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Published: Australian Financial Review

If as a result of the collapse of the Euro, the knock on effect to China and the failure to have undertaken institutional fiscal reform, there is a secondary global financial crisis, Australia will be hard hit.

Panic by Rudd and Treasury in the face of the first global financial crisis has seen billions squandered with no underlying benefit to, or strengthening of, the economy.

The same lack of courage which oversaw the profligate spray of money on blatantly political projects; that is projects designed for visual impact and spin value rather than of long term economic benefit, has drained the will to undertake fundamental economic reform that might have seen Australia better placed to withstand the secondary shock.

As a result of poor political and economic management Australia has nothing in reserve to meet a future crisis. I have been criticised for saying eighteen months ago that we should wait until we had a better idea of the impact of the crisis before expending considerable resources.

At that time I said we should wait until we had a better idea of the forces opposed to us before expending our ammunition.

What confidence should we place in a government and senior advisers who cannot implement government funded programs whether that be insulation, water, education, health, defence and taxation.