The Budget handed down by Federal Treasurer Peter Costello this week has had a mixed response, with environmentalists suggesting that the offer of solar rebates is just a drop in a dry creek bed, and economists saying that the cuts in taxes and boost in education spending will boost the economy, despite the Opposition's warnings that it could result in further interest rate rises.
"It doesn't indicate any concerns for the Reserve Bank", AMP senior Australian economist Bob Cunneen told The Australian this week.
"The bank will be comfortable."
Apart from tax cuts which could make mortgage repayments easier, homeowners have been given an added incentive to install solar panels in what the Government calls a practical measure to tackle climate change. Environmental experts, however, say that this is a mere gesture and it is nowhere near enough to have an impact on Australia's ongoing contribution to global warming.
The solar rebate scheme was first established in 2000, but was later reduced to $4000 for both homes and schools and scheduled to become obsolete on 30 June this year.
Mr Costello announced that the rebate would not only restored, but doubled to $8000 for households and increased to $12,000 for schools and community groups.
The Australian Conservation Foundation (ACF) said that while the Federal Budget contains some useful funding for environmental initiatives, it shows "no commitment to reduce greenhouse emissions by 2020 and does not match the scale of the action required to tackle climate change".
"The solar rebate, if fully taken up, will assist 14,000 of Australia's 7.5 million households and might prevent around 32,000 tonnes of CO2 from going into the atmosphere each year", said ACF's executive director Don Henry.
"That would reduce Australia's greenhouse emissions by about 0.01 per cent. The best available science is saying we need to reduce our emissions by 30 per cent by 2020. While programs like this are worthwhile, they are like one piece of a 10,000-piece jigsaw puzzle."
Managing Director of Archicentre Robert Caulfield welcomed the increased rebates as a means of increasing the number of solar installations around Australia, but warned that it is also important for the community generally to become more informed about the management of their homes.
"All political parties should be looking at a fundamental education program for schools that imbeds environmental consumer education into the curriculum on buying or building a sustainable home", Mr Caulfield said.
An online poll in the Sydney Morning Herald on Wednesday was indicative of the mixed response of voters to Mr Costello's Budget, with 43 per cent saying it is good ("it's what we want"), but 40 per cent saying it is "just a vote grabber" and 13 per cent saying we "should be spending more wisely".
