What Australian newspapers say on Friday, April 24, 2009

AAP General News (Australia)
04-24-2009
What Australian newspapers say on Friday, April 24, 2009

SYDNEY, April 24 AAP - The Rudd government's enhanced first-home buyers grant has worked
in the short term, but buyers should be wary of negative equity, The Australian says in
its editorial today.

Some in the real estate sector believe the grant is fuelling a mini property bubble
that could pave the way for a small-scale Australian sub-prime crisis.

Many first-home buyers, with small deposits and low equity in their homes, face negative
equity if prices fall and will struggle when rates rise.

The government could offset the impact of cutting or modifying the grant in the May
12 budget by tapping the $26 billion in three major infrastructure funds to boost employment
in construction while better positioning Australia for economic recovery, the newspaper
says.

"The most effective strategy now to boost the economy amid global recession would be
to tailor stimulus measures to projects that improve productive and export capacity.

"Over the long term, such nation-building would prove more effective in promoting prosperity
than prolonged reliance on the distorting effects of the first-home buyers' grant."

Sydney's The Daily Telegraph says housing construction is increasing, defying global
trends even as the nation enters what could be an extended recession.

It's a sign of confidence that would be welcomed in almost any economic sector on earth.

The Rudd government is correct to capitalise on Australia's happy housing trend by
extending its first-home buyers' bonus plan, the newspaper says.

"Much of Australia's recovery from recession will depend on similarly quick moves to
establish or consolidate gains. Opportunities missed in this economy will not swing by
again in any sort of hurry."

Melbourne's The Age says Prime Minister Kevin Rudd's move to distil 962 ideas from
last year's 2020 Summit to just nine risks disengaging Australians from the political
process.

At the time of the summit, the big ideas that gained strong backing were the introduction
of a republic; a review of all state and federal taxes within two years; reform of the
federation, including a review of federal, state and local government powers; and minimising
interstate regulation to create a seamless national economy, the newspaper says.

"If the summit briefly managed to get many people to suspend their cynicism about the
political process, its lasting effect may unfortunately be to confirm the public's view
that governments and politicians listen to the views of the community only when it suits
them."

The Sydney Morning Herald says China's decision to expand its nuclear energy program
from 24 new plants to 29, plus another 60 over the next 20 years, is an enormous opportunity
for Australia.

Australia's uranium exports are worth $900 million a year but a ninefold expansion is possible.

Nuclear proliferation, and the long-term storage of nuclear waste, are the big issues
for opponents of uranium exports, the newspaper says. "These issues are important and
need to be addressed, but they pale in comparison with the advantages of clean power.

"The Rudd government should thus override the ban on uranium mining in Queensland,
allow exports to India, and support Chinese investment in expanding our uranium mining
capacity."

Melbourne's Herald Sun says Mick Gatto's bushfire fundraiser may be a chance for the
underworld identity to "buy respectability" but still served a greater good.

Mr Gatto, who was acquitted of the murder of gangland gunman Andrew Veniamin and is
now a financial and industrial consultant, held the $1,000-a-head Black Saturday fundraiser
at Docklands on Thursday.

"There are many people who say the community should not accept a cent from Mr Gatto
and that he is merely trying to buy respectability," the newspaper says.

"There is undoubtedly an element of this in Mr Gatto's public spiritedness; nevertheless
it could be argued that the greater good has been served by the money going to a worthy
cause."

Brisbane's The Courier-Mail says Spain and Russia are facing severe contractions but
they are the countries Anna Bligh has selected to visit on her overseas victory lap as
newly elected premier.

Ms Bligh shouldn't be jetting off now on a taxpayer-funded trip to visit crippled economies
with an entourage that doesn't include her trade minister.

There are pressing issues to attend to in Queensland, for instance crafting the framework
for one of the toughest budget balancing acts in decades, plus the biggest public service
shake-up in nearly two decades, in which 23 departments will become 13 super departments,
the newspaper says.

"Not a hint of this upheaval, it should be stressed, was mentioned during the election
campaign. Not a breath."

After three months of suspended animation following the announcement of the state election,
the lack of productive outcomes is lamentable.

AAP jrd/rs

KEYWORD: EDITORIALS

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