‘Emasculated’ Scott Morrison frustrated at colleagues publicly shooting down budget savings
SENIOR Government figures are frustrated that ministers are publicly discussing proposed Budget measures and fear Malcolm Turnbull’s dithering is undermining the Treasurer.
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SENIOR Government figures fear the Budget process is in danger of derailing, with Scott Morrison’s authority being publicly undermined by restless ministers, and the party leadership dithering on key policy initiatives.
The Treasurer, whose May 9 Budget will determine the immediate fate of the Government, dismissed as “complete rubbish” any suggestion of problems.
But The Daily Telegraph has been told of his growing “frustration” at the indecisiveness from the top of Government and that Malcolm Turnbull has instructed him to consult with Peter Dutton over housing affordability measures.
While Mr Dutton, the Immigration minister, has no economic responsibilities, he has become the head of the right wing of the Liberal Party, and is considered a potential Coalition leadership rival to Mr Morrison.
While Mr Morrison’s office played down suggestions of unrest, several ministers and key insiders told The Daily Telegraph tensions between him and the Prime Minister had escalated in the past fortnight.
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One MP expressed concerns Mr Turnbull’s edict to Mr Morrison to reach consensus on housing policy with Mr Dutton, who does not sit on the powerful Expenditure Review Committee, left the Treasurer in danger of being “emasculated”.
And insiders were yesterday stunned, and Mr Morrison was said to be unhappy, that Cabinet ministers and Mr Turnbull were publicly canvassing policy measures.
“I’ve never seen a thing like today where there’s an open discussion about a measure that may or may not be in the Budget a month out,” one source said.
Defence Industry Minister Christopher Pyne and Mr Dutton were both disparaging of a proposal to allow young people to raid their superannuation yesterday — a day after Mr Turnbull also dismissed the measure publicly, rather than in a private meeting of Cabinet.
Traditionally, Government ministers do not discuss, never rule in or rule out Budget initiatives so close to the Treasurer’s speech.
Key economic ministers met in Sydney yesterday to thrash out measures, and discussed changes to Capital Gains Tax concessions, but The Daily Telegraph understands they failed to reach an agreement.
Mr Dutton has strongly opposed budget measures Mr Morrison has been exploring, including changes to negative gearing and allowing first-home buyers to access superannuation, and his opinion has been sought in discussions around changes to Capital Gains Tax.
One Liberal MP described Mr Morrison as in danger of being emasculated as Treasurer.
The MP said while Mr Dutton did not hold an economic portfolio, he was a senior Cabinet minister who could be consulted on economic policy.
“I don’t blame Malcolm for that but at the same time the Treasurer needs to be the captain of that ship and you can’t emasculate him,” the MP said.
“The Treasurer can’t be answering to too many other people.”
Another MP said there were tensions between Mr Turnbull and Mr Morrison but also said they were “common” ahead of a federal Budget.
Mr Morrison dismissed colleagues’ descriptions of strained relations with the PM and frustration at having to run economic policy by Mr Dutton as “complete rubbish”.
Senior figures from the Howard government said former prime minster John Howard and treasurer Peter Costello were on the same page with economic policy and, while they may have discussed a measure with Foreign Minister Alexander Downer, he was not a central part of the decision-making process ahead of Budget.
Mr Morrison was exploring change to negative gearing by limiting the deductibility of interest on residential investor mortgages until Mr Turnbull made it clear privately he needed consensus from Mr Dutton and Finance Minister Mathias Cormann, senior figures in the Right of the party.
Both fiercely opposed the measure, and it was subsequently ruled out.
Mr Pyne yesterday said it was a great pity colleagues were running Budget debates publicly. He then gave his own view on a housing measure.
Mr Turnbull is understood to have asked Mr Morrison to reach a consensus with Mr Dutton and Mr Cormann in an effort to avoid a showdown with the Right after the Budget.
Former PM Tony Abbott has already indicated, in an interview with The Daily Telegraph this week, that he would not support cutting Capital Gains Tax concessions, which he said would amount to a covert tax.
Mr Morrison was also re-examining whether it’s worth keeping the Work for the Dole scheme, which he viewed as too expensive at an annual cost of $650 million, with little results.
His push to axe the program was quickly exposed in the media, with the government forced to confirm it would keep the mutual obligation scheme.
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