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February 24, 2006
Whilst Premier Rann in SA looks ever more presidential in the TV adverts currently flooding the state's media flows, the Lemma ---oops Iemma ---Government in NSW looks increasingly embattled, as its budget surplus declines and turns into a deficit. The property boom is over.and unemployment is rising. The government is talking up investment and jobs, cutting back on the public service, overhauling the state bureaucracy by creating super departments, and giving modest assistance to business. They are 'open for business ' is the spin.
Will the attempt to take control of spending by bringing it back in line with revenue increases be enough to save the necks of the ALP Right?
Alan Moir
They have around a year to turn things around with their cost cutting. How does cost cutting ---as opposed to productivity improvements---increase economic growth?
The message that the ALP wants to send out is that serious about reform. But their political machine, which is run by a few machine men (factional chiefs and union bosses), is geared to the status quo and retaining power. So we cannot expect much by way of innovative policy. As Mark Latham observed in the Latham Diaries (p.192) the the factional heavies in the machine culture are more concerned about the tactics to get through the next power play than serious policy around water, health, transport.
You could say that the Carr NSW government has mismanged the period of economic growth since spending was running at 6% a year whilst revenue increases were running at 5% a year. That's a negative of around $400 million a year. You can also say that there will be no real reform for some time.
What we have at the moment is a government in a panic as it looks at the general election next March.
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Ten years is enough for any government. Australia is over-ripe for some vicious electoral blood-letting.