Criticism of IMF Report Justified, Important to Maximise Use of Coal as Energy Source
I have no doubt that Terry McCrann does not want to be labelled a spokesman for Donald T. But after his conclusion yesterday that, in the wake of what he described as “the Trump-quake”, Turnbull now has a last chance to pull his socks up, Terry has again pursued one of Trump’s favourite targets viz international institutions. On this occasion it is the International Monetary Fund and the report by its “mission” to Australia to report on the Australian economy and the economic policy being pursued by the Turnbull government.
Abetz and other Speakers at HRNicholls Dinner
On Friday evening I attended the annual dinner of the HR Nicholls Society and gave the vote of thanks to the speaker, Senator Eric Abetz. His address was highlighted by The Weekend Australian giving it the front page lead story (see below) and the SMH also reported it, but not The Age. Abetz, who was dropped by Turnbull from ministerial ranks (he was Minister for Employment under PM Abbott) and from being Coalition leader in the Senate, used the HRN dinner as an opportunity to criticise Turnbull for failing to make reform of workplace relations a major policy issue at the election on 2 July. He pointed out that, with the ammunition provided by two major reports (the Heydon Royal Commission and the Productivity Commission), a policy advocating further reform had been a “gimme” and he noted that “not even the unlegislated elements of the 2013 election policy were taken forward such as changes to right of entry, transfer of business and individual flexibility arrangements”.
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.
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).
Election Proposals Omit Structural Reforms Too
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?
Sloan on Budget Outlook
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.
Can Union Power be Diminished?
Like me, Mick Jagger was once a student at the London School of Economics (not long after I left there). He once wrote “you can’t always get what you want, but if you try sometimes, you might find you get what you need” (I would have said “if you keep trying”). My point here is that there are at last some signs that increasing numbers, even inside the ABC and other leftist media , are accepting that there is a real need to do something about the quasi-monopoly power unions have acquired. But can Tony Abbott recover his polling by increasing his recent attack on the Labor-union connection and identifying the problems with existing workplace relations?