Quiggin and Catallaxy vs Newman and Bligh

I’ve had a few responses to my recent report on the history of electricity privatisation and market reform in Australia. There’s one here from Lynnette Molyneux, who’s with another research group in my own school, and one from the Electricity Supply Association (doesn’t seem to be online, I’ll post a link shortly). Most interestingly, one from Sinclair Davidson at Catallaxy[1] who starts with a couple of points of agreement.

A couple of thing where we agree:

Economists, at least when they were thinking clearly and speaking honestly, were as one in rejecting the most popular political reasons for privatisation: as source of cash for governments or a way of financing desired public investments without incurring public debt.

I made a similar argument recently in New Zealand.

Then he is critical of Public-Private Partnerships. I am too – albeit for different reasons. All too often, I suspect, they are financing mechanisms looking for infrastructure to finance, as opposed to being a positive NPV infrastructure project looking for financing.

before going on to quibbles and more substantive criticism.

I’ll try to present a proper rejoinder to the criticisms later, but for now I want to observe the striking fact that the point on which Davidson and I, and (AFAICT) all Australian economists, agree is also the focus of agreement between Campbell Newman and his predecessor, Anna Bligh, along with Peter Costello, Barry O’Farrell, and the great majority of Australian politicians[2]. The only problem is that the politicians agree on a view exactly opposite to that of the economists

Read More »

A conversation with Arthur Gietzelt

There’s been quite a lot of discussion about the political views of former Senator Arthur Gietzelt, who died recently at the age of 93, and in particular about claims[1] that he was a secret member of the Communist Party.

Although it’s scarcely conclusive, this is one of the few occasions when I have some direct evidence to contribute to a discussion of this kind. In the aftermath of 1975, I formed the view (ill-advised in retrospect) that I could help fix Australia’s problems by becoming a Labor party staffer. I wanted to move to Sydney, so I applied to all the shadow ministers based there, receiving replies only from Doug McClelland and Arthur Gietzelt.

I can’t remember much about McClelland, or even for sure if I met him. As I recall, he was associated with the Right, but didn’t have the thuggish persona that generally went with that group, especially after the rise of Graham Richardson.

But, although I didn’t get the job, I did have a brief conversation with Gietzelt, who said something to me along the following lines “When I was your age [I was in my early 20s at the time], we all thought the Soviet Union was the way of the future. But you young people will have to find a different way forward”. My politics then were much as they are now, on the left, but strongly anti-communist, and of course, I was puzzled as to how the left should respond to the resurgence of neoliberalism/market liberalism, represented at the time by Malcolm Fraser(!). So this resonated with me in a number of ways, and I’ve never forgotten it.

I took it to mean that Gietzelt had once been a communist sympathizer (whether a party member or ‘fellow traveller’) but had ceased to be so. That wouldn’t be totally inconsistent with an association with the then Communist Party of Australia, which had broken from Moscow after the invasion of Czechoslovakia in 1968, but that wasn’t the impression I had: I assumed that his views had changed well before that, presumably in the wake of the Hungarian invasion and Kruschchev’s secret speech.

As I say, this is scarcely decisive evidence, but Gietzelt had no reason to mislead me, and no need to say anything at all to me along these lines: in all probability we were never going to meet again, and we didn’t.[2] So, my own guess is that, if Gietzelt was ever a member of the Communist Party, it was well before he entered the Federal Parliament.

[fn1] Made most prominently, I think, by Mark Aarons, who, however, wasn’t drawing on personal knowledge but from a reading of ASIO files – scarcely a reliable source as anyone who remembers the ASIO of the Cold War era will attest

[fn2] It was a long time ago, and it’s possible that I was still a candidate for the job. But presumably, in that case, a secret CPer would be dropping hints in the other direction, to see if I was likely to be OK with the idea.

Putting their worst foot forward

I don’t usually watch much TV, which doubtless hampers me in keeping in touch with the mood of the Australian electorate, most of whom still get much of their political news from this source. But, over the summer break, I tend to take things easier which means watching more TV, and taking less interest in politics. So, I don’t think the following observations are way out of line with general public reactions

* When it limped into the end of its first session, the talk coming out of the Abbott government’s media cheer squad was that they would let us watch the cricket in the hope that we’d forget the fiascos of their first few months. Instead, they’ve generated more and worse political coverage than I can ever remember for this time of year, floating trial balloons, rerunning culture wars and so on

* As I remember them from Opposition a fair few of our new rulers are reasonably personable types. But the government’s media strategy has been to keep them all in the background, and to push the most appalling thugs and fools (Pyne, Morrison, Bernardi, Newman (Campbell and Maurice), Andrews) to the forefront. Or maybe there is no strategy, and they are just letting everyone do what comes naturally

But perhaps there is a brilliant plan here, and I’m missing it. Any thoughts?

Be careful what you wish for

So, Kevin Donnelly, newly installed as Pyne’s curriculum advisor wants more religion in Australian public schools. Donnelly bases his arguments on the claim that “Australia is a predominantly Christian country“. More generally, his argument is that we need to inculcate a commitment to the”institutions, values and way of life” of the Australian majority.

Before making arguments like this, Donnelly might want to take a look at the 2011 census data which shows that barely 50 per cent of those aged under 25 stated a Christian religious affiliation. In a dicussion of this last year, we found a combination of demographic effects and switching, which implied that Christians will probably be a minority of the population by the 2020s, as they already are in the UK.

Since around 30 per cent of young people attend private schools most of which state a Christian affilation, it’s a safe bet that the majority of public school students are non-Christian. Certainly, “no religion” is the biggest single denomination for the under 25 age group. So, if you accept Donnelly’s “majority rule” argument, there’s a strong case for saying there should be more explicit atheism in public schools.

More generally, Christians should think carefully before lining up for this kind of culture war. Australia has been mercifully free of the kind of “new atheism” represented by people like Richard Dawkins and Sam Harris. Atheists, agnostics and the religiously indifferent have been happy to live and let live, without feeling the need to engage in denunciation of religion. But if Christian activists like Abbott and Donnelly want to use their current bare majority to impose their religous views on the rest of us, they ought to expect the same when they become a minority, as is virtually inevitable.

Religion is currently favored in all sorts of ways in Australia, from tax deductions and exemptions to publicly funded chaplaincy programs. There hasn’t been much fuss about this, but if the right chooses to engage in a religious culture war, all that will change.

Time for Turnbull …

… to speak up in defence of climate science, or give up any pretense of being better than the rest.

If there is one prominent figure on the right of Australian politics[1] who could plausibly claim to be both sane (on issues such as climate change) and honest, it’s Turnbull. He has stood up in the past, notably against Abbott, but has said nothing (AFAICT). Until relatively recently, he could reasonably claim that the government’s policy was based on acceptance of mainstream climate science, and that, even if he disagreed with Direct Action, he was bound by the principle of cabinet solidarity. But a string of events, culminating in Maurice Newman’s latest idiocy have made this position untenable. If Turnbull remains silent, he is tacitly accepting denialism as the view of the government of which he is part.

It’s possible that speaking up could cost him his ministerial view. But, as Tony Abbott observed recently, that might be a liberating experience. And, unlike the GMH workers to whom Abbott was referring, it’s not as if Malcolm needs the money.

fn1. Two former leaders of the Liberal Party, Malcolm Fraser and John Hewson, have taken a strong stand on climate change. But Fraser has quit the party, and Hewson was threatened with expulsion over this and similar remarks.

Everyone does it and in any case, there’s nothing anyone can do about it (crosspost from Crooked Timber)

The general reaction to various revelations of spying by the US on its friends and allies, particularly in contexts such as trade negotiations has been “everyone does it” and “in any case, there’s nothing anyone can do about it”. And, as regards direct retaliation against the US, that’s pretty much right. The situation is a bit different for junior members of the Five Eyes[^1], such as Australia. A case now being heard at the Permanent Court of Arbitration in The Hague could set a precedent that will make such spying a high risk exercise.
Read More »

A free vote on equal marriage

The High Court has ruled, correctly in my view, that the ACT legislation which briefly established equal marriage was in conflict with Commonwealth Law clearly intended to do the opposite, by defining marriage as “between a man and a woman”. We might not like the practical result, but consider how things would be if the court had gone the other way and was then confronted by a state trying to ban equal marriage after a change in Commonwealth law.

And, this is clearly a matter for the Commonwealth to decide. Abbott implied before the election that he would be open to a free vote in the New Year[1], and Labor should push him on this. The politics of this are pretty awful for Abbott – he’s using his control of the LNP to block a reform supported by the majority of Australians and already in place in most civilised parts of the world. On recent form, he’ll probably try to tough it out for a while, but will cave if enough pressure is applied.

The final question is whether equal marriage would pass on a free vote. The last vote wasn’t encouraging, in view of the number of Labor members who opposed it, but some of them have gone and others, I think, have followed Rudd and Obama in “evolving” on the issue. The Nats will presumably be solidly against, so the real question is: how liberal are Liberals?

fn1. In my view, Rudd should have bitten the bullet after his change of view, and demanded a free vote from Abbott (the alternative being a party line vote with Labor and Greens in favor). But, the same advisers who gave us the early election and the Northern Australia nonsense thought otherwise, with results we now have to live with.

Money for nothing

In the midst of proclaiming a budget crisis and sacking thousands of public servants, Campbell Newman’s LNP government announced that they were going to demolish the tired Executive Building, in which Newman and other senior ministers work, and get the private sector to build them a new one. This, we were told would cost the Queensland public nothing. As I pointed out at the time

it’s blatantly obvious that if you tear down a building and put up a new one with exactly the same purpose, you are taking on additional debt, whatever the accounts can be made to say.

That was obvious from first principles, but now the Auditor General has pointed out that the deal is even worse than that, saying

“Without a competitive sale process and given the significant difference between the book value and the sale price achieved, prima facie it raises the issue of whether the state can demonstrate that it obtained best value for money for the assets it sold.”

. This isn’t surprising. Whenever one of these “money for nothing” deals is pushed through, you can be sure that the public is being ripped off for more than if the payment had been out in the open.

The Opposition has estimated the net loss to the public at more than $2 billion, and that looks to me to be in the right ballpark.

As a comparison, if you take $100000 as a round estimate for the savings in salary, on-costs and so on from dismissing a public employee this luxury project blows, over its lifetime, the annual savings from cutting at least 20 000 jobs, the number originally proposed by Newman. This was later cut to 14 000, quite a few of them replaced by outside contractors. So, it’s probable that, over the first time of the LNP government, the loss on this one piece of public extravagance will wipe out more than half the savings made by the sackings. Let’s hope the first term will also be the last.

And, with the Abbott government doing its best to help at the Federal level, reports like this might finally help to demolish the silly idea that the LNP has some sort of advantage in economic management.

Hockey or Turnbull

The election that brought Abbott and the LNP to power is so three months ago, and the Christmas plotting season is nearly upon us, so it’s time for some good old-fashioned leadership speculation, with the Libs as the target this time around. According to Laura Tingle, most of the interest in the business community is in Turnbull. I think that would be a bridge too far for the Liberals, having dumped him once. So, my money would be on Hockey as the replacement if Abbott keeps messing things up as he has done almost continuously since taking office. While the accuracy of my political judgements is pretty variable, this one from a year ago is looking fairly good.

Hockey has indeed backed off the surplus, showing more good sense than Abbott. I’m nearly alone in this view, but I think he is under-rated. Not a towering intellect, but still among the stronger performers on the LNP front bench.

Crikey goes Godwin on tiny uninhabited islands

The usually sensible Crikey team has gone off the deep end (in an editorial sent out as email, can’t find it on their site) on the Australian government’s response to the recent dispute between China and, among others, the US over a group of “tiny uninhabited islands” (even the name is disputed). The longstanding policy of Australian governments, very sensibly, has been to avoid getting between the US and China on issues like this, of which there are a huge number, involving many parties and incomprehensible claims. Crikey not only endorses Julie Bishop’s abandonment of this policy, but uses the loaded term “appeasement” to describe opponents. So, a refusal to get involved in a game of posturing and sabre-rattling that has gone on, in one form or another, since 1949, is equivalent to selling out the Czechs to Hitler.

Crikey draws a comparison with Kevin Rudd’s willingness to take the Chinese leadership to task over human rights abuses, a willingness criticised by Bishop at the time. To see how absurd this is, you need only ask whether Chinese dissidents, who mostly endorsed Rudd’s speech (some thought it did not go far enough) are going to welcome our support for the anti-China position in this territorial dispute. The answer is obvious: for the most part, Chinese democrats fully support the government position on these issues.

The idea that, having just ignored human rights issues in Sri Lanka, the Abbott government has suddenly developed a concern with these issues in China is equally absurd.