yesterday
Senate votes 30-28 for plan
THE Senate has passed the $42 billion stimulus package after week of drawn-out negotiations between the Government and crossbenchers.
The Senate voted 30-28 to approve the package.
Independent senator Nick Xenophon was the last crossbencher to agree to terms with the Government, after it agreed to bring forward money for the Murray-Darling Basin.
The package will now go back to parliament's lower house - where the Government has a strong majority - before it becomes law and can distribute money designed to boost the economy.
"I believe this is the right thing to do and I am willing to support the Government's economic stimulus package,'' Senator Nick Xenophon said shortly before the vote, after intense negotiations with government officals overnight.
Mr Xenophon's no vote blocked the plan in the Senate yesterday, prompting the Rudd Government to reintroduce the legislation.
The Independent MP agreed to vote for the $42 billion package after the Government gave in to his requests for extra funding for the Murray-Darling Basin.
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Your Say
¿and all the single mothers and bludgers will look forward to more free money in the future and they'll vote to keep Labor in for another term. Outrageous! He's just buyin...
(Read More)
Ethan Max of Brisbane
The Government will now fast track $900 million for the Murray-Darling Basin, and bring forward an extra $500 million for water buybacks.
The agreement included an extra $200 million in community grants and $200 million for stormwater harvesting, as well as new rules making properties up to 40,000 hectares able to claim emergency grants, Mr Xenophon told the Senate.
The Government also agreed to a Productivity Commission inquiry into the most efficient way to manage water buybacks, he said.
"I am willing to support the Government's economic stimulus package," he told the Senate after outlining details of the deal.
"Ultimately, I was sent here to do a job and that job is to do whatever I can to assist the hundreds of thousands of people along the (Murray-Darling) rivers."
While the deal had not given everyone what they wanted, it may have given them what they need, he said.
"This morning, the Treasurer and the Water Minister (Penny Wong) have agreed to a package of $900 million in spending commitments including fast-tracking spending for the Murray-Darling-Basin, for its economy over and above any previous commitments," Senator Xenophon said.
Senator Xenophon yesterday joined with the Coalition to scuttle the Government's first attempt to get its economic kick-start through the Senate.
The shock defeat made Australia the first country to vote down a stimulus package designed to head-off a recession during the economic crisis.
Prime Minister Kevin Rudd immediately reintroduced his emergency economic plan into Parliament, passing through the lower house late last night.
The Government yesterday cut the cash handouts to low-income workers and single income families by $50 to $900 to win the support of the Greens. The savings will go to green jobs and extra help for the jobless.
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