Change with changed economic reality

Comments on LaborPhil Quin “A flood levy would not break”, 19/01/2011, http://www.businessspectator.com.au/bs.nsf/Article/A-flood-levy-would-not-break-Labor-pd20110119-D8R9H?OpenDocument&src=sph&src=rot

While Quin may have considerable experience in political advice, I think his proposal of a federal flood levy by the Gillard government is nothing short of political suicidal. The public just does not trust the government in its governance and economic management, and hence anything beyond and out of the ordinary political course.

Ironically I think it is an absolutely expected and extraordinary political opportunity for it to give up its impossible task of its promise to deliver a budget surplus by the due year.

The strong $A just makes it harder for many exporters to maintain their profit levels and deliver enough tax revenue to the federal coffer.

Rather than continuing saying to deliver a surplus and failing to do it by the time of the next election will be on, it can say now it is responding to the unexpected Queensland floods and changing its budget priorities.

It does not need a levy, but needs to redress budget priority urgently. Any delay in seizing this opportunity from Mother Nature and god is political amateurship.

Incidentally, it can also address indirectly the poor impression that Gillard is lack of compassion and has been unable to demonstrate it.

That will be politically smart.

Gillard and Swan need to see the point and wake up from the mindset that budget balance is the king. It may be, but not now and not in the next 2-3 years.