Rudd rallies business to outflank Turnbull

As minor parties in the Senate began planning changes to the legislation, Mr Rudd accused the Opposition Leader, Malcolm Turnbull, of jeopardising the national interest and damaging economic confidence.

The Prime Minister and senior ministers met about 200 business, community, school and welfare groups in Canberra to discuss ways of fast-tracking the plans for construction and infrastructure that were designed to help boost economic activity.

"All these organisations want to act in the national interest and so do we," he said. "They all have projects ready to go; they all have projects which are shovel-ready. What is standing in the road of those projects beginning is Mr Turnbull."

But Mr Turnbull said the measures would not be effective in stimulating the economy and the Government would have to go severely into debt to finance budget deficits under the plan.

"We're standing up for the taxpayers, but above all we're standing up for our children because, believe me, when he maxes out our national credit card at $200 billion it will be our children and grandchildren that will be paying it off for many years to come."

The stimulus package includes $12.2 billion for bonus payments to low- and middle-income earners, $14.7 billion to upgrade schools, $6.6 billion to build 20,000 public housing dwellings and $3.9 billion for solar hot water rebates and free ceiling insulation for home owners.

But with virtually no chance of gaining the Opposition's vote, the Government will have to consider a wish-list of changes being pushed by parties that hold the balance of power in the Senate.

The Greens leader, Bob Brown, said some of the infrastructure spending should be used for environmentally friendly projects that would stimulate the economy and reduce pollution, such as cycle paths.

Senator Brown also called for the bonus payments to be re-engineered so that more cash flowed to low-income earners and people on unemployment benefits would not miss out.

The Family First Senator, Steve Fielding, said he was considering diverting $4 billion to a "get communities working" scheme that would fund charities and local government to provide jobs for the unemployed.

Centrelink executives told a Senate committee any significant rewriting of the plan would make householders wait an extra four to six weeks for the $12.2 billion in bonus payments scheduled to flow from March.

A Senate committee is due to finish an inquiry into the plan on Monday. The Senate will then debate the legislation and vote on it by Thursday.

The Treasurer, Wayne Swan, said the Government would discuss the plan with the Greens and other senators, but added: "The only certainty of this legislation passing in a speedy way and delivering payments to families and low-income earners and starting the critical investment is if the Liberal Party votes for it."

The Housing Industry Association said a failure to pass the legislation could place as many as 85,000 jobs in the housing construction industry at risk.

Mission Australia said delays to public housing would be a tragedy for low-income earners.