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June 25, 2010
The dust has settled in Canberra, Parliament has taken a longish break and the Canberra Press Gallery is beavering away exploring every nuance of the mechanisms behind, and the reasons for, the Labor regicide.
The justification that Rudd Labor had "lost its way" provides fertile ground for interpretation, especially when the coup was organized by the power brokers and machine men of the Right faction (in Victoria, NSW and SA). Their poll driven agenda is a much tougher line on asylum seekers, a more low key approach to climate change, and rolling over on the mining tax.
Gillard's style will be different from Rudd's --more team play, common courtesy, consultation and negotiation. More chairperson of the Board than a dictatorial CEO.
If Rudd's execution was about the ALP retaining power, then the question comes: Can Gillard and Swan turn Labor's electoral slide around? They need to raise the ALP's primary vote and that can't be done on personal popularity, even if great expectations and high hopes rest on Gillard's shoulders.
Policy issues will have to come into play to raise the ALP's primary vote. Is there policy substance and direction? Is there a reform direction?
Can Gillard, Swan and Ferguson cut a deal with the miners? Gillard will presene herself asa listening and consultative leader. If they can cut a deal, then Abbott has lost his favourite punching bag, and is in danger of losing his key issue, the mining tax. The coalition has gone out on a limb for the big miners--- no new tax on miners (its gouging and ripoff) because the miners stand for risk, enterprise and incentive and are necessary to develop this country. Do the miners actually want to negotiate and compromise?
Mentioning the phrase 'we need to price carbon' in a never never future will not be enough for green orientated voters to return to Labor. Some kind of policy is needed, given Labor's history of being captured by the coal industry and heavy polluters on the emission trading scheme. The latter have no interest at all in paying for their carbon emissions.
Update
Stephen Bartholomeusz in Business Spectator says:
Gillard can’t ditch the tax and start again, nor concede the key changes to the tax demanded by the sector – in particular its retrospective application to past investment – without destroying Swan, which isn’t going to happen. Which suggests that, however genuine Gillard might be about wanting to negotiate, she actually doesn’t have any meaningful room to manoeuvre on the issues that really matter....Unless Gillard is prepared to negotiate both the headline rate and the retrospective nature of the tax she is boxed in by the political framework and the continuing presence of Swan.
Her desire to negotiate a compromise might be genuine but the practical realities of her position make that near-impossible.
Update 2
Leaks to the press (The Australian Financial Review) suggest that the federal government has approved a compromise offer on the controversial resource super profits tax (RSPT) and presented the plan to key mining firms for their feedback.The offer would reduce the impact of the RSPT by offering some exemptions on existing projects, as well as raising the level when the tax cuts in from the proposed six per cent. It would see an immediate write-off for new capital expenditure and allow for the taxing point to be set as close as possible to extraction.
Although the miners continue to say that the proposed mining tax threatens more than $23 billion in investment no major project has yet been scrapped and several have actually been advanced. The miners continue to threaten a restart of their campaign against the Gillard Government if they don't get what they want in a couple of weeks.
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was Rudd the problem or was it Labor's policies? If it was Rudd (as many suggest), then does swapping Gillard for Rudd also address the flaws in Labor's policies and policy delivery?