Swan says OECD report points to endorsement of Aussie govt economic policies
Stubbornly confident on its present form and its perceived economic benefits, the federal government remains firm on its commitment to win a parliamentary go ahead for its proposed minerals resource rent tax, notwithstanding an international study suggesting some tweaks on the tax measures.
While the Organisation for Economic Cooperation and Development generally viewed the MRRT as economically justified, it observed that the current headline rate of 30 percent it carries is too accommodating.
On its Economic Survey of Australia made public over the weekend, the OECD has indicated that revenues to be delivered by the controversial mining tax could be put in better use by letting them to be deposited first in a reserve fund.
The OECD report also delved into the more than $40 billion National Broadband Network project of the Labor-led federal government, allowing some reservations on an initiative that could prove too costly for the its desired technological advancement.
However, Federal Treasurer Wayne Swan is adamant with the current path of the Australian government, regardless of the somewhat mixed reviews on the economy delivered by the OECD report, which he maintained was generally approving of the economic policies of federal authorities.
Despite the OECD's apparent misgivings, Mr Swan stressed that prior mining agreements struck with Australia's three biggest resources companies would be honoured as he was quoted by an ABC report as saying that "we will fight for this in the parliament because it is good for the economy."
Clearly, the federal treasurer pointed out that the OECD is supportive of the economic direction of the Australian government as he clarified that if perceived criticisms were contained on its latest report, they welcome to him and would be seriously taken under considerations.
On the NBN case, Mr Swan admitted that the OECD report may have scored some aspects of the projects but he insisted that its eventual roll out was not an issue for the Paris-based institution as it even cited that Australia is in fact lagging in terms of broadband technology.
Overall, the federal government is delighted over the whole context of the OECD report on the Australian economy as Mr Swan emphasised that while "there is a detailed analysis of the pros and cons of individual measures, and even there, very, very supportive of the government's approach."
Also, Labor colleagues in the Parliament echoed Mr Swan's sentiments as Labor MP Nick Champion underscored that the OECD report gave due recognition to the Australian government's sterling performance amidst the battering incurred by most economies during the height of the global financial crisis.
Still, the Australian opposition appeared less than impressed as Liberal MP Dennis Jensenhad was quoted by an AAP report as saying that "the government clearly does not get it as they are borrowing money like there's no tomorrow."