The Federal Government will accept some changes to its $42 billion stimulus package so it can pass the legislation through the Senate, Superannuation Minister Nick Sherry said today.
Sherry also said debate over the legislation may last until midnight tonight.
While Prime Minister Kevin Rudd announced the package last week, it has met with opposition in the Senate from cross-bench senators.
Family First Senator Steve Fielding wants $4 billion for job creation and to help the unemployed, and has attacked the Government for ignoring proposals from the Opposition.
“I know when someone’s stuffing around – get serious – don’t treat the Australian public like the Senate,” he said. “You walk into this place and you say, ‘I’m not changing any of it’. It’s disgusting. Are you the guys who have got all the good ideas?
“I have trouble sleeping at night knowing that even after spending $42 billion we’re going to have 300,000 Australians added to the unemployment queue,” he said.
Independent Senator Nick Xenophon wants more funds to help the struggling Murray-Darling Basin, while Greens leader Bob Brown is after more environmentally friendly infrastructure projects.
The Government wants the legislation passed through the Senate today, with a House of Representatives sitting tomorrow to approve any changes made.
Rio lines up Chinese deal
Meanwhile, the corporate sector is abuzz with news that Rio Tinto is poised to strike a $US12.3 billion deal with Chinese stakeholder Chinalco about selling further shares to reduce debt.
Rumours have circulated about a further sale of shares after Rio’s chairman-designate Jim Leng left the group due to objections to relations with Chinalco.
But Federal Treasurer Wayne Swan says Rio Tinto must meet Government regulations before it can sell another stake to the state-backed aluminium company. He says any deal must be scrutinised by the Foreign Investment Review Board.
“They will be examined in the normal way within the guidelines that we put out at the beginning of last year,” Swan told ABC Radio.
Shares gain ground
Meanwhie, the Australian sharemarket has opened 1.5% higher today after good leads from Wall Street overnight. The benchmark S&P/ASX200 was up 60.8 points or 1.75% to 3535.2 at 12.00 AESDT.
But the Aussie dollar slipped back to just US65 cents on news the national unemployment rate has jumped to 4.8%.
Commonwealth Bank shares have gained 2.6% to $30.71, while Westpac jumped 1.9% to $16.48. BHP Billiton shares gained 2.3% to $33.13, but NAB have dropped 0.3% to $18.65.
Overseas, Wall Street closed higher after news that Congress has reached a compromise on President Barack Obama’s $US789 billion stimulus package, and could pass the legislation as early as today.
The US House of Representatives passed a $US800 billion version of the bill, while the Senate approved an $US838 billion version – the two houses spent the last two days negotiating.
The package now includes $US150 billion in infrastructure projects that will create 3.5 million jobs along with tax cuts for low and middle-income earners.
The Dow Jones Industrial Average closed up 50.65 points or 0.64% to 7939.53. Oil prices fell after a bleak assessment of demand from the International Energy Agency, dropping to just $US35 a barrel.
Back home, Suncorp-Metway estimates the total cost of damage caused by the bushfires in Victoria and floods in Queensland will reach about $180 million. The company has already received 1250 claims for fire damage and another 1000 from the floods.
“Therefore, the maximum combined cost of the Victorian fires and North Queensland floods to the group, including reinstatement premiums and the purchase of additional reinsurance cover, is expected to be approximately $180 million net of reinsurance recoveries,” the company said.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
