FED:Floods debate gets personal

AAP General News (Australia)
02-10-2011
FED:Floods debate gets personal

By Paul Osborne, AAP Senior Political Writer

CANBERRA, Feb 10 AAP - The debate over the government's flood levy has turned personal,
as the opposition accused Labor of unfairly taxing retirement savings to pay for the recovery.

Prime Minister Julia Gillard - who earlier in the week teared up as she recalled the
stories of the 38 killed in the floods - went on the attack in parliament, accusing Opposition
Leader Tony Abbott of having a "tin heart".

A Liberal Party letter in Mr Abbott's name about the tragedy of the floods included
an appeal to donate to the party to fight the government's proposed recovery levy.

"I've never seen such a tin heart," Ms Gillard said.

She said the coalition's proposed budget cuts to replace the $1.8 billion raised by
the levy - including axing spending on Indonesian schools and the Building the Education
Revolution program - represented a "list of shabby opportunism".

"Now is the time to put down the polling, to cut out the scare campaign ... to toss
away the lines and do something in the national interest," Ms Gillard said.

Mr Abbott earlier in the week praised the prime minister over her speech during the
motion of condolence for the 35 flood victims, but returned fire on Thursday.

"I said this week that the prime minister has a decent heart, but I tell you what -
she's got a tin ear," he said.

The coalition accused the government of unfairly taxing superannuation payouts.

NSW Liberal Russell Matheson said he had been contacted by a police officer who was
due to retire next financial year with a lump sum superannuation payout.

Mr Matheson said the man now faced a $6,500 flood levy bill.

The prime minister said the flood levy had been structured through the tax system,
so that people who can pay more, do so.

Mr Abbott later accused the Labor leader - who has compared the cost of the levy to
a "cup of coffee a week" - of misleading taxpayers.

"What we've seen is the cup of coffee becomes a coffee machine a week in the case of
some taxpayers," Mr Abbott said.

Labor MPs taunted coalition members over reports deputy leader Julie Bishop had vehemently
objected to proposed cuts to foreign aid in the opposition's alternative flood recovery
package.

But Ms Bishop tried to turn the attack back on the government, saying the levy was lazy policy.

"It's a shame the Labor party doesn't have robust policy debates within its cabinet," she said.

"The self-described zombies accept the lazy public policy efforts of the prime minister."

She said Ms Gillard had been "unable to reach the high standards that are expected
of the prime minister", adding that paying for disaster recovery was a core responsibility
of government which shouldn't require extra taxes.

The levy legislation, introduced on Thursday, faces a slow march through parliament,
after it was referred to the economics committee and independent MP Tony Windsor gave
his strongest indication yet he may oppose it.

Labor is banking on WA Nationals Tony Crook, Greens MP Adam Bandt and independents
Andrew Wilkie and Rob Oakeshott to get the levy through the lower house.

AAP pjo/sb/it/de

KEYWORD: FLOODS WRAP

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