Abbott defends budget, investment rules

The federal budget and foreign investment are on the agenda for Prime Minister Tony Abbott as he takes his sales pitch to New York.

Prime Minister Tony Abbott will invoke Abraham Lincoln when he defends his controversial budget changes to top executives in New York.

Mr Abbott is in the US city for two days of talks with business leaders, and a meeting with UN Secretary-General Ban Ki-moon, to spruik his message that Australia is "open for business" after six years of Labor.

"In the words attributed to Lincoln, government should do for people what they cannot do for themselves and no more," he will say during a speech to an American Australian Association lunch on Tuesday.

The prime minister will list a number of coalition's policies - such as saying no to business handouts, deregulation of higher education, "earn or learn" welfare reforms and the Medicare co-payment - as being in tune with the Republican and Civil War president's philosophy.

"There's been a political cost, of course; but we have refused to put short term popularity ahead of long-term respect."

Mr Abbott will also defend the government's decision last December to block the $3.4 billion takeover of agribusiness GrainCorp by US group Archer Daniels Midlands.

The government had approved more than 100 major foreign investment proposals and rejected just one, "because you don't normally replace a locally-owned monopoly with an overseas-owned one".

With the US facing criticism from some global quarters over its lacklustre economy, Mr Abbott has a clear and simple message.

"America matters to the world, Australia matters to America and Australia wants to matter more to America and to the world in the years and decades ahead," he will say.

"Some people say that America is a spent force. They're wrong."

He also will note America's energy vulnerability is lessening and its economy is becoming more robust.

Before his speech, the prime minister will lay a wreath at the National September 11 Memorial, which honours the 2983 victims - including 10 Australian citizens - of the terror attacks.

He will also ring the opening bell at the New York Stock Exchange.

He will discuss global security issues such as Syria and the Ukraine with the UN secretary-general.

Australia currently sits on the UN Security Council as a temporary member.

After New York, the next stop will be the White House for a meeting with US President Barack Obama and Vice President Joe Biden to discuss the G20, global security, the Trans-Pacific Partnership agreement and investment.


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