Prime Minister Abbott says the iron ore crash is cyclical not structural:
Prime Minister Tony Abbott has pinned his budget hopes on a rebound in plunging commodity prices, saying the downturn was cyclical and it would be wrong to search for new savings to chase the revenue lost through declining terms of trade.
With $28 billion of May budget measures stranded in the Senate and iron ore and oil prices falling, Mr Abbott said the government would not be looking for “massive additional savings’’ when it hands down the mid-year economic update the week after next.
