The Weekend Australian is replete with discussion about Turnbull’s incapacity to govern and about possible changes in leadership. The editorial below suggests “Mr Abbott’s urgings for the Prime Minister to take up the positive, economic liberation arguments on penalty rates and to deliver reform on 18C are wise” and, rather than rejecting them, Turnbull should “lead the debate rather than aspire to acting as a chief national conciliator hoping to broker consensus on every contentious issue”. As it concludes, “the markets, the public and Mr Turnbull’s own culpable colleagues are running out of patience”.
My previous Commentary on 18 Jan drew attention to the quite wide differences in the increase in global land temperature since 1979 between official government agencies and the satellite operated by the University of Alabama. I indicated that there should be no significant difference between the official agencies and the satellite increases and suggested that the higher increase published by the official agencies reflected significant errors by them. The comparative figures indicated that these errors could amount to 0.4C of the total increase of about 0.8C accepted by the IPCC et al since 1900. I noted also that the “natural” increase during the Pacific Decadal Oscillation from the late 1970s to around 2000 was about 0.4C and that, taking account also of errors, this means there could well have been little or no increase in global land temperature since 1900 due to human activity.
The outcome of the imminent last two weeks of Parliament will set the scene for the Christmas- New Year period during which changes in our political leaders may be foreshadowed or possibly even occur. The most prominent change in Australia in this period was probably the overthrow of Bob Hawke as leader and PM by Paul Keating on 19 December 1991. This occurred after a long period of rivalry between the two Labor leaders. The election of Trump as President and the raising of expectation of changes in government policies around the western worldhas also set the scene for possible leadership changes around the world.
Today’s front page of the Australian Financial Review carries the composite photo below of Malcolm Turnbull seated on a couch with Bill Shorten and Nick Xenophon and Pauline Hanson standing at the back. The accompanying (very) glossy magazine purports to present them as four of those in Power in Australia. In its subsequent pages the magazine includes many others, along with, surprisingly, Muslim Waleed Aly. President Obama is added for good measure, possibly because it is the last chance to do so.
As the end of the first year of Turnbull’s Prime Ministerialism draws nigh, assessments of his performance are appearing in the media from various quarters. The Weekend Australian’s lead article reports former Treasurer Peter Costello as not directly criticising Turnbull but as calling on the Liberal Party to “explain better its agenda, motivations and priorities” and to “smash the high-tax cheer squad”. The AFR has even published a survey of the views of 50 people regarding his achievements and, in the range from A to F, has awarded him only a D+ (see attached Results Turnbull’s AFR Survey). In fact, almost all commentators in the media (including journalists themselves) have reservations about Turnbull’s contribution to the political debate and to where Australia is or should be heading. While they tend to focus on how he has been performing recently against Shorten or on specific issues, rather than the longer term and broader perspective, this suggests that there may not be a ready recovery of Turnbull’s personal polling in the current session of Parliament. This despite Shorten’s poor handling of the contradiction of Labor’s foreign policy in statements made by Shadow Minister Senator Dastyari.
My Commentary of 4 August examined Turnbull’s decisions in the period since the July 2 election when there was an opportunity to elaborate on policies neglected during the election. I concluded there was in reality a continuation of bad judgements as to both substance and process in the limited policies announced. Yesterday John Stone wrote Del-Con Notes in The Spectator surveying the election results. He described Turnbull “as a supreme narcissist”, a term seemingly being used overseas to characterise a culture seen by some as having developed around people in various walks of life who have excessive self-esteem (see discussion in an article not available digitally “Ego is not a dirty word”, Weekend AFR 6-7 Aug 2016)). Applied to Turnbull it suggests a political leader who has a limited interest in other peoples’ views or even that his own decisions turn out to be wrong. Stone concludes that “ sooner or later Turnbull will have to go” (see Spectator Australia article).
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.
My Commentary sent out late Sunday (thanks to those who sent compliments) drew particular attention to the article by Judith Sloan on the Federal budget and her conclusion that “Labor is completely out of control fiscally; the Coalition is slightly better but no cigar”. This followed other strong critiques, including by John Stone. Meantime we have Turnbull and Shorten buying votes as they go from electorate to electorate and adding up to $100mn a day to budget spending. What does the odd million matter?
Recipients of my recent Commentaries will be well aware of my expressions of concern about the budget outlook in the last couple of weeks. Friday’s Commentary expressed additional concerns after the publication by the heads of Treasury and Finance in PEFO of their concerns, albeit expressed diplomatically (at the same time it was reported that Treasury head Fraser would resign after the election: he will be a serious loss and his successor under either party will find him difficult to follow). I also drew attention to the Spectator Article by John Stone, which not only savaged the Coalition’s budget but pointed out that neither Labor nor “independent” journalist commentators have (with one or two exceptions) drawn attention to the seriousness of the economic problem Australia now faces. I concluded by suggesting that the Coalition should acknowledge the problem and indicate that after the election it will start a program of reducing spending by at least 2% of GDP over the next three years.
As expected, today’s publication by Treasury and Finance of updated fiscal and economic estimates and projections – the so called PEFO published under the Charter Of Budget Honesty - do not show any significant change since the Budget of 3 May. I have include the most important sections of PEFO here.