Tony Abbott announces an extra $1.2 billion in spending cuts

Tony Abbott says a Coalition government would abolish the Global Carbon Capture and Storage Institute as part of a plan to cut an extra $1.2 billion from the Federal budget, over a four year period.

He says he would also abolish  both the Green Building Fund and the Retooling for Climate Change Initiative. the next three years.

Speaking to reporters in Melbourne, Mr Abbott said:”… if families have got to tighten their belt, it’s only right and proper that government should be tightening its belt too.”

The new cuts, the Coalition has just announced, would also slash planned additional funding for State Infrastructure funds and spending less on meetings between the Prime Minister and State premiers.

“So, this is an important announcement today and it reinforces the Coalition’s complete focus on getting debt and deficit under control, as our contribution to the economic reform of our country,” Mr Abbott said.

His Treasury spokesman, Joe Hockey, who also attended the press conference, said:”Cost of living is the number one issue for people out there.

“Higher electricity prices, higher water prices, higher mortgages.

“These are the challenges of everyday life and the best way to do it is to get the deficit down,” Mr Hockey said.