Shanahan on threat to Turnbull, Stone on Turnbull’s Views
In the election now under way the Turnbull government has so far been selling its re-election on the theme of “jobs and growth”. In my last two Commentaries I have given reasons why this poses problems, based as it is on a budget presented as an economic plan which has very limited substance in terms of either its aggregates or its components. As The Australian’s Economic Editor Uren put it, “taken together, the initiatives in the budget will not shift the dial on national growth one way or another to a measurable extent”. This is already reflected in dissatisfaction amongst Coalition members, with no lift in polling following the budget (in Newspoll the Coalition’s TPP remained fractionally below Labor’s), a majority of voters judging that the budget left them worse off but with Turnbull still well ahead as the better PM. There has also been questioning of the components by media and other commentators. Further, in the first public debate in front of a supposedly undecided audience, Shorten easily won the head count. On the ABC’s Insiders today there was agreement from the four participants (all with the left inclinations that the ABC normally gives preference to) that Turnbull has so far shown less ability than Shorten to get his message across.
Budget & Economic Plan (Sic)
How to interpret the Budget? My initial reaction was “much ado about nothing”, by which I meant that while there have been reductions in superannuation “concessions” and in tax rates for small businesses offset by increases in tobacco excise, together with a small initiative on youth employment and commitments to fund various types of infrastructure, there was little change over the next two years in estimates of total government spending and revenue relative to the total economy.
More Needed than Heydon RC Recommends & Turnbull Proposes So Far
So far I have read only Volume I of the Overview and introduction of the final report of the Heydon Royal Commission into Trade Union Governance and Corruption. Volumes 2-4 largely deal with specific cases and Volume 5 with policy and law reform. Based on the Overview there appears to be a first rate analysis for the Turnbull government to use in framing major reforms of regulatory arrangements covering the role of trade unions and relations between employees and employers.
End of the Honeymoon?
This morning’s Bolt Report started with a declaration that the Turnbull honeymoon is over. Not surprising. But what was a bit off key was that the ABC Insiders seemed to reach a similar conclusion, although without saying so specifically. Has Scott told the ABC’s Cassidy that Turnbull has ceased to be minister of communications and is now in danger of applying his fairness policy to the ABC as PM? We even experienced an interview with a Shorten who argued that Turnbull should bring down a budget in May.
Shuffling the Troops
When on 15 September Turnbull defeated Abbott 54/44 in his challenge for PM, he encouraged the then Industry Minister Macfarlane to vote for him by reminding him what good friends they were. But that did not stop Turnbull removing Macfarlane from Cabinet. Such is politics one might say.
Islamism Problem Recognised – CC Target Puzzle
Today’s news suggests that the US has made an important change in the handling of the Syrian/Iraq war. The US Defense Secretary, Ash Carter, is reported as stating that the US will “deploy a specialized expeditionary targeting force to Iraq to launch unilateral raids” and "put even more pressure" on ISIS. U.S. special operation forces will conduct operations in Iraq "at the invitation of the Iraqi government" and be in position "to conduct unilateral operations into Syria," Carter said. "We're at war. We're using the might of the finest fighting force the world has ever known," Carter told the House Armed Services Committee. "Tens of thousands of U.S. personnel are operating in the broader Middle East region, and more are on the way. " (see the attached “US Policy Change on Syria/Iraq?”).
Some Things are Ruled Out, Some Not
We have now experienced two meetings/summits of world leaders following the Paris terrorist attacks last Friday, one by the G20 in Turkey and one in Manila by those involved in the negotiation of the Trans-Pacific Partnership trade agreement (still to be approved by the US Congress). Although there was a general recognition at both meetings that the Islamic State constituted a powerful force and agreement that “something needs to be done” to combat it, no specific combined response was agreed, except that whatever else might be done boots on the ground are ruled out.
Some Implications of Changing Leaders
Many who support the Coalition but have serious doubts about Turnbull becoming PM have nonetheless accepted his appointment because they believe he should defeat Labor at the next election whereas the belief was that Abbott had reached the point where he could not. On the surface that certainly appears to be the case, although the latest opinion poll of an improved 51/49 TPP taken after Turnbull’s appointment still suggests a close call if an early election (which some suggest) were to be held. Similarly, the Liberal win in the Canning by-election with a swing of “only” 6-7% to Labor does not suggest a Turnbull “bounce” (a 5% swing against the party holding the seat is “normal” in a by-election).
More Questions About Turnbull
It remains difficult to reach any firm conclusion about the implications of Turnbull’s acquisition of the Prime Ministership. As expected, the first opinion poll shows Turnbull as a Better PM than Shorten (62/38 %) - compared with the 42/58% under Abbott - and a lift in the TPP to 50/50 from 46/54 in the last Newspoll. But one might have expected an initial more favourable outcome for Turnbull.
Coalition Needs Major Policy Initiative
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It is becoming increasingly difficult to see how Abbott can survive on the basis of existing policies and the way they are presented. After a period of public debate over the Royal Commission, during which Shorten and various unions were exposed as having behaved very poorly, Newspoll is still unchanged on a TPP basis (46/54) and Shorten remains Better PM (41/37). In addition, while 68% want the RC to continue, Heydon himself gets bad marks for his mishandling of the invitation to a Liberal Party function. Further, the support for the China FTA (only 43% and 22% uncommitted) indicates a failure to fully explain that it exposed virtually no risk from foreign-sourced labour ( Robb’s explanations yesterday on the ABC’s Insiders was excellent but he should have been more upfront earlier).