Left-Turn necessary for Labor at this year’s National Conference to end narrow ‘Policy Convergence’

by Dr Tristan Ewins ; ALP member of over 20 years

In 1998 radical American Leftist intellectual, Noam Chomsky made the telling observation that:

“The smart way to keep people passive and obedient is to strictly limit the spectrum of acceptable opinion, but allow very lively debate within that spectrum....” 

Another name for this phenomenon is ‘Convergence Politics’.

In Australia there is ‘Convergence’ on the economy, with debates focusing on relatively minor differences ; but where heated debate on the so-called ‘Culture Wars’ fills the vacuum.

Every day in the mass media we are subjected to the positions of ostensibly “Centre Right” and “Centre Left” political parties.  But in reality the ‘relative centre’ has shifted way-right on the economy since the 1970s.  And dissent against that orthodoxy is minimal. Where it occurs it is modest.

The Hawke-Keating years saw convergence on ‘economic neo-liberalism’  in Australia – and there has been no significant turning back since.  Kevin Rudd attempted a Mining Super Profits Tax but was quickly ‘disciplined’ by the mining industry, and removed in short order with a ‘palace coup’.  For a time Sam Dastyari focused attention on corporate tax evasion.  But while corporate tax evasion arguably costs the Australian people tens of billions annually, in reality Dastyari’s proposals were minimal. (in the hundreds of millions)  Julia Gillard delivered a National Disability Insurance Scheme, but it was argued that  ‘savings’ had to be made elsewhere to compensate; the  logic of which was thereafter embraced more enthusiastically by the Liberals.

Under Bill Shorten Labor has committed to reforming Superannuation Tax Concessions, making some cuts in the applicability of Negative Gearing, and reforming Capital Gains Tax Concessions. ‘The Guardian’ argued in 2016 that these measures would save $100 billion over ten years.  This is substantial in the relative scheme of things ; but less impressive when you consider inflation.  Perhaps after that is factored in we’re talking about around 0.5% of GDP in a $1.6 trillion economy.

Shorten received a lot of Kudos from the Australian liberal left (for instance Fairfax journalists) for these ‘bold’ policies. But the fact these measures are considered so remarkable only underscores the reality of ‘Convergence Politics’ in Australia on the economy.

Meanwhile vigorous debate rages in the context of ‘The Culture Wars’. The Equal Marriage debate has been won.  But at a cost whereby Australia’s economic and cultural Right-wing are attempting to claim substantial Christian strata as a ‘base’.  (But this should not be taken for granted; it should be fought ; socially-conservative should not necessarily mean economically-conservative  or economically-Liberal ; nor should ‘Christian’ necessarily mean ‘socially conservative’) 

And now debate turns to the date for ‘Australia Day’ and the content of the National Curriculum – or at least how it is applied in Victoria. 

These debates are truly important. They are more than ‘distractions’.

After the ‘Australia Day debate’ the next logical step is for a Treaty with indigenous peoples.  And Conservative attempts to promote a National Curriculum which mixes Ideological Liberalism with uncritical nationalism – are deeply concerning.  But Labor’s position on the National Curriculum is also arguably too-conservative.   Arguably the National Curriculum should promote  ‘active, informed and critical citizenship.’  Which means deep and inclusive pluralism when it comes to informing students of the interests, social movements and ideological perspectives that have comprised Australian society. Here I am thinking along the lines of ‘post-Marxist’, Chantal Mouffe’s ‘radical pluralism’ , or ‘Agonistic Democracy’ ; and how those principles might be reflected in curricula.

 Nonetheless these debates are more ‘tolerable’ for capitalists and the wealthy than debates which question neo-liberalism, labour market deregulation (but no right to strike),  and ‘small government’.  (Though perhaps the debate on Education is less ‘tolerable’, here, than the Equal Marriage debate.  There is the potential to detract from narrow emphasis on ‘labour market demands’ ; and to encourage critical thinking and active citizenship which may meaningfully strengthen our democracy).  

The debates are substantial ; are not ‘merely distractions’ ; but the way public debate is presented these debates do constantly and over-the-long-term deflect attention away from a substantial, more wide-ranging debate on the economy, and especially economic power and inequality.   

Debates are also framed in such a way as to divide Labor’s traditional constituencies ; with the decline of class as a central ‘reference point’, and erroneous assumptions of ‘essential working class conservatism’ and ‘aspirational’ mentality’. ‘Political correctness’ is also regularly beaten-up in order to weaken Labor’s base via attrition.  In response Labor needs policies and language which promote social solidarity.

But anything which truly questions ‘Convergence’ is summarily dismissed as ‘Hard Left’.   Outgoing Labor President Mark Butler has made welcome demands for internal democratisation . But his description of British Labour’s Jeremy Corbyn as ‘Hard Left’ is regrettable. Corbyn is trending towards something more ‘traditionally social-democratic’ ; and has plans for railroad and utility re-nationalisation  that would ‘set a precedent’ whereby decades of privatisation are not necessarily permanent.  The policies are progressive, but not radical ; and Butler’s dismissal of Corbyn shows that ‘Convergence thinking’ still has a strong grip even within the ALP Left.

What would a ‘break’ from Convergence Politics look like?  The author of this article has been working on an updated  (unofficial) “Model Platform” for Labor (currently in draft form) which is suggestive of a genuine reform footing for the ALP.  As a democratic socialist my long-term aim is the eventual surpassing of capitalism with a truly fair, rational and democratic economy. But even Marx understood that the transition from feudalism to capitalism took centuries. (though Marx did think socialist revolution a nearer prospect at the time)  And now there is the likely prospect ‘a clear and genuine break’ will not occur in our lifetimes.  Though the prospect of further crises and economic convulsions is nonetheless real.  Perhaps ‘barbarism’ is the more-likely prospect ; though we have to fight.

On the other hand, many on today’s Left still look to the Nordics for inspiration.  The Nordic model may not have ‘abolished’ capitalism ; but what some see as ‘the end goal’ is not everything. Billions of people will live in the context of historic compromises we fight for over the decades to come.  Their security, opportunities and happiness truly mean something with or without the over-arching capitalist context.  Yet sadly most in the Labor Party have not supported policies which meaningfully progress Australia towards something ‘Nordic-inspired’. 

The ‘ALP Model Platform’  (otherwise ‘For an Equal and Democratic Australia’) , suggests a short to medium term orientation, which breaks with ‘convergence thinking’, and has the meaningful aim of reaching the OECD average Tax to GDP ratio over as long as three terms of Labor Government.  That means raising progressive tax by $80 billion/year in today’s terms, or 5% of GDP.  (keep in mind the economy is worth over $1.6 Trillion)  It falls far short of the Nordics. (perhaps over $300 billion/year would be necessary) But it is suggestive of meaningful and substantial progress. (no more ‘one step forward, two steps back’ ; ‘the forward march of labour re-commences’)

What this means is substantial progressive restructure of Australia’s tax mix ; funding big improvements to the social wage, welfare, public provision of infrastructure.  It also means National Aged Care Insurance ; slashing hospital and public dental waiting lists ; industrial rights and liberties including a ‘re-regulation’ of the lower end of the labour market which delivers to the working poor ; strategies to improve life expectancy for indigenous Australians and the mentally ill ; progress towards free higher education ; support for mutuals and co-operative enterprise – with strategic public ‘co-investments’ which help these maintain the scale necessary to remain competitive ; an end to insufficient and ‘punitive’ welfare ; a big investment in public housing ; and much more.  These are central to the ‘ALP Model Platform’: a document intended to influence debate leading up to Labor’s National Conference this year in July 2018.

Those who want to support the Model Platform can ‘Like’ the ‘ALP Model Platform Supporters’ Page’ at Facebook and take part in debate there.

Labor has long been a ‘broad church’ with its own ‘internal pluralism’, and that is not likely to change.  But Labor should straddle the political ground across ‘traditional’ social democracy to democratic socialism ; and arguably there is also a place for what may be called ‘classical’ social democrats.  (radicals inspired by the original (largely Marxist) social democratic parties ; and those who followed in their wake)

Arguably a  strong radical-left can also contribute to the climate of culture and public opinion as well.  The Communist Party of Australia never had serious electoral success.  But it was a cultural and industrial power.  Ultimately it broke with Stalinism, also ; and in many ways that legacy is important and valid. 

In the US, Democratic Socialists of America (DSA) has been registering impressive gains in membership. They intervene within the Democratic Party ; but at the same time they are more broadly-based. They demonstrate how a Left movement can be a cultural, political and electoral force ; but not be restricted to a single electoral strategy.  DSA includes radical perspectives, but are not narrowly Leninst.  Perhaps a similar strategy could also ‘bear fruit’ in Australia ; with a strong challenge against ‘Convergence’ – which all progressives should agree has to end.

The ‘ALP Model Platform' Supporters’ Page can be found here: (PLS Join!)

https://www.facebook.com/unofficialmodelALPplatform/?hc_location=group

The current draft of the Model Platform can be found here:

http://leftfocus.blogspot.com.au/2018/01/for-equal-and-democratic-australia.html

Please join the supporters group ; and get like-minded friends to join if you support a strongly-progressive but realisable platform for the ALP.

A Response to the 'Consultation Draft Platform' of the ALP - Chapter 2 'A Strong Economy for all Australians'

 

by Tristan Ewins, ALP Socialist Left member of over 20 years

Friends and Comrades;

Not long ago a ‘Consultation Draft’ of the National Platform of the Australian Labor Party was released for purposes of feedback between now and National Conference in July this year.  Over the coming weeks I will release commentary on this consultation draft. 

Today, though, I will discuss Chapter 2 specifically – which relates to economics policy.  Importantly, in the consultation draft there was little or no mention of economic democracy, exploitation or the public sector.  To begin, therefore, I will propose an addendum whereby in this section the Labor Party needs to come out clearly in favour of what I call a ‘democratic mixed economy’.   

Considering we maintained the Socialist Objective for the best part of a century - we should at least be able to sustain a Platform that as a minimum supports a mixed economy ; but a mixed economy which aims to extend the principle of democracy in the way I suggest here - as much as can practicably achieved.

Other areas of concern include: fiscal reform to pay for and extend social insurance, the social wage, welfare, social services and public infrastructure; as well as the progressive structure of the overall tax system.  The form of superannuation for the working poor also needs to be considered, as well as an notion of ‘equal opportunity’ which goes behind the narrow confines of the labour market.   The TPP also needs further discussion; and our capacity to grow the public sector, including natural public monopolies, and also to assist  the democratic sector (eg: co-ops) – also needs to be maintained.  The failure of ‘the market’ to provide just outcomes needs recognition also.   And the social wage and social insurance must assist and protect the working class as well as the most disadvantaged of all.   Finally ‘a simpler tax system’ should not necessarily be our aim if the end product is less progressive for distributive purposes.

IMPORTANT ADDENDUM re: ALP Economic Platform

In an earlier version of this post on the ALP economic platform there was a passage which read as follows:

• "Finally, in keeping with our principles we will not deliver natural public monopolies or near-monopolies into the private sector because this may result in an abuse of market power."

This SHOULD have read as follows instead:  

• "Finally, in keeping with our principles we will not deliver monopolies or near-monopolies into the private sector because this may result in an abuse of market power."

Clearly this changes the meaning completely.

Sincere apologies for any confusion.

Tristan Ewins

HENCE – beginning with a discussion of ‘the democratic mixed economy’ -  the following needs to be inserted at some point in Chapter Two:

“Labor believes in the principles and practice of a ‘democratic mixed economy’. Hence we seek to extend democratic principles and forms to the economy as far as is practicable.  Though there are limits to what can be achieved for the foreseeable future: the consequence of the prevailing ‘balance of forces’ both in the global economy, and the domestic Australian economy.  

Promotion of  ‘democratic principles’ in the economy includes support for sectors of the economy which can be held accountable to the populace in their capacities as citizens; as workers/producers;  in mutual association; and as consumers.  And this applies on both a large scale and a small scale. 

In this context we strive after the best balance between various kinds of enterprise which can realistically be achieved for the modern day. Such a ‘balance’ involves checks and balances between producers, government and consumers; and includes strategic socialisation of various kinds.  

In addition to existing private enterprise, and the need to remain engaged with the transnational corporations whose innovations and investment are essential to Australian jobs and material living standards, our vision for a ‘democratic mixed economy’ includes an expanded role for the following:

·        producers’ co-operatives of various types – on both a large scale and on a small scale;  This is also to include multi-stakeholder co-operatives which involve producers, regions and government

·        consumers’ co-operatives through which the associated consumers are empowered

·        Mutualist enterprise; for example Mutualist insurance

·        natural public monopolies, including in areas of essential services and infrastructure, where duplication of cost structures can be avoided to the benefit of the economy at large, and where the superior credit ratings of government result in more efficient finance

·        other public infrastructure (eg: where a natural public monopoly cannot apply because of existing privatisation; eg: through Public Private Partnerships)

·        strategic Government Business Enterprises which actually enhance competition in areas of oligopoly, concentrated market power and potential collusion; and also enhancing accountability to consumers

·        Government Business Enterprises which can also compete internationally - subject to global market forces

·        Public investment in Australia’s Natural Resources which are properly the property of the Australian people collectively.

·        Co-determination agreements between workers, unions and business – supported through a legislative framework

·        Democratic collective capital formation, including through the superannuation system, but also through public pension funds which will support the operation of a strong and fair system of Pensions in this country far into the future

·        Self-employment

To these ends we believe there is a role for government in extending democratic principles and forms to the Australian economy.  That includes:

·        through tax breaks, advice and cheap credit for co-operative and mutualist enterprise;

·        through co-investment to help co-operative enterprise upgrade its economies of scale so as to remain competitive in larger markets while retaining the co-operative form

·        through the creation/construction/maintenance of government business enterprises,  social services and welfare, and public-owned infrastructure

·        through an active industry policy

Finally, in keeping with our principles we will not deliver monopolies or near-monopolies into the private sector because this may result in an abuse of market power.

Strategic socialisation of different kinds can also ameliorate exploitation; and sometimes even enhance competition. Progress in extending a democratic mixed economy can also assist in ameliorating the self-destructive aspects of capitalism, while extending the principle of democracy into the economy in such a way as advances social democracy not just into the distant future - but beginning here and now."

What follows now are some excerpts from Chapter Two of the Consultation Draft of the National Platform – with my responses under headings labelled as ‘Comment’.

P 11    “Labor rejects the false choice between economic growth and equality. Excessive inequality detracts from economic growth and damages the social fabric. Labor believes in economic growth that is inclusive of all. We believe there is a role for Government in ensuring that people from all backgrounds and circumstances can both contribute to economic growth and benefit from it. The benefits of economic growth must be redistributed through the economy to those on low wages, not in work or reliant on welfare.”   

COMMENT:  To this we should add:  “We also believe that through the social wage and social insurance  we can redistribute wealth in a socially just manner from the wealthy to the working class.”

4) “Labor believes in economic policy that promotes social mobility and opportunity. Your family’s wealth should not determine your ability to grow to your full potential. Promoting equality of opportunity is at the core of Labor’s economic approach.”

COMMENT:   Here we should refer to diverse forms of equal opportunity – not just work;  but also education, civic activism and cultural participation and consumption as well.

6) “Australia’s long-term prosperity depends on competing successfully in global markets. This means Australia needs to produce high quality goods and services that the world wants to buy, and remove barriers to overseas markets. Labor will work to ensure major policy settings like skills development and training, infrastructure planning, tax and regulation frameworks do not hold businesses and workers back from achieving their full potential in global markets, while at the same time ensuring that all Australians enjoy a fair share of the benefits of growth. Strong and sustainable public finances underpin the progressive future we want for the next generation. Meeting the health care, pensions and education needs of future generations will require prudent budget management and prioritising support for those most in need.”

COMMENT:  We need to provide for those most in need; But also we need to provide for more general forms of collective consumption and social insurance which EVERYONE can benefit from.  For example through funding state schools; through funding the NDIS; through funding a National Aged Care Insurance Scheme which provides the highest quality infrastructure and services, but which eliminates user pays mechanisms for disadvantaged and working class families.  Also consider the universalism of Medicare – which now needs to be extended further throughout the health system.

7) “The market will often create the most equitable and efficient distributions of power, wealth and services, but markets sometimes fail. Government has a responsibility to intervene, to address market failures and the extremes of capitalism. Labor supports an active role for governments in addressing market failure, and improving equity and social justice through the full range of government policy instruments including expenditure, taxation, regulation, and the provision of goods and services.”

COMMENT:  Often markets do NOT create “the most equitable…distributions of power”; This point in the Draft Platform needs to be removed or edited so as to change the meaning.  Private sector monopolism – and sometimes oligopolism  - produces inefficiencies as well - and deserves a specific mention.

Responsible Fiscal Policy

9)   “Labor is committed to sound public finances by adhering to a fiscal strategy that achieves budget surpluses on average, over the economic cycle…”

COMMENT: this should be changed to read: ‘balance the budget on average over the economic cycle’;  And should also include mention of productivity-enhancing public investments that adds to economic growth.  (A good example is the NBN) The EFFECTS of these INVESTMENTS need to be taken into account re: the aim of “a balanced budget over the course of the economic cycle”.

  16.) Labor, as the party of universal, compulsory superannuation, will continue to put in place reforms to protect and to grow superannuation, to ensure the superannuation system meets an objective of providing a comfortable retirement for all Australians. This will include, when prudent, ending the Coalition’s freeze of the Superannuation Guarantee at 9.5 per cent, and fast-tracking the Superannuation Guarantee increase to 12 per cent, which will provide millions of Australians with higher retirement incomes. The current system of superannuation tax concessions has seen more than 35 per cent of the value of tax concessions accrue to the top 10 per cent of income earners. Labor will put in place reforms to address this imbalance, ensuring Australia has a sustainable and fair retirement income system. 

COMMENT: EXCELLENT to see recognition of the problem with inequitable superannuation concessions; a big victory for progressive forces if this finds reflection in strong policies.  But there are flaws in superannuation as well.  The working poor already struggle; and forcing them to contribute more of their own money into superannuation will worsen their poverty throughout their working life.  If we are to increase superannuation contributions, perhaps the working poor could be excused from contributing. (but not their employers)  Also there is the problem of inequity – affecting women, the disabled and the working poor especially.  Resentment against the Aged Pension could lead to austerity against some of the most vulnerable into the future.

18-30  ‘A Strong and Vibrant Small Business Sector’

COMMENT:  Mention should be made of co-operative small business somewhere in this section.

35- 54  Trading with the World

41. Labor supports trade and investment liberalisation through the Asia–Pacific Economic Cooperation (APEC) forum. Labor will ensure APEC is a driver of regional economic integration and will take an active approach to its role in the region’s economic architecture. Labor believes APEC has a key role in promoting economic reform behind the border throughout the Asia–Pacific region and will promote these efforts. Labor will endeavour to strengthen APEC’s role in mobilising support for the WTO’s Doha Round. Labor will also support Australia’s engagement in the emerging regional trade and investment architecture under the auspices of the Trans-Pacific Partnership, the Regional Comprehensive Economic Partnership and the proposed Free Trade Area of the AsiaPacific. 

COMMENT: I’m not not sure about the TPP.  There hasn’t been enough consultation.  Also we need to make sure that any agreements we enter into do not prevent appropriate regulation; or prevent policies which are meant to support or encourage a ‘democratic mixed economy;  For example establishing natural public monopolies, or implementing tax breaks, advice and cheap credit for co-operative enterprise.

42. Labor will work to:

 Provide leadership to the Cairns Group and seek reductions in agricultural subsidies and protection;

 Secure reciprocal new market access for all of Australia’s economic sectors;

 Tackle non-tariff “behind the border” trade barriers such as excise tax arrangements, standards, customs procedures, subsidies and other restrictive measures which impede Australian exports;

COMMENT: This cuts both ways; sometimes standards must be applied; sometimes the ability of a nation to feed itself is important to its security;  Subsidies should also be allowed in strategic cases – and with assistance for co-operative enterprise. We should not commit ourselves to a framework which would 'tie our hands' on economic democracy and the strategic extension of the public sector into the future.  I am uncertain of the content of TPP and I’m sure many others in the Party are as well…

Specifically the Consultation Platform argues the following in relation to TPP:

54. A well-balanced Trans-Pacific Partnership offers the prospect of more and better jobs through improved access to member countries’ markets for Australian exporting businesses and their employees. Labor’s position is that the Trans-Pacific Partnership must be consistent with the following principles:

 Does not undermine the Pharmaceutical Benefits Scheme and public health initiatives;

 Provides for national treatment — that foreign and domestic companies are treated equally under the law, while not conferring greater legal rights on foreign businesses than those available to domestic businesses;

 Does not require Australia to remove protection of cultural industries;

 Retains the Foreign Investment Review Board and its powers to review foreign investment in the public interest;

  Retains quarantine provisions to reduce the risk of imported pests and diseases;

 Retains the flexibility to encourage industry development including through research and development, regional development and appropriate environmental, employment and procurement policies;

 Contains enforceable labour clauses that require signatories to enforce core labour standards in International Labour Organisation conventions; and

 Contains enforceable environmental clauses that require signatories to meet all relevant international environmental standards, including those in applicable United Nations international environmental agreements.

COMMENT:  In response the following points should be added:

·         Does not inhibit the right of government to support and extend the public sector, including maintenance of natural public monopolies

·         Does not inhibit the right of government to extend a ‘democratic mixed economy’, including through support for co-operative and mutualist enterprise of various sorts

A Fair and Efficient Tax System

67. Labor is committed to a fair and sustainable tax system that provides incentives for all Australians to work and undertake productive enterprise while guaranteeing adequate revenue to fund the proper role of government, including providing quality public services and ensuring an equitable distribution of income and wealth. Public confidence in Australia’s tax system depends on a simple and transparent tax system where everyone pays their fair share of tax. Labor has implemented important tax reforms to improve competitiveness, boost savings through superannuation, make superannuation fairer, simplify personal tax, reduce barriers to participation and provide better assistance to families. We will also continue this record of tax reform, making the system more efficient, less costly and more equitable.

COMMENT: ADD THIS:  “Specifically we support a simpler tax system only where the final outcome does not negatively affect our efforts to ensure a fairer and more equitable distribution of wealth and income.”

68. Future tax reforms will:

[large excerpt cut out]

 Minimise the impact of high effective marginal tax rates, particularly on those moving from welfare to work or the second income earners in low- to middle income families;

COMMENT:  The excerpt above is problematic as it suggests cutting tax for those who do not need to have their tax cut; That is, it suggests a general cut in taxes (the word ‘particularly’  needs to be deleted so it is clear the reference is only to the specific disadvantaged groups. The consequence of cutting tax more generally is that pressure is put on public finances, and hence also the social wage, public infrastructure, social services and welfare. It must be edited to read:

“ Minimise the impact of high effective marginal tax rates on those moving from welfare to work or the second income earners in low- to middle income families”

I hope the readers of this commentary will have found it interesting, and will be inspired to respond to the ‘Consultation Draft’ as well.  I especially hope readers will register their support for this document and the documents which are to follow.

Specifically members can provide feedback on the Consultation Draft Here:

http://www.alp.org.au/2015_draft_national_platform

If you want to support this Commentary please include a link to the appropriate URL in your submission.  Ie: link to this URL in your submission

  

 

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