'Promise audit not about a Labor loss'

TREASURER Wayne Swan says new legislation that would force an audit of both sides' election policies 30 days after the September poll was not a sign that the Government was preparing for life in opposition.

At a media conference following a speech to economists this morning, Mr Swan was asked whether he was conceding that Labor was unlikely to win the election.

"Not at all," Mr Swan said. "Not at all."

Earlier, Mr Swan had flagged new legislation that would instruct the Parliamentary Budget Office to audit the full package of election policies from each political party inside 30 days after the election.

"This will remove the capacity of any political party to try to mislead the Australian people and punish those that do," Mr Swan said in his speech.

Wayne Swan says the proposed election promise audit isn't about preparing for a Labor defeat.

Opposition treasury spokesman Joe Hockey said the coalition had "absolutely nothing to fear" by having its policies independently audited after the election, to be held in September.

"Wayne Swan now wants to make honesty and integrity in numbers the new benchmark for the election campaign and I say bring it on," he told Sky News.

"This is exactly what we want - sunshine on the numbers, amen."

Afterwards, Mr Swan was quizzed by both economists and journalists about whether the Government remained committed to delivering a Budget surplus in 2013-14.

Shadow Treasurer Joe Hockey says he doesn't fear having his party's election promises independently audited after the election. Picture: Matthew Sullivan

In December, Mr Swan junked the Government’s previously "rock solid" promise to produce a surplus in 2012-13. The Government had been committed to surpluses in future financial years, too.

During a Q&A session after this morning’s speech, Mr Swan was asked whether the Government was still committed to a surplus in 2013-14.

He replied: "I am not going to try and pre-empt the forecasts that will be in the May budget."

He was asked the question again at the subsequent media conference.

He replied: "What I am doing is outlining a very clear medium-term fiscal strategy. I said at the end of last year that it would be deeply irresponsible to cut at that time to make up for revenue lost. That would have impacted upon jobs and growth. I’ll reveal the future pathway back to surplus in the Budget forecasts which are produced in May."

In the Q&A, Mr Swan had been taken to task by JP Morgan Australia chief economist Stephen for not producing updated forecasts.

This week Mr Walters forecast a 2013-14 budget deficit of $5 billion. Others have forecast larger deficits.

Mr Swan did reveal that January estimates of government revenues indicated a further $2 billion shortfall compared to the last update in December.

"There will be no fiscal surprises after the election," he said.

Mr Hockey said the government should release its budget numbers right now if it was really "fair dinkum" about transparency.

 

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