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Showing posts with label ALP Leadership. Show all posts
Showing posts with label ALP Leadership. Show all posts

Saturday, October 12, 2013

Responses to the ALP Leadership Election Result


above: The winner of the Opposition Leader election - Bill Shorten


With a 'mixed mandate' from the ALP's first experiment with a rank and file component in electing the parliamentary leader, Bill Shorten needs to move straight away to implement the reforms he promised to 'Local Labor', Race Mathews and others - in order to keep the Party unified and with high morale - as we rebuild and aim to retake government in three years.


Tristan Ewins


With Albanese getting about 60% of the membership vote there's a 'mixed mandate' here. Importantly, I read that the Right was enforcing 'pairing' to ensure their members were voting for Shorten in the caucus. That said, I don't know why some members of the parliamentary Left decided to vote for Shorten. Hopefully the full story will come out in the coming days and we’ll have a fuller appreciation of how this process has panned out….

But we agreed to this process, and this is what we've got to work with. 50% of the vote for the rank and file is still a step forward. Especially if we get more far-reaching reforms as part of the deal over the coming months......



Another matter is that with Albanese recording such a strong vote amongst the members he deserves recognition. There's the option of the Deputy Leadership. Though Shorten has already committed there to Plibersek - and Plibersek is certainly incredibly talented - and could have had a go at the leadership herself if she'd been inclined to do so. Perhaps whoever misses out should receive a shadow ministry of their choice? Though that's complicated by the fact Bowen did a good job as Treasurer.

Albanese overwhelmingly won the rank and file vote on the basis of unequivocal support for direct election to Conference and other reforms. Shorten supported reform too - giving personal guarantees to Race Mathews which were then communicated to the membership and to ‘Local Labor’.

Perhaps Albanese could also be given the job of heading a Committee to oversee democratic Party organisational reform between now and the next Conference. And maybe Conference could be brought forward so that whatever policy positions we adopt - we have plenty of time to campaign on difficult issues which nonetheless are a matter of principle. (for example: increasing Newstart in the face of Conservative attacks)

On the plus side Shorten will make a very articulate leader; But he has to overcome the 'Bill the Knife' tag; He needs to break through against those perceptions early on to stop it from undermining his position.

If we get direct election for National Conference the victory for Party democracy will still be great. (so long as the Parliamentary Party then accepts the policy parameters set by Conference)



At Facebook Glenn L. McGrath reports that: "Bill won by 4 MP votes, 55/86 = 63.95, it would need to have be 51/86 = 59.3% for Albo to have won." So if the Left had held it really would have been down to the wire. I'm trying to confirm whether there were three Left supporters of Shorten or more.

In any case – again, it is done now; Bill will be an articulate leader;  Bill Shorten has tried to overcome the ‘Bill the Knife’ tag  today; And I hope he succeeds - for him and for the Party. On the night Shorten supported Rudd he looked like a ghost. I'm certain it was a very difficult decision which weighed heavily on him.

 

Of great importance:  With such a close vote the pressure needs to be on to implement further internal democratic reform quickly - starting immediately; With such a strong rank and file vote for Albanese Shorten needs to move quickly on democratic reform to keep the party unified at this point and into the future.

A Committee made up of members genuinely committed to democratic reform ahead of the next National Conference – and with a brief to achieve this - would be a the best thing;  So long as it isn’t distorted into a mechanism for ‘burying’ reform rather than implementing it ASAP.

 
If Albanese is at the helm of such a committee here’s hoping that won’t happen that way…
 
PLS Debate!!!

nb: 'Christian Kunde' at Facebook writes:  1 caucus vote = 350 member votes. Albo lost by 700 votes/2 caucus votes. If 3 from the Left voted Shorten, that would have easily been enough"

I'm still trying to work out just how close it really was...

Thursday, October 3, 2013

What are the Strengths and Weaknesses of both the Candidates for the ALP leadership?


 

What follows is a discussion of the policy positions of the candidates for the Australian Labor Party parliamentary leader – as we approach the deadline for the casting of ballots, with around a week to go…  Unfortunately Albanese and Shorten did not respond to our questions; but I am hoping the following commentary is somehow useful to ALP members and others interested in the debates and the process that is going on…

Tristan Ewins

In the first televised leader aspirants debate Albanese talked about “big ideas” and big infrastructure projects.  Judging from Albanese’s past statements, this could mean anything from preparing for fast rail to finishing the National Broadband Network.

Both Albanese and Shorten made reference to the rights of aged care workers – the improvement of their conditions being crucial in holding on to skilled staff in an important and highly demanding sector.   Albanese also talked of addressing the quality of life of residents in Aged Care,  and Shorten suggested  “new instruments” to fund aged care services.  But because both candidates were light on detail we do not know what form funding would take.  Talk of additional superannuation levies is a worry because depending on its implementation it could have regressive distributive effects compared with some kind of progressive levy. With approximately a week to go for members to vote both candidates need to provide more detail on the policy leadership they would provide here – if voters want to  make an informed commitment.

Bill Shorten drew liberally on the role he played in implementing the NDIS/Disability Care – but would he – or Albanese – support comprehensive and progressively-funded National Aged Care Insurance? 

Shorten talked of increased support for victims of domestic violence; of real equal pay for women; of flexible childcare.  And in addition to pursuing 40% affirmative action for women ALP candidates, he went further – suggesting quotas for queer and indigenous candidates. Though there is the argument that were quotas provided for every important demographic how would this affect the internal democratic process? 

Albanese responded that:

"We need to make sure that Labor represents the diversity that is there in the community but the solution is not quotas for each group; that is not practical or politically astute," Mr Albanese said."People's political contributions are not defined by their sexuality - that is just one aspect of a person and often a private aspect." - See more at: http://www.theaustralian.com.au/national-affairs/labor-rivals-differ-over-gay-quota/story-fn59niix-1226729565427#sthash.XbbixJvt.dpuf

In addition we could well argue: What room would be left for election of candidates by rank and file members based on their policy commitments more so than their identity? Were quotas implemented, for instance, what about representation of the poor and the economically under-privileged?   One option would be not to focus purely on the parliament, but on civil society – providing financial support for social movements as part of a strategy to empower the disenfranchised, and promote pluralism and active citizenship for a healthy democracy.  

Another option could be an emphasis in self-government for the disenfranchised – including indigenous Australians – at a variety of levels. Parliament is not the be all and end all.

There were questions directed to the candidates about engaging young people, also, and Shorten spoke again and again about standing up for the “powerless”.  But neither candidate drew the conclusion that education for active and informed citizenship, including political literacy – should be part of this process.  Shorten also needed to be more specific about the policy ramifications of such a stand.  What about reforming Newstart?  What about restoring pension rights to Sole Parents, and restoring pension coverage for the disabled?  

And again: What about National Aged Care Insurance – funded progressively – and ensuring the necessary minimum staff quotas, monitoring a variety of health and quality of life indicators, ensuring more vigorous accountability when it comes to providing quality food, social interaction and so on?  What about pleasant surrounds; all the necessary heating and cooling; all the necessary medical/dental care; changes of scenery; and access to Information Technology and books for those who are interested?  And what about greater financial and other support for Carers – to assist the aged in staying home as long as they wish to and are capable of?  But also incorporating robust social interaction programs – greatly ameliorating one of the greatest challenges the Aged can face – chronic loneliness? 

Both candidates were short on detail when it came to Aged Care policy.

From the QandA Debate

At the QandA debate on the Labor leadership Shorten started by accepted that tax reform is part of the picture when it comes to funding crucial programs.  He used the NDIS (or Disability Care) as an example where the electorate will support tax reform where the social gains are clear.  Though he didn’t use the term ‘social insurance’, he made an effective defence of the ‘social insurance model’, arguing that every individual might be affected by disability, either directly, or as a consequence of having an unfortunate family member.   Interestingly, while he argued against adopting the mantle of the “class warriors of the past” he did support a role for redistribution.  It is a shame for a Social Democratic party to deny class struggle – as arguably class struggle is key for democracy, pluralism and the self-organisation of workers – but supporting the principles of social insurance and distributive justice is a ‘step forward’ from the usual hopeless equivocation in the face of Conservative rhetoric on so-called class-warfare.  (for the Conservatives it’s only ‘class warfare’ when we fight back…)

Defending progressively redistributive taxation, welfare services and social welfare payments is crucial to Labor’s mission.  And we need more detail on what – if anything specifically – the candidates would like to see done on this front in government.  Will either candidate break free of the ‘small government framework’ which inhibits real growth in the welfare state and social wage?  (and which determines a constant policy of ‘robbing Peter to pay Paul’ on welfare and services)   

Shorten referred to dental care, for instance: But comprehensive public dental would cost billions.  We need to ‘get the job done’ on socialised health, for instance: but we also need to be clear where the money is coming from.  Abbott could face this challenge himself when it comes to implementing the NDIS.

The candidates spoke of ‘aspiration’: but often this is used as a rationale to abandon distributive justice; or to suppose the pursuit of educational equal opportunity is enough – when there are aged care workers, child care and hospitality workers, cleaners – all working hard for little gain, and not enough respect.

Regardless of the ‘aspirational’ Ideology both candidates paid lip service to, many people will not break out of poverty, or will spend their lives in important, dignified working class jobs.  These people also need recognition, respect and distributive and social justice.

One dyed-in-the-wool Liberal voter asked the candidates at QandA ‘what they would do to win his vote’.  He suggested ‘small government’ as one of the issues that motivated him most. But Labor cannot be ‘everything to everyone’.  An ageing population and a growing population means the size of government MUST increase if we are to maintain infrastructure, services and quality of life for all.  And indeed, programs like Disability Care demonstrate how we must increase the scope of social expenditure to provide all citizens with dignity, happiness and security.  Both candidates should be open to expanding recurrent tax-funded social expenditure by perhaps 1.5% of GDP in their first term: or by around $22 billion in a $1.6 trillion economy in today’s terms.  Depending on circumstances an even larger commitment may also be desirable.  We need to ‘seize the nettle’ to implement the maximum reform program we can sustain; but also to be aware of ‘the art of the possible’.

On the infrastructure front, in the QandA debate Albanese indicated an encouraging willingness to “borrow to build”.  Clearly Albanese has grasped that the gains in terms of productivity and quality of life from big infrastructure investments (like the NBN, or potentially fast rail) outweigh the ‘down-side’ of needing to service and gradually repay debt.  Spending on infrastructure is a productive INVESTMENT for our long term infrastructure needs.  Albanese is probably especially passionate about this as a consequence of his years as a Minister for infrastructure…

Importantly, Shorten suggested drawing upon superannuation funds to build infrastructure – with guarantees for the funds.  The problem with this, though, is that it is in some ways similar to a traditional ‘Public Private Partnership’.   And as with many PPPs, despite the rhetoric the people still shoulder the risk.  What is more, public finance is still by far the most efficient mechanism.  Public infrastructure projects also don’t need to deliver a profit to shareholders!  While calls to mobilise superannuation in this way gives the impression of ‘innovative thinking’ – and would benefit union-managed funds - public finance is still the cheapest way of building infrastructure because of the credit rating of governments ; and is still in the public interest because of this.

Party Reform

Both Albanese and Shorten appeared uncertain about the position developed under Rudd – that it would take a full 75% of Caucus to replace an elected Prime Minister. Perhaps there should be some room to move, here: though reverting to 50% would effectively nullify the reforms with which we’re concerned here – the contribution of the rank and file in electing the leader. 

On the down-side, Shorten appeared to be seriously considering US Style Primaries in order to mobilise and include Labor’s electoral base.  While this is a noble principle, the apparent mechanism is a worry because of the potential to entrench the power of wealthy fundraisers with ‘big money’; and also divert Labor’s human and financial resources more than is desirable or sustainable.

But more promisingly on this front – according to the Sydney Morning Herald Shorten has argued that:

“the party should offer discount memberships for union members, students, pensioners and people out of work, and allow people to join online.”

Read more: http://www.smh.com.au/federal-politics/political-news/bill-shorten-proposes-gay-indigenous-quotas-20130929-2umgt.html#ixzz2ghmPub5i

Building Labor into a genuine mass party again – and renewing Labor by attracting younger members - is a seriously challenge if Labor is to survive in the coming decades.

BUT MOST IMPORTANTLY:  Albanese has come out unequivocally in favour of direct election of ALP National Conference delegates; and much broader involvement of the rank and file in policy development.  This could be THE ground-breaking reform which will deliver meaningful power back to the ALP’s rank and file: and in so doing not only further democracy – but also revivify Labor’s previously flagging membership.  This is this issue which so far has me tending towards supporting Albanese.  I am still waiting for Shorten to match Albanese on this front.  And I am waiting for both candidates to say something of greater substance on responding to Aged Care needs.  For instance, Albanese mentioned the ageing population as a crucial challenge.  But we need specifics on ‘Disability Care’ style National Aged Care Insurance.

Final Observations

The debate on the Labor leadership has not been anywhere near as vigorous and wide-ranging as this ALP member had hoped for.  Despite some encouraging rhetoric on the role of progressive taxation and the principle of social insurance, neither candidate has been willing to promote ‘signature policies’ in the extension of the social wage and welfare state in areas such as Aged Care.   Neither candidate has overtly drawn the conclusion that ‘small government has to go’: not only to respond to an ageing and growing population – but to extend the rights of all Australians – including the unemployed, students and the disabled – but also including all workers.

There is also the question whether or not either leader would remain true to their previous rhetoric once in the leadership position.  Would Shorten actually back progressive taxation and social insurance extension in the leadership?  Or would he succumb to pressure from the Right faction for an ‘electorally safer’ option of continued small government – despite the fact small government CANNOT deliver to the disadvantaged and vulnerable he aspires to stand up for? 

Would either candidate seek an expansion of the social wage absolutely and relatively: or would they both continue the usual policy of ‘robbing Peter to pay Paul’ on social services and welfare?

Again: For this ALP member the current ‘deciding factor’ is Albanese’s support for democratic internal party reform: specifically direct election of National Conference delegates, and much broader – and deeper – involvement of the rank and file in policy development. In addition to this we also need to support an expansion of the size of Conference – and while I am uncertain of the candidates’ positions and that specifically – Albanese’s position on the aforementioned and related issues is impressive for me as a grassroots activist. 

Albanese was also encouraging by arguing in Melbourne for “the next NBN” and “the next ‘Disability Care Australia’; Yet why was he not more specific?  Aged Care is the obvious contender for our attentions over the coming term in Opposition – and to promote a positive agenda for the next Federal election. Indeed - by applying pressure we may even make progress under the Abbott government – If we recall that Abbott gave bipartisan support for the NDIS – quite possibly “to neutralise it as an issue”. “Getting policy done” is what matters most!

Albanese also talked in Melbourne about addressing “the urgent necessities of today” and what families were talking about around their own dinner tables.  This is part of the picture, certainly – Though sometimes Labor needs to lead debate as well – and put issues ‘on the agenda’ that otherwise would never receive a hearing.

But addressing the cost-of-living pressures faced by poor and working class families will require redistributive measures through welfare and the social wage.  Ideally it would also involve a rejection of inappropriate privatisations which add to those pressures.  Equal opportunity in education requires that we not ‘drop the ball’ on the quality of state secondary education.  And we should also be required to see ‘equal opportunity’ beyond the frame of ‘life chances in the labour market’.   We need to prepare our young people to be active and informed participants in a democracy; and to develop their capacities to appreciate culture, express themselves and lead fulfilling lives.

Shorten says again and again that he wants to stand for the disadvantaged and the powerless.  In addition he needs to stand for the average worker!  Shorten’s rhetoric is nonetheless encouraging.  Though he needs to be more specific on social wage, welfare and social insurance POLICY aspirations if he wants to appeal to potentially-swinging, progressively-inclined ALP rank and file members.  Concrete commitments by Shorten on this front – real absolute and relative social wage, social insurance and welfare expansion –could swing many members.  As could a clearer stand on the front of internal  democratic Party organisational reform.  Such perspectives would have this member considering Shorten again.   And despite the media rhetoric – sometimes Labor does need to talk about itself.  That is, in the sense of putting in place the internal participatory mechanisms that will see us develop the best policy positions we can put to the Australian people.  And which will grow Labor as a movement, and lay down deeper roots in workplaces and communities.

This is the first chance ALP members have had to contribute to the direct election of the ALP Leader.  Let’s hope it’s the first of many important internal reforms that remobilises our movement by empowering the Party’s greatest asset – its Party activists.

nb: To see our earlier 'in depth' policy and organisational questions sent to the candidates - which unfortunately were not answered - see the following URL:   http://alpsocialistleft.blogspot.com.au/2013/09/candidate-questions-for-alp-leadership.html

Sunday, September 22, 2013

Candidate Questions for the ALP Leadership Contest


above: the contenders for the ALP Leadership - Albo and Shorten

Dear friends and comrades;


As the publisher of the ALP Socialist Left Forum blog, and moderator of the associated Facebook group, I believe that this election for the ALP Leadership should be largely about the policy direction the winner will provide for the party. And also it should involve further projected reform of the Party to make it more democratic. 


The following questions address those issues of leadership on organisational and policy reform. 

At our associated Facebook group we now have almost 600 members. 
So I’m hoping the ALP Leadership Candidates will see it as being in their interest to answer the following questions for us! 


Already I have sent the following questions to the Albanese and Shorten campaigns and I am hoping to hear back from the candidates by the end of this week.

Over the coming week I will attempt to contact the candidates again. 

There is the argument that the candidates might not want to pre-empt the Conference on Policy - but I believe everyone can appreciate that the party leader - whoever that might be - also provides policy leadership within the scope of the Platform.  The opinions of the Leader will no doubt have weight at Conference as well.  Hence it is important for us to know the policy leadership the candidates will provide, even though officially it is for Conference to determine the broad policy framework via the National Platform.  And in my opinion the grassroots need to be empowered via a more democratic process in determining that Platform.

The candidates may have reasons for not wanting to answer all the questions; But I am still hoping we receive a response of some depth.  And if the answers are not comprehensive, I'm hoping we'll be advised of the rationale behind that decision.

If this process is to have the greatest credibility and depth ALP members must know what and who they are voting for.  These questions seek to serve that purpose.
 

The Questions:

i)                   Australia does not have a presidential system of government. But nonetheless the Party leadership is a position from which a progressive policy agenda can by promoted.  What concrete policy agenda would you pursue if you have the opportunity to promote it as Federal ALP leader? 

 

ii)                 More specifically - to demonstrate your vision for Australia, what concrete agenda would you like to promote as leader in the following policy fields?:  

 

·        tax reform for equity and social wage expansion; including closing down tax loopholes for big corporations and the wealthy

 

·        superannuation concessions – should they be wound back further for the rich?  (say, the top 10%?)

 

·        welfare reform  (including disability pensions, the aged pension, Sole Parents, Newstart, and the student allowance)

 

·        public infrastructure (including transport, communications, social housing)

 

·        industrial relations – what kind of industrial liberties; and what kind of protections?

 

·        Industry policy – what role for government?

 

·        Health Services reform: including mental health, and disability services – and how to fund the NDIS over the long term?;  And how to expand public dental – especially for the disadvantaged?

 

·        Aged Care reform  (specifically including the conditions and career paths for aged care workers; what kind of staff to resident ratios – if any?; what role – if any – for user charges?; how to improve the quality of service?; What about national aged care insurance?) 

 

·        Education (of all levels; and including participation rates; the nature and form of student financial contributions – including equity considerations; and reform of curriculum to promote political literacy and active citizenship)

 

·        The Environment: what kind of policy to reduce emissions?; how ambitious?; and how to incorporate equity concerns?

 

·        Refugees policy and Foreign Aid

 

·        Promoting media diversification and the cause of robust pluralism more generally

 

·        The public sector: What role should the public sector play?; and what specific changes would you like to see made in the Australian mixed economy?

 

·        Economic Democracy – Is there any role for a policy for economic democracy from the ALP today – and what specific measures could we take in government to pursue that principle?

 

iii)               Ideology and Values: What we don’t hear much of in the ALP today is debate about ideology.  What kind of political ideology would you bring to the leadership; and what kind of ideology – or mix of ideologies – do you think should hold sway in the ALP?

 

iv)               Party Reform and Enhancing Internal Party Democracy: What further internal Party reforms would you like to see in order to enhance internal Party democracy – and why?  How can we use Party Reform to mobilise the grassroots?  What about direct election of National Conference delegates and an increase in the size of the National Conference?

 

v)                 What is your plan for re-taking federal government for Labor in 2016; and how would you hold Tony Abbott and the Liberals accountable – and limiting the damage -  in the interim?   What kind of role do the different elements of the Party have to play in this process?  (shadow cabinet, caucus, Conference, branches, affiliates, individual members)

 

vi)               What personal qualities would you bring to the leadership that you think would be of benefit in striving to re-take government in 2016?

 

vii)             What role do you see Australia as having in world affairs; including the nature of our engagement with our region, and with important powers such as the United States and China?

Saturday, June 22, 2013

Leadership Speculation Again: Resolving the Crisis with Good Policy

 
 
 
above: With a possible Abbott government looming, Labor needs a clearer sense of where the real threat is coming from; Tristan Ewins argues that Reconciliation is necessary now if there is to be any hope; And robust policy could be the key!

Tristan Ewins, June 23rd 2013

Regarding ongoing leadership speculation in the ALP: What we have witnessed has been a ‘mutual scorched earth policy’ in the party and the caucus. We’ve had some figures (Rudd supporters apparently) leaking constantly to the media; and even accusing Gillard of‘class war rhetoric’. And on the other side we’ve had high profile Ministers besmirching Rudd’s character and saying they would NEVER work under him again. In short it is “mutually assured political destruction’: “political scorched earth”…
The ridiculous and self-destructive ‘class warfare’claims of some have been particularly damaging – as this has acted to discredit the social democratic and labour cause – the ideology and the principle of socially just redistribution and the liberal and social rights of labour…

The bad blood is now SO bad that I despair the party might never heal… What is necessary for hope of healing is to have such a powerful policy agenda that it serves as an irresistible catalyst to re-establish solidarity. 
This could involve reform of the mining tax. Regardless of his flaws: even if Rudd does not return to the leadership this could be a kind of ‘vindication’ for posterity. That could create an environment where all parties could ‘move on’ on the basis on conciliation… This could also involve clear and public recognition that he provided strong political leadership in response to the Global Financial Crisis, with the Education Revolution and with the Apology. For this both Rudd and the broader party deserve recognition. Unequivocal recognition of these achievements specifically could do a great deal in achieving healing.
But MOST IMPORTANTLY: Labor needs to revisit the issue of superannuation concessions to fund a strong social wage and social insurance agenda. A progressive agenda of ‘Whitlamite proportions’ could also be a healing influence – with all parties seeing that with so much at stake their consciences would not allow the currently mutual sabotage and ‘scorched earth’ approaches to continue.... 
What more could all this entail?

Firstly it should involve superannuation concession reform – aimed at building in a progressive and sustainable manner a powerful‘war-chest’ for an ambitious social wage and social insurance agenda. And a reversion to 75% - or perhaps 50% - dividend imputation – could also provide crucial funds.
So precisely which other policies would this war-chest fund? The following are a number of ideas which the author remains passionately committed to.

· National Aged Care Insurance providing for the human rights of all aged Australians; and funding that progressively without driving poor and working class families to sell their only substantial assets for what is inadequate care in any case.



· More robust funding for mental health initiatives, including public education programs to address stigma and encourage early intervention; and access to psychological counselling.



· Extensive Cost of Living Assistance for low income individuals and families including pensioners when it comes to energy, communications, transport, medicine and water. Furthermore: Public energy and water ownership can mean cross-subsidy rather than passing the prices indiscriminately on to consumers. And more federal funding for transport and energy infrastructure could prevent reversion to wasteful and expensive PPPs – or worse, fully private infrastructure.


· A commitment to keep the NBN public over the long term with cross-subsidised services for poor and vulnerable groups.


 
· Sustained support for Australian manufacturing and the liberal and social rights of labour- including encouragement for high wage, high skill manufacturing



· Welfare reform: especially of Newstart and the Student Allowance. And Revision of eligibility criteria for the Disability Pension – which have become too narrow and which serve to discriminate against genuinely disadvantaged and vulnerable people.



· Tax compensation through restructure of the tax mix for low income Australian workers so that they will not be worse off re: their disposable income ‘living week to week’ when superannuation contributions rise to 12%



· Direct public compensation/subsidy for skilled but low income workers – eg: in child care; and further reform of the tax mix to aid other low income workers.


 
· Federal money for public housing to take pressure from the housing market; And provide education funding of the scope originally envisaged in Gonski. 


· A rescission of bad and unpopular decisions on university funding and sole parents.



· Further reform of the National Curriculum to promote a liberal education agenda for active and informed citizenship, including ideological and political literacy


· Begin a genuine consultation process leading towards a Treaty with Indigenous peoples



· stamp duty relief targeted for low income individuals and families – so they are free to move to cheaper accommodation without having to pay the tax. For some people that could make a real difference.


Indeed, there are probably a host of other possibilities – but depending on the scope of tax and superannuation reform we would be talking an annual war-chest for new initiatives of $10-$25 billion in an economy worth about $1.6 Trillion.


Regarding the leadership: there are substantial numbers of Labor parliamentarians, functionaries and rank and file who probably think that they want to set a precedent. Neither side wants ‘to give in to blackmail’ –but both sides are playing the ‘political scorched earth’ game.

It has to stop – and it has to stop now.


Calls for direct election of the Party Leader could well be a good move for the future – to provide a degree of authority surpassed only by the Conference itself.


Time is of the essence; and the threat of a right-wing neo-Conservative Abbott government far too dire. “Mutually Assured Political Destruction”;“Political Scorched Earth” – it has to stop now.


And more than leadership – regardless of what happens on that front – the key is a policy agenda to unite the party; recognise past wrongs on all sides; and resolve never to repeat those errors again.

(postscript) All that said it's important that yesterday 'The Age' in Melbourne was arguing for Julia Gillard to step down so there can be a change of focus to policy and ideas and away from the leadership. It shouldn't HAVE to be like this. We have been trying to put policies out there for MONTHS which have largely been ignored in the monopoly mass media. (including 'The Age' itself for a while)

So what are our choices? Concerted destabilization during an election campaign and in the face of a prospective Abbott government cannot be rewarded. But there needs to be recognition of past wrongs – and open and emphatic recognition of the earlier place of Rudd in ALP history - re: the GFC, the education revolution and the apology... This could help in restoring peace and good-will. But what if the media won't let the leadership issue go? And what if the destabilisation continues right up to the election in any case?

So what else could work as a 'political circuit breaker' without setting the bad precedent of rewarding systemic destabilisation? As suggested above a more robust policy agenda could provide an answer. (you would think this would win over progressive Left parliamentarians including Cameron and Carr) And some will be considering a ‘third option’of an untested leader to break the impasse. Possibly the destabilisers might be satisfied with the 'precedent' this would set with regards the original 'coup' against Rudd in 2010. But would this be seen as a ‘poison chalice’? And would it create the impression of more instability? Whatever happens – all this needs to be finalised quickly. Labor needs to throw itself into the campaign unreservedly and cannot afford the constant distraction of the leadership as opposed to policy.

Sincere and constructive debate welcome!

Wednesday, March 20, 2013

Responding to Simon Crean on ALP unity and Government Policy

above: Victorian Labor MP, Simon Crean

Today veteran Labor MP Simon Crean helped facilitate a spill of the Labor leadership once yet again.  Without the numbers, and with Rudd refusing to contest the spill, Gillard was re-elected unopposed.   But Crean has raised issues that are crucial for the Party as the May Budget approaches.  Unfortunately, the author, Tristan Ewins, finds he cannot agree with Crean when it comes to reform of superannuation concessions and other fiscal reforms which might well be necessary to pay for NDIS and Gonski. 
(initiatives that will ultimately cost over $20 billion a year in the context of a $1.4 Trillion economy)

(nb: Also I have corrected a rather large typo as well!!!; So apologies to anyone who may have been shocked by the apparent argument I supported infrastructure privatisation!  Rest assured that is NOT the case!  I did not catch the typo until after I rushed to publish with the events unfolding rapidly around us...)

By Tristan Ewins

Today in a media interview Simon Crean put a strong argument against the constant destabilisation process going on within the Federal Parliamentary Labor Party.  As he argued, the prospect of an Abbott government is frankly “scary”.   The tens of billions in cuts Abbott would follow through with would result in unprecedented damage to Australia’s welfare state and social wage.   The stratification of our education system would continue apace to the point where constructing a constituency for revivifying the state sector would pose a very difficult challenge.  Punitive labour conscription policies for the unemployed.  would acquire previously unthinkable dimensions.  Finally, Paid Parental Leave under Abbott would be skewed towards the truly wealthy at a time when the entitlements of poorer Australians are under attack.   One way or another the ‘leadership question’ needs to be permanently resolved ahead of the May Budget.  Labor needs a progressive Budget the whole Party can unite around in May.

A few hours, however, it seems are a long time in politics!  Just moments ago there was a spill for the Labor leadership positions. Crean had been instrumental in bringing the spill about – but without Rudd contesting it, Gillard was re-elected party leader unopposed.

From this Labor activist’s position there are two crucial issues.

One – is that the leadership speculation and destabilisation must be ended finally and categorically.

Secondly, Labor must remain on the policy front foot – and not step away from its commitments to Gonski and NDIS. 

IN that context two questions raised by Simon Crean still remain problematic for this Labor Party activist.  Those questions concern infrastructure privatisation and treatment of superannuation concessions.  I am hoping that the options of removing superannuation concessions on the one hand; and of maintaining public infrastructure on the other - have not been sacrificed.  The consequence of forsaking reform of superannuation concessions in particular could potentially mean there would be insufficient funding for NDIS and Gonski….

Infrastructure privatisation?

Beginning with the matter of infrastructure privatisation: Simon Crean raised the issue of employing Superannuation funds to pay for basic infrastructure.  While this is far preferable to the kind of privatisation preferred by the Conservatives, superannuation funds would also seek maximum return for their investors.   Certain union-dominated superannuation funds might benefit, it is true: but potentially at the expense of the public more broadly in their capacity as consumers.

Also even the most robust superannuation funds will not achieve the credit rating of the Federal Government. 

In short, superannuation investment in infrastructure would be great for the superannuation funds, but an inferior deal for consumers and taxpayers. When it comes to infrastructure: roads, public transport, water and energy infrastructure etc – public sector investment still delivers a ‘better deal’.   It can raise funds more efficiently, and it can run on a ‘not for profit’ footing. 

Preferably infrastructure user tolls of any kind should be avoided – as usually tolls take a form approximating regressive flat taxation.   Servicing public debt sustainably over the long term would deliver the fairest outcomes;  but progressively-structured  taxes may have to rise as consequence.

Reforming the tax mix is a better option – and as we will soon argue there are a number of progressive options available.   But if tolls are introduced in any way, they should take the form of tolls on public owned infrastructure – as occurred for a period with the Westgate Bridge in Melbourne and the Sydney Harbour Bridge.   That is: they should comprise temporary measures, without the drawbacks of privatisation.   And if they are applied at all, they can potentially resemble progressive taxation with a ‘tiered system’ for public and commercial use, and for individuals and families in particular income brackets. Indeed, such a system could form part of a ‘quid pro quo’ between the Federal Government and the States. It would assist the Federal Government in freeing funds for Gonski and NDIS while at the same time maintaining a progressively structured model of infrastructure finance.

Superannuation Taxation?

The other potential ‘bogey’ Simon Crean raised was that of "taxes" on superannuation.  (a misnomer because the concessions comprise tax relief rather than taxes in of themselves) 

Admittedly it is true that a fear campaign has already begun on the theme of superannuation concessions.  The upper middle class is concerned their retirement lifestyle may be threatened; and while many struggle to make do on the Aged Pension alone, the upper middle class see an annual retirement income of over $50,000/year as a ‘right.’   A
recent segment in the 7:30 Report presented the matter in a most unbalanced fashion. 

But is the theme of social class helpful for Labor?  Or is it a source of division, and hence electoral marginalisation?  And what does class conciliation really mean in a context where employers are opposing minimum wage increases, attempting to wind back penalty rates, and trying to prevent labour organisation?  Does it mean anything in the real world, or is it just an Ideology behind which social democracy has self-liquidated?

Already in another recent article we have noted that superannuation concessions have risen to prominence as a massive instrument for tax avoidance by the very wealthy – at the same time as user-pays mechanisms for the most basic infrastructure are being considered.  Specifically, superannuation concessions are currently around $30 billion, and will cost $45 billion perhaps as early as 2015.  And the top 5% income demographic alone is already receiving over $10 billion of those existing concessions. 

In that same article we also observed that – by comparison – then entire Aged Pension Budget was only $25 billion in 2012. 

This is more than ‘middle class welfare’. It is ‘upper middle class welfare’, and a subsidy for the wealthiest of all – the top 5 per cent – effectively paid for by everyone else. Despite Ideologies of class conciliation, distributive injustice is a glaring reality – which we must choose whether or not to facilitate and excuse – or whether to work for a more socially just alternative.  Tax avoidance and tax minimisation from the wealthy impacts upon the welfare and social services we all depend upon in Health, Aged Care, Transport, Welfare and so on.

In that same article this author demonstrated that by halving Dividend Imputation the government could bring in over $10 billion, and by removing superannuation concessions for the top 10 per cent income demographic Labor might recoup as much as $25 billion altogether. 

And elsewhere the Greens had argued that raising the Minerals Resource Rent Tax (MRRT) rate to 40 per cent, eliminating loopholes and removing “generous accelerate depreciation provisions” could raise $26 billion our four years. 

Finally,  based on statistics used by “Crikey’ last year, increasing Company Tax by one per cent could potentially bring in an additional $1.5 billion a year.  That kind of money could prove very useful come September if ploughed into Aged Care or mental health, for instance. It is about time to draw a line under decades of corporate tax cuts.  For decades now a regime of ‘corporate welfare’ has taken root, with lower taxation for Companies and wealthy private investors – at the same time as government struggles to pay for basic infrastructure and education expenses – which the corporate sector shares the benefits of.

The Bottom Line

The bottom line is as follows. 

Federal and State Governments are facing a ‘legitimation crisis’ stemming from their inability to pay for basic infrastructure, and their plans to revert to user-pays mechanisms on the understanding that real progressive tax reform is ‘unspeakable’.

And Labor is in a bind in so far as it is not yet proposing a concrete, fair and sustainable way of financing Gonski and NDIS -  policies which it is committed to and on which Labor’s credibility rests.

But if Labor implements reforms rapidly following the May Budget; and can establish that tax measures are aimed squarely at the upper middle class and the wealthiest of all – It can demonstrate that state-financed infrastructure, as well as Gonski, NDIS and Aged Care insurance are in the interests of the vast majority.  (Though arguably NDIS should involve a more broadly-based levy in addition – to establish the principle of ‘social insurance’.  A ‘mixed’ funding mechanism could also bring in additional revenue for Aged  Care – where user pays mechanisms and the often poor quality of care are a national disgrace.)

On the other hand, if the media is still speculating on the form of tax reform and superannuation reform by September, the uncertainty and fear mongering could be damaging. It was protracted speculation which left a lasting negative impression with regards the Carbon Tax even after implementation should have put paid to the fear campaign.

But even if superannuation concessions were revoked and that revocation locked in’ for only the top 5% income demographic – It would still yield a pool of over $10 billion.  And the modest measure of implementing 75% dividend imputation would yield over $5 billion.  Taken together, those measures would comprise a very good starting-point from which to fund NDIS and Gonski, even though further initiatives are also desperately necessary to fund far-reaching reform of Aged Care. 

The Greens’ proposals for reform of the Minerals Resource Rent Tax (MRRT) – bringing in about $6.5 billion a year - could be enough to provide for a strong suite of policies for Aged Care reform – including  removal of user-pays mechanisms for poor and working class families, and improvement in areas such as staffing, diversity and quality of environment, privacy, facilitated social interaction and so on.  Another option would be to establish National Aged Care Insurance with a Medicare-style levy – but with progressive tiers.

‘Middle Class welfare’?

Finally, there is the prospect of freeing funds through the further curtailment of ‘middle class welfare’.   Adam Creighton over at ‘The Punch’   has argued that “More than 11 per cent of households in the top 20 per cent of the income distribution – with incomes above $115,000 – receive some form of welfare payment from Canberra…”   He argues further that: “Family Tax Benefit B, which is paid to households with incomes up to around $175,000 a year, is the main culprit.” 

To elaborate: According to “The Australian’NATSEM's* modeling shows that removing [Family Tax Benefit B] from families with combined taxable incomes of $100,000 onwards would save about $500 million a year. That money could be employed to reverse the callous government policies for Sole Parents, with hundreds of millions to spare.

Further means testing could also apply to the Private Health Insurance Rebate, removing it entirely from singles in the $97,001-$130,000/year bracket and for families in the $194,001$-260,000/year bracket.  At an estimate, this could bring in additional hundreds of millions every year.

But it is VERY notable that these measures pale in comparison with what could be saved from more ambitious reforms of superannuation concessions for the wealthy,  and a partial curtailment of Dividend Imputation.” 

And over-targeting of welfare has the potential to narrow the demographic support base of the welfare state over time.  More broadly, there needs to be a balance between means testing of welfare, and the principle of universalism - for instance as embodied in Medicare.

Conclusion
When Labor’s credibility depends on the sustainable funding of Gonski and NDIS it simply doesn’t make sense to rule out two of the most effective and progressive means of paying for those programs. And Labor cannot afford more of the callous austerity that cost the government deeply in terms of a popular backlash against cuts to Sole Parents. Reform of superannuation concessions MUST stand; and reform of Dividend Imputation must also remain an option in providing the necessary funds for those programs. 


·         NATSEM = “the National Centre for Social and Economic Modelling