Budget Doubts Enhanced, Threats to Trump
Both main sides continue to debate the second budget of the Turnbull government, with the most interesting development being the view expressed by Albanese that Labor should welcome the Coalition’s budget measures! But there is no indication from most Commentators that initial views have changed and that an improvement in the Coalition’s polling is likely to occur. In fact, doubts about the achievement of estimated budget outcomes have increased following the publication of a much lower growth in wages than assumed in the 2017-18 Budget estimates (1.9% cf 2.5%), a further fall in consumer confidence (the sixth successive occasion when pessimists have outweighed optimists), and a warning from credit agency S&P that while it kept Australia’s credit rating at AAA it also warned that it is at risk of a downside over the next two years. The improvement in the latest employment survey may help if it is sustained. But doubts continue about the survey’s reliability.
Nonsense Claims that More Revenue Needed
Yesterday’s Commentary referred to three things which stood out from the post Budget polling – Labor remains 6 percentage points ahead, the very low net satisfaction ratios of both leaders suggest that voters want a change of leaders, and only 19% feel better off after the budget. Today we learn that, in “selling the budget” yesterday, Turnbull claimed that Newspoll showed there is majority support for the levy on the banks and the increase in the Medicare levy. He also claimed that, because the Senate has blocked spending cuts, “we obviously need to raise more revenue” (see Turnbull Defends Budget). This is absolute balderdash.
Polling Result for Budget
There are three things which stand out from today’s polling:
Both Newspoll and the Fairfax/Ipso poll show Labor the same distance ahead of the Coalition with Labor holding a lead of 6 percentage points on a TPP basis (53/47) in each poll;
Neither leader has a favourable net satisfaction ratio in Newspoll, with Turnbull on 33/53 and Shorten on a 32/54 satisfied to dissatisfied ratios;
The total who feel worse off after the budget (45%) is less than after the 2014 budget under Abbott (69%) in Newspoll. But more feel worse off than after each of the last three years of Labor’s budgets. Note that only 19% feel better off and 36% are uncommitted after this year’s budget. The age group which feels worst off after this year’s budget is the 35-49ers, with over 50s feeling least worse off ;
Why Coalition Presented Labor Budget, Why Trump Sacked Comey
In his budget reply Shorten rightly claimed that the Turnbull government did not present a Labor budget: he said this because his presentation in fact took the Turnbull budget further down the socialist road (see attached Shorten’s Budget Reply). Although no estimates were given of Shorten’s Labor budget, there can be no doubt that it would mean higher spending and taxes. Those taxes would moreover be concentrated on alleged “high” income groups and would extend to emissions of CO2. In a sense, Turnbull provided Shorten with an opportunity to take a step further.
Commonwealth Budget
It is difficult to find much in the way of compliments for the 2017-18 estimated budget presented by the Turnbull government, or for the budget projections (not estimates) for the following three years. It appears, rather, to involve the abandonment of the policy of “smaller government”, but without saying so. Indeed it is difficult to say what the Liberal Party under Turnbull now stands for. Various remarks made in public by Turnbull and Scott Morrison left something to be desired in regard to the functioning of the economy, particularly in regard to justifying (sic) the levy on major banks, and presenting an encouraging message. Several commentators have suggested that the rationale is to adopt policies similar to those pursued by Labor in the hope that this will improve the Coalition’s polling. Shorten has rejected this and will doubtless have more to say about it in his reply on Thursday evening (but he will likely retain the deficit levy on higher income groups, which the Coalition says it will abolish as promised ).
Turnbull Trump Meeting, French Election & Review of Climate Change Policy
It is always difficult to interpret meetings between two leaders of countries and many words have been written about Malcolm Turnbull’s meeting with President Trump. In this instance the interpretation is made more difficult than usual because most of the meeting was in public and the two leaders were not inclined to be critical of each other. Perhaps the most important outcome (sic) is that it confirmed the importance for Australia of the US alliance. That Turnbull showed he could handle Trump should ceteris paribus also help his polling.
Short Time Span for Replacement of Turnbull, McCitrick on Paris Agreement, Australian Defence Against Nuclear Missiles
Trump’s agreement to meet with Turnbull this coming week (an appointment which appears to have taken longer than expected) provides an opportunity to confirm the importance of the US alliance in the context of celebrating the vital role played by the US in the defeat of the Japanese in the Coral Sea battle 75 years ago in 1942 (see press release on meeting). It also means Turnbull will obtain more photo-ops. He will doubtless also attempt to convey to the Australian electorate that his meeting with Trump reflects another acknowledgment by him of the view of right-wingers.
Slight Improvement in Newspoll, March for Science
Today’s Newspoll has improved the Coalition’s polling from 47/53 to 48/52 on a TPP basis but this still leaves it in an unwinnable position and, as Crowe points out, there is no improvement in the primary vote of 36 (Labor 35). Further, as Andrew Bolt argues, unless the continued division between Turnbull and Abbott is overcome the Coalition is unlikely to restore its polling to a winnable position. Bolt’s solution is for Turnbull to go. Note also that, while ticking the citizen tests, Bolt seeks a more meaningful approach by attacking the groups which portray an incorrect picture of Australia (see attachments).
Turnbull & Dutton on Citizenship 20 Apr
The decision by Turnbull and Dutton to strengthen tests required to be passed by applicants for Australian citizenship is clearly designed in part to improve Coalition polling and to attempt to convince the electorate that Turnbull himself has adopted a more conservative approach, both generally and on immigration policy. Whether this happens in next Monday’s Newspoll (when my wife and I will be driving to Canberra for the music festival in which my daughter is playing) will be of some interest. Shorten has not yet given any substantive response.
Controlling Islamic Extremism & Handling N Korea
As mentioned in yesterday’s Commentary, the publication in The Australian of reports on the treatment of wives by Muslim men prompted me to circulate a Gatehouse report on various incidents involving Muslims in March in the UK. I also sent a letter to The Australian suggesting “the wives issue” raised a question about allowing the continued operation of Hitzb ut-Tahrir in Australia. That letter is below with two others on the issue, albeit one of which suggests that it would be discriminatory to point the finger at any particular group, including Muslims, which uses violence against women.