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.
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.
Trump’s Defence Policy
Most commentators, including Turnbull, welcomed or approved Trump’s decision to bomb a Syrian airport from where chemical bombs are alleged to have been dumped onthe rebel held Syrian town of Khan Sheikhun. Although some claim there is no proof that Syrian President Assad made the decision to bomb, the only alternative deliverer must have been his Russian ally. Hence, one way or another the Assad government of Syria implemented or approved the bombing of the Syrian town.
Turnbull’s Polling & Policies
The lead up to the Budget (on Tues 9 May) is normally pretty quiet except for advance leaks by the government on what we might expect – or not. So far the main possibility being foreshadowed is action to reduce housing “affordability”, which sounds like a worrying move by a government which should be reducing expenditure. But as it happens, some other issues have emerged since Parliament had the break after two weeks in Canberra.
Turnbull’s Polling & Developments in Climate Policy
The Newspoll published yesterday showed a return of the Coalition to the rating of 47/53 after the upward blip to 48/52 in mid March. Turnbull’s net satisfaction rate continued to slide, now to the worst since becoming PM, while Shorten’s rose to be a fraction above Turnbull’s (the graph below tells a story in itself). The only poll now favouring Turnbull is the Better PM one but even there his rating fell while Shorten’s improved to 32/41. As The Australian’s Political Editor has pointed out, “The message is that voters are in no mood to reward Turnbull for making progress on his old agenda. Why should they, if they think he is heading in the wrong direction? For any other prime minister, the solution would be a bold new direction on a social or economic issue, but this is fraught with danger for Turnbull … The alarms are sounding for the entire Coalition, not just the Prime Minister. Turnbull cannot win from making incremental progress alone. He will have to do something far more dramatic”.
Turnbull at Vic Council & US Congress Science Committee
Today’s Sunday Age interprets on its front page Turnbull’s address yesterday to the Victorian State Council as a warning to the Liberal Party to avoid moving to the right and to recognise that it should “build from the centre, bringing people together” ( see attached). As I have suggested previously, the problem is that the centre has moved to the right both here and overseas and, although Turnbull has very recently made conservative noises, it is difficult to forget his widely regarded left of centre position. Interestingly, President Michael Kroger told the Council meeting that the “Liberal Party has run too many weak and soft campaigns against the Labor Party”. That should have been Turnbull’s “message”.
What Energy Crisis?
Today’s Australian has devoted its entire Letters section to energy policy and the use of renewable as a part of climate change policy. My letter is published below and other letters are attached and are in a similar critical vein. They include one from Professor O’Brien (Adjunct to WA University), a physicist who has long been a critic of the so-called “consensus” on climate change - one of those many academics who do not subscribe to the “group” view which has prevailed for the last 30 or so years and whose views have been swallowed hook line and sinker by many political and business leaders.