Joe Hockey warns Federal Government will find new savings if budget not passed

JOE Hockey has issued a blunt warning that “there are other alternatives we can take” if Labor and Greens don’t back his budget.

House Of Representatives Question Time

JOE Hockey has issued the government’s opponents a strong public message: pass our budget measures or the Coalition will find different cuts.

In what appeared to be a threat from the federal treasurer, and a hint at perhaps a mini-budget, Mr Hockey told Labor and the Greens he will be left to look for “alternatives” if they intend to block measures proposed in the May Budget.

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“If the Senate chooses to block savings initiatives, then we need to look at other savings initiatives that may not require legislation and I would ask the Greens and the Labor Party — who between them hold 35 votes on the floor of the Senate — to understand that there are alternatives for a government,” Mr Hockey told ABC Radio.

One measure he nominated which does not require legislation now is the “reduction in foreign aid”.

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But the government will be on the hunt for others it can implement without legislation if it has to, he added.

“Now, I say to the Labor Party and to the Greens, if you’re instinct is to say no immediately and to stick with that, you are dealing yourself out of having an influence on public policy.

“Because if the immediate reaction is no with no opportunity to open discussions in relation to the matters, then there are other alternatives that we can take.”

He denied the warning was one of “retribution” but said it is the reality of repairing the budget.

The government is facing a massive hole in its bottom line, with its plans to introduce a $7 GP co-payment and fuel excise levy failing to have support.

Opposition leader Bill Shorten hit back, insisting the Labor Party won’t be bullied by the Coalition’s “shame game”.

“Stop threatening ordinary people … with your Plan B of unfairness if your Plan A of an unfair budget doesn’t succeed,” the Opposition Leader told reporters in Parliament House.

“If the Senate won’t buy your rotten, unfair budget the problem may not be the Senate, it may not be the people of Australia, it maybe the government who proposes this unfair budget.

“Don’t bully the Senate or threaten ordinary Australians with alternative measures.”

Mr Shorten said the government should instead go back to “the drawing board” on its budget, which is currently “sinking fast”.

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Steadfast in opposing Budget proposals ... Opposition leader Bill Shorten. Picture: Gary Ramage

Originally published as Joe Hockey warns Federal Government will find new savings if budget not passed