The Legacy of Daniel Andrews. Recognising the Good with the Bad

 

above: Daniel Andrews Triumphant one last time (2022)

Dr Tristan Ewins

Today the impending retirement of Daniel Andrews – Labor Premier of Victoria – has been announced.   For many of us this came as a surprise ; but it seems Andrews wants to leave on his own terms. 

Andrews has led a reforming Victorian Labor Government.   While championing the rights of trans women and men, Andrews also presided over a radical increase in the number of women in Cabinet.  He also oversaw controlled legalisation of euthanasia and medicinal cannabis.  What is more he oversaw the shift towards railway crossing removals as a much-more cost effective means of reducing road congestion.  The Andrews Labor Government also took something of an authoritarian turn during the Covid 19 crisis ; but perhaps the unparalleled times called for this. Andrews also oversaw the beginning of negotiations for a state-based Treaty: blazing a trail ahead of his Federal  colleagues.

On infrastructure and Health, Andrews made big investments in public health: most specifically in increasing the number of nurses on the ground ; and providing incentives and financial support for future nursing graduates.  A total of over $150 million was invested in indigenous Health (with an anticipated 100,000 extra appointments) ; as well as free IVF, women’s health clinics, and a mobile health clinic.  Further, public Aged Care levels were maintained ; and funding provided to assist in ensuring a registered nurse was provided in every aged care facility. Almost $50 million was maintained for GP Respiratory clinics: whose importance I testify to personally as a person whose mother died of Chronic Obstructive Pulmonary Disease after a long and traumatic illness before this was made available.   And since 2021 the Andrews Labor Government has invested over $6 billion in mental health: largely in response to the Mental Health Royal Commission.  This includes the establishment of the new ‘Mental Health and Wellbeing Act 2022’ which will modernise the operation of mental health in Victora, with dialogue and inclusion of families and consumers in decision-making emphasised.

On infrastructure in addition to investments in health infrastructure (hospitals and the like) Andrews Labor also made big investments in public transport which anticipate future need. This includes projects such as the Metro Tunnel, North East Link Program, and West Gate Tunnel – which together have created over 50,000 jobs.  Failing to invest here would come with a huge social and economic cost into the future, with uncontrolled congestion and a decline in the overall quality of the public transport network.

On the other hand, though, it is against these backdrops that the Andrews Labor Government has continued a now long-held Labor government tradition of privatisation.  (acknowledging that 50 year leases are not ‘technically’ privatisation ; though they will effectively operate as such for decades and decades to come)  Amidst a strong sense of irony the Liberals argued in November 2022 that Andrews had raised approximately $20 billion from the (effective) privatisation of the Port of Melbourne, VicRoads,  and the Land Titles Office.   

Consumers will pay the price for this for decades to come. Some of these are now effectively private monopolies in their fields.

But in a seeming Ideological U-turn Andrews Labor also announced the re-establishment of the SECV. (State Electricity Commission Victoria)  Those of us old enough to remember the old SECV may recall a time when energy was provided relatively cheaply ; and natural public monopoly effectively held down cost-structures.  The new SECV will be a substantially different creature – despite the nostalgia.   Beginning with a $1 billion investment, the new SECV will emphasise the building of renewables infrastructure, with (according to Andrews) the creation of 59,000 jobs.  The task will not be the recreation of natural public monopoly , but the re-establishment of a part-public player: which might perhaps be run on a not-for-profit basis – and inject significant competition into the sector.  In this case consumers would stand to gain.  Depending on what the involvement is with superannuation funds, however, there will be pressures to run ‘for-profit’.

In June the Federal Government – in an olive branch to the Greens – announced a $2 billion fund to be provided to the States for the construction of public housing. https://thenewdaily.com.au/finance/property/2023/06/17/labor-pledge-2b-housing/?breaking_live_scroll=1

This was enough to get the Federal Government’s $10 billion public housing fund passed with Greens support for this year. The Greens’ defence of this behaviour was that over the long term a $10 billion fund could not provide enough turn over to substantially increase and improve public housing stock.  But in the future this $2 billion expenditure will have to be renewed every year – or even increased. (perhaps to the vicinity of $3 billion)  This is because State Governments (including State Labor Governments) are pressed for cash and rely on Federal money to get many projects over the line. 

That said, the housing crisis is real, and Andrews Labor’s response has been disappointing on many fronts.  Recently the demolition of 44 public-housing towers was announced – to be replaced mainly by ‘affordable’ and ‘social’ housing (alongside mainly private dwellings) in the form of ‘public private partnerships.’  Social-Housing is ‘broadly defined’ ; and includes so-called public-private partnerships. (which can be light on the public component, and deliver rivers of gold to private investors)  Public land will be made available for private investors in return for a 10% ‘affordable housing component’.  The alternative for developers is to pay a levy accounting for 3% of the project’s worth; then diverted into social housing.

There is a place for ‘affordable’ housing in ‘the mix’ ; but looking to Austria for instance, public housing can be done so much better than this.  In Vienna nearly half of the city’s housing market is covered by co-operatively owned players and city-owned housing.   Not only does this deliver for equity: it provides quality and flexibility. 

Benita Kolovos of ‘The Guardian’ has observed that: “of the 30,000 proposed new dwellings on public land, only 11,000 will be available to public housing tenants.”.  This has led the Greens to brand the policy as ‘the biggest privatisation since Jeff Kennett.’  The continued ‘ghettoization’ of public housing will see it marginalised on an ongoing basis.  To break out of that ‘ghetto’ – and to break prejudices and stigma - public housing needs big ongoing investments ; and it seems now the only hope for that lies in bigger purpose-tied commitments from Canberra.  And this requires Federal Labor to move away from overly-conservative fiscal policy.

Again: State Labor Governments, and State Labor parties – need to be pressing Federal Labor to provide at least $3 billion a year for this purpose.  Andrews Labor’s expansion of the market may increase supply over time, and in-so-doing do something to contain prices. But at the same time quality housing will remain out of reach for many struggling families.  Perhaps if Labor had diverted the $3 billion earmarked for the Commonwealth Games into public housing this would have been more palatable.

 

So in conclusion, there is something of a ‘mixed report card’ for Andrews Labor.  On many fronts – despite absurd jibes about ‘dictator’ Dan (Comparing him to the North Korean despot Kim Jong-Un) - Andrews Labor has proved itself ‘more socially liberal than the Liberals’.  In this day and age that is not all that surprising.  In-so-far as there was a streak of authoritarianism it was only under the unique circumstances posed by Covid 19.  But the structural costs of a suite of privatisations will be passed on to consumers for decades to come.

 

Federal Labor needs to ‘step into the breach’ to remove fiscal incentives for State Labor Governments to ‘sell what’s left of the family silver’ in order to pay for big projects. A good Labor government is one which expands the social wage and welfare state, while also strategically expanding the public sector.  Ideological preference for ‘Small government’ will not do.  (though the source of Andrews Labor’s policy was more pragmatic than Ideological)  Who-ever takes the helm of Victorian State Labor ; and whatever else happens Federally – something needs to change. And hopefully this article is suggestive of where we could start.

 

Dr Tristan Ewins

 

Dr Tristan Ewins is a rank and file Labor member of over 30 years.

 

http s://www.theage.com.au/politics/victoria/bronze-age-how-do-dan-andrews-3000-days-as-premier-measure-up-20230217-p5clb1.html

https://otr.anmfvic.asn.au/articles/budget-delivers-on-andrews-government-election-workforce-commitments

https://www.health.vic.gov.au/mental-health-and-wellbeing-act

https://www.theguardian.com/australia-news/2023/sep/23/daniel-andrews-victoria-labor-government-housing-statement

https://www.politico.eu/article/vienna-social-housing-architecture-austria-stigma/

'Supply Side' Budget Stimulus - Government could have done more for 'Battlers' and Women

above:Anthony Albanese has called for more funds for Child Care and Social Housing

Dr Tristan Ewins

The 2020 Federal Budget projects a deficit of some $213 billion – a far cry from the previously projected surplus.   An already sluggish economy – hit now by Covid-induced economic collapse – left no option but massive stimulus – lest the nation sink into a Depression. 

In a way it is encouraging that the government has thrown away the book on neo-liberal orthodoxy to some extent.  A contractionary budget would have been disastrous.  A notable amount of the stimulus (about $6 billion) comprises wage subsidies aimed at the young – with the aim of supporting some 450,000 jobs. The plight of the older unemployed – thrown onto the Jobseeker scrapheap – is another question.   In the largest  single measure over $26 billion in tax breaks will be delivered to business to write off the value of new investment by June 2022.  There will also be a $4.9 billion “loss carry-back scheme” enabling businesses  “to claim refunds or offsets on taxes in previous years.”  Importantly, the third round of tax cuts – aimed at high income earners – has not been brought forward  - in a win for Labor and the Greens.  But the business sweeteners are not consistently tied to job creation and job retention – so for all that money there are no guarantees for workers.  According to ACTU President, Michelle O’Neil, the government also projects zero wage growth even if there is economic growth in the coming years.

In Aged Care, $1.6 billion will provide 23,000 home care packages. But this is below demand, and there are no big plans to reform residential care.  Perhaps this will come with the final findings of the  Aged Care Royal Commission and the next election: but the need is urgent and ought not be put off.  In fact it is dubious the Conservatives will find the money for comprehensive Aged Care reform: Home Care and Residential packages to meet demand ; with quotas for Aged Care Workers and registered nurses, a winding back of user pays, exercise and GP visits for all residents, and an emphasis on quality of life. It will be up to Labor and the Greens to put up a fight, though disappointingly Labor has known about these problems for over a decade, and is only making the right noises now with the focus provided by the Royal Commission.  We are talking many billions of dollars annually to make a difference over the long term.

‘The Age’ reports that “about 11.5 million workers will get up to $2745 more in their pay packets this financial year”.  Though the raising of the threshold of 32.5 per cent to $120,000 from $90,000 is arguably badly targeted.  And support for pensioners and the unemployed is insufficient, with a total of $500 in payments to Aged Pensioners meant to bring relief and fuel spending.  More for those on  low incomes and welfare would have a greater stimulatory effect, and would contribute to fairness.  On the other hand the low income tax offset will rise from $445 to $700 in a modest but welcome measure.

Importantly, of the new spending measures only $6.7 billion is going to the states for new infrastructure.   Including other infrastructure measures the figure is closer to $10 billlion extra over ten years.  The government’s main emphasis is in providing support and incentives to ‘kickstart’ business as opposed to measures directly supporting consumption at the low and middle ends ; although increased business confidence would support jobs.   The Budget measures emphasise the ‘supply side’ but neglects the ‘demand side’ when it comes to low income earners, the unemployed and pensioners.  The opportunity to permanently raise Jobseeker appears to have been neglected, and many jobs will be lost with the premature withdrawal of Jobkeeper.

Of most concern, stimulus is not a ‘black hole’. Getting people spending and back to work is part of a ‘virtuous cycle’ which can restore growth and rejuvenate the government’s balance sheet.  With record low interest rates the time has never been better for investment, and the Government could have done more here.

The economy’s pre-existing weaknesses have not helped ; but a Labor Government could not have avoided a Covid recession.  As Labor has argued it will be putting the case for ‘better bang for our buck’ in the stimulus. This should mean more emphasis on those on low incomes and welfare, and providing support where it will grow spending and investment in jobs most vigorously.  Too many businesses will be pocketing these 'sweeteners' without necessarily creating jobs.

In response to the Budget, Anthony Albanese has committed to further child care subsidies and half a billion to refurbish public housing.  We need wage subsidies for child care and early education workers as well however. And also subsidies for consumers of child care and early childhood education. Both as a matter of fairness (for child care and early education workers – and women workers more generally) ; to get more women working, and to attract talented educators into the field. Also with housing out of reach for so many people a big investment (into the billions) in public housing now could both stimulate the economy and promote affordability.

Modern Monetary Theory supposes government can issue currency to ensure a ‘full employment guarantee’.  Such stimulus is part of the picture, but can be limited by inflation and currency devaluation.  Though inflation seems unlikely in the current environment.   Redistribution can’t be done properly and fairly without tax ; but MMT has something to contribute to this debate.  The government's projections on unemployment are nowhere near ambitious enough.

If Labor was in government this kind of stimulus would be derided as an ‘irresponsible’ ‘cash splash’.   Consensus that stimulus is part of the way forward in times of economic weakness is at least a good thing in itself.  It sees Conservative arguments against the Rudd stimulus of the Global Financial Crisis (GFC) blown metaphorically out of the water.   Labor governments of the future will be able to point to the current effective consensus on SOME form of stimulus to help justify their own efforts when governing in times of downturn or stagnation.  Which will inevitably come as part of the capitalist cycle. But this government's emphasis on the 'supply side' of the equation is nowhere near discriminatory enough.

Labor Must Ask Serious Questions on Policy and Values

Above:  Albanese corrrectly indentifies the need for policy review and good policy ; But 'root and branch' rejection of Labor's 2019 Platform would be a mistake.  New policies and 'new angles' are necessary.  But let's not jettison our values and abandon our interests on the way.  Labor's problems were largely 'tactical' ; and this also needs recognition.

Dr Tristan Ewins

Labor has been saying relatively little on policy since its defeat at the hands of the Morrison Government.   Many are saying Labor’s ‘move to the Left’ was the problem.  In that process other problems are being neglected.  The Coalition tax scare campaign (including on a non-existent 'death tax'); Shorten’s wooden performance in the final days ;  failure to build a strong enough ‘central narrative’ ; confusion on Dividend Imputation franking credits – and the failure to means test any measures there instead of applying the same rules to everyone.  Also Clive Palmer's $60 million intervention - dwarfing the monetary resources of both parties - changed everything and channeled preferences to the Conservatives.  Shorten also failed to sell the progressive tax reform message ; and avoided the issue when given the opportunity to ‘take it up to Morrison’ in a Leader’s Debate.  (here I'm thinking of Shorten's refusal to engage on Morrison's example of a very-high-wage workers' tax rising by 2%(!) under Labor)  

Expanding social goods and services necessitates progressive tax ; asking more of high income earners ; and that definitely includes the top 10 per cent.  Maybe even the top 20 per cent. Those in lower brackets need to contribute too based on ability to pay, but would receive much more in return.  Those in the lowest brackets may even receive indexed tax cuts.  (Income Tax needs to be radically restructured overall ; and then the lower brackets indexed – to prevent the erosive effect of bracket creep)  Tax indexation can prevent 'a flat tax by  stealth' via such selective exploitation of bracket creep.

In the big picture, though, Shorten led a united team and developed some very  good policy during his years in the leadership.   His modestly reformist policies have widely been portrayed as a ‘lurch to the Left’ ; and that illustrates well the relative right-wards shift in Australian politics where anything in the way of meaningful reform faces that kind of accusation.

But the Coalition’s massively irresponsible policy of tax cuts ($160 billion over the first 10 years, and much more proportionately over the longer term as ‘phase three’ kicks in) for the well-off put the onus on Labor to mount a response.  

We know we have an ageing population.  For the Left at least, we know tougher means tests, a higher age of retirement, failure of benefits to keep up with a rising cost of living and respond to the need to extend pensions more broadly – should be unacceptable.  Undermining the tax base is the road to a US-Style and strongly class-divided economy and welfare state.   An ageing population will also mean more stress on the health system ; and the correct response is to support citizens on need rather than adhering to some arbitrary ‘tax ceiling’ which can only respond with harmful austerity.  Medicare Dental remains an essential policy for Labor to embrace and campaign on vigorously.

To his credit, Albanese has come out against attacks and stigma against the unemployed.  But we need more.  Raise Newstart by at least $75 a week.  Apply active industry policies aimed at creating job opportunities for ‘at risk’ and vulnerable groups.  Not only the young unemployed, but especially the older unemployed ; and the disabled – including the mentally ill.   Highly educated older job-seekers are being forced to drop their qualifications from their resumes to be ‘more attractive’ for cleaning jobs and the like.  Meanwhile, while many look down on the cleaning profession it does involve skills, and it is hard work.  There is cause to reform the Award in these and other fields – for example Aged Care and Child Care. But where the market will not bear this we need government subsidies. Importantly, many of these areas are highly feminised.

Denmark provides an example in a sense.  That is with their active industry policies which seek development of ‘sunrise industries’ that make use of the skill sets from ‘sunset industries’, mixed with retraining. The policies are expensive: but the gains from labour market participation more than make up for that. 

In that process we need to review the  NAIRU – or non-accelerating inflation rate of unemployment – which supports a ‘buffer of unemployment’ (commonly in the vicinity of 5 per cent) to contain the bargaining power of workers and avoid wage inflation.  Hence there are always many more people looking for work than there are jobs – and yet still the unemployed face stigma. Instead we need to look to fiscal policy to contain inflation ; and co-operation with trade unions (eg: accepting higher taxes on high wage workers) in return for expansion of social goods and services and defence of industrial rights.  This would be applied after the Swedish model rather than the Accord – which at the end of the day failed to deliver to workers sufficiently in return for wage restraint.  Full employment makes a massive difference to the Budget and the broader economy if it can be sustained.

In short, Labor needs to take action to raise the status of some of our most exploited professions – while reforming the tax base and making social wage, social insurance, collective consumption, and welfare state expansion possible.   

Let’s explain these one by one to get some sense of what is meant.

‘Social Wage’ refers to the recognition that not everyone receives wage justice. And sometimes it is more effective to receive the proceeds of wages collectively to maximise the collective (and individual) benefit.  Think public health and education.  Corporate Taxation also factors in here as the corporates benefit from a healthy and skilled workforce.

‘Social Insurance’ refers to public-funded insurance against contingencies like unemployment, ill-health or disability via the tax system – which covers everyone.  After all – it could happen to any one of us – or our loved ones.

‘Collective consumption’ refers to when ‘the people’ get a better deal by consuming collectively via tax rather than as isolated consumers.  Leaving individuals with more money to spend at their discretion in other areas at the end of the day.  

It is appreciated that people need a reasonable degree of discretion in terms of determining personal needs structures.  But ‘collective consumption’ delivers massively in the area of pharmaceuticals consumption (think the Pharmaceutical Benefits Scheme or ‘PBS’) ; and could deliver in other areas as well – eg: infrastructure and goods like water and energy – which are becoming more unaffordable following effective privatisation.  Also think public infrastructure like ports, roads, public transport. communications: which should flow from the public purse where the state’s superior rate of borrowing and not-for-profit stance can deliver a better deal.  (water, ports, communications, transport infrastructure - should be re-socialised - reducing overall cost-structures; Though in some areas (eg: energy) some kind of 'market' should still exist ; But in the context of a public monopoly provider ; much more affordable, but still an incentive to regulate usage)

The “Welfare State’” is often taken in a catch-all sense which covers all of this, but for now think of the tax-transfer system and the need to support vulnerable Australians.  Newstart is the area of the most dire need ; but a 15% increase in other pensions can also be justified ; as well as support for the National Disability Insurance Scheme and the implementation of a National Aged Care Insurance Scheme (in response to the Royal Commission) which provides high quality services both for at-home and residential care on demand, and without onerous user-pays policies which send ‘consumers’ broke.  That also includes high quality food, quotas , a registered nurse on-site always , training in the handling of dementia , at-home packages on demand , rehabilitation and exercise on-demand , regular GP visits , private rooms , and meaningful (often facilitated) every-day interaction and outings (where possible) instead of just seating people down in-front of TVs all day.  For those ‘at home’ action to combat loneliness is crucial.

More public housing – perhaps interspersed with private housing to avoid stigma – is necessary too in order to tackle homelessness and housing stress.  But large scale public housing projects should also be considered – also providing quality amenities: laundries, pools, common rooms, internet connectivity – which people can respect and appreciate.  Austria manages a high level of public housing well – with very positive results.  Indeed, over 60% of Vienna’s population live in public or social housing.  It is the legacy of the interwar revolutionary Social Democrats (at the time officially of  a Marxist – but not Bolshevist -  disposition)– who prevailed in Vienna in the 1917-1934 period ; and who took government with a more modest agenda in the post-war period.

Eugene Quinn argues the following ; outlining the difference in culture re: public housing in Vienna which could be promoted in Australia as well:

“People here are used to the communal spaces of the social housing estates and are very comfortable living next to someone from a different background,”  Quinn says. “And because people are not crushed by their rents like in other major cities, they have a bit more time to be creative, to study, to get involved in community work.”

Apart from these areas, Labor also needs to take a strong line against the Coalition's ‘Ensuring Integrity’ union-busting laws.  Some in the Left dislike John Setka.  But more is at stake here than one man.  We are talking about the strategic position of the entire movement.  Which the Coalition well knows.  And Labor must acknowledge that as well.

In short, inevitably there must be a policy review.  But let’s be careful about dumping good policy.  Sure, let’s hone our message and our central focus.  Though we need a tactical campaigning review also: perhaps more so than a ‘root and branch’ policy review overall. If we cannot at least reverse Morrison’s overall tax cuts in a progressive way – focusing on tax cuts for the well-off – then we concede defeat.  That would mean conceding an Australia which retreated from anything recognisably social-democratic , and headed towards the divisions and insecurity we see in the US for example.

Importantly we must embrace the message of progressive tax and its implications rather than running away from that debate.  Trying to be ‘everything to everyone’ and not increase the tax burden on virtually anyone – means we have no way of funding reform at the end of the day.  But an openly progressive agenda would give the vast majority an incentive to vote Labor.

It is nonetheless appreciated that ‘middle income’ is not the same as ‘middle ground’, and some disillusioned voters are embracing a ‘centrism’ which is largely right-wing in practice.  Labor’s response must be tactical: appealing not only to interests but also to values.  A liberal response on social values, and stronger action on climate change can also detract from any ‘small ‘l’ constituency’ for the Liberals ; and pressure the Liberals to reform their own outlook ; shifting ‘the relative political centre’.  Labor must contest values in the economy as well as the 'culture wars' ; and its relative neglect here has marked a defeat for Social Democracy and Democratic Socialism in this country.

One thing is certain. Nothing is gained from a ‘culture of policy defeat’.  Labor must find a way to effectively campaign for government without compromising its values and reason-for-being.  

Will Labor Stand Up against Small Government and Austerity? And Reflections on Greece, Anti-Semitism and more

 

above:  Shadow Assistant Treasurer Andrew Leigh has been unfortunately equivocal on the issue of tax reform needed to ward off austerity under a future Shorten Labor Government.

 

In the following reflections the blog publisher, Tristan Ewins considers the dilemma faced by Labor on tax reform; as well as the Greek economic crisis, rising anti-Semitism and other issues.  He also calls for readers to register their support for a genuinely progressive Labor Platform at this year's National Conference.  Without such a Platform Labor will lack the flexibility on fiscal reform it needs in order to hold off against austerity - and instead improve the social wage and welfare

 

by Tristan Ewins

Reflecting on this week’s QandA episode raises crucial questions as to whether or not Labor will seriously resist pressures towards austerity and small government amidst a manufactured ‘debt crisis’.  Tony Jones repeatedly pressured Assistant Shadow Treasurer Andrew Leigh to respond on that very question.  And sadly Leigh was largely evasive in response. (probably under pressure from his Shadow Cabinet colleagues)  Statements regarding a crackdown on corporate tax evasion were somewhat encouraging, yes.  But Sydney Morning Herald columnist Michael West is correct to proclaim approximately $2 billion of savings over three years as ‘pocket fluff’.   That tax policy is not going to ‘turn the tide’ on small government, punitive welfare and austerity.  In the context of an economy valued at approximately $1.6 Trillion the effect will be relatively marginal if there is not additional progressive tax reform elsewhere.  Empty rhetoric and tokenistic policies will make little difference for those who need our help.  I believe Leigh is better than this - and am hoping for a less equivocal stand into the future.

Of course Liberal proclamations to the effect that it is ‘cleaning up Labor’s mess’ also need to be met with healthy scepticism.  Current fiscal strains can be traced to repeated tax cuts and ‘middle class welfare’ during the Howard/Costello years.   Rather than capitalising on the China mining boom, investing the proceeds for the future, Costello and Howard implemented a series of tax breaks – largely for the relatively well off – resulting in today’s structural deficit.   Because from the outset it was clear the boom would not last forever, the short-term focus adopted by Howard and Costello condemned Australia to its current fiscal crisis.   (nb: the fiscal crisis is not the same as the ‘manufactured public debt crisis’; debt is serviceable; but there is a need to reform tax to maintain the social wage, welfare, public infrastructure) The situation was further worsened as a consequence of Liberal opportunism over the Mining Super Profits Tax -  which saw a responsible policy destroyed – further locking Australia into a fiscally unsustainable footing.

Labor’s next National Conference will take place mid-year 2015; and it is critical for Labor to reflect on what it stands for; and how it can defend services and social welfare against the Ideological Liberal drive towards austerity.  There is also a need to address an infrastructure crisis – with fiscal pressures locking the country into polices of infrastructure privatisation which pass on inefficient cost structures onto the broader economy. (the consequence of profit margins and inferior costs to finance via the private sector)   

What is most important is for Labor’s 2015 National Conference to endorse a Platform which keeps Labor’s options open!  Locking into a small government, low tax policy will provide Labor with no room to move in response to fiscal pressures; and consequently pressures towards brutal austerity. Without a reformed Platform this year, Labor will lack the mandate to pursue the necessary change after the next Federal election. At the blogs ‘Left Focus’ and “ALP Socialist Left Forum’ last year we initiated a campaign in favour of progressive tax reform, reform of superannuation concessions and more; including an expansion of progressive taxation in a first Labor term by about $40 billion.  (or by 2.5 per cent of GDP in the context of a $1.6 trillion economy)  

Such a policy would see Australia only ‘edging towards’ average OECD levels of government social expenditure – and should not be viewed as being ‘too radical’.   But failure to embrace a reform footing would inevitably mean sustained austerity even under a Labor government.   And a lack of meaningful opposition to the fiscal policies that underscore Liberal austerity would only strengthen the Conservatives’ hand, with policy convergence on austerity, punitive welfare and the like. 

Finally – the fiscal reform we have suggested here would provide scope for other progressive policies.  This could include (but not be limited to)

·         a National Aged Care Insurance Scheme,

·         comprehensive Medicare Dental

·         alleviating poverty for the welfare dependent and for low-wage workers

·         properly implementing Gonski and the National Disability Insurance Scheme without resorting to punitive policies against other vulnerable groups

·         developing a policy with the aim of ‘closing the gap’ on life expectancy for those with mental illness

But without progressive fiscal reform  Labor could only provide the same drift towards austerity; even albeit more reluctantly.  Certainly Labor could not pose as the party of social progress; and would stand to cede further electoral ground to the Greens; while also damaging its attempts to renew and inspire its membership base.

Other issues also arose from the most recent QandA.  For instance the argument was forwarded that childcare subsidies only worsened cost pressures as private providers pocketed the money without passing on the savings.   The obvious response is that greater emphasis on public and not-for-profit childcare would help do away with those pressures. 

Similarly, it was no surprise that while the question of housing affordability was raised – and even the question of negative gearing – there was no consideration of the potential role of a big investment in public housing to promote urban consolidation (helping to address social problems like increasing transit times to work that damage families and communities); and also increase housing supply and drive down prices.

Greek Depression and the Eurozone

All these questions around austerity are also relevant for Europe, and especially for Greece. Unfortunately Germany had tried to tie an EU financial bailout package to austerity and privatisation – to the point of severely impairing the ability of Greece to repay its debts sustainably.  The Social Democrats in Coalition with the Christian Democrats in Germany need to question this; and promote a new policy. With Greek unemployment at over 25 per cent, the consequence is economic Depression, loss of tax revenues, and unnecessary and extraordinary human suffering.  For Greece and other similarly affected economies (eg: Spain), the answer is one of sustainable economic restructuring, and sustainable repayment of debts on the basis of full employment.  The wealthy must also be made to shoulder a fair part of the burden.  This must mean active industry policies around creating new export industries – that improve these nations’ balance of trade.  Hence employment could be kept high, and the improved balance of trade could aid in the repayment of debts without a downwards deflationary and recessionary spiral; or forced privatisations and the like.   By comparison austerity is a ‘double whammy’: hurting the Greek and Spanish people while also destroying their ability to repay debts.

Importantly there remain broader questions of disproportionalities in capitalist economies: the consequence of competitive pressures which drive constant renewal of the means of production.  The Euro-zone economic crisis also provides an opportunity to question neo-liberal Ideology; and indeed to question capitalism as we know it.

Anti-Semitism Resurgent

Finally, this week’s QandA also saw a question in reference to growing anti-Semitism not only in Europe but also in Australia.  Anti-Semites appear to have been emboldened by the military policies of the State of Israel in its conflicts with Hamas particularly.  In Europe Jews increasingly feel unsafe – and are targeted violently ‘simply for being Jews’.  But this turnaround has not resulted in the same degree of public consternation on the Left as has  Islamophobia.   And indeed while there is a great deal of damaging ignorance and fear with regard Islam in Australia, the Left nonetheless needs to be careful and vigilant with regard this emboldening of anti-Semitism.  A new generation is being desensitised to the past sufferings and persecution of the Jewish people; and hence some may be open to historical revisionism on the Holocaust into the future.

The targeting of Orthodox Jewish communities appears to be especially fruitful for the anti-Semites – because significant numbers have always been fearful of what is clearly at variance with the ‘mainstream’ and is ‘different’.   On the Left there are periodic qualifications to the effect that while we condemn the military and other repressive policies of the State of Israel, we do not accept hate crimes and violent attacks against Jews.  But we need to be much more consistent and forthright.  We need to confront where the current tenor of debate on the State of Israel and its policies is leading.  For genuine Leftists certainly it is not in any way our intention to legitimise anti-Semitism.  But we have a responsibility to confront the emerging Anti-Semitic trends just as forthrightly and consistently as we confront bigotry against Islamic communities.  And just as consistently as we criticise human rights abuses by the State of Israel under its current right-wing leadership.

Closing Appeal:

Our Campaign in favour of progressive reform of Labor’s platform is approaching the goal of 500 supporters on Facebook.  See HERE for our ‘model Platform’.  And See HERE to register your support. 

To help us ‘get over the line’ and maybe even go further depends on your support!  Please ‘Like’ our page at Facebook; and let all your friends and networks know about our campaign.  It is crucial to achieve a Labor Platform this year which at the very least keeps our options open on tax reform, progressive welfare reform, and extensions of the social wage.

nb:  independent socialist blogger John Passant has also written a piece on the insufficient nature of Shorten's proposed tax changes.   Readers may be interested in taking a look:

"Labor's tax avoidance crack down statement was the old pea and thimble trick. It wants to give the impression of doing something about big business tax avoidance (always a popular issue among ordinary workers) without really frightening the big business horses"See:  http://enpassant.com.au/2015/03/03/labors-crackdown-on-tax-avoidance-shorten-fiddles-and-revenue-burns/