CANBERRA (AAP)

Having accused Labor of putting the Future Fund at risk with its broadband plan, senior ministers are now suggesting the government may not have to put money into the fund indefinitely.

Finance Minister Senator Nick Minchin says the government may not need to continue pouring money into the Future Fund because it is already growing so well.

Labor says this contradicts government pledges to put budget surpluses into the fund and undermines the government's attack on Labor's plan to take $2.7 billion from the fund to help pay for a national, high-speed broadband network.

Prime Minister John Howard said the government will decide whether to continue putting budget surpluses into the Future Fund when the liability of covering public service superannuation payouts is complete.

The Future Fund, which currently sits at just over $50 billion, was set up to pay a projected $140 billion of uncovered public service superannuation liabilities by 2020.

"The whole idea of the Future Fund was to provide for a particular liability and when we have calculated, and we haven't done that yet, that we have got enough to deal with that liability we'll say so," Mr Howard said.

Opposition treasury spokesman Wayne Swan said the government had pledged to put all future budget surpluses in the fund.

"What this story shows is that the fund will comfortably meet its target by 2020," Mr Swan told ABC Radio.

"What that shows is that Labor's proposal is entirely responsible and affordable. Nick Minchin has let the cat out of the bag and he's exposed (Treasurer) Peter Costello's overcooked scare campaign," Mr Swan said.

Mr Costello resumed his attack on Labor in parliamentary question time on Monday, saying Opposition Leader Kevin Rudd's proposal to raid future superannuation entitlements was a policy not followed by any state governments, which also fund superannuation liabilities.

"Not one single one of them has ever said that they would raid these liabilities for their election promises," Mr Costello said.

"There is only one political party in Australia that is irresponsible as that. It is the federal Labor Party, under this leader of the opposition, and this is economic irresponsibility on a grand scale."

Mr Howard said how much more the government needed to put in the Future Fund did not alter the debate about Labor's broadband plan.

"If it's all right to take $2.7 billion out of the fund, irrespective how big it is, then it will be all right to take another $2.7 billion, and then another $10 billion, then another $20 billion."

"Labor has made it clear that's what it will do is raid the fund for anything that catches its fancy."

Mr Howard said he was in favour of having the fastest broadband access in the country, but not at the expense of the taxpayer if private investors could it do.

"I'm not going to raid the savings of Australians to subsidise what the private sector ought to do in the normal risk-taking environment, which companies are expected to operate in this country," he said.

"I am not going back into the business of half owning a telecommunications company, that's taking us back 20 years."
26/03/2007 07:24:29 PM