On the subject of...

Australian Economy

18
Sep
2016

Budget (?) “Wins”, Immigration Policy

Although we had a long election campaign during which Parliament was not sitting, it now has another “break” until 10 October during which Turnbull and two other ministers (including Immigration Minister Dutton) will travel to the US. In this coming week Turnbull is scheduled to attend what his press release describes as “the biggest summit on the international calendar” - the UN General Assembly Leaders’ Week, which will include “summits on refugees and migration” hosted by Ban Ki-moon and a smaller one arranged by Obama. But, while discussions at UN General Assemblies rarely produce meaningful policies for use back home, the risk is that Turnbull may relax our refugees policy and, as Abbott did, agree to take more refugees. Given the tightening of border controls by European countries, and increasing concern about terrorists being amongst asylum seekers, Australia’s existing policy would seem justifiable.
6
Sep
2016

Turnbull & G20, Iran Threat, Andrews Poll Down; Obama’s Dr on Hilary

While Turnbull himself could not be blamed for the absence of three ministers and other Coalition MPs at the end of Thursday’s Reps session, he must have failed to emphasise to the whips and others the importance of attending the first session after an election result which he had publicised as providing a majority. The absence of 10 Coalition MPs allowed Labor (which had obviously planned to take advantage of any absences) to indicate that this is another example of Turnbull of mis-management. And this theme has been taken up in the media too, including one suggestion that Turnbull lacks a “wingman” to support him in Parliament. Perhaps the failure to sack the Chief Whip, Pyne, illustrates the problem.
31
Aug
2016

Turnbull Satisfies Electorate Less than Shorten, Enterprise Bargaining, Global Warming, Presidential Candidates’ Health

The first Newspoll since the election on July 2 shows only a slight fall in the Coalition’s TPP from 50.4 per cent to 50 per cent but a large drop in Turnbull’s net satisfaction ratio to the point where it is now less than Shorten’s (minus 18 cf minus 14). Late last year Turnbull was plus 38 while Shorten was minus 38. While Turnbull still has the Better PM rating, the gap has narrowed sharply. Importantly, the poll also shows that “Reducing debt and deficit” are strongly supported by both Coalition and Labor voters, almost as strongly as “Maintain border security”.
24
Aug
2016

Budget Savings, Protecting Voluntary Agencies, Clinton’s Health, Syrian War

With the imminent resumption of Parliament some warming-up is occurring. In The AustralianFinance Minister Cormann is reported as making new claims that the Coalition has already made large budget savings ($221bn over 10 years locked in) and that more could be made with Labor support. It appears Cormann refers to possible savings additional to those proposed by Turnbull to implement a miniscule $6.5 billion in budget savings said to have been agreed by Labor. But why hasn’t the Coalition detailed some possible additional savings?
19
Aug
2016

GST Shares, Budget Strategy, NT Royal Cn

In my Commentary on Tuesday I suggested that Turnbull’s announcement at the WA Liberal Party’s conference held last weekend that each State would now be guaranteed a minimum share of GST revenue was, once again, lacking in any serious analysis or any checking first even with senior ministers, let alone other states. It has subsequently emerged that the new arrangements, the calculation of which has not been stated, are first to be discussed with other states and that it is unclear when they might start (although WA Premier Barnett who has an election next March says he thought it would be this calendar year). The Australian also published an analysis on the assumption that the minimum share would likely be 75% and that WA (now receiving only 30%) might not receive any future benefit from any such arrangement. My letter to the Australian on the issue was published yesterday with four others (see GST Shares).
5
Aug
2016

Outcome in Senate, NT Royal Cn, Rudd, Bank Interest Rates, US Defence Policy, CFMEU Behaviour

Since the election on July 2, Turnbull has continued his record of mistaken decisions as to both substance and process, plus a failure to indicate what substantive policies will be pursued other than the legislation already foreshadowed to restore the Australian Building and Construction Commission and to make unions more accountable under the registered organisation arrangements. But unless the (recounted) loss of Herbet by 37 votes is successfully challenged and another election held there (which seems too risky a venture), he has a majority of only one in the Reps and a deficit of 16 in the Senate.This means that if the two houses sit together he would need 9 votes from cross benchers (who include no less than 4 from One Nation and 3 from Xenophon) to obtain a majority to pass that legislation, which is a possibility but clearly uncertain. It is of some importance to climate change and extremist terrorist policy that One Nation ended up with 4 Senate seats, including one held by a sceptic (Malcolm Roberts) on global warming who is well versed in the data.
6
Jul
2016

McCrann on Turnbull

Whether the Coalition will have enough seats to form government remains unclear and it is by no means certain that it will be able to remain in government. But one or two certainties are clear. Most importantly, the governing of Australia will be much more difficult, perhaps as difficult as it was under Whitlam when the initial budget was put together by Whitlam and his Deputy on their own. The Turnbull government has already introduced a budget but that has still be considered by Parliament. Labor will doubtless argue that Turnbull’s bad election result means that this budget needs to be revised. As Terry McCrann points out below, any budget now needs to alsotake account of the likely reduction in Australia’s AAA credit rating.
5
Jul
2016

Election Result & Muslim Leader on Homosexuality

Whatever the outcome of the election, the 2.8% swing against the Coalition, and thenow very real possibility that it will be unable to form government on its own, is clearly a vote of no confidence in Turnbull and the policies he presented since taking-over from Abbott – or rather the lack of them. Those who were characterised as Del-Cons, which included myself, correctly identified that Turnbull is at heart a big government interventionist who lacks the capacity to adopt policies which would encourage private enterprise and should not be a leader of the Liberal Party. His attempt to persuade the electorate that he had an “economic plan” was unconvincing and wrongly used the word “plan”. Concern remains that a government led by him would aggressively pursue policies supported by him in the past, such as global warming, but not outlined before or during the election campaign.
29
Jun
2016

Some Important Implications of Brexit, Failures in Interpreting Muslim Religion

David Cameron has been British PM since May 2010 and won a second term in May 2015 with an all Conservative government (his first government was a Coalition with the Liberal Democrats). That second term was won with a much larger majority (331-232) than predicted by polls, probably because the polls under-estimated the (then) unpopular proposals by Labour Leader Millibrand (now replaced by the extremist Corbyn!). An independent inquiry into the polling suggested that the polling methods resulted in conservative voters being under-represented. The 72.7% who voted on the EU referendum exceeded the proportion in the May 2015 election (66.4%) and the 1975 European referendum’s 64.62%. Reports indicate that those who voted to leave appear to have comprised a high proportion of lower-middle income groups.