Archive for the ‘Oz Politics’ Category

Dragging the chain

October 17th, 2016 36 comments

Looking at the Abbott-Hanson government that is now taking shape behind the nominal leadership of Malcolm Turnbull, the dominant theme is one of pointless resistance to inevitable change.

The most striking instance of this is the plebiscite on equal marriage, dreamed up by Abbott as a way of dodging the issue of a Parliamentary vote. At this point, it is obvious that the whole thing is just an expensive and painful exercise in delaying the inevitable. Equal marriage is law throughout the English-speaking world, and is rapidly becoming so everywhere, as well as being supported by a majority of Australians. Even if the opponents could somehow carry the day in a plebiscite, the position couldn’t be sustained for long. And of course the Abbott group know this. As soon as Turnbull was locked into the plebiscite they started loading it up with everything they could to ensure it would never happen. Even from the most cynical viewpoint, this seems silly to me. They are going to lose in the end, and when they do, they will be wailing about freedom of conscience for cake-makers and so on. If they agreed to a Parliamentary vote now, they could make it a condition for Turnbull to include such clauses and reject any amendment. But in three years time, or whenever a parliamentary majority emerges, there will be no reason to appease people who have shown themselves to be bigots.

Then there’s climate change. Everywhere else in the world, things are moving fast. Country after country is abandoning coal, and the share of renewables is rising rapidly. Even England is generating more power from solar PV than from coal. But Australia is going backwards. Having dropped any idea of turning Direct Action into an emissions intensity scheme, Turnbull and Frydenberg have joined the science denialists at the Oz in a campaign against renewable energy. At least they have signed on to the agreement to phase out HFCs, an agreement driven by, among others, the US, Canada, China and Brazil (the EU has already legislated an early phaseout). It’s good that the government has agreed to do the minimum required for developed countries under this deal, but takes some chutzpah to say, as Frydenberg does that this makes Australia a world leader.

The only remaining item about which the government seems to care is Abbott’s vendetta against the unions, settling scores dating back to the 1980s.

Abbott and Hanson and are almost exact contemporaries of mine (as is Turnbull, though he scarcely seems to have any active role). But politically it seems to me that they have chained themselves to ways of thinking that were ossified even in John Howard’s generation.

Categories: Economics - General, Oz Politics Tags:

A small victory

October 5th, 2016 22 comments

As a social democrat in an era of market liberal dominance, I’m only rarely on the winning side of policy disputes (privatisation, where lots of privatising governments have been defeated, has been the big exception). But the Turnbull government’s decision to put an end to the worst of the rorts in for-profit vocational training is certainly a big win. Three main changes were announced
* First, for-profit providers will have to demonstrate in advance that they are capable of doing the job for which they are paid. Given the appalling record of the industry as a whole on measures like graduation rates, it seems likely that most firms will fail this test
* Second, courses are being restricted to those that have some possibility of leading to employment
* Third, fees are being capped in a three-tier scheme ($5k, $10k, and $15k) depending on the type of course and the cost of provision. That should wipe out more of the shonky providers.

I’ve been going on about this since 2012. Others like Leesa Wheelahan at Melbourne Uni have been on the case even longer. We copped plenty of flak for our pains (‘flat earther‘ was one of the kinder terms), but have now been vindicated. Of course, that doesn’t mean that the advocates of market-oriented reform will listen next time around.

Still, a win is a win. The big question now is whether the damage to the public TAFE system can be undone in time to prevent a future skills crisis.

Categories: Oz Politics Tags:

The LNP/ONP coalition government: who’s in charge?

October 3rd, 2016 49 comments

I’ve found the reaction of Malcolm Turnbull to the South Australia blackout too depressing to discuss, but I suppose it’s time to talk about it. Turnbull was depressing for three reasons

First, there was the absurdity of failing to distinguish between transmission failures (pylons destroyed by storms) and intermittency. Reading the comments of Turnbull and others, it seemed as if the reasoning process was something like “wind bad for electricity system, so must cut back on wind power”). I gave up on expecting any substantive difference between Turnbull and Abbott quite a while ago, but this silliness coming from the alleged “smartest guy in the room” was depressing.

Then there’s the substantive political content. Turnbull and Frydenberg have already any ruled out kind of carbon price, even the emissions intensity mechanism proposed by the Climate Change Authority (of which I’m a member) as an evolution of Direct Action. When doing this, Frydenberg justified his position by saying that an energy transition, presumably to renewables meant that the government’s targets were achievable. Now, even this fig leaf has been stripped away.

Finally, and worst of all, it’s one more step in the capitulation of rightwing neoliberalism to the rising tide of tribalism. In the LNP-ONP coalition I described a month or so ago, it’s now clear that One Nation with its associated faction within the government (Bernardi, Christensen, Abbott and others) has the upper hand. ONP Senator Malcolm Roberts tweeted to Turnbull that it was “Good to see you coming around to One Nation’s position“, and he was spot on. Doubtless he’ll have many more occasions for similar tweets in the future

The polls suggest that the public reaction to all this is unfavorable, but unfortunately it’s a few months too late. We’re stuck with this for another three years.

Categories: Oz Politics Tags:

Recognising racism (crosspost from Crooked Timber)

September 14th, 2016 93 comments

Back in 2004, I wrote that

There is only one real instance of political correctness in Australia today and that is that you are never, ever allowed to call anyone a racist.

This was one side of an unspoken agreement among mainstream politicians, the other being that no one would ever make a statement that was overtly and undeniably racist (this was the central content of “political correctness” in its normal usage). Both the use of overtly racist language and the use of the term “racist” in political debate put the speaker outside the Overton Window. The official debate was undertaken in terms of “dog whistle” coded appeals to racism on one side and euphemisms such as “prejudiced” or “racially charged” on the other. The peace was maintained by the fact that the political class as a whole shared a broad neoliberal[^1] consensus in which marginal differences over economic issues were central, and where social/racial issues were primarily seen as a way of motivating the base to vote the right way.

With the rapid rise of tribalism on the political right this tacit agreement is breaking down.
Read more…

Categories: Oz Politics Tags:

No iceberg, no tip

September 10th, 2016 31 comments

When Dyson Heydon delivered the report of the Royal Commmissioner into Royal Commission into Trade Union Governance and Corruption, he claimed that his findings represented “the tip of the iceberg”. At the time, I commented that, given nearly $50 million of public money and lengthy hearings with the exceptional powers of a Royal Commission, the Australian public was entitled to expect the whole iceberg.

It turns out that I was too charitable. In the months since the Commission reported, a string of the charges he recommended have been thrown out or withdrawn In fact, six months later, there has only been one conviction, resulting in a suspended sentence. The only big fish to be caught since the establishment of Heydon’s star chamber has been the Commission’s own star witness, Kathy Jackson.

And the bills keep coming in. The last budget allocated $6 million more for the AFP-Victorian Police taskforce, which currently has outstanding cases against a grand total of six unionists. By contrast, taskforce Argo in Queensland, focused on child exploitation, has a budget of $3 million.

For another contrast, here are a few of the cases of alleged wage fraud, misappropriation of worker entitlements and so on that have emerged since Heydon’s Commission was launched: 7-11 ( million underpayment), Queensland Nickel, Pizza Hut, Myers and Spotless, and lots of small employers in the agricultural sector. That’s on top of the general run of sharp practive, environmental vandalism, market rigging, and dubious practices of all kinds.

It would be absurd to deny the existence of corrupt union officials and, though it is much rarer, systemic corruption, as in the case of the Health Services Union. But the continued failure of a massively expensive, politically motivated inquisition to turn up more than a handful of cases suggests that the problems are isolated, and that the real drive is to attack unions for doing the job of representing workers.

Categories: Oz Politics Tags:

Abbott and Hanson reconcile

September 2nd, 2016 42 comments

Just as there are no permanent allies in politics, there are few if any permanent enmities, just permanent interests. The recent reconciliation between Tony Abbott and Pauline Hanson is a neat illustration of this. A decade or so ago, Abbott was the driving force behind the prosecution that saw Hanson imprisoned (wrongly, as I wrote at the time) for breaches of electoral laws. Now he is courting her support, coyly mentioning how useful it might be to a future government with an unspecified new leader.

What’s of more interest is Abbott’s observation that half a million people voted for Hanson and that “she would be a strong voice for their concerns”. (Turnbull has said something similar, though not quite as strong). The implication, presumably, is that those concerns are legitimate, and that Hanson herself is therefore an appropriate person to make deals with. Of course, we don’t know what motivates any particular voter, but Hanson has stood for racism and bigotry throughout her political career. Anyone who voted for her can be assumed, at the minimum, not to be concerned about opposing racism.

Equally relevantly, how does this square with the government’s attitude to minor parties in general, not to mention the Greens? The Greens got twice as many votes as Hanson, and I’ve never heard anyone from the LNP suggest that those voters should be treated with respect. Similarly with the other minor parties. The whole idea of the double dissolution was to clear out the minor party senators elected in 2013. That didn’t work, and the share of the minor parties rose even further. Far from celebrating this exercise of our democratic right to choose, the LNP and its cheer squad viewed this outcome as a disaster.

The only way to understand this is in terms of an emerging coalition between the LNP and One Nation, within which the Abbott-Hanson faction will drive most decisions, while Turnbull remains as a helpless puppet, holding on only because a government with a one-vote majority can’t afford to change leaders.

Categories: Oz Politics Tags:

The LNP-ONP coalition

August 31st, 2016 52 comments

After the election results came in, I posted about the implications for the Turnbull government of dealing with One Nation as if it were a normal and legitimate political party.

It seems likely, however, that Turnbull is going to treat One Nation, for the first time in Australia, as a normal political party, and to negotiate with Hanson as an equal. That would be a new low for him, and for Australia. And, sooner or later, it will come back to bit him and the LNP. For an object lesson in the dangers of courting racist votes while maintaining a claim to be non-racist, he need only look at the US Republican party,

It is already clear that this analysis fell far short of the mark. Far from being “just another minor party”, One Nation has become a semi-formal member of the LNP Coalition and part of the dominant rightwing grouping within that coalition. The two most striking developments, among many, are
* The decision of the Queensland LNP to preference One Nation ahead of Labor . This is unusual in itself, given that no election is in prospect any time soon and a radical reversal of the pre-election position of putting One Nation last[1]
* The alliance between One Nation and the LNP right to promote a change to hate speech laws, allowing racial speech that “offends” or “insults” the target.
I remain convinced that this will prove a path to disaster for the LNP in the long run, but it could do a great deal of damage to Australia while the LNP-ONP coalition remains in office.

Read more…

Categories: Oz Politics Tags:

An offer he can’t accept

August 29th, 2016 41 comments

Now that the Greens and Xenophon group have rejected the idea of a plebiscite, the only chance of getting one through is if Bill Shorten agrees. Turnbull obviously hopes to wedge Labor on this, by saying that this is the only way of getting equal marriage through the Parliament, and that there is no way he will allow a free vote on the issue. What should Shorten do?

In my (not original) view, Shorten should announce support for a binding plebiscite beginning with a bound vote of both parties. That is, the Parliament should pass legislation stating that equal marriage will come into effect immediately on receiving majority support in a plebiscite. Labor’s support should be conditional on all Coalition MPs voting for the legislation.

It’s obviously unlikely that Turnbull would accept such an offer or that he could deliver on it if he did. So, the primary effect would be to point up the bogus nature of the proposed plebiscite. But, supposing he did accept, I don’t see that this would be a disaster. There’s no fundamental principle that plebiscites are a bad way of deciding things. And the whole idea of a splecial “free vote” makes it clear that this set of issues has always been regarded as exceptional,

It’s true that the campaign over a plebiscite would be divisive. But this has been a divisive issue ever since Howard ramped it up more than a decade ago. An outright win at a plebiscite might be a good way of silencing the haters.

To repeat, though, there’s almost zero chance of a plebiscite happening on these terms. For Turnbull, it’s an offer he can’t accept.

Categories: Oz Politics Tags:

Dealing with racism

August 4th, 2016 36 comments

The Senate results are in, and Pauline Hanson’s One Nation has won four seats. That’s not a disaster in itself. The point of democracy is that everyone gets a say, including bigots and racists. One Nation members, including Hanson herself, have been elected to Parliament before now, without doing any great harm.

That’s because the major parties have, until nowl taken a principled stand against racism, putting One Nation last in their preference allocations and refusing to do deals. Tony Abbott took the fight against One Nation even further (too far in my view) pushing the prosecution of Hanson for alleged breaches of the electoral act (she was convicted and jailed, but ultimately freed on appeal).

Following the Senate election, however, it will be impossible for the government to pass legislation opposed by Labor and the Greens unless they have the support of the One Nation party. Already, the Oz is pointing out how convenient it will be for Turnbull to be able to bargain with Hanson for her four votes, as opposed to the splintered remnants of the Palmer United Party in the last Senate.

The correct response, advocated by the LNP in relation to the “tainted” votes of Craig Thomson and (in Queensland) Billy Gordon, would be to nullify One Nation votes by directing four government Senators to cast opposing votes. Of course, that’s not going to happen. Failing that, the only response that avoids complicity in racism is a refusal to have any dealings with One Nation. That is, the government while accept One Nation’s votes in favor of government legislation, they should not discuss it or modify it, let alone offer support for One Nation proposals.

Of course, the same applies to Labor on the handful of issues (such as a Royal Commission into Banking) where they might be in agreement with One Nation. If securing a majority on any particular issue involves making deals of any kind with Hanson, it would be better to lose.

It seems likely, however, that Turnbull is going to treat One Nation, for the first time in Australia, as a normal political party, and to negotiate with Hanson as an equal. That would be a new low for him, and for Australia. And, sooner or later, it will come back to bit him and the LNP. For an object lesson in the dangers of courting racist votes while maintaining a claim to be non-racist, he need only look at the US Republican party,

Read more…

Categories: Oz Politics Tags:

Should the census be compulsory?

August 2nd, 2016 71 comments

There’s been a lot of discussion about the ABS decision to retain names and addresses in the Census until 2020 rather than deleting them more rapidly as in the past. Although the details differ, there’s been a dispute of this kind before every Census I can recall. Rather than debate the details, I’d like to think about the question: should the Census be compulsory, and if not what kind of requirement should there be?

Read more…

Categories: Oz Politics Tags:

For his own self-respect, Turnbull should quit

July 29th, 2016 85 comments

As I mentioned in my last post, Turnbull’s narrow win has left us with a government standing for nothing but delaying various inevitable outcomes, including
* equal marriage;
* participation in global action on climate change; and, most notably
* Turnbull’s removal from office, whether by voters or, more likely, by his own colleagues.

The “economic plan” on which the government was supposedly elected consists of a single element, a cut in company taxes mostly deferred far enough beyond the forward estimates to dodge the question of how it will be paid for. In any case, it’s dead in the water, as, in all likelihood is the pretext for the double dissolution, the ABCC bill.

Turnbull’s lame duck status was made farcically clear by Cabinet’s non-decision on Kevin Rudd’s proposed nomination as UN Secretary General. The Right-dominated party didn’t even bother to overrule Julie Bishop (and, pretty obviously, Turnbull’s own inclination). Instead, they told Turnbull to make a “captain’s call”, while making it clear that the wrong call would be fatal.

If Turnbull had any self-respect left, he’d resign and let this crew sort out their own mess. Instead, he gets to hang on in office, at the price of being made a fool of on a daily basis.

Categories: Oz Politics Tags:

Crossing the floor

July 28th, 2016 16 comments

Back in the day, it used to be claimed as one of the glories of the Liberal and National Parties that their MPs had freedom to vote as they chose, while Labor MPs were bound by Caucus solidarity, except in the case of an explicit “conscience vote”, which has been traditionally confined to issues of (sexual) morality.

I had the impression that his freedom was now only a memory in the LNP, but this story has George Christensen threatening to cross the floor over the government’s superannuation reforms. The defeat of a key budget measure in the House of Representatives is (I would have thought) tantamount to a vote of no confidence in the government. Nevertheless, the story goes on to cite Barnaby Joyce as defending Christensen’s right to vote against the government and says that Joyce himself has crossed the floor 28 times.

I’m genuinely bemused here. If it’s OK to vote against budget policies, what can it mean to say that Liberal MPs are not free to vote as they choose on equal marriage? What is the penalty for doing so? If there is none, why don’t we see anyone willing to do so?
Read more…

Categories: Oz Politics Tags:

We don’t need another Royal Commission

July 27th, 2016 20 comments

I haven’t had much to say about Australian politics since the election. That’s because I see the Turnbull government as a nullity, which will achieve nothing however long it survives.

Turnbull’s first substantive action since the election (in fact, since the election was called) only confirms me in this view. It’s a knee-jerk reaction to a TV program, the Four Corners report documenting appalling abuse in a juvenile detention facility in the NT. Rather than considering any coherent attempt to consider and address the issues, Turnbull offered the most clichéd possible response “when in doubt, call a Royal Commission”. He made it lazier still, by proposing that the Commission focus on this single facility, and has now reluctantly agreed that it should look at the NT as a whole.

For once, I’m in agreement with the Oz. We already have a Royal Commission looking at institutional abuse of young people, which could easily have its terms extended to cover this.

More importantly, we don’t need any more Royal Commissions to establish that institutions are failing young people in trouble. The real issues are much more intractable than finding and punishing some abusers.

To start with, there’s the fact that, throughout the country, services for young people in trouble are chronically underfunded and overstretched. If Turnbull had announced that the money he was planning to give to corporations would be used to help young people instead, that would have been some genuinely decisive action. But that would be politically impossible.

Still, at least in the case of youth services, it’s obvious what needs to be done. The bigger problems of social breakdown and family crisis are much more complicated and difficult to handle. But these aren’t the kinds of question that can be handled by a press release or a Royal Commission.

Categories: Oz Politics Tags:


July 4th, 2016 75 comments

Malcolm Turnbull went to the election warning against the instability of a “hung” Parliament and a minority Labor government. It’s now clear that the most unstable outcomes within the range of possibility are those where the LNP forms a government with 76 seats (working majority of 1) 75 or 74 (presumably relying on Bob Katter and/or Nick Xenophon for confidence votes). The knives are already out for Turnbull, and there are at least three potential successors in the wings, all convinced they could do a better job than Turnbull or either of their rivals. So, any understanding Turnbull might reach with independents is liable to be overturned at any moment.

On the Labor side, the rules changes introduced by Kevin Rudd make it just about impossible to remove a sitting PM, and there is, in any case, almost no appetite for a change. So, if Labor manages 72 seats or more and forms a minority government, there’s a good chance that the government and parliament could run its full term.

Categories: Oz Politics Tags:

Polls, pundits and punters yet again

July 2nd, 2016 36 comments

It’s too late to influence anyone’s vote, and I doubt that many of my readers are in much doubt as to which way they will go, so I’ll return to one of my favorite topics, the relative predictive power of polls and betting markets. Most of the time, comparing the two is a tricky exercise, since the odds in betting markets and those implied by polls tend to converge as the election nears. Not this time, however. The polls have remained at or near 50-50 throughout the campaign, with the additional complication that 5-10 seats may be won by independents or minor parties. Yet, as of a couple of days ago, the LNP was paying $1.08 for a dollar bet, implying a winning probability of around 90 per cent.

In classical statistical terms, that means that, if the LNP loses (does not form a government) the null hypothesis that the betting odds are correct can be rejected with 90 per cent confidence, which is commonly considered good enough for social science work. Unfortunately, things don’t work the other way around. If we disregard markets, the chance of an LNP win is probably a bit above 50 per cent, so a win for the LNP wouldn’t prove anything one way or the other. For that, we’d need a case where the polls strongly predicted a winner, while the markets were even money or going the other way (the key concept here is the “power” of the test).

In an important sense, anything less than a clear LNP majority would constitute a rejection of the betting market hypothesis. If the majority is small, then the outcome will inevitably have been decided by a few thousand random votes reflecting unpredictable chance.

Anyway, we’ll see soon enough.

Categories: Oz Politics Tags:

Australia opens trade talks with Britain during election campaign?

June 30th, 2016 17 comments

A report in the UK Sun (Murdoch, but directly quoting a government minister, presumably accurately) quotes UK saying that “senior politicians in [Australia and South Korea] had called [seeking trade deals with the UK] in the past 48 hours“. If that’s true, it seems like a spectacular breach of the caretaker conventions.

From Wikipedia, the relevant part of the conventions

The Government ordinarily seeks to defer major international negotiations, or adopts observer status until the end of the caretaker period.

Categories: Oz Politics Tags:

A policy-based election, a policy-free campaign

June 28th, 2016 15 comments

The 2016 election is remarkable in two ways. First, more than at any time in the past 20 years, the two parties have presented strongly opposed policy platforms reflecting underlying ideological differences on economic policy, symbolic (bankers vs unionists) and substantive (upper income tax cuts) class issues, climate policy, equal marriage and more. On the other hand, having set out these differences, the parties have run campaigns that are (because of the eight-week duration) twice as vapid and uninspiring as usual. None of the big issues have been debated seriously.

Most notably the pretext for the double dissolution, the ABCC bill, has barely been raised. It’s obvious enough why Labor would want to avoid arguing about allegations of union corruption, whether those allegations with or without merit. On the LNP side, the $100 million handed to Dyson Heydon and his Royal Commission has so far (AFAICT) failed to produce a single conviction for any act of union corruption, while a number of prosecutions have fallen over in more or less embarrassing circumstances.

Unsurprisingly, the polls have barely moved from the deadheat position they were in at the beginning of the campaign. Perhaps more surprisingly, with a week to go, both betting markets and media pundits are uniformly convinced that the government will be returned with most predicting a narrow majority. Given the random element in any election, making a strong prediction of a narrow win is nonsensical. There are always half a dozen seats where random, unpredicted factors emerge on election night. So, if you think a narrow win is the most likely outcome, you must impute a significant probability to a narrow loss. If the government does not get a majority, this fact will suddenly be discovered with an air of profundity. If it does, the pundits and punters will congratulate themselves on their instinctive connection with the mood of (51 per cent of) the Australian people

Categories: Oz Politics Tags:

Labor and the Greens

June 19th, 2016 80 comments

The election campaign has brought into focus the long-standing problem of how Labor and the Greens should deal with each other, which became critical after the 2010 election. Both parties have made a mess of things this time around. Rather than go over that ground, I’m going to give my view on how they should work in the future.

First, both parties need to realise that they are part of the same centre-left movement. For Labor that means giving up the idea that the Greens are a temporary irritant that will go the way of the DLP, if they are abused and/or ignored long enough. For the Greens, it means abandoning Third Way rhetoric suggesting that they represent an unaligned alternative to a two-party duopoly.

In electoral terms, the starting point for both parties should be an exchange of preferences in all seats, with the LNP last. That starting point doesn’t preclude changes in the case of particularly objectionable (or particularly good) candidates, but it does rule out the kinds of negotiations we’ve seen so many times with the LNP or with conservative minor parties. It also rules out the fake piety of Green “open tickets”.

Such a policy would be good for the centre-left as a whole, but it would also benefit each of the parties to adopt it unilaterally. The alleged hardheads who negotiate these deals have repeatedly bungled them, while creating division and attracting bad publicity.

Equally important is the question of how the parties should work in Parliament. The most important is the case that emerged in 2010, with Labor needing Greens support to form a government. My reading of that episode is that both parties were harmed by the conclusion of a formal deal, and that a coalition with Green ministers would make things even worse. Instead, the Greens should support Labor on confidence votes, and negotiate on all other legislation on the merits.

An approach like this would enable the Greens to influence policy in positive ways, while not tying them to Labor policies they regard as unacceptable. For Labor, the obvious benefit is that they could form a government while maintaining a formal position of “no deals”. For the centre-left as a whole, the policy outcome would be better than that from a Labor government with a tame majority.

Categories: Oz Politics Tags:

Am I the only person …

June 18th, 2016 39 comments

… who’s totally dissatisfied with the coverage of the likely election outcome. Every article I’ve read seems to be along the lines of the following deduction

1. Labor can’t possibly win the 21 net seats it needs for an absolute majority
2. (implicit) Any outcome other than an absolute majority for one major party or the other is inconceivable.
3. Therefore, any outcome other than an LNP majority is impossible and inconceivable.

Obviously, the problem is with implicit step 2. As Inigo Montoya remarks to Vizzini, in the princess bride (a constant user of the term “inconceivable”) “You keep using that word. I do not think it means what you think it means”.

As far as I can tell, it is entirely possible that the next Parliament will include 10-12 non-major party independents (two to four Greens, up to three Xenophon, three current independents and perhaps two more). Of these, three or four would hold seats taken from the LNP, meaning that the government can only afford to lose about 10 seats to Labor before we get to a deliberative Parliament. Of the non-majors, there’s only one (Bob Katter) who could be regarded as a reasonably safe vote for the government.

Maybe the pundits have taken all this into account. But, if so, I’ve seen no evidence in what they’ve published. It’s still two-party preferred and what I’ll call the “fallacy of the excluded middle” in everything I read.

Categories: Oz Politics Tags:

A better way of collecting fines

June 18th, 2016 35 comments

Although I’ve been involved in economic policy debates for most of the last 40 years, it’s not often that I can point directly to a substantive outcome, in the sense that a policy proposal I’ve generated is implemented, or at least adopted by a major political party. There’s nothing surprising in that. There are lots of people involved in the policy process, and most successful policy proposals reflect the efforts of many people, combined in such a way that it’s hard to tell whether any one person mattered.

But I was happy to see this proposal from the Labor Party to allow state governments to collect criminal fines through the tax and welfare systems (as with HECS debts and child support), rather than jailing defaulters as at present. This was idea I put forward in a paper with Bruce Chapman, Arie Friedman and David Tait, back in 2004 (paywalled, unfortunately).

As is argued in Labor’s press release, there would be obvious improvements and cost savings, as well as the avoidance of unnecessary suffering for people who can’t afford to pay. But for me, the change in collection mechanism is of interest mainly because it makes possible more radical reforms.

Read more…

Categories: Oz Politics Tags:

Halfway horse-race commentary

June 11th, 2016 49 comments

Four weeks in, and with the two parties neck and neck, this ought to be an exciting point in the election campaign. But thanks to Turnbull’s trickiness* of calling a double dissolution requiring eight weeks of campaigning, it’s anything but. Still, it seems like a good time for some horse race commentary, partly repeating what I’ve said before.

* First, taking the horse race analogy seriously, the behavior of betting markets is as if two horses had run neck and neck in a dozen minor races, but one was still the overwhelming favorite for the big done. To spell this out, the polls have been virtually level pegging for many weeks, but the betting markets have barely moved. On past history, the two will converge by election day. If, as I expect, that means the betting odds will move towards the poll, this campaign will count as a major piece of evidence against the idea that markets are good aggregators of knowledge. And, of course, the converse is true

* Second, the likelihood of a deliberative Parliament, with neither major party having a tame majority is increasing all the time. That’s a good thing in the abstract; how good depends on whose votes turn out to be critical

* Third, the one consistent trend has been the precipitous fall in Malcolm Turnbull’s standing across a wide range of measures. Whatever happens on election day (short of a surprise LNP landslide), I don’t expect Turnbull to be PM a year from now.

* To be sure, Julia Gillard’s attempt to hold on to her leadership by calling an election eight months in advance makes Turnbull look moderate. But that was an absurdity doomed to fail, as it did.

Categories: Oz Politics Tags:

Campbell Newman: the gift that keeps on taking

May 26th, 2016 7 comments

A little while ago, it was revealed that the Queensland taxpayers were picking up the bill for Campbell Newman’s indefensible defence in a defamation action brought against him and Jarrod Bleijie (aka Boy Wonder) for accusing two Gold Coast lawyers of being bikie criminals, apparently on the sole basis that they were fulfilling the professional obligation of providing some bikies with a defence. The bill amounted to $0.5 million, and was greatly increased because Newman and Bleijie refused to mitigate the damages by apologising.

Now, thanks to the Oz, we learn how we are paying for the new State Executive Building, which Newman and then-Treasurer Tim Nicholls assured us we would get for nothing as part of a complex land deal. In reality, it turns out Newman left us on the hook for a 15-year lease at above market prices. Of course, the Oz being the Oz, this is presented as the fault of the current Labor government, which denounced the deal at the time and has continued to do so.

Categories: #Ozfail, Oz Politics Tags:

The two-party preferred fallacy

May 22nd, 2016 17 comments

Back in the 1970s, when the idea of analyzing voting and poll results in terms of the “two-party preferred vote, it was a major advance. Even though Australia has had preferential voting since (I think) 1921, it was poorly understood, to the point that when a candidate or party with plurality of votes lost on preferences, it was seen as a source of justified grievance (not helped by the fact that both the DLP and the Australian Democrats were splitoffs from a major party that aligned mostly with the other major party).

But that was in the days when Parliaments (or at least Lower Houses) were almost invariably made up solely of members of the major parties. Just as in the 1970s, the facts have changed but concepts haven’t caught up with it. Even though it’s now very common for the government to have a minority of seats, and such governments have worked very well, pundits still treat this outcome as an aberration, a “hung Parliament”. This is reflected in the continued use of the two-party preferred measure, which presumes that the last two candidates in any electorate, after preferences are distributed, will be those of the major parties. So, for example, Green votes for Adam Bandt are allocated between Labor and Liberal parties and used to forecast the election outcome, even though Bandt’s preferences will never be distributed.

There are various ways this could be fixed. The ideal one, in my view, would be to replaced “two-party preferred” with a seat-by-seat allocation of votes to “two most preferred”. That would need big samples to be reliable, but there are a variety of techniques that could be used to mitigate the problem.

The big benefit of this is that we could then see whether or not the poll was predicting an outright majority for one party. Assuming equal luck in marginal seats, a poll giving more than 50 per cent of the “two most preferred” vote to one party would imply a majority of seats for that party.

My reading is that most of the current polling yields a deliberative (or, as our pundits persist in describing it, “hung”) parliament as the central estimate, with enough error to allow either side the chance of majority. Given the likely alignment of independents and Greens a deliberative parliament would probably allow the formation of a Labor minority government. That raises the thorny question of the relationship between Labor and the Greens, which I will deal with in another post if I get time.

Categories: Oz Politics Tags:

Election open thread

May 9th, 2016 60 comments

For once I feel pretty happy about my predictions: a Labor win in a class war election. Have your own say on this or any election-related topic.

Categories: Oz Politics Tags:

Defending Australian institutions

April 27th, 2016 34 comments

The (presumably) forthcoming double dissolution will raise many issues. But most of them can be summed up as the defence of Australian institutions that have been under attack by radical extremists. I’m referring to such institutions as the ABC, CSIRO, the weekend, public education, the union movement, the fair go and our natural environment. Mention of any of these is enough to raise a derisive sneer from the radical rightwing apparatus that dominates much of Australian politics, most obviously the supporters of Tony Abbott who (ludicrously) call themselves “conservatives”. Turnbull promised something better but he is campaigning against all the institutions I’ve mentioned. It’s time to tell those who want to undermine our way of life in the name of free market ideology and rightwing tribalism where they should get off.

Categories: Oz Politics Tags:

A Royal Commission to end all (or most) Royal Commissions

April 18th, 2016 28 comments

In political terms, it’s hard to fault Labor’s call for a Royal Commission into the banking system. It’s a neat riposte to the government’s Double Dissolution trigger, the ABCC bill derived from the Royal Commission into trade union corruption, which spent $100 million to announce that it had discovered a handful of cases of petty corruption*, claimed to be “the tip of the iceberg”. (That was one of a string of Royal Commissions set up as political vendettas by the Abbott government, none of which found anything useful.) The hypocrisy of this effort, when we are daily bombarded with evidence of corruption in business, finance and the LNP itself is obvious, and the proposed Commission provides a convenient political hook. And doubtless there will be plenty of evidence of individual wrongdoing, real or alleged.

However, I don’t think this proposed Commission will be any more useful, in practice, than Abbott’s. The problem with the banks is not so much breaches of the rules but the rules themselves. What we need is another inquiry which, unlike the Campbell, Wallis and Murray inquiries is not run by advocates of financial deregulation.

The Royal Commission we should really have is one into Abbott’s Royal Commissions, taking the same nakedly political approach as those Commissions did. The Commissioners, the counsel assisting and the government ministers who called the Commissions should be questioned on the political understandings with which they approached the job, the waste of public money involved. With luck, that would deter any future use of Royal Commissions as partisan vendettas, and leave them to inquire into real issues of public concern, where the powers of Royal Commissions really are necessary.

Finally an observation and a question: Having been critical of the TU Royal Commission, I’ve tried to be consistent in the prediction that this one will be similarly ineffectual. Did any of those now arguing that we don’t need a Royal Commission into banking make the same observation about TURC?

* As far as I know, no union offical has yet been convicted of a corruption offence as a result of the Commission’s work, while at least four prosecutions have failed or been dropped. My guess is that the total number of convictions will end up below 10, and the total amount of money involved not much more than a million dollars. That’s a pretty appalling return for $100 million of public funds that could have been used to protect the community against armed robbers and burglars, not to mention white collar criminals.

Categories: Economic policy, Oz Politics Tags:

Cruising for a bruising

April 15th, 2016 19 comments

Rather inconveniently for the government, it had no sooner dismissed calls for more tax revenue from the usual lefty suspects (including me), when Moody’s came out with a warning that the much-loved AAA credit rating couldn’t be saved with expenditure cuts alone*.

Scott Morrison came back with a line that must have sounded like a good idea at the time. On the one hand “of course there will be revenue measures in the budget”. But, unlike Labor “additional revenue would be applied to reducing the tax burden in other parts of the economy”

That sounds good if you say it quickly enough. But let’s put some specifics in there. It seems clear that “revenue measures” means higher tobacco taxes. and “reducing the tax burden in other parts of the economy” means cuts in the company tax rate and the budget repair levy. So, Morrison’s budget message is

we’re going to tax smokers to fund cuts in company tax and tax relief for top income earners.

Good luck with that.

Of course, Labor is also planning higher tobacco taxes. But they will be able to say that they are using the revenue to fund better health services. And, of course, Labor has been consistent while the tobacco hike will be another backflip for the LNP (unless they get cold feet and do a double backflip, as seems entirely possible).

I’ve given up betting on elections after being unable to collect my winnings when Intrade collapsed a few years back. But for those so inclined, I’d recommend a look at Sportsbet, who are still offering 3.5 to 1 against Labor supplying the next PM (minor aside: most scenarios for so-called “hung” parliaments would lead to this outcome)

* I’m not a believer in ratings agencies, as I’ve said many times, and I don’t think a AAA rating is particularly meaningful. However, the core input to the rating is an estimate of future budget balance, so it’s not all that surprising that Moody’s, looking at the same data, have reached the same conclusion as I did.

Categories: Oz Politics Tags:

The Oz makes the case for higher taxes

April 14th, 2016 13 comments

A couple of days ago, I was one of fifty signatories to a letter opposing the proposed cut in company tax rate and rejecting the general idea that Australia needs lower taxes. We got excellent coverage from the ABC, Fairfax papers and so on. But by far the most extensive was from The Australian. I counted at least four stories all with a prominent run on the website

* A straight new story, though of course replete with phrases like “the left wing establishment”
* The IPA attacking the signatories as the “fatuous fifty”
* Shorten also attacking the company tax cut as a recipe for “mayhem”
* A front page piece saying a tax increase is a lazy way of solving our problems

Not so long ago, the Oz would have ignored a statement like this (or stuck it in a short story on the inside pages) with the plausible justification that it’s just a bunch of lefties saying what lefties usually say. The fact that they felt the need to reply over and over is revealing, in two ways.

Read more…

A class war election

April 12th, 2016 44 comments

Until quite recently, any discussion of income inequality in Australia was met by howls of “class war” from the political right. Particularly under Abbott, the right wanted to fight on culture war issues, while treating economic policy as a matter of competent management, in which the conservative parties were assumed, by default, to be superior.

Suddenly, however, it appears we are going to have a class war election, largely because of the choices made by the Turnbull government.
Read more…

Categories: Oz Politics Tags:

A deliberative Parliament

April 11th, 2016 17 comments

With the ebbing of Turnbull triumphalism, it’s become evident that the forthcoming election may produce, as in 2010, a House of Represenatives in which neither Labor nor the LNP has an absolute majority. Such an outcome has been common at the state level for some time, and is the norm in upper house elections based on some form of proportional representation. It has proved entirely consistent with stable governments, productive legislation and full-term Parliaments.

Yet commentators persist in calling this a “hung Parliament”, at least when it appears in the lower house. By analogy with a “hung jury” we might suppose a “hung Parliament” is one that proves incapable of reaching a verdict on who should form a government or what legislation should be passed. We have plenty of experience to show that this is not the case.

If we take the jury analogy seriously, it’s worth extending it to the case where the Parliament contains a majority committed to obeying whatever order it receives from the Prime Minister of the day (or, perhaps, the Cabinet). We have plenty of terms for juries and courts that work in this way, none of them complimentary: ‘packed jury’, ‘kangaroo court’, ‘frame up’ and so on.

Those are unduly harsh metaphors when applied to majority governments. But the experience of Queensland, the only Australian jurisdiction without an (invariably ‘hung’) upper house, suggests to me that the cause of good government is greatly enhanced when Premiers cannot rely on a pliant majority to push through whatever laws they like. Admittedly, we’ve had some really good independents, most notably Peter Wellington. But even independents I would never want in government have proved useful as a check on the overweening power of the executives.

So, in the cause of linguistic improvement, I offer the term ‘deliberative Parliament’ for a legislature that actually considers legislation rather than casting votes as ordered by the leader of the day.

Categories: Oz Politics Tags: