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Wednesday, 22 July 2015

The reforms Australia needs (first part)



The reforms Australia really needs, by GDL

Those who have read The Patriots by Paul Kelly would agree that the reforms which occurred under the Hawke/Keating government were very brave, intelligent and have been a landmark in Australian politics. Paul Kelly, one of the most respected journalist in Australia, who usually makes informed and objective analysis of the policies and politics in Australia, praised these reforms in his book. Paul Kelly is now an editor at large and you can see him on Australian agenda with Peter van Olsen on Sundays on Sky News at 8.30 a.m.
For those who follow politics closely in Australia, I do not need to elaborate on these reforms, among which were: deregulation of the banking system, floating the Australia dollar, introduction of compulsory superannuation, Medicare, privatisation, etc...These reforms were not necessarily popular, but Bob and Paul had the guts to implement them as they believe they were good for the country and its future. Even the Liberals today praise these reforms as it was on these reforms that the Howard/Costello government built on to bring the country even further into the prosperous years.
Howard and Costello did not make changes to these reforms but, as we were then into a boom, they became very generous and distributed the surplus to the people by way of big tax cuts, baby bonus, generous superannuation tax concessions, easy student visas, increase migration intake and more refugees  were allowed in the country as business was also booming. It is true that when the Howard and the coalition left government the coffins were full, with a budget surplus of some 50 billions  and an infrastructure fund with billions. It is this very reserve that Kevin Rudd depleted, having no other choice (according to him!) as Australia faced the Global Financial Crisis, under what was called the Emergency policy or the Stimulus package. Money was thrown around by Rudd in forms of cheques to taxpayers,( even to those who were dead and have gone back to their countries); the school building revolution was more of an abuse by contracters who inflated the cost beyond imagination and the Insulation program (the pink bat) where amateurs, unskilled workers and indian students were involved, which later turned out to be a catastrophe causing death of 4 youngsters.
Julia Gillard, who knived Kevin Rudd and took over the country with a minority government, brought in some brave reforms like Gonski Education Review  and the Diability Program but without showing the money. It must be admitted that they were also long awaited reforms but the implementaion was not well costed not well planned. At date Gonski is till pending wheras the Disability program is being implemented piece meal.
Tony Abbott and Big Joe in their first budget went franzy about some drastic reforms under "the budget emergency policy" and because Australians could no longer live beyound their means( Joe dixit). The reforms proposed by Tony and Joe were in areas of health, (copayment) social security (cuts to pensions), childcare,  deregulation of university fees, pushing the age of retirement further, etc... The Liberals thinking that they were voted in with an overwhelming majority were expecting that these reforms would be welcomed by the polulation in the spirit of national interest and for the good of future genrations. Joe, the treasurer, argued much along these  lines: "These are the reforms the country need otherwise we would be bankrupt as Greece."
The days passed when a strong opposition built up against these proposed changes; first from the press, then from the labor opposition then for the pensioners, the university students, the working class, the sick, the mums and dads, and all those who these measures affected. On the other hand, gererosity was shown to the big end of town, to the rich women through the overgenerous maternity leave, cuts to company tax, abolition of carbon tax to big polluters.  Even if some legislations did pass through the lower house, most were blocked by a senate where the coalition do not have a majority. The backlash went crescedo and the pressure was mounting on the elected members of the coalition where some were even receiving hostile reception in the constituancies. Joe Hockey was pictured as arrogant and cruel while Tony Abbott faced the strongest opposition for his backbenchers to the point of coming close to loosing his job of leader and PM.
So in their second budget, the goverment abandonned most of their reform policies and opted for the easy way out i.e to give the people what they want to hear. Scott Morrison was instrumental in preparing public opinion on what was to be a popular budget. This 180 degrees turn around and the abandonment the proposed reforms were seen by many, among whom the respected Paul Kelly, as saying goodbye to future reforms.
 Many other credible reforms have been proposed outside the government ranks, from Ken Henry, from the productivity commission, from the Association of Super funds, from Macos, from the Business Council but all these look to be dead burried and cremated in the name of political gains. The last budget had a smell of elections in the air. In fact it is now rumoured that there could be a double disollution before parliament resumes.

Now that the reader has the background, I will enlist my proposed reforms in the next blog.Drastic reforms are also needed in Immigration, Tax, and many other areas for the good of Australia; one which I am realy passionate about is Agricultural reforms where I think the white paper has not addressed and how Australia can be the food bowl of Asia.
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See you soon.
GDL.

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