Mining Tax

Pokies: rent-seekers win again

The gnashing of teeth over Julia Gillard’s betrayal of Andrew Wilkie over pokies reform has been entirely predictable. Is this some kind of political masterstroke? Is it just another demonstration of Gillard’s fundamental untrustworthiness? It’s all as telegraphed as an old boxer’s jab, and irrevocably lashed to the 24-hour news cycle. About the furthest anyone’s looking into this situation is the polls, and what it does to Gillard’s chances of re-election.

The far more important point about what Gillard’s backdown says about Australia’s rotten political culture has been almost entirely overlooked. And that is that the rent-seekers have won again.

They won in 2010, when some of the world’s largest and richest mining companies saw off the Resources Super Profits Tax with a $22 million advertising campaign that, in the end, helped kill off a popularly elected Prime Minister (not that Kevin 07, perhaps soon be be known as Kevin 12, was exactly blameless in his demise, but that’s another story).

That occasion saw the likes of Gina Rinehart, Twiggy Forrest and Clive Palmer marching in the streets and carrying on like they’d all be rooned, I tells ya. The sight of Australia’s richest men and women playing the victim card – Rinehart (wealthiest of the lot) leading the chant of “Axe the tax!”… Read more..

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Has Julia got her mojo back?

At the moment, it’s only a whisper, and it may be well past too late. But there’s more than a hint in the last few weeks that Julia Gillard’s government may just have turned the corner.

Yes, there is the continuing political and humanitarian debacle over asylum seekers, but that is a failure of imagination, goodwill and commonsense that besmirches both sides of politics. Otherwise, Gillard’s had the best few weeks of her turbulent Prime Ministership. First she managed to secure the carbon tax’s passage through the Lower House. When Alan Joyce decided to play hardball with the unions by grounding his Qantas fleet, Julia (via Fair Work Australia) sent them post-haste back to the negotiating table, for once looking surefooted in what was, for her, familiar territory.

Then came the carbon tax again as it sailed comfortably through the Senate. Tony Abbott, who had all but pledged to nail himself to a cross to fight its introduction, chose this moment to attend a conservative leader’s forum in London. I wonder whether David Cameron took the opportunity to avail Tony of his views on climate change. The Tory British PM is an ardent supporter of a price on carbon. Just today, by the way, the Chief Economist of the International Energy Agency warned that the world had possibly as little as five years to clean up its act before the tipping point of irreversible and dangerous climate change was reached.… Read more..

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