EDITORIAL THURSDAY 11.09.08.
Well that didn’t last long. The new cabinet announced on Monday by Premier Nathan Rees has had its first casualty with the bizarre departure of Matt Brown. The newly appointed Police Minister held the post for just three days before being forced to step down following the revelations of an incident at a party in his office on Budget Night a few months ago.
Perhaps we are not in possession of all the facts, but putting that aside and judging by what we do know, was this a hanging offence? It is alleged that Mr. Brown, while under the influence of alcohol, danced on a couch, climbed on top of fellow MP Noreen Hay, and made a risqué remark about what he was doing in less than tasteful language. All this is alleged to have taken place in front of other party guests including Ms Hay’s daughter, to whom the colourful remark was allegedly addressed. In simple terms, the whole thing could be described as “horsing around”.
So was this incident offensive and inappropriate? Well, I suppose that is a matter of personal opinion, but surely the test of that would be if the people allegedly involved felt that way. The fact is that Noreen Hay has denied that it occurred. Even if it had, it would up to her to decide if she was offended and wanted to pursue any kind of action against Mr. Brown, or alternatively accepted it as a friendly although crass joke. And that’s the question: was it a case of friends fooling about at a party, or was it an unwanted and unacceptable mistreatment of a colleague.
Either way, it is an unwelcome distraction from the issues that really matter, such as the extraordinary economic mismanagement, the repeated episodes of incompetence, and the perceived links to corruption which really should be the focus of attention. It is those matters which need to be addressed and for which the Government should be held to account. The Matt Brown episode is a distraction that neither the Government nor the people of New South Wales need right now, and for that reason it’s time for Matt Brown to go.
Thursday, September 11, 2008
Wednesday, September 10, 2008
Peter Had His Chance And Turned It Down
EDITORIAL WEDNESDAY 10.09.08.
Will Peter Costello please just shut up and go away? Honestly, I just don’t know why so many of his colleagues would be prepared to hand him the Liberal Party leadership after all of the ducking and weaving of the last few months. Yes there was a time when Peter Costello could have led the coalition to an election victory. That time has passed.
It has been widely observed that he is stringing matters out as long as possible as a ploy to promote interest in his new book which is due to be launched next week. Already some of the contents of the memoir have been reported, including criticisms of several key failings of the Howard Government such as reconciliation, a republic and Pauline Hanson. Attention is also devoted to the leadership saga which apparently saw Mr. Costello repeatedly promised the top job, but never delivered to him.
As well as allegedly criticizing Mr. Howard in his book, Peter Costello has also taken the opportunity this week to publicly lambaste the new Rudd Government over the economic slowdown. In doing so he has grossly oversimplified matters, ignored the global credit crunch, and pretended that he was not in charge of the economy while interest rates went up repeatedly along with inflation. Now the genie is out of the bottle and all he can say is “It’s not my fault”.
Increasingly, Liberal Party members are frustrated with the unresolved leadership question. Many would still welcome Mr. Costello as leader, believing that he has the best chance of success. But I disagree. After the election loss last November, the leadership was his for the taking. However, like a petulant boy, he announced he would be retiring form politics. Since then he has hovered around casting a shadow across the Liberal Party which is doing more harm than good. Perhaps it’s his own form of revenge for not getting his own way before.
So far, this whole travesty has been centred around the best interests of Peter Costello, not the best interests of the Party. Until Peter Costello makes his intentions clear, the Liberal Party is caught in Limbo, torn between the past and the future. It seems that the Party has been prepared to wait until the book is published, but time is almost up. After all this it has to be asked why would they want him now anyway?
Will Peter Costello please just shut up and go away? Honestly, I just don’t know why so many of his colleagues would be prepared to hand him the Liberal Party leadership after all of the ducking and weaving of the last few months. Yes there was a time when Peter Costello could have led the coalition to an election victory. That time has passed.
It has been widely observed that he is stringing matters out as long as possible as a ploy to promote interest in his new book which is due to be launched next week. Already some of the contents of the memoir have been reported, including criticisms of several key failings of the Howard Government such as reconciliation, a republic and Pauline Hanson. Attention is also devoted to the leadership saga which apparently saw Mr. Costello repeatedly promised the top job, but never delivered to him.
As well as allegedly criticizing Mr. Howard in his book, Peter Costello has also taken the opportunity this week to publicly lambaste the new Rudd Government over the economic slowdown. In doing so he has grossly oversimplified matters, ignored the global credit crunch, and pretended that he was not in charge of the economy while interest rates went up repeatedly along with inflation. Now the genie is out of the bottle and all he can say is “It’s not my fault”.
Increasingly, Liberal Party members are frustrated with the unresolved leadership question. Many would still welcome Mr. Costello as leader, believing that he has the best chance of success. But I disagree. After the election loss last November, the leadership was his for the taking. However, like a petulant boy, he announced he would be retiring form politics. Since then he has hovered around casting a shadow across the Liberal Party which is doing more harm than good. Perhaps it’s his own form of revenge for not getting his own way before.
So far, this whole travesty has been centred around the best interests of Peter Costello, not the best interests of the Party. Until Peter Costello makes his intentions clear, the Liberal Party is caught in Limbo, torn between the past and the future. It seems that the Party has been prepared to wait until the book is published, but time is almost up. After all this it has to be asked why would they want him now anyway?
Tuesday, September 9, 2008
Growing Pressure For Pension Increase
EDITORIAL TUESDAY 09.09.08.
The financial plight of the pensioner is becoming a powerful political issue with increasing pressure being brought to bear upon the Government. One by one, Government Ministers are being forced to admit that the pension payment is inadequate and that they could not survive on the money. And yet they insist that nothing will be done until after the official review is completed.
Longer term, two things need to be done. One is that the pension needs to be restructured so as to provide a reasonable safety net, and the bottom line there is that it needs to increase. Second, the Compulsory Superannuation Guarantee needs to be reformed to deliver the benefits it was originally intended to provide. That means quarantining Super Funds from tax as they grow, and increasing the contributions at the front end. Those are the steps that must be taken for the long term.
But that doesn’t solve the immediate problem. The fact is that a single aged pensioner is about $30 a week below the official poverty line. The fact is that the Australian pension is below international standards. The fact is that Pensioners need help now, not next year. These facts are already plain to see and no review or inquiry is going to change any of them. That’s why Seniors Australia is campaigning for an immediate $30 per week increase, which they say will cost the budget about $1 Billion. But they are not the only ones.
It seems that Senator Steve Fielding is also pushing for an immediate increase, only he has called for $70 per week. Now this is the same Senator Fielding who last week chose to block the Federal Government’s planned increase to the luxury car tax. That move has denied the Federal Budget more than $500 Million revenue. The Government is not giving up on its tax increase, and plans to bring the legislation back into the Senate again in a few weeks. So, here’s an opportunity.
With the budget surplus topping $22 Billion, an increase for pensioners is not out of reach. Perhaps Senator Fielding could be persuaded to allow the luxury car tax increase in return for an increase to the aged pension. It’s just a thought, but while the Government has to depend on the minor parties and independents in the Senate there is an opportunity to push the plight of the pensioners further up the agenda.
The financial plight of the pensioner is becoming a powerful political issue with increasing pressure being brought to bear upon the Government. One by one, Government Ministers are being forced to admit that the pension payment is inadequate and that they could not survive on the money. And yet they insist that nothing will be done until after the official review is completed.
Longer term, two things need to be done. One is that the pension needs to be restructured so as to provide a reasonable safety net, and the bottom line there is that it needs to increase. Second, the Compulsory Superannuation Guarantee needs to be reformed to deliver the benefits it was originally intended to provide. That means quarantining Super Funds from tax as they grow, and increasing the contributions at the front end. Those are the steps that must be taken for the long term.
But that doesn’t solve the immediate problem. The fact is that a single aged pensioner is about $30 a week below the official poverty line. The fact is that the Australian pension is below international standards. The fact is that Pensioners need help now, not next year. These facts are already plain to see and no review or inquiry is going to change any of them. That’s why Seniors Australia is campaigning for an immediate $30 per week increase, which they say will cost the budget about $1 Billion. But they are not the only ones.
It seems that Senator Steve Fielding is also pushing for an immediate increase, only he has called for $70 per week. Now this is the same Senator Fielding who last week chose to block the Federal Government’s planned increase to the luxury car tax. That move has denied the Federal Budget more than $500 Million revenue. The Government is not giving up on its tax increase, and plans to bring the legislation back into the Senate again in a few weeks. So, here’s an opportunity.
With the budget surplus topping $22 Billion, an increase for pensioners is not out of reach. Perhaps Senator Fielding could be persuaded to allow the luxury car tax increase in return for an increase to the aged pension. It’s just a thought, but while the Government has to depend on the minor parties and independents in the Senate there is an opportunity to push the plight of the pensioners further up the agenda.
Monday, September 8, 2008
Meet The New Boss
EDITORIAL MONDAY 08.09.08.
It’s probably a cheap shot to write off the new Premier and his new Cabinet line-up on the basis that this is not a new Government, just another episode of musical chairs. It’s still the same party with many of the same people who have failed to deliver on a long series of promises for the people of New South Wales. Even if we might be tempted to believe that new blood at the top, an entirely new leadership team, provides the opportunity for a fresh start, nobody is going to forget that we have heard it all before.
Only a couple of years ago, Morris Iemma stepped into the Premier’s job with a promise of a new direction and a change of style. It was a promise which was convincing enough to see them re-elected eighteen months ago. But instead of a fresh new start it turned out to be the same old serving of spin over substance. The people of New South Wales are entitled to be skeptical that anything might be different this time.
Of course it is true that there is an entirely new leadership team, and it would be wrong to discount them out of hand. New Premier Nathan Rees has the opportunity to stop the rot, and prove that he is his own man. Carmel Tebbutt as Deputy has the opportunity to live up to her reputation as a capable performer. Eric Roozendaal, the new Treasurer, has the opportunity to repair the damaged New South Wales Budget, along with the States reputation.
But none of it will be easy, and the question remains whether such a turnaround is even possible in the two and a half years left until the next election. Even if the new team actually is true to its word and works hard to turn the fortunes of the state around, there might simply be not enough time to show a result convincing enough to win them another term. At this point, the people of New South Wales can’t wait to get rid of them, and they are likely to still feel that way for some time to come.
The words of the old song by The Who seem to be appropriate: “Meet the new boss, same as the old boss.” Even if the new boss really is different his biggest challenge will be getting anyone to believe it.
It’s probably a cheap shot to write off the new Premier and his new Cabinet line-up on the basis that this is not a new Government, just another episode of musical chairs. It’s still the same party with many of the same people who have failed to deliver on a long series of promises for the people of New South Wales. Even if we might be tempted to believe that new blood at the top, an entirely new leadership team, provides the opportunity for a fresh start, nobody is going to forget that we have heard it all before.
Only a couple of years ago, Morris Iemma stepped into the Premier’s job with a promise of a new direction and a change of style. It was a promise which was convincing enough to see them re-elected eighteen months ago. But instead of a fresh new start it turned out to be the same old serving of spin over substance. The people of New South Wales are entitled to be skeptical that anything might be different this time.
Of course it is true that there is an entirely new leadership team, and it would be wrong to discount them out of hand. New Premier Nathan Rees has the opportunity to stop the rot, and prove that he is his own man. Carmel Tebbutt as Deputy has the opportunity to live up to her reputation as a capable performer. Eric Roozendaal, the new Treasurer, has the opportunity to repair the damaged New South Wales Budget, along with the States reputation.
But none of it will be easy, and the question remains whether such a turnaround is even possible in the two and a half years left until the next election. Even if the new team actually is true to its word and works hard to turn the fortunes of the state around, there might simply be not enough time to show a result convincing enough to win them another term. At this point, the people of New South Wales can’t wait to get rid of them, and they are likely to still feel that way for some time to come.
The words of the old song by The Who seem to be appropriate: “Meet the new boss, same as the old boss.” Even if the new boss really is different his biggest challenge will be getting anyone to believe it.
Friday, September 5, 2008
The King Is Dead…
EDITORIAL FRIDAY 05.09.08.
The reign of Premier Morris Iemma has come to an end in the most spectacular fashion. The bricks began falling from the façade yesterday with the sudden departure of Deputy Premier John Watkins, precipitating the much anticipated Cabinet Reshuffle. This was the spark which set off the explosion, but the dynamite has been piling up for a long period of time. The list of Government failures over the past few years is lengthy, and Treasurer Michael Costa has been at the centre of many of them.
Before today’s Caucus meeting, Mr. Costa held his own press conference to announce that Morris Iemma had dumped him, and went on to outline the economic challenges confronting the state. With dwindling revenue and increasing costs, the picture he painted is pretty grim. The trouble is that for the last two years he has been the one responsible for it. The fact that Morris Iemma kept him on for so long was one of the factors that ultimately brought down the Premier. But it was not the only factor.
Don’t forget that prior to becoming Premier, Morris Iemma was Health Minister. Regardless of the perceived failings of Reba Meagher, the crisis in the management of the hospitals of New South Wales was presided over by Morris Iemma. The combination of the deterioration of public services and the increasing reliance on the investment of Private Equity Partners was a betrayal of Labor Party principles, and ultimately of the people who elected them.
Now there is a new Premier. A new chance. A new beginning. Except nobody believes that any more because that is the same pup that the people of New South Wales were sold last time around. No matter how talented or capable Nathan Rees and Carmel Tebbutt may be, it is still the same Government which has consistently failed to deliver on its promises.
It no longer matters who is driving the Titanic… the iceberg has already struck and the ship is going down.
The reign of Premier Morris Iemma has come to an end in the most spectacular fashion. The bricks began falling from the façade yesterday with the sudden departure of Deputy Premier John Watkins, precipitating the much anticipated Cabinet Reshuffle. This was the spark which set off the explosion, but the dynamite has been piling up for a long period of time. The list of Government failures over the past few years is lengthy, and Treasurer Michael Costa has been at the centre of many of them.
Before today’s Caucus meeting, Mr. Costa held his own press conference to announce that Morris Iemma had dumped him, and went on to outline the economic challenges confronting the state. With dwindling revenue and increasing costs, the picture he painted is pretty grim. The trouble is that for the last two years he has been the one responsible for it. The fact that Morris Iemma kept him on for so long was one of the factors that ultimately brought down the Premier. But it was not the only factor.
Don’t forget that prior to becoming Premier, Morris Iemma was Health Minister. Regardless of the perceived failings of Reba Meagher, the crisis in the management of the hospitals of New South Wales was presided over by Morris Iemma. The combination of the deterioration of public services and the increasing reliance on the investment of Private Equity Partners was a betrayal of Labor Party principles, and ultimately of the people who elected them.
Now there is a new Premier. A new chance. A new beginning. Except nobody believes that any more because that is the same pup that the people of New South Wales were sold last time around. No matter how talented or capable Nathan Rees and Carmel Tebbutt may be, it is still the same Government which has consistently failed to deliver on its promises.
It no longer matters who is driving the Titanic… the iceberg has already struck and the ship is going down.
Thursday, September 4, 2008
Wealthy Families First
EDITORIAL THURSDAY 04.09.08.
The Federal Budget has just been stripped of $555 million worth of revenue. That was the amount expected to be raised by the increase in luxury car tax. The bill to introduce the tax increase was defeated in the Senate by one vote, the vote of Family First Senator Steve Fielding. It was embarrassing enough when a single Liberal Senator failed to show up for the original vote, allowing the Government to pass the bill. Now, after a motion to recommit, the opposition has prevailed, but only with the support of Senator Fielding. Senator Fielding wanted the Government to provide an exemption to farmers and tourism operators who use such vehicles as tools of trade. The Treasurer, Wayne Swan, failed to convince him to change his mind despite pointing out constitutional difficulties and the simple fact that this exemption would be a compliance nightmare.
Although there is a strong tradition of Aussie farmers driving Fairlanes, Statesmans, and the occasional Jaguar, that doesn’t make those cars a genuine tool of trade. Most utes are priced well below the luxury car tax threshold. As for tourism operators, the vast bulk of rent-a-cars for example are at the mid to lower end of the scale. Yes there would be some impact, but whether it is the devastating impost that some would claim is a less than certain matter.
While it seems that the Senator has missed several important points, the car industry along with customers have welcomed the defeat. At the same time, the Government has lost an opportunity. While a tax on luxury cars sounds as if it would only affect people who won’t miss the money, the fact is that the threshold of $57 180 is not so far above the price of many family cars. It captures not only genuine luxury cars, but also mid range cars with a handful of optional extras. Surely a luxury car tax should apply to actual luxury cars, with a threshold more in the region of six figures.
At the same time, the tax mechanism should be more accurately targeted towards achieving environmental and economic targets. Shouldn’t there be an incentive for people to buy smaller, more high tech environmentally friendly cars? Shouldn’t there be something to encourage people to invest the extra dollars required up front to purchase a hybrid vehicle? Shouldn’t there be an incentive to buy a people mover which carries eight or ten people who might otherwise be carried separately in two or three cars, adding to congestion and fuel consumption?
This is an opportunity for the Government to redraw its vehicle taxation regime to more accurately reflect the aims of the twenty first century. Of course, Senator Steve Fielding has to realize that too. Either that or he could change the name of his party to “Wealthy Families First”.
The Federal Budget has just been stripped of $555 million worth of revenue. That was the amount expected to be raised by the increase in luxury car tax. The bill to introduce the tax increase was defeated in the Senate by one vote, the vote of Family First Senator Steve Fielding. It was embarrassing enough when a single Liberal Senator failed to show up for the original vote, allowing the Government to pass the bill. Now, after a motion to recommit, the opposition has prevailed, but only with the support of Senator Fielding. Senator Fielding wanted the Government to provide an exemption to farmers and tourism operators who use such vehicles as tools of trade. The Treasurer, Wayne Swan, failed to convince him to change his mind despite pointing out constitutional difficulties and the simple fact that this exemption would be a compliance nightmare.
Although there is a strong tradition of Aussie farmers driving Fairlanes, Statesmans, and the occasional Jaguar, that doesn’t make those cars a genuine tool of trade. Most utes are priced well below the luxury car tax threshold. As for tourism operators, the vast bulk of rent-a-cars for example are at the mid to lower end of the scale. Yes there would be some impact, but whether it is the devastating impost that some would claim is a less than certain matter.
While it seems that the Senator has missed several important points, the car industry along with customers have welcomed the defeat. At the same time, the Government has lost an opportunity. While a tax on luxury cars sounds as if it would only affect people who won’t miss the money, the fact is that the threshold of $57 180 is not so far above the price of many family cars. It captures not only genuine luxury cars, but also mid range cars with a handful of optional extras. Surely a luxury car tax should apply to actual luxury cars, with a threshold more in the region of six figures.
At the same time, the tax mechanism should be more accurately targeted towards achieving environmental and economic targets. Shouldn’t there be an incentive for people to buy smaller, more high tech environmentally friendly cars? Shouldn’t there be something to encourage people to invest the extra dollars required up front to purchase a hybrid vehicle? Shouldn’t there be an incentive to buy a people mover which carries eight or ten people who might otherwise be carried separately in two or three cars, adding to congestion and fuel consumption?
This is an opportunity for the Government to redraw its vehicle taxation regime to more accurately reflect the aims of the twenty first century. Of course, Senator Steve Fielding has to realize that too. Either that or he could change the name of his party to “Wealthy Families First”.
Wednesday, September 3, 2008
The Rate Cut We Had To Have
EDITORIAL WEDNESDAY 03.09.08.
It was absolutely no surprise that the Reserve Bank Board decided to cut official interest rates by 0.25% yesterday. It was so widely anticipated that the announcement was only a formality. At the same time, observers were paying careful attention to what the Bank actually said about its decision, hoping for some clues as to the direction of future decisions. What they got was a forecast for economic growth to slow to 2% by the end of the year, while at the same time inflation continues to be a concern. Far from hedging bets, this apparent conflict is a reflection of the so called “two speed” economy which has sprung up from the strength of the resources boom.
The effect of that two speed economy is even more evident today with the release of the latest batch of economic figures. The bottom line is that the economy has slowed by more than expected. The June quarter economic growth figure fell to 0.3%, giving an annualized outcome of 2.7%. More alarmingly, household consumption fell for the quarter by 0.1%. After the widely reported slump in retail sales already reported this year that is no real surprise, although actually registering a negative figure is worse than expected. At the same time business investment remains robust.
On balance, today’s figures are worse than expected, and can be read as an indication that the decision to cut interest rates was the right one. In fact there are still many who believe that the previous increase was one step too far, and they may be right. Despite the ongoing resources boom, and the strength of business investment, the key parts of the economy which affect ordinary Australians in their day to day lives are perilously close to going backwards. After seven years of increasing interest rates, this was the turnaround that we had to have.
That doesn’t mean that from here on out it will be clear sailing. Far from it. If anything the challenge is only just beginning as the economy seeks to find its own equilibrium, and the Reserve Bank attempts to smooth out an otherwise bumpy ride. There’s still a long way to go before the balance between equity and debt, as well as capital and income, is restored.
It was absolutely no surprise that the Reserve Bank Board decided to cut official interest rates by 0.25% yesterday. It was so widely anticipated that the announcement was only a formality. At the same time, observers were paying careful attention to what the Bank actually said about its decision, hoping for some clues as to the direction of future decisions. What they got was a forecast for economic growth to slow to 2% by the end of the year, while at the same time inflation continues to be a concern. Far from hedging bets, this apparent conflict is a reflection of the so called “two speed” economy which has sprung up from the strength of the resources boom.
The effect of that two speed economy is even more evident today with the release of the latest batch of economic figures. The bottom line is that the economy has slowed by more than expected. The June quarter economic growth figure fell to 0.3%, giving an annualized outcome of 2.7%. More alarmingly, household consumption fell for the quarter by 0.1%. After the widely reported slump in retail sales already reported this year that is no real surprise, although actually registering a negative figure is worse than expected. At the same time business investment remains robust.
On balance, today’s figures are worse than expected, and can be read as an indication that the decision to cut interest rates was the right one. In fact there are still many who believe that the previous increase was one step too far, and they may be right. Despite the ongoing resources boom, and the strength of business investment, the key parts of the economy which affect ordinary Australians in their day to day lives are perilously close to going backwards. After seven years of increasing interest rates, this was the turnaround that we had to have.
That doesn’t mean that from here on out it will be clear sailing. Far from it. If anything the challenge is only just beginning as the economy seeks to find its own equilibrium, and the Reserve Bank attempts to smooth out an otherwise bumpy ride. There’s still a long way to go before the balance between equity and debt, as well as capital and income, is restored.
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