Bob Brown tells Julia Gillard surplus can wait

BOB Brown says Julia Gillard can junk her plan to return the budget to surplus by 2012-13, warning that it could hurt small business.

bob and julia

GREENS Leader Bob Brown has given Julia Gillard political licence to junk her plan to return the budget to surplus by 2012-13, warning that it could hurt small business and put jobs at risk.

But a day after economists had warned the government to rethink the pledge in light of the global economic turmoil, Wayne Swan yesterday recommitted to the target, reported The Australian.

Acknowledging global events would cut revenues and make his task "harder'', Mr Swan said it was "too early to tell'' how profound the effect would be, meaning it was pointless to speculate.

Labor took the budget into deficit by funding an economic stimulus package in response to the global financial crisis and has doggedly stuck to its pledge to return to surplus quickly to underline its economic credentials.

Yesterday, Senator Brown, whose party controls the balance of power in the Senate, said the Greens advocated "a budget balanced across the economic cycle''.

He said that this did not necessarily equate to a return to surplus in 2012-13. "Returning to a surplus in 2012-13 as a political tactic to fend off Tony Abbott would be folly if it put small businesses and jobs at risk,'' Senator Brown said in Launceston.

"These are real people, real business, real jobs that need real support in the event of an economic downturn.

Read more about Bob Brown telling Julia Gillard that surplus can wait at The Australian.