SKIP TO MAIN CONTENT

Gillard hits rough water on levy

Prime Minister Julia Gillard has gone on the defensive as criticism mounts of her government's controversial new flood levy.

flood_woman_L_110128_aap_129799713

3 min read

Published

Updated

Source: AAP


Skip to article content

Prime Minister Julia Gillard has gone on the defensive as criticism mounts of her government's controversial new flood levy.

Ms Gillard lost her cool in one combative radio interview on Friday, angrily rejecting suggestions the $5.6 billion flood recovery money might be misspent.

"You don't need to patronise me, thank you very much," she told 3AW's Neil Mitchell, after he told her Australians would not accept any waste and mismanagement.

It sparked a war of words between the prime minister and the Melbourne morning show host in what was a fiery 20-minute interview.

Ms Gillard also fired up over a suggestion that not every member of her cabinet agreed with the levy.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

"Don't be so silly," she responded, while labelling a claim that the levy was politically motivated as "complete nonsense".

The feisty performance is a sign the federal government is facing an uphill battle selling its flood recovery package, which was announced on Thursday.

Environmentalists have been put offside by cuts to climate-friendly programs, while the $1.8 billion levy and a perceived lack of spending oversight have raised other concerns.

While flood victims and the low paid will be exempt, a one-off levy of 0.5 per cent will apply to taxable income in 2011/12 between $50,001 and $100,000 and a one per cent levy will apply to taxable income above $100,000.

According to early polls, most Australians are against the levy, with more than 50,000 people responding to Fairfax's online survey and 74 per cent giving it the thumbs-down.

Ms Gillard insists the government has value-for-money at the top of its priorities, although she has repeatedly refused to take responsibility for any misspent money.

She deliberately deferred infrastructure projects to free up workers, so that prices stayed down. "We're going to get it done with value for money," Ms Gillard said.

In Queensland, Flood Recovery Taskforce boss Mick Slater will be overseeing the spending, while arrangements are still being made in Victoria and Tasmania.

Finance Minister Penny Wong on Friday defended the prime minister's handling of the radio interview and denied that Ms Gillard's temper was fraying. "Look, not at all. The interviews can get willing at times and I think politicians are entitled to correct the record if people put things to us that are not true," she told Sky News.

Ms Gillard was touring flood-affected parts of Victoria on Friday, as her Treasurer Wayne Swan further outlined the effect of the floods at a business function in Brisbane.

He said floods could add a quarter of a percentage point to inflation in the March quarter, while he also tipped a rise in general food prices. Opposition Leader Tony Abbott, who also hit the flood-affected regions on Friday - this time in Gatton, Queensland, continued his campaign against the tax, warning that it could easily extend beyond the its one-year limit.

"This is just the beginning," he told the Nine Network. "This is a government that sees a problem and thinks tax and it just never stops."


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world