It has become apparent today in Estimates questioning by Nationals Senate Leader Barnaby Joyce, that half the Nation's surplus was appropriated without any form of modelling whatsoever. In other words, the Labor Government is in flight by the seat of their economic pants.

Dr David Gruen of the Treasury acknowledged modelling could be composed in three days if pushed, but the $10.4 billion package was not given the benefit of this step in prudence, even though the money will not be spent till December. The package is an absolute magical mystery tour inspired by political minds as opposed to diligent economics. This was confirmed by the Minister Stephen Conroy who confirmed the package was a "Government decision".

The Treasury could not provide evidence of an analytical tool to delineate how the substance of the amount of $10.4 billion was arrived at, nor could they confirm the stimulus package will work. Further, they could not give any numerical approximation of what the contingent liability of the banking guarantee all Australians now underwrite is. They did acknowledge it could be unlimited, as it is not tied to an amount in time, but rather any possible amount over a period of time. The only response Senator Joyce received was "that it is not expected it to reach a trillion dollars".

This is not the fault of the Treasury. They have been pushed into a corner of ridiculous media maximising decisions by reason of a Government intent on not following a diligent assessment of the impacts of the extent, form and substance of their decisions with the Nation's money.

The ramifications of this "finger in the wind" policy process of Labor may have actually placed Australia in a far worse position than had the $10.4 billion appropriation not been made. Likewise the unlimited guarantee granted by the Government will be assessed by those extending credit to Australia, when this Labor Government finally drives our budget into deficit. If Labor finds this statement outrageous, I would be happy for them to show the Nation the homework pertaining to their decision before it was made, as proof this was not the case.

Who pays for this school of Labor manic management? Well, all Australians in their future interest rates and in the missed opportunities for hospitals, roads, social security, rail, ports, defence and any other area where $10.4 billion, half our Nation's surplus, could have been spent.

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