Tag Archives: keating

History shows Abbott faces long odds in holding Oz premiership

abbottspill

More than an unpopular mining tax or one of the world’s most progressive carbon trading schemes, Australian voters booted the last Labor government as a punishment for the personality-driven drama between Kevin Rudd and Julia Gillard who, in six years of government, traded the premiership twice and fought through four different leadership battles.australia new

Rudd eventually returned to leadership in the summer of 2013 when its fickle members worried that sticking with Gillard would result in an electoral catastrophe. Labor lost the election anyways, and Tony Abbott, the conservative leader of the opposition Liberal/National Coalition, became prime minister.

Just 17 months after taking office, however, Abbott now faces the same dynamic, and Australia’s prime minister survived a ‘leadership spill’ earlier this week by a narrow margin of 66 to 39. If successful, the challenge would have opened the way for a direct leadership contest, presumably against either two more popular figures — communications leader (and former Liberal leader) Malcolm Turnbull or Australia’s foreign minister Julie Bishop, a rising star.

The leadership wobbles point to a growing trend of snap leadership contests that are reshaping Australian politics by narrowing the time horizons for leaders of both major parties. Though that makes party leaders conceivably much more responsive to their colleagues and it also gives individual government ministers more power and leverage, it correspondingly creates uncertainty and drives weaker leadership. Think, for example, of the rotating-door premierships so common in Japan or Italy for much of the post-war era.

Why Abbott was so vulnerable

Abbott largely did what he said he would do when he was elected in September 2013. He’s deployed enough military personnel and detained enough asylum seekers at detention centers in Papua New Guinea to sufficiently disincentivize immigrants from attempting the dangerous trek to Australia by boat. He successfully won enough support among the Australian Senate’s independents to kill both Rudd-Gillard era accomplishments — first, their landmark carbon trading scheme and, a month later, an unpopular tax on mining profits (that, in any event, raised far less revenue than initially anticipated). For good measure, Abbott finalized two key free trade deals, with Japan and with South Korea, at a time when the Australian economy is reeling from both China’s economic slump and a decline in global commodities prices. In the crisis over downed Malaysian Airline flight 370, he showed genuine regional leadership, especially in contrast to the Malaysian government. In Abbott, Australians got exactly the prime minister that was advertised — a passionate right-wing conservative not afraid of controversy.

But that meant that Abbott too often embraced awkward positions. Continue reading History shows Abbott faces long odds in holding Oz premiership

Remembering Gough Whitlam, Australia’s progressive martyr

whitlamPhoto credit to UPI/Bettman Newsphotos.

Gough Whitlam served as Australia’s prime minister for just three years, but the tumultuous Whitlam era gave the country its most severe constitutional crisis, a universal health care program,  diplomatic ties with the People’s Republic of China and a progressive statesman whose spirit continues to guide the Australian left today. Notably, his short-lived government was the only one headed by the center-left Australian Labor Party between 1949 and 1983.australia new

Whitlam, who died today at age 98, left office in 1975 after Australia’s governor-general, Sir John Kerr, controversially dismissed him as prime minister, transforming Whitlam into something of a martyr. Whitlam lived for nearly four decades to watch seven more prime ministers come and go, including the internecine battles between the two prime ministers from within his own Labor Party between 2007 and 2013, Kevin Rudd and Julia Gillard.

Whitlam personified the hope of the new post-war generation when he came to power in 1972, the first center-left prime minister in over two decades. Despite the opposition of the newly dethroned center-right Coalition of the Liberal Party and the Country National Party, Whitlam introduced a whirlwind of legislation. He  created a national healthcare system, Medicare (initially ‘Medibank’), abolished student university fees, eliminated the federal death penalty, withdrew Australian troops from Vietnam and, most controversially at the time, recognized Beijing over  Taipei. Within Australia, Whitlam delivered to the Northern Territory and the Australian Capital Territory representation in the Australian parliament’s upper house, the Senate, fought for environmental protections for the Great Barrier Reef (including a ban on offshore oil drilling) and delivered greater control over tribal lands in the Northern Territory for Australia’s indigenous population.

He introduced Australian, rather than British, passports and he replaced ‘God Save the Queen’ with an Australian national anthem. Decades later, he would team up with his former Liberal rivals to support an Australian republic in an unsuccessful 1999 referendum.

There’s no real direct analog to Whitlam in the United States, but you might think of him as Australia’s combination of John Kennedy, Lyndon Johnson and Jimmy Carter — all in one person and packed into three very tumultuous and very active years in office.  Continue reading Remembering Gough Whitlam, Australia’s progressive martyr

Revoking mining tax, Abbott dismantles Labor achievements

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If the carbon trading scheme was the signature accomplishment of six years of Labor government, perhaps its second-most important policy achievement was the promulgation of a mining profits tax that came into effect in 2012.australia new

But a month after Australian prime minister Tony Abbott successfully scrapped the carbon scheme, he’s now also managed to repeal the mining tax as well, which levied a 30% tax on mining profits. Ironically, the tax failed to raise anything close to the projections that the Australian Labor Party hoped, due in part a slowdown in demand for Australian commodities as China’s economy decelerates. Eliminating the tax was one of the chief campaign pledges that Abbott made in his campaign to defeat Labor last September.

Nevertheless, with the decision by Australia’s Senate to scrap the tax by a margin of 36 to 33, Abbott will easily pass the repeal through Australia’s lower house, the House of Representatives, where Abbott’s Liberal Party / National Party coalition holds a more solid majority.

As with the carbon scheme, Abbott secured the legislative victory with the support of Clive Palmer, a former mining magnate, and his new Palmer United Party, an alternative to the center-left Labor and to the center-right Coalition. Palmer holds the party’s sole seat in the House of Representatives, but the PUP holds three seats in the Senate, making it a key power broker in enacting Abbott’s policy agenda.  Palmer himself is an often beguiling mix of ideologies, but he seems more at home on the right than on the left.

Palmer, who made millions as the owner of several coal and nickel interests, agreed to the repeal after securing the government’s support for several family-based initiatives. He also received a promise to freeze government contributions to Australia’s superannuation plan for nine years, forcing Abbott to rescind a campaign pledge, thereby halting a planned rise from 9% to 12% — employer contributions  are now capped at 9.5%.

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RELATED: How Tony Abbott killed Australia’s carbon scheme

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Under a policy introduced by former prime minister Paul Keating in the 1990s, agreed with business and labor unions, employers are required to make annual contributions to each employee’s ‘superannuation’ fund. The contribution level began at 3%, rose to 9.5% and was set to climb to 12% before the Abbott government’s latest decision, which would freeze contributions at 9.5% through 2025. That, in turn, has caused Keating and other Labor leaders to denounce the mining tax deal, arguing that it could derail the full potential of the superannuation program, which itself was designed to meet the rise of retirement-age Australians set to expand in the current decade and beyond.

Nevertheless, the deal leaves Labor in somewhat of a quandary under the leadership of former education minister Bill Shorten.

Australian voters aren’t exactly keen on Abbott’s government, which hasn’t had an incredibly easy first year in office — it’s been captive to small parties like Palmer’s in the Australian Senate and Abbott was also forced to shelve his plan to expand paid parental leave, one of his top campaign pledges last summer. 

But it makes the drama of the last Labor government even more pointless. It now seems less relevant than ever if Kevin Rudd or Julia Gillard was prime minister in 2010, because Abbott has, in about one month’s time, dismantled Labor’s two policy cornerstones. To have spent his first months as opposition leader railing impotently on the sidelines doesn’t make Shorten look like a prime minister in waiting, even as Abbott’s government suffers from its decisions on superannuation and paid parental leave.