By political reporter Karen Barlow Monday 4 Aug 2014
Photo: Senator David Leyonhjelm (right) says he will not support the Government's paid parental leave or direct action policies. (AAP)
Photo: David Leyonhjelm says he will not back the Government's paid parental leave or direct action policies. (Supplied)
Related Story: Hockey disputes data showing poor families hit hardest
The Federal Treasurer's round of cross-bench diplomacy is in trouble, with Joe Hockey battling to get support for some of the Government's signature budget measures and policies.
Liberal Democrat Senator David Leyonhjelm says he has told Mr Hockey he will never support the Abbott Government's Direct Action climate change policy, nor the $5.5 billion paid parental leave (PPL) scheme.
Mr Hockey has been meeting with crossbench senators to try to win their support for billions of dollars worth of budget initiatives, as well as the PPL.
The Direct Action scheme, the Coalition's replacement for the carbon price, includes a $2.5 billion pledge for a competitive grant-style Emissions Reduction Fund and a plan to plant trees, but the policy lacks majority support in the Senate.
"Irrespective of what you think about climate change, that scheme won't do anything," Senator Leyonhjelm told reporters in Sydney today.
"It won't reduce emissions."
Not all of Direct Action needs to be passed by the Senate; Environment Minister Greg Hunt says some of it can be passed by regulation.
A 2010 document outlining the Direct Action Plan on Mr Hunt's website predicts the policy will cost $3.2 billion over four years.
Senator Leyonhjelm says Australia cannot do anything in the absence of the rest of the world acting on climate change.
"Even if everybody turned off their electricity, shut down their cars, did nothing to emit a thing for the next 12 months, it would not make the slightest bit of difference to global warming anyway," he said.
"Australia's economy is too small."
The Liberal Democrat senator also says he has made his opposition to the taxpayer-funded PPL scheme clear in talks with Mr Hockey.
"Paid parental leave, it would never have my support," he declared.
"I think the Government's priority should be on making childcare affordable by reducing the regulatory burden that drives up the cost of childcare."
Palmer United Party (PUP) leader Clive Palmer is a known critic of the PPL, and has today promised the scheme will not pass while his party holds the balance of power in the Senate.
Mr Palmer says that while the Government has not discussed the PPL with him, he views it as "simply inequitable", and he will be pushing for his own alternative plan to get more women back in the workforce.
Mr Hockey has conceded "there is a lot of work to do" to secure support for the PPL, including from some of the Government's own backbenchers.
As well as talking to Senator Leyonhjelm, Mr Hockey has met with independent Senator Nick Xenophon, Family First Senator Bob Day, and PUP's Tasmanian Senator Jacqui Lambie.
He will soon meet DLP Senator John Madigan and Motoring Enthusiast Party Senator Ricky Muir.
"I'll meet with anyone who is sensible," Mr Hockey told Channel Nine.
"The independent senators so far are proving to be sensible, unlike some of the others in the Upper House."
The Government is struggling to win support for a number of controversial budget changes, including the plans for a Medicare co-payment, and moves to increase fuel excise.
Voter support for the Coalition has slumped in the wake of the May budget, which critics have described as unfair.
Today Mr Hockey said Treasury Department figures published under Freedom of Information laws, which said low-income families would be worst hit by the budget, were "misleading".
"It fails to take into account a range of things, like higher income households pay half their income in tax. Lower income households pay virtually no tax," he said.
