Posts tagged ‘Australian politics’
Little wonder that Tony Abbott should lead the plaudits for the retiring Kevin Rudd, as few helped Abbott to the Prime Ministership as much as his predecessor.
Rudd’s three year destablisation of the former Gillard Government eventually succeeded in ousting her from the leadership. But the damage done in the process had too greatly tarnished Labor in the public mind and the seemingly unelectable Abbott easily triumphed in September. In that election Rudd’s supporters bragged that their man had ‘saved the furniture‘ but it was his vandalism that left Labor’s tables and chairs in such a precarious place in the first place. Gillard never got the credit for her work and in tandem with Abbott and Rupert Murdoch, Rudd worked to destroy her legacy.
Rudd was always a long-term planner when it came to self interest. From the moment he was elected to parliament in 1998, he assiduously courted the media, contacting opinion editors to get his work published and going over their heads when they refused. He gained influence of a different sort when he tandem-teamed with Joe Hockey on the Seven Sunrise program for several years. He considered running as leader against Latham in 2004, defeated Kim Beazley two years later and then oversaw Howard’s End in 2007. As Prime Minister his approval ratings soared with big ticket statements such as the Apology adding to his lustre while he and Wayne Swan oversaw Australia’s interventionist response to the GFC which saved Australia from recession.
But Rudd seemed to have too many ideas that went nowhere. He started to unravel in December 2009 after he failed to bring home a climate change agreement in Copenhagen. This was the same month the domestic political consensus on climate change unravelled under new Opposition leader Tony Abbott and his right wing supporters. As Rudd flagged in the polls, word got out this was a prime minister who fretted over irrelevancies while the tumbleweeds gathered over the big decisions. Rudd was the consummate media performer – it was mastery over the airwaves that got him his huge public profile in the first place – but as Prime Minister he worked the entire government’s decision-making process into the media cycle. As Kerry-Anne Walsh said in The Stalking of Julia Gillard, Rudd took didn’t have what it took to lead a political party: “A steely and steady personality, the ability to be calm under great pressure and under the weight of extreme criticism, and consistently clear thinking.”
Most of these deficiencies were known to party colleagues from the time he ran against Kim Beazley in 2006. Yet those same colleagues knew Rudd was more popular than Beazley and backed him anyway. But by mid-2010 that popularity had finally waned and Rudd was cut loose. If anyone thought Rudd would gently stand aside and quit, they were quickly mistaken. Within weeks of his overthrow, journalists were printing exclusive inside stories of Gillard’s “bastardry”. In the lead-up the 2010 election, Gillard’s hopes of clinging to victory were undermined by a series of devastating questions from Laurie Oakes that showed intimate knowledge of what happened on the night Rudd was deposed.
In the end Gillard retained the Prime Ministership by dint of her negotiation skills with former Nationals Tony Windsor and Rob Oakeshott. Together they carved out an agreement that would ensure a minority government would last the full three years. Minority governments are common in Europe but in Australia they were considered a recipe for chaos and the Opposition aided by a friendly press continually pointed this out, despite the 43rd parliament’s good record on passing legislation. Rudd, meanwhile was never far from the action, and always ready to thrust himself back in the limelight whenever the opportunity offered itself – usually at the worst possible time for Gillard.
Early in the term, Gillard sealed her fate by agreeing to Green and Independent demands to put a fixed price on carbon. It was Abbott who declared the fixed price a tax and thus hung Gillard on her pre-election statement there would be no carbon tax. Less well remembered was the second half of that sentence: “..but let me be clear, I will be putting a price on carbon and I will move to an emission trading scheme.” It didn’t matter – from that moment shock jock Alan Jones and others could get away with calling Gillard “Juliar”. By the time of the first anniversary of Rudd’s defeat, the knives were out, both inside and outside parliament. Newspapers feverishly reported “exclusive” polls in marginal seats that showed voters were clamouring for Rudd’s return. At the last moment Rudd and wife Therese Rein cancelled what the media called an Assassination Party “for K’s former and current staff to say thank you” as Rein tweeted.
While Gillard passed the carbon pricing package with help of the Greens, Rudd stole the limelight once more with an announcement he was having heart surgery. As Walsh said Rudd knew the key to media success was “a consistent presence combined with a dash of theatre”. So whether it was a blow-by-blow account of his ticker troubles or designing a blend of tea for a competition, Rudd would always pop up reminding people of what they were missing. The media lapped it up and ran it in tandem with Gillard’s disaster du jour and op eds that blared “Rudd was Labor’s last chance”. Yet even as Labor slipped in the polls, the caucus remained firmly behind Gillard. Unlike Rudd, she was consultative and dependable, albeit apparently unelectable.
Rudd’s supporters – Alan Griffin and Mark Bishop – denounced the people that brought Gillard to power as ‘faceless men’ without a hint of irony that Rudd’s own shadowy undermining campaign depends on anonymity and sourceless quotes to favourites in the media. Rudd then relied on the momentum they created in the media to finally overwhelm his opponent (ie Gillard, not Abbott). Much was made of the likely slaughter for the ALP in Queensland in the 2013 election with pundits predicting only Rudd would survive. Yet Rudd’s feverish campaigning in the 2012 state election for Anna Bligh had little or no effect on the election – analysts ignored this, preferring to concentrate on what they thought Bligh’s annihilation would mean for Gillard. Rudd meanwhile “zipped” around, secure in his public popularity and posing for public selfies with adoring fans.
On February 18, 2012 a strange video popped up on Youtube entitled Kevin Rudd is a happy little Vegemite. It is the first public glimpse of a Rudd many insiders knew, foul-mouthed, explosive temper and quick to blame. A few days later, he resigned as foreign minister citing attacks by colleagues and declaring he had lost the support of Gillard. With a leadership fight out in the open, Gillard calls in the heavy artillery. In an extraordinary series of public attacks, minister after minister denounced Rudd’s tactics. Wayne Swan said they were sick of Rudd “driving the vote down by sabotaging policy announcements and undermining our substantial economic successes.”
Gillard called for a ballot and Rudd delayed, knowing he did not have the numbers. The media helped again, saying that it might be a two-phase ballot with defeat followed by victory six months later a la Paul Keating in 1991. Gillard eventually won the ballot easily 71-31. Rudd retired to the back bench but the cameras followed him as he lapped up the attention. The “clear air” Gillard’s team craved never came. The media carving remained relentless and the Chinese whispers only served to add to the pollution. History repeated itself as farce in March 2013 when Simon Crean fell on his own sword in an attempt to coax Rudd out for another challenge. Rudd counted the numbers and ducked the challenge rather than lose to Gillard again. But still the sideshow went on, Rudd pumped his persona up and Labor’s poll numbers went down. In June, staring defeat in the face, Bill Shorten blinked and handed Rudd back the leadership.
There was an instant coffee effect with polls briefly returning to 50-50. But Rudd was the souffle that tried to rise twice. Murdoch’s empire was just as ruthless to him as they were to Gillard and as soon as he called the election, they openly called on the electorate to “kick this mob out“. Labor were a rabble, but it was as much Rudd’s doing as any. As Walsh wrote, Rudd “always had to be at the chaotic centre of attention, and whose needs and ambitions inevitably took priority over the interests of the government and the Labor Party, or his loyalty to colleague.” He had no workable strategy, which is why once returned, he was defeated by the most underscrutinised Opposition in Australian political history. As ever with Kevin Rudd, the collateral damage was immense, leaving Labor a broken party. More importantly he badly failed the public. His failure to implement the “great moral challenge of our generation” leaves the next generation blaming Rudd’s megalomania as much as Abbott’s foolish policies for Australia’s climate change intransigence.
The British Tories Australian election strategist Lynton Crosby is coming increasingly under the spotlight due to potential conflicts of interest due to his lobbying firm Crosby/Textor. Prime Minister David Cameron has been forced to defend Crosby over his links to the tobacco industry in the wake of the Government’s decision to delay a decision on plain packaging; a decision Cameron denies has anything to do with Crosby. Meanwhile environmentalists have homed in on Crosby/Textor’s representation of Australian oil and gas lobby group APPEA in a bid to encourage more shale gas development in Britain.
How much of this is due to Crosby/Textor lobbying is a moot point and probably oversold, but it is no doubt it has been a major force in Australian, and increasingly British politics. Crosby and his partner Mark Textor were instrumental in John Howard’s four election wins and this is not the first time their activities have prompted calls of conflict of interest. Among their Australian clients are Qantas and as Howard headed into the election year of 2007, Crosby/Textor aggressively campaigned for an $11b takeover of Qantas by Airline Partners Australia. Company spokesman John Kent brushed off media concerns by saying “we never talk to anyone about anything about clients” but it was their insider status that APA wanted when they hire them to be their lobbyists.
Lobbying is at the heart of Crosby/Textor’s business which has been closely associated with the conservative side of politics since it started in 2003. According to their own blurb Crosby/Textor offers “an unmatched pedigree combining comprehensive experience in market research, strategic communications and campaign execution”. Today Mark Textor leads the Sydney operation while Lynton Crosby runs the London offshoot Crosby Textor Fullbrook.
Lynton Crosby rose through the ranks of the Liberal Party and became Federal Director in 1997. John Howard appointed Crosby as campaign director for his second victory in 1998. Crosby is known for his mastery of dog whistle politics and was responsible for the 2001 wedge campaign which promoted fear and hatred of refugees in the wake of the Tampa crisis. His ruthless targeting of key marginal constituencies with highly localised campaigning was more responsible than most for keeping Howard prime minister for 11 years.
Mark Textor cut his teeth in his native Northern Territory when he was part of the successful Country-Liberal Party’s election campaign committee in 1994. Buoyed by the success of this campaign, he went on to mastermind the strategy behind the breakthrough 1996 Liberal federal victory. He went on to be principal Liberal pollster for the next three elections.
Textor and Crosby’s firm had immediate success in 2004 when they ran the Liberal federal re-election campaign. In 2005 the Crosby/Textor machine was behind another Howard election campaign, this time Michael Howard leader of Britain’s Conservative Party. Crosby was criticised for bringing Australian divisive tactics to the British campaign such as immigration, asylum seekers, gypsies, law and order and abortion. Although Howard lost, blemishing Crosby-Textor’s perfect record, the previously hapless Tories gained 36 seats to put them within reach of Government for the next election.
After John Howard lost to Rudd in Australia, Crosby returned to British politics for the May 2008 London Mayoral Campaign. He masterminded the campaign that saw Conservative candidate Boris Johnson beat the Labour incumbent Ken Livingstone. Last year he repeated this success as Campaign Director for Boris Johnson for a second term in “Back Boris 2012” despite a large nationwide swing against the Tories in the British council elections.
It was this success that brought him to the doorstep of David Cameron in November last year. The hope among supporters, as expressed by Iain Dale was that Crosby would bring a sense of direction and strategy in a year that was “a complete shambles for the Conservative party.” Opponents meanwhile saw it as a shift to the right and a sign that Cameron’s supposedly more caring image was a sham to be discarded.
Whichever attitude is right, it is lobbying that is at the centre of Crosby’s (and Cameron’s) issues today. When the Queen opened parliament in May, it was the shelving of crackdowns on tobacco and alcohol that the media picked up on. As well as Crosby’s links to tobacco, the Mirror noted Crosby/Textor had the Distilled Spirits Industry Council of Australia listed as a client. While the paper couldn’t say whether UK offshoot represented any drinks firms, it was mud they could legitimately throw. Whether it will stick remains to be seen.
It seemed to appropriate for me to be driving through Blackall and Barcaldine a day after Kevin Rudd’s return as Prime Minister. Rudd’s resurrection seems to confirm the death of difference between the two major parties in Australia. But there was a time when Labor really was a labour party and Blackall and Barcaldine are crucial to that story. The two western Queensland towns showed it wasn’t just the Australian economy that rode on the sheep’s back, so did the trade union movement.
Nowadays it seems absurd to think conservative and remote rural Queensland might be in any way key to the development of the labour politics. Blackall and Barcaldine have populations of no more than a couple of thousand each, are a thousand kilometres from the state capital Brisbane and are part of an electorate that is National Party (now Liberal National Party) heartland with two long-term members. Federally Bruce Scott holds the second safest seat in the country in Maranoa since 1990 while the state member for Gregory Vaughn Johnson has been there a year longer and holds a two party-preferred margin of 75-25.
Yet a clue it wasn’t always this way is in the history of the Gregory electorate. The Country/Nationals only grabbed the seat after the long-term Queensland Labor government imploded in 1957. Before that it had been a Labor stronghold since 1899. That was the year trade unionist William Hamilton took the seat. Hamilton was a miner and a shearer who found himself in the shearing sheds at Clermont in central Queensland in 1891.
Australia was going into its worst ever depression that year due to a global financial crisis. A year earlier, the collapse of Baring’s finance house in London caused overseas investment to collapse in Australia which in turn led to large-scale unemployment as public works programs were scaled back. There was a run on overextended banks and building societies several of which collapsed while in rural areas, the problem was worsened by a fall in the price of wool.
Shearing was one of the most demanding occupations of the era and one of the poorest paid. The Australian Shearers Union was spreading its influence and in 1890 prohibited its members from working at non-union sheds. In 1890 Blackall’s gun shearer Jackie Howe (who would two years later break the world record for numbers of sheep shorn in one day) was instrumental in merging the local union with the Queensland union. Nearby Barcaldine was the focus of the trouble as was then the terminus for the western railway line. Howe brought a Blackall contingent up to Barcaldine in 1891 for one of the world’s earliest May Day rallies commemorating the 1886 Chicago Haymarket Affair.
By then pastoralists had struck back with anti-union contracts and the Australian Shearers Union called a national strike. It was the first serious confrontation between capital and labour in Australia. Shearers struck camp at the edge of town and plotted a course of action they called ‘moral suasion’ but to their opponents it was intimidation. The shearers burnt grass, set fire to the woolsheds and attacked scab labourers. After four months of feuding, the state called in the army to break up the strike. The leaders were tried for conspiracy, rioting and sedition and sent to St Helena prison in Moreton Bay for three years.
While the strike was unsuccessful, it led to calls for a new political party. Legend has they gathered under a well-known ghost gum called the Tree of Knowledge outside Barcaldine railway station. Historians Peter and Sheila Forrest debunked that theory in their book Bush Battleground who said it was only the scene of angry confrontations as scab labourers arrived by train. The party was more likely to be developed in the camp sites but it was the tree that grabbed the mythology.
Myth or not, the party quickly after the leaders of the strike emerged from prison. One of those was William Hamilton who returned to western Queensland to take Gregory in 1899. In December that year, Queensland Governor Samuel Griffith invited Labor leader Anderson Dawson to take office, becoming the first Labor government in the world. It lasted just six days, but it showed Labor had arrived.
Several more Labor governments followed with Blackall prominent in the strongest of them. By 1909 shearer Jackie Howe was president of the local labour association and friends with a solicitor named Thomas Joseph Ryan who dealt with union cases in the western region. He invited Ryan to stand for the local seat of Barcoo which he won that year. By 1915, he was Premier of Queensland with a large majority to institute sweeping change. His was the first Labor government to rule in Australia without the need for a coalition. He nationalised many industries and allowed women to stand for parliament. His opposition to Australian Prime Minister Billy Hughes’s conscription campaign enraged Hughes and made Ryan a national figure. Elected to federal parliament in 1919, he was touted as a future leader but died of pneumonia in 1921.
The Barcaldine Tree of Knowledge is also now dead, though its cause is less clear. It was mysteriously poisoned (the Forrests think it was done accidentally by railway workers) and died in 2006. It is tempting to draw a comparison with the rise to power as Labor leader of Kevin Rudd, also in 2006. But Labor’s industrial values had long since died before then. From the time the Hawke-Keating Government floated the dollar and removed tariffs in the mid-1980s, Labor proved it was no longer a party of labour, but of capital with a social democratic veneer. The veneer was disguised by the credibility of the towering egos of Bob Hawke and Paul Keating. But by the 21st century they were gone and like the tree in Barcaldine, Labor survives now only by the decreasing force of its own mythmaking.
THE thing politics has over policy is that it is a sport. When The Age tried to call this out in its editorial asking for the head of Julia Gillard, it was roundly condemned for not setting the agenda of policy themselves instead of focussing on palace politics. But would The Age have sold as many copies if it focussed too much on the what when the who is infinitely more interesting?
We all profess to be tired of the Gillard-Rudd business but you can be sure the hashtag spill would go ballistic if and when the long drawn-out battle actually ever takes place. Everyone would want to know the result. The Age know the personal drama is infinitely more interesting than the 55 or so pieces of legislation yet to pass in the final week of the 43rd parliament of Australia.
But here where I don’t have to pander to profit or personal drama, I can take the time to look at all 55 remaining bills, in alphabetical order. They cover a full gamut of legislative issues such as environment, the world economy, employment, education, tax reform and agriculture.
You may or may not find these interesting reading and they are mostly ignored by the media.
But this is what parliament is for: to change and enact law. Each of the 55 bills is important to someone or something; a truth the independent members of parliament (who raised most of them) know all too well. I’m hoping you’ll feel a little more informed if you read them; I did for writing them down.
Enables Australia to become a member of the African Development Bank Group by authorising the payments required to subscribe to membership shares in the African Development Bank and meet membership and ongoing subscriptions to the African Development Fund.
According to Bernie Ripoll (Lab) the bank promotes sustainable economic growth to reduce poverty in Africa. The bank currently has 78 member countries, comprising 54 African and 24 non-African countries. In 2011, the Independent Review of Aid Effectiveness recommended that Australia join the group as it would represent value for money, and be a high-level indication of Australia’s commitment to development in Africa.
The far-reaching bill would require private and public projects of half a billion dollars or more to develop an Australian Industry Participation plan. A new quango, the Australian Industry Participation Authority would be set up to administer and monitor compliance of the plan reporting back to parliament. In the first debate, Liberal backbencher Craig Kelly saw an obvious problem: The measure would see government officers embedded in business, “just like it used to be in the Soviet Union”.
The planning regime itself will cost $1 billion dollars to implement, so I wonder if it will be subject to an Australian Industry Participation plan if it passes.
This Katterbill wants to limit foreign investment in Australian agribusiness and agricultural land. It would do this requiring the Foreign Investment Review Board to take “the national interest” (a contested concept if ever there was one) into account in foreign investment and also prevent non-Australians from owing half or more of an agribusiness or land more than four hectares.
Another Katterbill to amend air acts to ensure Australian international and domestic air services are at least 51% Australian owned and operated, do at least 80% maintenance in Australia and use only Aussie crews.
Greens bill to amend the 1992 broadcasting act to prohibit ads on odds, restrict betting ads to after 9pm, and prohibit “non-ad ads” and freeze betting ads before sports broadcasts. Given the 1992 act is ludicrously pre-Internet, this seems papering over some enormous cracks.
This one from the Greens wants to amend the Competition and Consumer Act 2010 to: specify country of origin on food with labelling based on the weight of the ingredients.
7. Competition and Consumer Amendment (Strengthening Rules About Misuse of Market Power) Bill 2013 is an adjunct of 6 to strengthen the act to protect people in complicated supply chains eg where a $1 litre of milk to the customer is a net cost to the producer.
Amends the Customs Act 1901 to prohibit the export of coal mined in the water catchment valleys and district of Wyong (NSW) and enable the minister to prohibit the export of coal mined “in other areas”. This is Craig Thomson’s attempt to shut down a possible Wallarah Two underground mine despite no politician ruling it in at the moment. “People in electorates trust the laws, they don’t necessarily trust the politicians,” Thomson said. “And that’s why I tabled a bill today that looks to restrict the export licences of miners in the Wyong Shire in particular, but more broadly any other area that the minister by legislative means, deems to be appropriate.”
Katter’s call to register dairy regional representative bodies and Fair Work Australia to determine a modern award for dairy farmers with dairy farmers and processors to establish enterprise agreements and collective negotiations.
This one from Peter Garrett. Establishes the Early Years Quality Fund Special Account to provide $300m over two years to long day care services to pay employees wages, costs and expenses and is an early pay off for Gonski in an attempt to make kindy-teaching a better paying job.
Townsville LNP’s George Christiansen’s “Making Marine Parks Accountable” bill amends the Environment Protection and Biodiversity Conservation Act 1999 to allow Government to set an area of sea, or land and sea, as a Commonwealth reserve with the help of an independent scientific reference panel and a stakeholder advisory group. Christiansen wants to protect his fishing constituents access to marine parks.
Amends the Environment Protection and Biodiversity Conservation Act 1999 to place a two year moratorium on aquifer drilling connected with coal seam gas extraction; and impose penalties for any contravention. Katter wants to ban CSG mining for 24 months.
Katterbill to index military retirement benefits the same way as Australian age and service pensions, currently based on a higher-end consumer price index.
This Greens bill amends the Fair Work Act 2009 to expand enterprise agreements, settle disputes, and make provisions on industrial action. The object is to consider items of job security, full employment and work/life balance when the full bench makes a workplace determination.
Katterbill to remove the restriction of Fair Work Australia dealing with disputes by arbitration, mediation or conciliation, or by making a recommendation or expressing an opinion.
Katterbill to stop the foreign takeover of Cubbie cotton station near Dirranbandi, Qld.
Ag Minister Joe Ludwig’s bill to create a new Grape and Wine Authority by merging Grape and Wine Research and Development Corporation (GWRDC) and the Wine Australia Corporation. The merger would align strategy and achieve efficiency gains.
Social inclusion minister Mark Butler’s bill introduced with the Homelessness Bill 2013, to repeal the Supported Accommodation Assistance Act 1994 and makes an amendment to the Commonwealth Electoral Act 1918. The bill ensures homeless people can still vote in elections.
Butler’s main bill which provides for the recognition of homeless people and those at risk of homelessness. There is a recognition of homelessness and an aspiration everyone should have a home. The aim is to remove barriers in social inclusion and improve service delivery.
This Katterbill imposes penalties on those who don’t label imported food properly.
Bill Shorten’s bill – Combined with the Superannuation Legislation Amendment, the bill amends the Income Tax Rates Act 1986 to impose a 45 per cent tax on superannuation benefits that are illegally released early. See also 50.
Greens bill to amend the Infrastructure Australia Act 2008 to prioritise Commonwealth rail funding over roads, with the exception of road projects designed to fix an urgent road safety issue or on which construction has already begun.
Greg Combet’s bill to tighten IP laws on crown use, implement a TRIPS protocol to supply developing countries with generic versions of patented medicines, protect plant breeder IP and bring in joint patent regime for Australia and New Zealand. Despite its international importance, this huge bill affecting several acts of parliament has got zero attention in local media as far as I can tell. It features in International Business Times which said the law would enable Australian companies to respond to future health crises in less developed nations.
Bob Carr’s bill to amend the International Organisations (Privileges and Immunities) Act 1963 to give privileges and immunities to the International Committee for the Red Cross and the International Criminal Court. The first part is required because Australia has signed an MOU with the Red Cross making it a legal entity while the second provides support for victims in ICC trials and removed a roadblock to Australia’s accession to the ICC Agreement on Privileges and Immunities.
Andrew Wilkie’s bill calls for the end to live animal export by 2017 and in the interim ensure “satisfactory treatment” before slaughter.
Minister for State Gary Gray’s bill provides for the protection of Malabar Headland following divestment to New South Wales. Malabar Headland is in south-east Sydney and was declared a 70 hectare national park in 2010. It was transferred to NSW in 2012 after remediation of the site. The bill ensures Commonwealth oversight of the site.
Andrew Wilkie’s bill to amend marine regulations to ensure Australian standards are followed despite the rundown of Australia’s merchant fleet.
Greens bill to allow gay marriage. Likely to fail due to Liberal block of conscience vote. We may have to wait a few years yet for parliament to catch up with public opinion on this.
The Coalition’s Scott Morrisons’ bill to restore two new temporary protection visa classes lasting three years. One is the offshore entry TPV for refugees entering at an “excised offshore place” (eg Christmas Island) but who meet Australian protection obligations, the other a “secondary movement” offshore visa which is the same as above except the person is a non-citizen who transited in a country other than Australia where the person could have sought protection.
Immigration Minister Brendan O’Connor’s variation on the TPV bill and one of the few bills gathering media attention due to the furore over 457 visas which are a subclass of TPVs. It require sponsors in the TPV program to do Australian labour marketing testing with Fair Work inspectors oversight before employing someone on these visas.
Nicola Roxon’s bill (from her time as A-G) to establish the Military Court of Australia as part of the Federal Court to overcome the High Court challenge to the 2007 Military Court to deal with widespread military abuse. Interestingly, the court case Lane v Morrison that sank the previous court came out of a recruitment drive here in Roma in 2005. After a round of golf and drinks, Lane supposedly ”tea-bagged” an army sergeant but denied the charge before the military court. Lane successfully argued the court was unconstitutional.
Greens amendment to the ill-fated Minerals Resource Rent Tax Act 2012 to disregard increases in state royalties after 1 July 2011 when calculating royalty credits for the tax. Adam Bandt’s objective is to protect tax revenue from being eroded by increased State Government royalties.
Rob Oakeshott’s bill to make the national electricity law a Commonwealth law rather than state law. Oakeshott said the states electricity networks have seen the biggest increases in electricity prices and still have the biggest say in how the pricing rules are set.
“There’s a clear conflict of interest in states owning monopolies and regulating monopolies at the same time,” he said.
Amend definitions in the 2011 National Health Reform Act to allow the new National Health Performance Authority report on the performance of hospitals and primary health care organisations.
Nicola Roxon’s A-G bill to amend the Native Title Act 1993 to disregard some historical extinguishment of native title and broaden the scope for voluntary indigenous land use agreements.
Families Minister Jenny Macklin’s bill to clarify provisions related to ‘keeping in touch’ days. This means that they can come to work for up to 10 days during their parental leave, without it affecting their unpaid parental leave entitlements.
Wayne Swan’s bill imposes a pay as you go (PAYG) withholding non-compliance tax on directors and some associates where their company has a PAYG withholding liability for an income year and the director or associate is entitled to a credit for amounts withheld by the company during the income year. These amendments reduce the scope for companies to engage in fraudulent phoenix activity or escape liabilities and payments of employee entitlements.
Joe Ludwig’s bill amends three acts to form the new Australian Grape and Wine Authority (see 17).
Ludwig’s bill removes product specific maximum rates for R&D charges and marketing charges as changing them is difficult, slow and expensive. See also 42 and 48.
Another Ludwig bill changing three acts to form the new Australian Grape and Wine Authority (see 17 and 39).
Another Ludwig bill to implement the government’s rural R&D policy, to remove product specific maximum levy rates for R&D levies and marketing levies. See 40 and 48.
Wilkie bill and companion to number 44 with consequential amendments to four acts.
Wilkie’s bill provides a comprehensive definition of public interest disclosure and provides protections to public officials to make such disclosures.
Katterbill to reduce market share to 20% by enforced divestiture over six years and establish a Commissioner for Food Retailing.
Katterbill to regulate renewable fuel and mandate 5% ethanol by 2017 and 10% by 2020.
Katterbill to establish an Australian Reconstruction and Development Board to fix financial arrangements of stressed Australian agriculture businesses and associated industries.
Ludwig’s third R&D bill affecting 8 acts. See 40 and 42.
Tertiary Education Minister Chris Bowen’s bill to introduce a national student id from 2014. Needed because there is no single repository of records for vocational education and training.
In conjunction with 21, Bill Shorten’s complex bill to ensure civil and criminal penalties for promoters illegal early release of superannuation benefits, part of his “stronger super” reforms.
Joe Hockey’s bill to provide an exception to the prohibition imposed on taxation officers about the disclosure of information regarding the tax affairs of a taxpayer. Hockey wants to remove doubt tax officers can provide information about the MRRT when the Minister wants to make it publicly available. The intention is to reveal how much the mining tax has raised, without breaching tax privacy laws.
Treasurer Swan’s bill to amend taxation legislation to restate the ‘in Australia’ special conditions for income tax exempt entities. The bill is raised after the High Court found charities are considered to be pursuing their objectives principally ‘in Australia’ if they merely operate to pass funds within Australia to another charity that conducts its activities overseas.
Communications Minister Stephen Conroy’s bill amends the Do Not Call Register Act to clarify who is responsible for making telemarketing calls and faxes where third parties are involved, vary industry codes and tighten the ombudsman standards.
Julia Gillard’s own bill to amend the Veterans’ Entitlements Act 1986 to extend the time period for lodging a claim for non-treatment related travel expenses from 3 to 12 months and enable further extensions of time in exceptional circumstances.
Greens bill to establish the Office of Animal Welfare as an independent statutory authority which was originally planned by Labor. Bandt said the Office would be a centre of excellence for animal welfare science and law and work to harmonise and improve animal welfare laws across the country. He also said it would give animals a voice in parliament, independent of the Agriculture Department and Ministry, to reduce animal cruelty.
The COAG Reform Council has released its first assessment report under the Coal Seam Gas and Large Coal Mining Development National Partnership Agreement with disagreement between the Commonwealth and NSW the major hurdle. The National Partnership Agreement report looks at whether participating governments have completed their actions under the agreement which reviews CSG and large coal mining developments and their potential impact on water resources.
Of the four States participating in the agreement-New South Wales, Victoria, Queensland and South Australia – only NSW has not completed its milestone to publicly release a protocol for referring projects to the new Independent Expert Scientific Committee (IESC). The issue is that the NSW and Commonwealth Governments have not agreed on NSW’s draft protocol. The report said it remained unclear how NSW would decide which projects to refer to the IESC for advice outside of land it has identified as ‘Strategic Agricultural Land’.
This delay may defer the provision of NSW project applications to the IESC for advice until the protocol is published and will also affect the period to which the benchmark to refer all project applications to the IESC for advice before amending legislation, regulations and guidelines applies. Queensland, however remains on track having signed the National Partnership on February 14, 2012 (under the Bligh Government) thanks to a one-off $18 million payment from the Federal Government.
Despite complaints from the Newman Government about duplication of regulatory bodies, the new government endorsed the protocol for project referral on October 1 2012. The protocol requires Queensland government officers to refer a proposal if it is deemed a ‘project application’ (that is, it requires an Environmental Impact Statement) and it is ‘likely’ to have a ‘significant impact on water resources’. However as of October 2012 Queensland has not referred any projects to the IESC, though the Commonwealth has referred several Queensland projects.
The aim of the IESC is to give Australian governments solid scientific advice on the potential effects of CSG and large coal mining developments on water resources. On November 27 last year, federal environment and water minister Tony Burke announced its creation as a statutory body under amendments to the Environment Protection and Biodiversity Conservation Act 1999. The six-person committee’s role is advisory only and it has no responsibility for issuing approvals for projects or recommending whether a project should or should not be approved.
At the time, Tony Burke said the Committee was created to provide advice on coal seam gas proposals and large coal mining developments. ”The work of this committee will give communities reason to be confident that future decisions about coal seam gas and large coal mining development are informed by the best possible science,” Burke said.
Releasing its first report this month, the COAG Reform Council chair former Victorian premier John Brumby said CSG mining was a contentious issue. ”Coal seam gas mining has an important role to play in Australia’s future energy security and economic development,” Brumby said. ”This agreement aims to improve the community’s confidence in decisions on coal seam gas and large coal mining development by informing those decisions with substantially improved science and independent expert advice.” Brumby said in the five years to 2010-11, CSG production increased from 2% to 11% of Australia’s total gas production. ”Coal seam gas is an important source of natural gas that has the potential to strengthen Australia’s long-term energy security and to further expand energy exports to meet growing global demand for energy,” he said.
The report found Australia’s CSG reserves that have been identified as profitably extractable have been increasing in recent years up to around 35 000 petajoules (PJ) .Estimates suggest a further 65,000 PJ could become economically viable in the future and there are even larger estimates of inferred (122 000 PJ) and potential (259 000 PJ) CSG resources. The report said the community was concerned about potential environmental impacts of new developments including the volume of water produced as a by-product of CSG extraction and possible contamination of fresh water aquifers.
It identified three priority areas to strengthen decision making:
1. more closely identifying potential and actual impacts on water resources, and avoid or minimise significant impacts through a transparent process that builds public confidence
2 substantially improving governments’ collective scientific understanding of the actual and potential effects of CSG and coal mining developments on water resources
3 ensuring the best scientific information and expertise underpins all relevant regulatory processes and decisions.
The Surat Basin is one of the priority areas identified for bioregional assessment. The report says the bioregional assessments would analyse the ecology, hydrology and geology of an area to assess the potential risks to water resources as a result of the impacts of coal seam gas or large coal mining developments.“These assessments will provide advice to governments about the water related resources and risks on a region-wide, rather than project specific basis,” the report said.
The National Partnership program will provide $50m over three financial years with 50% going to the states and 25% each to according to the relative distribution of coal production and CSG projects.
Commonwealth-referred Queensland projects under consideration by IESC are:
Stanmore ‘The Range’ Open Cut Coal Mine – being considered
Newland Coal Extension Project – being considered
Arrow Bowen Gas Project – advice provided
Santos Future Gas Supply Area Project – advice provided
Middlemount Coal Mine – advice provided
Anglo Coal (Foxleigh) Pty Ltd—Foxleigh Coal Mine Extension – being considered
Hancock Prospecting Pty Ltd—Alpha Coal Project—Mine and Rail Development - advice provided
Aquila Resources Ltd—Blackwater Washpool Coal – being considered
Adani Resources Ltd—Carmichael Coal Mine and Rail Project – being considered
AMCI (Alpha) Pty Ltd—South Galilee Coal Project – being considered
Taroom Coal Project, Surat Basin – advice provided
Collingwood Coal Project, Surat Basin – advice provided
Codrilla Coal Mine, south east of Moranbah – advice provided
Sonoma Coal Mine Expansion, Collinsville – being considered
I picked up the book Murdoch (1993) by William Shawcross in the cheapie bin at Lifeline book sale in January. The book is an unauthorised biography and does not hold back criticism though Shawcross is recently on the record saying Murdoch saved journalism, at least in the UK. The front cover of my copy of his 1993 book is torn – an eye is scratched out of the subject’s portrait on the front cover. While there were those protesting against him outside the IPA dinner in Melbourne last week that might have deliberately torn it, it looked more like a label had been removed. I didn’t hold much hope I’d find a tattered 600-page, 20-year-old volume on Rupert Murdoch interesting, so it lay unread for several months under a pile of other books.
By coincidence it filtered back to the top of the pile as the media baron made a rare return to his native land last week. As he appeared at the Melbourne gig, he was greeted by a protester wearing a mask of Murdoch as the devil. The image of Murdoch as Satan won’t bother a Catholic/wee free 82-year-old whose gods are money and power but the protester was not the first nor last to imagine him as evil incarnate.
Forbes ranks Murdoch as only the 91st wealthiest person in the world though the 26th most powerful person. In this category Forbes tucks him in one spot ahead of Jeff Bezos of Amazon and one behind Mark Zuckerberg of Facebook. Yet it hard to imagine similar hatred against Bezos or Zuckerberg. Despite a silver spoon upbringing, Murdoch has always been an outsider. He is also a different era to the two Americans that have built international empires in his wake and his modus operandi has always been blatantly ‘my way or the highway’.
Only 200 pages in, Shawcross’s book has a gripping read following Murdoch’s footsteps, from out of the giant shadow of his father Keith and into the world of international communications. Murdoch snr was one of the most important people in Australia in the first half of the 20th century. In 1915 young Keith’s reports from Turkey to the Australian Prime Minister precipitated the end of the Gallipoli campaign. He grew as an editor in the 1920s under the tutelage of British press baron Viscount Northcliffe, Alfred Harmsworth.
Harmsworth showed Murdoch snr the importance of keeping a paper lively, a virtue Keith passed on to Rupert. Keith Murdoch was a hugely influential managing editor but at his death in 1952 aged 63 he only owned two newspapers: the Adelaide News and the Brisbane Courier-Mail. The titles passed to his only son. Young Rupert was still at Oxford University but already well mentored in the successful ways of newspapers by Harmsworth through his father: explain, simplify, clarify.
His mother Dame Elizabeth was immensely powerful in her own way and it was the widow’s recommendation they should sell the Courier-Mail when the Herald and Weekly Times came calling. Still overseas, Rupert acquiesced but was furious and was determined to build up what was left of his inheritance quickly. The Adelaide News was the minor paper in town compared to the Advertiser. But Murdoch’s inexhaustible energy pumped it up.
Never with much time for “elites”, Murdoch delighted in stoking up the News’s anti-authoritarian voice. But in conservative Adelaide, the News never strayed too far from accepted opinions. Murdoch was left-wing at Oxford and had a strong interest in Communism and a bust of Lenin in his dorm room. But once established as a newspaper owner, instinctive love of the ways of capitalism grabbed him by the throat. Even more than his managing editor father, Rupert became obsessed by the bottom line. He learned quickly how to pick winning politicians and then back them all the way.
Murdoch was more than just an astute proprietor; he had great knowledge of all area of his business. Often he and his senior managers would put out the paper when journalists went on strike. He impressed the printers in London when he climbed onto a machine and found the bar that would fold the pages to ensure the presses could run in tabloid format. Murdoch had inexhaustible energy and would run his business by telephone, constantly looking for deals to expand his footprint. His specialty was purchasing loss-making operations and turning them around.
He quickly outgrew Adelaide and brought his racy tabloid format to Perth before breaking into the Sydney market. Fairfax’s boss Rupert “Rags” Henderson preferred to sell a down-at-heels Mirror to Murdoch in 1960 ahead of more established rivals (to the chagrin of his Fairfax board). Murdoch seized the chance to buy in to Australian’s premier market-place. He could not immediately break into Sydney television but his Adelaide station was making plenty of money.
In the late 1960s, Murdoch was already looking toward the UK and USA. He bought the News of the World after a protracted battle with Robert Maxwell and later The Sun. The News of the Screws was already a product of the gutter before Murdoch bought it, but the Dirty Digger (as the unforgiving British establishment called him) took it that step further. While his papers were successful, he and especially his second wife Anna Torv, hated London. Anna was the intended victim of a kidnapping and the wife of an employee died in her stead. They were more anxious than ever to get a foothold in the US.
Murdoch started with two papers in San Antonio, Texas. The papers performed solidly though Texans were slow to appreciate Murdoch’s formula for success: exaggerated headlines, a lively style and infatuation with sex and crime. But it worked better once he got his foothold into New York through The Post, the third paper in the US’s biggest city behind the News and the Times. But the summer of 1977 and the long-running Son of Sam saga, gave Murdoch the chance to dominate news. The powers-that-be and his rivals detested Murdoch’s hyped story-at-all-costs but he couldn’t care less. What did they know, they were just elitists or “pipe smoking journalist academics” and he was giving the people what they wanted. Murdoch’s power in his native land grew as his international interests expanded. He could even afford a loss-leader: The Australian.
Founded in 1964, the Australian was unique as a national paper in a country with deep metropolitan divisions. Its early years quickly established itself as a serious force and under editor Adrian Deamer an important part of the national political conversation. But Deamer was too independent for Murdoch. Deamer was good (and Murdoch grouchily acknowledged him as the paper’s best editor 20 years later), but he was too far removed from Murdoch’s growing conservatism and was sacked. Murdoch wanted editors who knew how to implement his formula, not set a path for social revolution.
Though he supported Whitlam in 1972, Murdoch was actively plotting against him three years later. Malcolm Fraser was the beneficiary (just as New York Mayor Ed Koch was two years later) of Murdoch political largesse. As a US watcher of that Koch election put it, “When the New York Times gives its support you’ll be lucky to get an editorial but when Murdoch supports you, you get the whole paper”.
Murdoch was gaining the reputation of a king-maker, something that prospective kings would quickly learn to take into account in their dealings with him. Australia is now small potatoes in Murdoch’s global reach but he remains the dominant figure in the local landscape. The Greens may call Murdoch’s News Ltd hate media, but Prime Minister-in-waiting Tony Abbott was in the IPA audience last week listening to the Sun King. In 2011, former News Ltd editor Bruce Guthrie suggested Murdoch has let it be known within his organisation that Australia needed a change of government and his editors were simply doing his bidding. Guthrie had a spectacular falling out with Murdoch and is likely biased but he makes a good point about the extent of his company’s power: “Given News controls about 70 per cent of Australian newspapers, which, in turn, feed talkback radio and evening news bulletins, that’s a fight most politicians want to avoid.”
At the IPA dinner, Abbott called Murdoch ”probably the Australian who has most shaped the world”. Abbott was on less firmer ground when he said Murdoch’s opinionated but broad-minded publications had “borne his ideals but never his fingerprints”. “He’s influenced them but he’s never dictated to them”, Abbott claimed. The point is, over the years Murdoch hasn’t had to dictate to his editors. With a few courageous exceptions like Deamer and Guthrie aside, most of them have known exactly what to do to keep their job.
The Prime Ministership of Julia Gillard rolls on after another extraordinary day in Australia politics. Regional Australia Minister Simon Crean fell on his sword after his ‘circuit breaker’ call for a spill failed to flush out Kevin Rudd. In the week leading up to the vote, the party remained solidly behind Gillard while the media bought the “Rudd BS” as Mark Latham called it. Latham said Rudd’s politics were based on what he saw as the “whatever it takes” culture instilled in the party by 1980s number’s man Graham Richardson.
Latham was never a fan of Rudd, but he was right the former Prime Minister always had a healthy dose of whatever it takes, hidden only slightly behind his very thin skin. A few days ago he used the bravura of a St Patrick’s Day speech to make an Ides of March declaration “I will challenge…”. The pause that came before the rest: “…any of the Liberals present to claim to have a greater Irish heritage than me” hid the real punchline: It was Gillard’s job he was challenging for. But just as Rudd’s Irishness is fake, today he proved he was no Cassius either. After consulting his backers, he realised he didn’t have the numbers again and decided not to contest the ballot. In a media statement, Rudd painted his decision as “honouring his word” not to challenge.
And so Gillard won her third ballot as leader, the two unopposed ballots sandwiching her one direct victory over Rudd last year. Television screens which boasted ‘non-stop coverage of the Labor leadership’ fixed on the sombre Prime Minister as she faced the Canberra press gallery after the vote. Over the constant whirring and clicking from photographers, Gillard said she would make a statement but would not take questions today, because “there is very much work to do”.
Gillard thanked the caucus for its continued support. She accepted it as Prime Minister and Labor leader, not because she sought office for its own sake, but to help Australia meet it challenges. Gillard repeated they had a lot of work to do to ensure “jobs and opportunity” and to ensure they were “getting ready for the future”.
Gillard outlined the Government’s purpose: implementing the NBN, rolling out Disability Care, fighting cost of living pressures, and above all increasing access to “world class education”. Gillard said the leadership battle was settled in the most conclusive way possible. “It has ended now.” Gillard said they would be getting on with the job “in a few minutes” and handed over to deputy PM, Wayne Swan, also re-elected unopposed.
Swan said there was strong support for the PM in the party room. “This Prime Minister is a tough leader, and a leader who is a great champion for our country and for the reforms that are required to create future prosperity,” Swan said. “Today’s result does end these matters once and for all.” Swan like his boss, ended with the promise to get back to work. After all, he has a budget to prepare.
Expect this mantra of “work” to be used a lot in the coming months as Labor clears the decks for the September election. But don’t expect the press gallery to pay any notice. Joe Hildebrand set the tone for things to come with a vicious attack on Gillard’s regime, outing himself as a Rudd supporter in the process: “For an electrifying few hours this week there was the tantalising prospect that Labor was not hurtling towards certain oblivion and there was a chance, however remote, that it might actually win the next election on the back of a resurgent Kevin Rudd.”
Hildebrand was right about the disaster of Rudd’s panicked overthrow in 2010 for which Labor is repenting at leisure. But putting Rudd back in now would be beyond panic. Electoral defeat in 2013 is still the likely outcome for either leader, given the polls and the contempt of the press gallery. Yet today’s events only show how much Rudd is still detested in the party for his overwhelming ego and his chronic failures to consult as leader.
The Germans, in their infinite wisdom, chose the word “shitstorm” as their Anglicism of the Year in 2012. Their jury defined shitstorm as a public outcry in which arguments mix with threats and insults to reach a critical mass, forcing a reaction. Shitstorm, they said, filled a gap in German vocabulary “through changes in the culture of public debate.” As ever, the hugely influential urban dictionary has a more pithy explanation calling it a “gigantic cluster fuck”. The 2010 book Shitstorm: Inside Labor’s Darkest Days by Lenore Taylor and David Uren is about the gigantic cluster fuck that was (and remains) the Global Financial Crisis. Taylor is one of the country’s most respected political journalists while Uren has written on economic issues for 35 years so they team up well to discuss how the shitstorm of the GFC impacted Australian politics and the country’s economy.
The book takes its name from a quote then-Prime Minister Kevin Rudd used in a television interview. On March 8, 2009, Rudd appeared in front of a live studio audience on the Seven Network’s Sunday Night program where he about his government’s response to the GFC. Responding to opposition claims about the debt Labor created to fund its stimulus package, Rudd said it came down to a choice between letting the market fix it up or intervening with temporary borrowings. “People have to understand that,” Rudd told the audience, “because there is going to be the usual political shitstorm – sorry, political storm over that.” It seems reasonable to believe it was choreographed error from Rudd who left very little to chance during his tenure as Prime Minister.
Error or not, the choice of words was typical Rudd. The cover of the book Shitstorm shows a picture from that era with the four members of kitchen cabinet: Rudd, Linday Tanner, Wayne Swan and Julia Gillard. In the photo Rudd has his back to the camera. He is not interested in us, he is conducting his orchestra. But his players are not quite in tune. Finance Minister Tanner is looking off to right, Treasurer Swan is looking off the left and only Rudd’s deputy is looking vaguely in his direction, but with her own agenda. The gang of four formed the Strategic Priorities and Budget Committee (SPBC) that made most of the political decisions in the periodm any of which were remarkable and still-debated. It resulted in Australia avoiding a recession, when the economies of the world fell like ninepins around them.
Rudd was spot on about the shitstorm, but could not see he would be one of the casualties. His sensational sacking as Labor leader happened after the book was released. No one, least Taylor and Uren saw it coming. Then again neither did anyone else outside a small circle. The panic-stricken parliamentary putsch in June 2010 that cost Rudd his job as first-term Prime Minister left the Australian polity reeling, locked the nation into costly backflips, and severely damaged the trust between Labor and many of their own supporters that lasts to this day.
The Gillard government scraped over the line in October 2010 thanks to the negotiating skills of the new leader. But to win that election, she had to promise no carbon tax although both parties had agreed to it in 2007. The distant drum of the US sub-prime mortgage crisis had little effect on that election. It wouldn’t affect Australia where interest rates had risen 10 times in a row due to mining growth.
Both leaders knew the crash was coming but Rudd couldn’t risk talking about a crisis as it would highlight their inexperience while it was also inconvenient to Howard’s “don’t risk good times” message. Labor won but there was little time to celebrate. The first effect in Australia was the cost of borrowing money. The big banks who manage lots of short term loans were suddenly exposed as money fled the banking system. No Australian bank had to close its doors but there were times when the queue was down the street (prompting banks to consider how to keep large queues inside).
As the cost of money rose, the Australian banks took the near unprecedented step of rising interest rates without a signal from the Reserve Bank. The first bank tipped off Treasurer Swan in advance but the next one didn’t. So Swan advised people to switch banks but he could well see there was a problem brewing. While n summer holidays at Cotton Tree beach on the Sunshine Coast, he took a call from US Treasury Secretary Hank Paulson that terrified him. Paulson said the US “might be able to see a way” through the crisis if house prices didn’t collapse. Swan could see it was a big if.
It was first items of business when Rudd returned to work after Christmas. Labor (or rather the SPBC) promised a budget surplus of $18 billion (around 1.5% GDP). But although China ate up Aussie minerals elsewhere the news kept getting worse. When Rudd went to Washington in March, he met the IMF’s Dominique Strauss-Kahn who stunned him by saying the sub-prime lending mess would cost a trillion dollars (a figure later upgraded to $3 trillion). Governments would ultimately bear much of that cost.
By May budget in 2008, Swan was under pressure to abandon $47 billion of election promise tax cuts. The Government held firm but had to hold back on cuts they hoped would keep the books in the black. This was a direct result of the growing crisis but Swan couldn’t publicly admit this, for fear of impacting consumer confidence. Matters spiralled out of Swan’s and consumers’ control in September 2008 when the US’s fourth largest investment bank, Lehmann Brothers went bankrupt with $613 billion owing on uncertain assets. Trillions in securities across the world guaranteed or counter-signed by Lehmans were now suddenly at risk. The US’s largest insurer AIG’s shared dipped 70% with $550 billion tied up in sub-prime mortgages . Largest US mortgage-lender Washington Mutual’s shares also nosedived and exposed mutual funds who had to dump securities to meet a run on redemptions. The bond market died as no one would lend for anything longer than one day.
Australia had $800 billion of debt, of which $500 billion was short-term subject to constant finance. As America’s financial wobble threatened to tsunami across the Pacific, Swan’s message to the press was simple: “We were not immune but better placed than most to weather the coming storm”. But an IMF meeting in Washington in October 2008 would tell him the climate was worsening: it was enough for a clean bank to have links with a toxic bank for it to be in trouble. China’s boom would not save Australia from this tempest.
Swan came from the meeting convinced Australia needed financial stimulus. Rudd quickly warmed to the idea too. Over Christmas Rudd had been reading the economic ideas of EG Theodore and his bitter regret over how Australian lack of government action delayed a recovery in the 1930s Great Depression. Rudd was not about to let it happen again. Panicky people had salted $5.5 billion out of Australian banks in ten weeks since Lehman went bust, and second tier banks like Suncorp and Bankwest were at risk of collapse. Rudd guaranteed all term wholesale bank funding and retail deposits. Mortgagees like Challenger Howard were not protected. In two years the four big banks increased their home-lending share from 60 to 85% .
While the SPBC was arguing over the size of a stimulus, it was startled by the news the Reserve bank had dropped interest rates by 1%. This was twice as much as Treasury recommended. Rudd had learned the lesson from Treasury relief package model which was to ‘go hard, go households’. The SPBC would also double Treasury’s recommendation with a $10 billion package – $8.7m in cash handouts and $1.5m was spent on the First Home Owner Grant. There was also $6.2m to build a green car. Rudd’s message was they were ‘deploying the surplus’ to secure the economy. Opposition leader Malcolm Turnbull was so shocked, he gave immediate bi-partisan support. Labor’s own cabinet was equally in the dark about the proposal and unhappy about it. Rudd blamed the need for speed and ‘extreme market sensitivities’ but his downfall can be charted to this decision.
Meanwhile, the IMF predicted the world economy would stagnate in 2009. The stimulus kept Australian tills ringing through Christmas but business confidence was at a record low. The Government pushed hard to strengthen Howard’s G20 as a forum to make global recommendations. They were supported by the Americans who saw the G8 as too happy to install euro-centric banking controls that were anathema to the Bush Administration. In November 2008, the IMF told the G20 they needed to fund a stimulus in the order of 2% of GDP. This was huge, yet they were underplaying the situation. The IMF knew any higher recommendation would ‘scare people to death’ as its chief economist Olivier Blanchard said. Countries took notice and even mighty China announced $600b Keynesian spending on infrastructure projects
Yet it put the Rudd Government in difficult political territory. Spending would ease unemployment but it would kill their promise to fund a surplus. Rudd and Swan refused to say the word deficit for months until they finally admitted it was temporary. The linguistic games showed frustrated ministers that Rudd’s office had centralised decision making to an unacceptable level.
Rudd went on with the spending plotting a large-scale construction program to keep up emplyment. Schools were chosen because they didn’t need much lead time or lengthy council planning approvals. The $16.2b Building the Education Revolution program was soon supplemented by a $6.6b social housing program and $2.7b on a solar installation package. Labor lalso needed a quick ‘sugar hit’ and gave another cash handout of $8b designed to keep money circulating. The total package was 2.4% of GDP in the first year, beyond the IMF measure but reduced to 1.8% in 2010-2011. By the second package in February 2009, Treasury was predicting Australia would avoid a recession. It was a magnificent achievement but there were serious flaws. The solar rebate was so high, it led to huge demand and shonky work practices that had fatal results.
As well as the surplus, there was another major casualty of the downturn – Rudd’s emission trading scheme, in Ruddspeak, the Carbon Pollution Reduction Scheme. It was due for 2010 but Government agreed to delay by a year to include extra compensation Labor called a ‘global recession buffer’. Rudd decided to get his new “browner” plan through the Senate with the help of the Liberals rather than with the Greens who wanted tougher action. Opposition leader Malcolm Turnbull was supportive but undone by deep divisions in his own party. The eventual compromise with Labor was torpedoed by Liberal hardliners led by Nick Minchin and a spill led to the surprise election of Tony Abbott as leader in December 2009.
Abbott immediately turned his back on the CPRS, leaving Labor stranded. Rudd was so sure the Liberals would support it, he had spent no time selling it to the public. It would be impossible to run a double dissolution election on a complicated scheme that to Abbott was a “great new tax on everything” . The failure of the Copenhagen climate change talks in December was the nail in the coffin and Rudd delayed the ‘great moral imperative of our time’ to 2013.
As Taylor and Uren’s book approached deadline, Labor’s three-year-long polling honeymoon was over and they were running neck-and-neck with the Liberals. The media were hammering them over their stimulus plan failures. Rudd axed the installation scheme and Minister Peter Garrett became the scapegoat. Meanwhile the audit office found a colossal amount of waste in BER including substandard work and inflexible design. The budget surplus was a mirage and the Government had troubling selling its economic message for different reasons than before. During the height of the crisis, minister could not be frank for fear of damaging confidence, now they couldn’t sell the recovery because it would draw attention to the spending issues.
To Rudd and Swan’s immense credit, they saw the GFC coming earlier than most. They acted quicker than most and deeper and with the help of the Reserve Bank and China, Australia emerged almost unscathed. Abbott ridiculed 25 months of Whitlamesque spending’ but Rudd saved the country from years of austerity with his infrastructure stimulus. What neither he nor anyone saw was that Australia would recover so quickly. His successor Julia Gillard suffered in the 2010 poll but held on with a debt burden that would cripple Australia’s ability to implement real change in the difficult decades to come. As Taylor and Uren concluded, the political shitstorm would be ‘wilder and more damaging that Kevin Rudd ever imagined’.
The latest in a long line of Aussie hoaxes was perpetrated to great effect this week though its creator might yet pay a penalty of ten years and half a million bucks. Anti-coal activist Jonathan Moylan is in the wars for putting out a press release in the name of ANZ Bank on Tuesday. The release said the bank was divesting its $1.2b loan to Whitehaven Coal for its Maules Creek Coal Project. It was an important announcement. In Whitehaven’s own words, Maules Creek is “one of only a few remaining tier 1 undeveloped coal assets in Australia. It is also one of the largest coal deposits in Australia with 362 Mt of recoverable reserves.”
Before it could be exposed as a hoax, it triggered a stock market collapse for the coal company. While almost all of the losses were subsequently recovered before the day was out, Moylan’s actions raises serious political as well as ethical and legal issues. Using dubious means, he focussed attention on the important question about whether we should be investing in major coal projects in a time when fossil fuel emission is the biggest issue we face as a species.Maules Creek is in the heart of the rich Gunnedah Basin in NSW. That state and Queensland produce 97 percent of Australia’s black coal. It is an industry in decline with Australia producing 405 million tonnes of raw black coal in 2010-11 down from 471 Mt. in 2009-10. Yet Australia remains the world’s fourth largest coal producer and the world’s leading exporter with markets in Japan, South Korea, China, India and Europe. Coal fired generators are leading contributors (20 percent) to a greenhouse effect as heavy-grade emitters of carbon dioxide and methane into the atmosphere.
The Centre for Climate and Energy Solutions acknowledges fixing the coal issue will be difficult. Coal is cheap, is important for meeting energy needs in the developing countries, and has good lobby groups in countries like the US, which is the “Saudi Arabia of coal.” Coal-fired generators could still play a role if carbon capture and storage (CCS) technology ever takes off, possibly 10-15 years away. There would also be a need for a carbon market, priced at around $30 a ton of CO2 and a way of retrofitting CCS into existing technology. An ANZ that truly considered its customers interests, would ensure such boxes were being ticked. But it has no plans to do so and there is no scrutiny of whether such interests are considered.
Instead, the argument focussed on Moylan with those dividing into two sides on whether his hoax ends justified the means. Those that supported him like Bob Brown identified Moylan’s action as a necessary civil disobedience that brought out in the open ANZ’s investment in coal. That brought out the coalition’s Eric Abetz saying the ends did not justify the means. He turned it into an attack on Lee Rhiannon and the Greens’ “extreme political tendencies.”
Whoever is right, there is one thing for certain – Moylan planned his attack well. He put together a fake ANZ press template, a website and dummy email inbox online. The press release was a remarkable use of managerial language to frame an argument that would be quite unusual and brave in an Australian business context. Moylan used the voice of ANZ Corporate Communications to announce the bank would not support the project. Toby Kent, “Group head of corporate sustainability” was quoted to say the company wouldn’t invest in coal projects that cause “significant dislocation of farmers, unacceptable damage to the environment, or social conflict.” The decision was made after “a careful analysis of reputational risks and analysis of the returns on this mine in the current climate of high volatility in the coal export market.” The released concluded with the statement ANZ was undertaking “a review of coal and gas investments on productive agricultural lands and areas of high biodiversity.”
Moylan’s fake ANZ release was quickly picked up by AAP Newswire who failed to conduct any of the basic identity checks that would have exposed the hoax. At the bottom of the emails are phone numbers for Toby Kent and Joanne McCulloch “Media Relations Advisor” which if anyone had bothering phoning would have quickly exposed this email as a hoax. Either that or a quick check of ANZ’s database of media releases would have been enough to dispel, or at least doubt, the information.
Instead AAP swallowed the news whole and provided it directly to the markets. When traders in the Australian Stock Exchange saw the newswires shortly after midday Tuesday, they went ballistic. Whitehaven bore the brunt as 85% owners of Maules Creek Coal. Maules Creek is 18km north-east of Boggabri on the Kamilaroi Highway between Narrabri and Gunndah. It is also just 16km from the railway line servicing the coal terminals at the Port of Newcastle, 360km to the south-east. Maules Creek’s current resources are expected to support a large open cut mining operation for 30 years at an average saleable coal production rate of 10.8 million tonnes per annum (Mtpa). Subject to approvals, the first coal production will commence in mid 2013, with saleable production exceeding 10Mtpa from 2016 onwards.
But it was a dead duck without ANZ’s investment, and within minutes Whitehaven shares plunged almost 10 percent from $3.52 to $3.21. Whitehaven Coal lost more than $276 million in market value. It capped off a bad year for the company since it merged with Nathan Tinkler’s Aston last April giving him 19.4 percent ownership. The share price has lost over half its value since then with CEO Tony Haggarty and the board blaming it on uncertainty due to Tinkler’s financial woes - they want him to divest to institutions. Tinkler was quick to return fire on Haggarty and the board saying he wanted to increase his holding not decrease it.
That plan may be in tatters after Tuesday. The price did not recover until the real ANZ responded with a media release (pdf) entitled “Fraudulent media release regarding Whitehaven Coal”. This release (which looked remarkably like the fraudulent one) said ANZ remained “fully supportive of Whitehaven Coal.”
At the end of trading, Whitehaven was just 2c down on the day reflecting the fact there were other issues with the project. The damage done to Tinkler, was variously estimated to be anywhere between $50m and $180m (assuming it wasn’t him who picked up the shares when they were on the rebound).
Whatever the damage to Tinkler or Whitehaven, Moylan will suffer significant collateral damage. There is a strong prima facie case his actions were illegal according to Section 1041E of the Corporations Act 2001 (Cth). That act states it is an offence if a person makes a knowingly false statement that is likely to make people dispose of shares. The maximum jail term for individuals is 10 years, with fines of up to $495,000. Organisations face fines of up to $4.6 million.
The Australian Securities Investment Commission said it would be investigating whether there had been a breach of Corporations Act rules on false or misleading statements. According to dean of law at the University of Western Sydney Michael Adams the legislation that deals with corporate fraud imposes a high penalty on false or misleading statements about traded securities on the ASX. Adams believes a successful prosecution will hang on the difference between a public nuisance and civil disobedience. “A protest normally provides publicity for a cause and brings the matter to the general public’s attention, but causes little harm to the community,” Adams said. “A fraud – and in particular one that impacts on the share market – has huge consequences”.
Research fellow on ethics Edward Spence picked up on Abetz’s argument about the ends and the means. Spence said Moylan’s ethical failings were harmful to the “integrity of the digital informational environment”. This is the environment whose trustworthiness, Spence said “we all rely on to conduct our legitimate informational transactions.” We are not only biological beings, he said but also and increasingly informational beings. “When the informational environment is harmed we are also harmed.”
Spence may be exaggerating the harm here as it ignores the fact that checks and balances such as AAP did not do its job properly. Nor did any of the rest of the media use the hoax to expose ANZ’s dealings with the coal industry. Why didn’t anyone ask the bank if they would do “a review of coal and gas investments on productive agricultural lands and areas of high biodiversity”.Why is it acceptable for the bank to continue to invest in projects that cause “significant dislocation of farmers, unacceptable damage to the environment, or social conflict?”
However the journalists there were not interested in the good news, they were more interested in a bad news change that came in on January 1. This change was a follow on from a change John Howard made in 2006 which was to end the supporting parent allowance when the child turned eight. Howard exempted those already receiving the parenting payment before July 2006 who were able to keep it until their youngest turned 16. This meant there would be exemptions until 2014. However the Gillard Government has now ended that immediately, saving $728 million over four years.
This change shifts 80,000 single parents from the parenting payment to the Newstart allowance when their youngest child turns eight. Some parents will be up to $110 a week worse off with the new arrangements and it was this issue that journalists turned to when one asked Macklin if she could live on the dole on $246 a week. Macklin could have done many things at this point, including refusing to answer on the grounds it was a very stupid question. Fellow Minister Tanya Plibersekwould later answer the question “properly” by saying “I don’t think anyone thinks it’s easy.”
But no such luck for Macklin, who gave the worst possible answer. “Yes I could”. Macklin then made matters worse by omitting her answer from the transcript issued by her office. Macklin tried to push on by telling journalists they had simply applied existing rules to people who had on the payment since 2006. “What’s important for people who are unemployed is that we do everything possible to do everything we can to help people get into work and that’s what we’ll be doing with these single parents as well,” she said.
But it was too late. The damage was done by the killer quote. TV cameras captured that answer which immediately provided the headline for broadcast and print media and the subsequent non-appearance in the transcript merely fuelled speculation of a cover-up. Susie O’Brien in the Herald Sun went so far as to call it “obscene”. Australian Council of Social Service chief executive Cassandra Goldie also took Macklin to task, but ridiculed calls for the minister to try surviving on the Newstart allowance. “You can’t replicate that experience if you are a senior member of government,” she said.
Goldie’s comment came as Greens’ leader Adam Bandt repeated tragedy as farce by announcing he would live on the $246 allowance for one week, challenging Macklin to do the same. “Once you take into account your rent your bills, your food, there’s not much change left over from $35 a day,” he told reporters in Melbourne, but didn’t elaborate how much of his modern lifestyle and well-tailored suits would be pushed to one side to make ends meet in that week.
Bandt’s stunt had little to do with the Newstart Allowance and everything to do with his struggle to retain Melbourne at the next election. But the whole affair does highlight issues with the low benefit rate when there are systemic problems of under-employment Australia has not solved. While the current rate of unemployment is low at 5.2 per cent by historic and international standards there is a high degree of volatility within this rate. In March 2012 the unemployment rate in Tasmania was 7.0 per cent, nearly twice the 3.7 per cent rate in the Northern Territory. Similarly, in March 2012 the unemployment rate for those aged 15-19 is 18 per cent, more than three times the national average.
There are “dole cheats” but for the vast majority, the dole queue remains a humiliating experience for most people. Economist John Quiggan said that instead of completing the Howard agenda, the Gillard government ought to be looking at increasing the real value of benefits, “allowing the unemployed to share in some of the growth in incomes for the community as a whole”. Even thinking about the absurdity of living on $246 a week, reminds us that many people have to do exactly that and some parents of those aged eight and over will now pay the price for the Government’s budget balance obsession.
Meanwhile Prime Minister Julia Gillard preferred to focus on solving the inequities of employment in the “patchwork economy” rather than increasing dole payments. “Some today see a problem, they offer blame”, Gillard told the Sydney Institute last year. “I see a person, a person who can work. I offer only opportunity, I ask only responsibility in return.” If Gillard gets the public space to tackle that agenda, she might yet be grateful for Macklin’s mistake.