FED:Govt's infrastructure plan won't put upward pressure on rates

AAP General News (Australia)
08-21-2007
FED:Govt's infrastructure plan won't put upward pressure on rates

JOHN HOWARD says his government won't be storming across Australia .. and putting upward
pressure on interest rates by spending irresponsibly on infrastructure.

Yesterday the prime minister flagged more federal intervention in traditional areas
of state responsibility.

But today he told ABC radio he's talking about a very disciplined fiscal policy ..

and one which will only spend the earnings on future surpluses.

Mr HOWARD says the government will determine what projects to finance .. based on sensible
national priorities.

He says Treasurer PETER COSTELLO and Finance Minister NICK MINCHIN will soon announce
the outcome of the budget for the last financial year .. and detail how the proceeds of
the surplus will be invested.

Labor say the government's infrastructure fund plan is a direct copy of its own plan.

AAP RTV ag/ibw/jmt

KEYWORD: ECONOMY HOWARD (CANBERRA)

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