Greens MP Adam Bandt has called on the government to quarantine Australia's south-east states from Budget cuts and says the government needs to increase the revenue taken from the mining states.
Mr Bandt says he is very concerned by reports that Australia's south-east may tip into recession as the mining bubble continues to grow and says that the government should consider funding a 'south-east stimulus package' by an increase in tax revenues.
"We have a growing north-south divide that needs to be addressed in the upcoming Budget", Mr Bandt said.
"The government should be considering immediate focused stimulus measures in the south-east and it should quarantine programs that contribute to the economy of the south-east."
"We need to be increasing tax revenues from the wealthiest companies. The government has committed to the tax to GDP ratio not rising past 23.7% but there is still plenty of room to grow without hitting that ceiling. At current projections we will be below the predicted 22.3%. And we are way below the OECD average."
"Even within the government's own arbitrary rules, we could increase revenue and avoid harsh spending cuts."
"A proper mining tax is central to solving this crisis. We are ready to work with the government on this."
"The government needs to act quickly to deal with this crisis, but it also needs to commit to infrastructure investment such as high speed rail that can contribute to the long term prosperity of the south-east.