The Gillard Government has quickly shut down Opposition allegations that it was planning to withdraw funds from the Future Fund, clarifying its actions and criticising the Liberal party’s lack of understanding.
The Government’s predicted revenue from the sale of non-financial assets sparked interest after it was listed as expected to increase from about $383 million in 2010/11 to a high of $4.9 billion in 2012/13 – the same year the government was forecasting a $3.5 billion surplus.
This morning Shadow Assistant Treasurer Mathias Cormann said a “secret plan” had been revealed during a Senate Estimates hearing when questioning Finance Department head, David Tune.
Senator Cormann asked Tune whether there was anything unusual about the sale of non-financial assets other than the expected sale of digital spectrum.
Tune replied there were estimates for the disposal of Defence properties and land and the expected sale of assets from the Future Fund.
“That is an extraordinary revelation,” Cormann said, publicly stating that Gillard government planned to start “raiding” the Future Fund.
In response, Senator and Minister for Finance, Penny Wong, said the allegations were “completely incorrect”.
“The Government is not making withdrawals from the Future Fund. The Future Fund is simply making a small change to the types of assets it holds,” said Wong.
Minister Wong further said that the timing of the sale of these assets is a matter for the Future Fund and that the budget papers simply reflect the assets the Future Fund plans to hold going forward.
“Any funds raised from the sale of non-financial assets will be kept by the Future Fund – not by the Government. This means that the Government cannot spend these funds.”
“Suggestions by the Opposition today that the Government is ‘raiding’ the Future Fund are completely false, and just show how little understanding the Opposition have of how a budget operates.”
The Future Fund currently has $75.15 billion in assets as at 30 June 2011, including Telstra shares valued at $939 million.