Budget wash-up: Government forced to defend ‘broken promise’ Budget

THE Treasurer’s second attempt at a Budget has been labelled his “Viagra Budget” because it delivers “excessive stimulation”.

THEY’RE calling it Joe Hockey’s “Viagra budget”.

The male performance drug and the Treasurer are probably not two things you’d immediately want to link, but economist Peter Switzer made the connection at a business breakfast in Brisbane and it kind of makes sense.

“We were in need of excessive stimulation and Joe has provided it,” he said.

Viagra Budget ... Not sure if it’s meant to be a compliment. Pic: Gary Ramage

At the same event, John Howard shared his views on the Budget that was tipped to pull apart his legacy.

The former prime minister believes the Abbott government’s latest budget is a political one, and said it was “very different” to the one Treasurer Joe Hockey handed down last year.

“It has certainly been framed by the government with an eye to political sensitivities,” Mr Howard told PwC’s budget breakfast on Wednesday.

Mr Howard conceded the 2014 budget was ill-conceived, especially the now-abandoned indexation changes to the aged pension.

“Anything that looks as though it will cut it or retard the rate of increase in the pension is just not on in the Australian context,” he said.

Economist Peter Switzer, who also spoke at the breakfast, dubbed Mr Hockey’s second effort “The Viagra Budget”.

“We were in need of excessive stimulation and Joe has provided it,” he said.

All political ... Former PM John Howard has weighed in on the Budget. Pic: Darren England.

While others weighed in on the Budget, the Prime Minister and Treasurer have been doing the media rounds defending it.

After giving himself the job of looking after Australian women, Tony Abbott was asked to apologise for “completely letting them down” in a fiery TV interview this morning.

The Prime Minister and Minister for Women found himself in an awkward position on Nine’s Today.

After taking the promise of a generous paid parental leave scheme to an election, only to backflip and deliver a package that is actually worse for women than what they’re currently entitled to, Mr Abbott faced some tough questions on the issue from host Karl Stefanovic who insisted he had “broken a promise to the women of Australia”.

“You’ve delivered nothing for them,” Stefanovic put to Mr Abbott.

“Don’t you owe the women of Australia an apology?”

Aren’t you sorry?

“I copped quite a bit of political flack on this issue,” Abbott admitted.

“I’ve listened, I’ve learned and I’ve acted, and the message that came back to me loud and clear was that if we had to prioritise, we should prioritise better childcare.”

“It’s a hell of a turnaround from what you promised,” Stefanovic said.

“What I like to think we’ve delivered in this budget is a jobs for families reform, I am doing what I think is best, what the government thinks is best,” Abbott said.

Mr Abbott refused to answer Stefanovic’s repeated requests for an apology to the women of Australia.

“As minister for women are you sorry?” he challenged.

There was no apology.

In a later interview on Today Joe Hockey faced co-host Lisa Wilkinson’s tough questions over the government’s meagre Budget allocation of $30 million towards tackling domestic violence.

The Treasurer bizarrely said the government would allocate more money to tackling domestic violence, which hadn’t been announced.

Hockey has promised ‘more to come’ on domestic violence.

“We have put in the Budget additional money, which we have not announced last night, and the Prime Minister will be saying more about that in relation to domestic violence in the next few weeks, so there’s more to come in relation to domestic violence,” he said.

When Ms Wilkinson asked the Treasurer to clarify the crisis would be something “you’re going to commit some real dollars to”, Mr Hockey replied: “Absolutely”.

“There’ll be further announcements from the Prime Minister and various ministers in the next few weeks, there’s consultation with the states as well. It’s a huge issue, we are very aware of it,” he said.

After pledging just $30m to domestic violence @JoeHockey says PM is announcing new funding soon. Unclear why $ not included in #budget2015

— Lisa Wilkinson (@Lisa_Wilkinson) May 12, 2015

Joe Hockey and Tony Abbott will be doing the rounds defending their Budget today. Pic: Gary Ramage

Treasurer Joe Hockey has also been out spruiking the Budget he was so insistent to take ownership of, squaring off against some of the country’s toughest interviewers to defensively sell his Budget measures.

Facing a grilling from Radio National’s Fran Kelly this morning, a testy Mr Hockey was almost shouting “we are doing what we can” when challenged on some of his Budget measures.

It was put to Mr Hockey on the breakfast program that his small business plan, which allows for greater tax deductions for small business owners, could be seen as a “sweetener” and be taken advantage of, but Mr Hockey insisted it “is not a case of handing out cheques”.

Kelly suggested if business owners wanted a new car or a plasma TV, the government’s generosity could be taken advantage of.

“People aren’t going to spend money on their business if they’re not going to make money,” Mr Hockey said.

“Well they will if they want a new plasma TV,” Kelly retorted.

“You spend not for your personal pleasure, but you spend to make a dime,” a defensive Hockey said.

It was the first of many defensive interviews the Treasurer was faced with before he addressed the National Press Club at lunchtime.

Just minutes after delivering his second Budget, the treasurer squared off with 7.30 host Leigh Sales in a terse and awkward exchange.

Opening with a clear challenge, Sales set the tone for the interview: “Is this what political retreat looks like?”

Hockey was given only seconds to answer before Sales interrupted, challenging him on the small business tax breaks that he’s since been forced to defend again.

“It is actually giving Australian businesses some of their own money back to invest in new plant and equipment that is going to create jobs,” he said.

Sales went on to accuse hockey of confusing voters after “backflipping on numerous plans”, and “relying on excuses”, and it ultimately came down to a discussion about the Treasurer keeping his job.

“Do you accept that voters are thoroughly confused not only about what your government stands for but also about your competence?” Sales challenged.

“Well now, I think they’re confused about what you’re saying,” Hockey replied.

Sales explained the public’s confusion around “having one policy and replacing it with another”, drawing on the retracted paid parental leave scheme.

The Treasurer repeatedly blocked Sales’s question, accusing Labor of setting up the government for disaster, to which Sales replied “I will take that up with Chris Bowen”, numerous times.

‘It’s gossip’ ... Joe Hockey dismissed Leigh Sales questions in the awkward interview.

The fiery interview came to an abrupt end when Mr Hockey dismissed his interviewer’s questions as “gossip”, when she asked if the budget was “make or break for you as Treasurer”.

“It’s not about me, it’s about my country, I came into this job to make Australia better,” he replied.

“You can go through all the commentary and gossip, I’m focused on one thing.”

While government figures have multiple interviews lined up today, the Opposition Leader was criticised for cancelling an interview on Nine’s breakfast program.

“Probably not the best day to be giving the government a free hit,” co-host Lisa Wilkinson remarked.