No Iran Nuclear Deal, Tax Cuts
It is difficult to understate the importance of Israel’s “discovery” that, after in 2005 Iran signed a deal with the US (under Obama) and major European countries, it did not in fact comply with the agreed restrictions on its nuclear activity in return for the lifting of sanctions which included considerable US dollar “reserves”. The press conference by Israel PM Netanyahu and initial reactions from Trump are reported in Trump on Iran. This report appeared in my inbox at about 10 am this morning but was not mentioned on “our” ABC’s lunch time news. Another one for CEO Michelle Guthrie to explain.
Turnbull & Policy Issues Here & O’Seas
Today’s Australian runs a Letters section titled “Newspoll is not all bad news for the Prime Minister”. Indeed! Even though it includes eight leadership quality measures showing a quite sharp deterioration in Turnbull’s assessment (see yesterday’s Commentary on web), no Liberal Party MP comes forward to challenge Turnbull (partly because he or she realises the enormous task required to undo his decisions). This suggests we face with another year or so of Turnbullism.
Some Implications from Joyce’s Affair
Now that Joyce has made the right decision to resign as Leader of the National Party and hence Deputy PM, it is pertinent to attempt an interpretation of the various events and their potential implications. I don’t often agree with Paul Kelly’s analyses but his observation in an article today seems correct, viz “The entire crisis exposes again the essential problem of the Turnbull government: disastrous political management. The government was a sitting duck in the fallout from the Joyce affair. Turnbull and Joyce were never frank enough with each other even to devise a strategy. The fiasco is extraordinary” (see Kelly on Joyce’s Resignation).For Australia’s leading journalist to express such a view is an indication of the extent of the problem facing Coalition MPs.
Climate Policies Main Cause Electricity Price Rises & Anti-Abbott Leaks Emerge
Richard Morgan has again managed publication of an advertisement by his Climate Study group, this time to even a half-pager in today’s Australian and titled REALLY DANGEROUS, GLOBAL CLIMATE CHANGE, THE NEXT ICE AGE. Readers of this Commentary are familiar with the argument by the group that “ the dangerous global warming threat is …not supported either by failed climate models or evidence from past global climate experience”. But note that it also says that “past levels of CO2 were at least four times the present level without dangerous global warming” and that “the next ice age should be the most serious climate event for humanity to fear.“ Having regard to all this, it said “there is an urgent need to bring power costs down” (see full ad with title of Ice Age Possible).
Newspoll & Policy Deficiences; Budget Outlook; Melbourne Killer
Following my Commentary of 10 December my computer became unusable for over a week and I missed the opportunity of commenting on the final Newspoll for 2017 on 18 December. Despite inclinations in some media that the Coalition might improve, its TPP remained at 47/53 and, although the “Better PM” indicator lifted Turnbull’s to a poor 41 (from 39), Shorten’s also rose to 34 (from 33). Both leaders’ performances were left at a miserable 32 “Satisfied”. Various events/decisions by the Leaders seem to have cancelled each other out and the swing of 5% against the Liberals in the 16 December Bennelong election can be regarded as “normal” for a by-election . But the deficiencies in Coalition policy stances remained extant and the Coalition needed a much better than normal outcome.
How are Energy Prices Determined?
My Commentary last Sunday reported that, in a speech to the South Australian Liberal Party, Turnbull said that Labor’s approach to energy was a combination of ideology and politics, compared to the Liberal focus on economics and engineering. No doubt with the South Australian Labor Premier in mind, he classified South Australian policy as “it’s actually ideology and idiocy in equal measure”.
Budget Deficiencies Neglected in Media, Trump in Saudi Arabia
In recent Commentaries I have referred to a number of deficiencies in the Budget which have either not been referred to in the main media, including even in The Australian, or have only been given limited attention. Despite this even The Australian has not published four letters I submitted on what I believe are serious analytical deficiencies, and the AFR often couldn’t decide whether to have a letters page. The Age almost automatically refuses to publish anyone deemed to be right of centre.
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.
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.