CANBERRA: Prime Minister-elect Kevin Rudd says he will use the expertise of the federal treasury department in the creation of policy under his government.
Rudd was critical of the Howard government for not using Treasury to fund models on the economic impact of climate change and the Work Choices legislation.
“I believe the Treasury is staffed with high quality personnel, it has a strong tradition of independence in the provision of advice,” he told reporters in Brisbane.
“I would, therefore, welcome a broader role for their advice across the whole of government in consultation with the central policy agency, which is, of course, the department of prime minister and cabinet.”
Financial markets gave the new Labor government the thumbs up on the first trading day after the ALP was swept to power at the weekend with the Australian dollar and stock market both rallying.
“All the markets were concerned about was getting a result and we got a decisive result which was good,” Stephen Roberts, chief economist at Grange Securities, said.
Economists say that in the end there was little difference between the two major parties that would effect the immediate outlook for the economy, but it is crucial Labor is seen to be delivering on its promises in the future to put downward pressure on inflation.
The Reserve Bank of Australia (RBA) has already made it clear that it was not happy about the inflation outlook – forecasting a rate above its 2%-3% target in the coming months – and home buyers should be bracing for another interest rate rise next year.
Wayne Swan, who has already been anointed as treasurer by Mr Rudd although not yet formally sworn in, was briefed by secretary to the treasury Ken Henry yesterday.
“We got down to work and I spent yesterday afternoon receiving briefings from Treasury,” Swan told ABC Radio. – AAP