Mr Shorten argued tomorrow night will be a test of the Prime Minister’s character.
Labor MP Jim Chalmers said it would be an “ambush”, not a budget.
“I think really that this government will wear the broken promises and twisted priorities in this budget like a crown of thorns for the rest of its days,” he said arriving at Canberra airport.
Originally published as Budget puts freeze on MPs’ salaries as Tony Abbott slashes up to 70 government agencies
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