Budget to energise solar power
The Government has revealed a range of measures to tackle climate change will be part of tonight's Budget, including spending $150 million over the next five years to increase the use of solar power in homes, schools and community buildings.
Treasurer Peter Costello is expected to hand down his 12th Budget tonight with a strong surplus and big spending on transport, the environment, child care and health.
As part of the climate change measures, the solar rebate scheme will be doubled to up to $8,000 per household.
But a sustainable energy expert says the Government must do more to encourage growth in Australia's solar energy industry.
Director of the Centre for Sustainable Energy Systems at the Australian National University (ANU) Andrew Blakers says the Government must also support solar research and product commercialisation.
Professor Blakers says Australia is being left behind the rest of the world.
"The Europeans and the Japanese and parts of the United States are really starting to come alive, this is an industry that's doubling in size every 18 months," he said.
"It's worth about $25 billion last year, it's going to hit $100 billion by about 2011 and will hit $1 trillion in 2020.
"It's going to be bigger than than the defence industry, bigger than electronics, it's going to be huge."
The Budget is also expected to include tax incentives for business and tax cuts for low- to middle-income earners.
MPs from both sides of politics are warning against a Budget that puts pressure on interest rates.
But Liberal backbencher Bob Baldwin says any tax cuts would be welcome.
"[We need] an eye on the ball to make sure interest rates don't go up - there's no good giving someone a tax cut of $10, $15, $20 a week, creating a situation thereby interest rates go up and their mortgage goes up by $30, $40 or $50 a week," he said.
Opposition treasury spokesman Wayne Swan says the Budget must prepare the economy for life after the mining boom.
"It's been raining gold bars courtesy of the mining boom, and I guess there's one central benchmark by which all Australians will judge this Budget - to what extent will it use the opportunity of the mining to invest in the future to secure our prosperity beyond the mining boom," he said.
Skills shortage
Meanwhile, the union movement has urged the Federal Government to address the country's skills shortage in tonight's Budget.
Australian Council of Trade Unions (ACTU) president Sharan Burrow says the Budget needs to compensate working families for increased interest rates and rises in the cost of food, fuel and child care.
But she has stressed it is important that there is a long-term vision to meet the nation's future needs.
"We're coming off a decade of neglect in regard to education and training. It's hampered our economy," she said.
"The skills deficit has been serious enough but without planning and targeting for the future - major investment schools, in TAFE and in universities, then the Budget will again fall short of what the economy needs."
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Tuesday, May 08, 2007
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