Ideas@TheCentre
The MYEFO pork barrel
In the aftermath of Mid-Year Economic and Fiscal Outlook (MYEFO), the discussion has focused on big ticket items such as the mining tax, company tax, baby bonus, and private health insurance.
But MYEFO also provides a detailed list of government patronage to favoured organisations. The Australian Ballet received $2 million to build a new production facility in the Melbourne suburb of Altona, which also happens to be in the prime minister’s electorate of Lalor.
Independent Tasmanian MP Andrew Wilkie also did well out of the MYEFO pork barrel: the Moonah Arts Centre received $4 million; the New Town Bay Centre for Rowing Education got $2.5 million; Wellesley Park got $1.2 million to upgrade its sporting facilities; and Hobart received $3.4 million towards energy-efficient street lights.
Millions are going towards restructuring businesses. Alcoa Australia is receiving $42 million to restructure its Point Henry Aluminium Smelter; Australian Paper’s mill in Maryvale, Victoria, is getting $9.5 million to establish a ‘de-inked pulp facility’; and the Boyer Mill in Tasmania is getting $28 million to help diversify its production so it can ‘produce magazine grade paper’.
The sports sector too was on the gravy train. To help the Football Federation of Australia prepare for the 2015 Asian Football Cup, which will cost taxpayers more than $55 million, the government forgave FAA’s $4 million debt to the Commonwealth. Two million dollars went towards building a multicultural centre for the Greater Western Sydney Giants, and a half million dollars went to install a synthetic hockey pitch at the Centre of Excellence for Hockey in Western Australia.
Think tanks didn’t miss out either: $4 million went to the Lowy Institute to set up a G20 Studies Centre, and $7 million for ongoing support to the United States Studies Centre and to set up an office at the University of Western Australia. The government will also spend $12.1 million over four years to establish the ‘Centre for Workplace Leadership’.
Not all announcements in the MYEFO were bad. The cuts to middle-class welfare and the Export Market Development Grant program, which subsidises the marketing of exports, are welcome. However, this MYEFO clearly shows the government gravy train is chugging along quite nicely.
Andrew Baker is a Policy Analyst at The Centre for Independent Studies and the next speaker in the Meet the Researcher lecture series. To book for Andrew's presentation next Tuesday on the National Disability Insurance Scheme, go to the CIS website.
