TE-BO’s Guru: Budget 2014-15 – ‘TRUST ME’ … Part 2: Politicians sell themselves before the Policy …

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TE-BO’s Guru: Budget 2014-15 – ‘TRUST ME’ … Part 2: Politicians sell themselves before the Policy … 
| Author: TE-BO’s Guru – | Date: May 19th, 2014 |


the-eyeball-opinion6The Part 1 of this 2014-15 Budget review focused on the new ‘Medical Research Fund’, and pointed to the ‘Future Fund’ as an example of this new trend in Government provisioning.   The ‘Future Fund’ set up by Costello continued under Rudd/Swan when three additional and different ‘Funds’ set up in 2008. Those ‘Funds’ are listed below: [source data]

Building Australia Fund The Building Australia Fund was established by the Nation-building Funds Act 2008. The object of the fund is to enhance the Commonwealth’s ability to make payments in relation to the creation or development of transport, communications, energy and water infrastructure and in relation to eligible national broadband matters. The Future Fund Board of Guardians is responsible for deciding how to invest the assets of the fund. Payments from the fund are determined by government, with advice from Infrastructure Australia, in accordance with the legislation.

Education Investment Fund

The Education Investment Fund was established by the Nation-building Funds Act 2008. The object of the fund is to enhance the Commonwealth’s ability to make payments in relation to the creation or development of higher education infrastructure , research infrastructure, vocational education and training infrastructure, eligible education infrastructure and to make transitional Higher Education Endowment Fund payments. The Higher Education Endowment Fund was discontinued in December 2008 and its assets transfered into the Education Investment Fund. The Future Fund Board of Guardians is responsible for deciding how to invest the assets of the fund. Payments from the fund are determined by government, with advice from the Education Investment Fund Advisory Board, in accordance with the legislation.

Health and Hospitals Fund

The Health and Hospitals Fund was established by the Nation-building Funds Act 2008. The object of the fund is to enhance the Commonwealth’s ability to make payments in relation to the creation or development of health infrastructure. The Future Fund Board of Guardians is responsible for deciding how to invest the assets of the fund. Payments from the fund are determined by government, with advice from the Health and Hospitals Fund Advisory Board, in accordance with the legislation.

New Treasurer Hockey just had to join the trend when he announced plans for the ‘Medical Research Fund’.   I am still to understand the balance between purpose and the real sacrificial cost Politicians impose on the people to set up these ‘Funds’.  It would appear that the only people who get something from these ‘Funds’ are the Fund Managers in fees and levy’s.

As explained in Part 1 of this 2014-15 budget response, the $7 levy Doctor’s patients will now pay for a visit will only be a fraction of what will be the higher costs for a visit to the Doctor.  The ‘gap’ cost in response to falling patient revenue will force the issue.  If Doctor’s see a 20-30% fall in visitations and in turn revenues, they’ll no choice but to introduce higher ‘gap’ fees to cover costs already established.

The alternative is to reduce their own income or lay off staff. Another announce that points to this Government’s attitude to the people came from Deputy PM Warren Truss who was quoted as bitching about ‘pensioners’ spending their super on ‘cruises and luxury items‘, and some 1100 pensioners a day moving onto the ‘aged pension’ because of falling super savings. There is an obvious double-standard that exists in that politicians who are allowed to access Government super entitlements when they leave office, and most do, is not something the people should be allowed to do.

The proposed increase in the pension age to 70 – is that about not allowing retirees accessing their super sooner to take those cruises and spend on a bit of luxury?

The burden on taxpayers to fund the Politicians superannuation scheme is there for life, and the pension for a politician is not dependent on their own contributions, but based on their highest ‘base level salary’ earned whilst serving in Parliament.  Truss is wealthy beyond most Australians because he is set for life by a superannuation scheme beyond what anyone outside of politics is entitled to.

The rules for politicians and taxpayers are so far apart – Abbott made a big deal about the $6,000 the ‘high-income’ levy [2%]  will cost him, and the 12 month freeze on MP’s remunerations… but what Mr Abbott was not asked about is why he plans to legislate pension increases be indexed to CPI and not ‘wage outcomes’.   That same ‘CPI’ index value does not apply to politicians and their wage outcomes.  Politicians have a Remuneration Tribunal’ to decide on parliamentary pay increases.  The incestuous connection is that the Tribunal staff all share in the pay increases they award to the parliamentary base’ salary.

Under Gillard in 2010, and after Rudd froze parliamentary pay increases in 2008 during the GFC crisis, this same Tribunal awarded increases to the ‘base’ salary for an MP from $128k to $195k by 2012, more than a 50% increase.  There was talk that to offset this large increase, MP’s overseas travel perks would be culled.  From this ‘Base’ wage outcome, Judges and all Commonwealth staff whose salaries are bench-marked off the MP ‘base’ salary received similar increases. The Parliamentary Remuneration guidelines have a separate set of rules to the private sector.   State Government MP’s are also indexed off Federal MP pay scales.

To see the historical Executive and back-bench pay scales see this link.

Hockey is dreaming if he thinks Costello is famed for the ‘Future Fund’ – within political ranks maybe so but from a public perspective – it is just another way politicians expect entitlement beyond what the people they govern have access to.  And this given the political corruption being exposed in recent years and still to come.  You would think that Hockey and Abbott would have appeal to the public over this political ‘entitlement debate, and gone the other way.  Why not do away with the ‘Parliamentary Tribunal’ and the whole Department as a cost savings and subject themselves to the same public Tribunal for future wage outcomes, and even put the same ‘CPI’ caveat on future increases they linked pension increases to.

The latest polls out today were to be expected but hold no weighting as nobody will vote ALP is a poll was held.   It’s a dissatisfaction poll result and as stated many months ago – nobody is smart enough to fix the problems the world over are facing from the GFC fallout.

The argument that our debt is the problem is a misnomer – it is the generosity of past Governments the world over during the last 30-40 odd years, all gifting the people election policy’s they could not fund to earn election victory.

Hockey should first realise that to turn our economy around, he first has to convince the rest of the world Government’s that they need to address their own debt crisis and follow his lead and find away to fix their problems – otherwise he is just pissin’ in the wind.   Some areas that need to be decided upon could be:

  • a global ‘western’ aging population, and some sustainable global population number,
  • a perspective on welfare spending that is sustainable rather than the give and take approach depending who is in Government,
  • fewer full-time workers to pay the tax revenues to fund Government’s into the future,
  • addressing election promises that are unaffordable, and unfunded,
  • the stopping of senseless ‘Fund Establishment’ funded from levy’s on taxpayers,
  • senseless political double standards – as an example, Hockey’s spend on a $50k lunches to impress other Nations, when the starving of the world are left unrepresented – since when does ‘food’ sway a politicians thinking …

There are so many areas where political thinking is askew – Hockey has the same Treasury bureaucracy that Rudd and Gillard had minus the recent Head of Treasury sacked under Abbott.   How could Treasury as a Department find the monies with such easy and without public accountability for the Rudd and Gillard spend, and then turn themselves into Hockey’s ‘razor’ gang and cut into the poorest in the Nation to help Hockey fund his ‘Medical Research’.  Monkeys the lot of them and not worth peanuts …


[…EYE-BALL…]Gratuity

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This entry was posted by TE-BO - [The EYE-BALL Opinion].

One thought on “TE-BO’s Guru: Budget 2014-15 – ‘TRUST ME’ … Part 2: Politicians sell themselves before the Policy …

  1. KEY word is “your” super money, yes your money. Do governments understand this? Not your contribution to a pension fund or government payment but your money!!!!!!

    Like

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