Nuance and nostalgia: Labor’s election review provides useful insights and inevitable harking back to Hawke


Frank Bongiorno, Australian National University

The media have been itching for a report that blamed Labor’s defeat on a dud leader. But the Review of Labor’s 2019 Federal Election Campaign, chaired by former Rudd and Gillard government minister Craig Emerson and former South Australian premier Jay Weatherill, is proportionate in the blame it sends Bill Shorten’s way. Shorten’s unpopularity contributed to Labor’s defeat, but there were wider problems that cannot be put down to leadership alone.

The review is a nuanced account of why Labor lost. Its brief explanation for that loss – a combination “of a weak strategy that could not adapt to the change in Liberal leadership, a cluttered policy agenda that looked risky and an unpopular leader” – belies the sophistication of the report as whole.




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Grattan on Friday: Labor’s post-mortem leaves the hard work still to be done


The document does better than most post-election analysis that has so far come from within the party. Some of this has been so tendentious and self-serving that its value in either explaining what went wrong or in pointing a way forward has been close to nil.

The review suggests that central to the party’s failure was that it did not reassess its approach adequately when Scott Morrison replaced Malcolm Turnbull. Rhetoric that might have made sense when the Liberal Party was being led by “Mr Harbourside Mansion”, as well as proposing business tax cuts, made rather less sense once the “daggy suburban dad” in the baseball cap was in charge.

Labor made too little of the chaos in the Coalition. Instead, the ALP made itself the issue at the election, a kind of government-in-waiting with a target on its back.

University-educated voters in the southern states, when they tuned in to Morrison, might have heard a sound something like the air escaping from a whoopee cushion. And such voters swung to the Labor Party in the election.

But voters in the suburbs and the regions, especially in Queensland, liked what they saw. So did professing Christians, who liked it even more when they saw photos of the devout believer at prayer, right arm pointing to heaven.

Christian voters swung behind the devout Scott Morrison in the 2019 election.
Mick Tsikas/AAP

On the other hand, many voters saw a danger to their already insecure lives in Labor’s multitude of expensive promises – and the taxation changes proposed to pay for them. They believed Morrison when he warned them of the risks of voting Labor.

Then there was coal. The authors of the report do seem to struggle with Adani. Like just about everyone else, they know it’s a financial and environmental mess. But in terms of electoral politics, Adani is radioactive.

Labor suffered in Queensland and the Hunter Valley as a result of its ambiguity, but the authors are silent on what the party could have done differently. If it had been less ambiguous about Adani, it would have needed to take a stand. But what should that stand have been?

The report is insistent that Labor should not alienate progressive and well-educated voters for whom climate change matters a lot and Adani is toxic. But how can it avoid their alienation while also pleasing economically insecure voters in Queensland? Is this simply a matter of finessing one’s language, or do the problems run deeper?

This is perhaps the report’s weakness. It is good at setting out the kinds of dilemmas Labor faces, which the party failed to grapple with at the 2019 election. It bemoans the party’s tendency to become the vehicle for various interests with diverse grievances, at the expense of serving the needs of economically insecure working-class voters. The habit of trying to serve too many masters multiplies policies and increases the complexity of campaign messaging, while undermining the party’s ability to craft a coherent story based on the party’s “core values”.

Yet the report has little to say on what such a narrative would look like or what those core values actually are. We are told the latter include:

improving the job opportunities, security and conditions of working Australians, fairness, non-discrimination on the basis of race, religion and gender, and care for the environment.

But there is nothing much here that would prompt an undecided voter to look to Labor rather than the Coalition, especially if they like the look of the Coalition’s leader better than Labor’s – as most did in 2019.

And then, when the review tries to set out what a “persuasive growth story” might look like, we are treated to the usual history lesson on the Hawke and Keating governments, whose “whole economic strategy” was about promoting “growth, and through it, jobs” (otherwise known as “jobs and growth”). For the Labor Party, it seems, it’s always 1983. We just need to find the winged keel to get us home.

Rather as the Hawke and Keating governments did, the review pushes any idea of redistribution, or of reducing inequality, to the very margins of Labor philosophy and policy. Indeed, the hosing down of such aspirations – modest as they were at the 2019 election – may well help to explain one of the strangest silences in the report: its failure to deal with the role of the Murdoch press.

The Murdoch media didn’t merely favour the government over the opposition. It campaigned vigorously for the return of the Coalition. And it is a vast empire, with a monopoly through much of regional Queensland, for instance. It is hard not to see in the review’s silence on this matter a clearing of the way for a future kissing of the ring of the familiar kind.

Still, there is much that is valuable in the review. There is its frank criticism of the deficiencies in the Labor Party’s strategising and the incoherence of its campaign organisation. There is the news that the party’s own internal data pointed to the possibility of the catastrophe that ultimately occurred – polling outside the party prompted a misreading of the readily available evidence.




Read more:
Why the 2019 election was more like 2004 than 1993 – and Labor has some reason to hope


The review is also particularly good on the damaging effects of Clive Palmer’s massive advertising splurge. And it makes a fair attempt to relate the Labor Party’s problems to wider international trends, such as the decline of trust, the insecurity of working life for many, the crisis of social democracy, and the search for convenient scapegoats – all of which have undermined the position of parties of reform.

Best of all, the review spares us a lot of rubbish about moving the party to the centre, or the right. It does make much of the need for Labor to reinvigorate its appeal to those groups who seem to have been most alienated at the 2019 election.

It recognises – correctly in my view – that Labor’s position on Adani performed unfortunate symbolic work, suggesting to people especially in parts of Queensland “that Labor did not value them or the work they do”.

But when your primary vote in Queensland is tracking at about 25% and you hold fewer than a quarter of the lower-house seats in that state and Western Australia combined, you probably don’t need a review to tell you something has to change.The Conversation

Frank Bongiorno, Professor of History, ANU College of Arts and Social Sciences, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Grattan on Friday: Labor’s post-mortem leaves the hard work still to be done



Bill Shorten may or may not have been able to beat Malcolm Turnbull, but the review makes it clear the ALP failed to adapt to a new, tactically-astute prime minister.
AAP/Lukas Coch

Michelle Grattan, University of Canberra

The messages for next time from Labor’s 2019 election post-mortem are clear. Have a better strategy. Have a stronger narrative, fewer policies, greater emphasis on economic growth. Have a better leader.

Obvious. Incontestable. Just, as a package, devilishly hard to achieve.

The review by Labor elders Jay Weatherill and Craig Emerson identifies the plethora of reasons for Labor’s unanticipated failure. It doesn’t pull punches and contains sensible recommendations.

But no prescribed remedies can guarantee success, in a game where how the other side operates is as important – and can be more so – than what your side does. And that’s apart from the general climate of the times, these days characterised by uncertainty and distrust.

Political success comes from judgement and planning, but there’s also the lottery element. We’ll never know whether Bill Shorten could have beaten Malcolm Turnbull if he’d still been the prime minister in May. Turnbull would say no. Many of the Liberals who ditched Turnbull would say yes. Everyone would agree with the review’s conclusion that Labor failed to adapt when it suddenly faced a new, tactically-astute Liberal PM.

The review’s release was much anticipated, as though it marks a watershed. It doesn’t. It’s sound, well and thoroughly prepared. But it was never going to say how policies should be recast. It leaves the hard work still to be done, and that will be painful and prolonged.

While there’s been much emphasis on Labor’s big taxing policies, the review stresses they were driven by the ALP opting for big spending.

It says “the size and complexity” of the ALP’s spending promises – more than $100 billion – “drove its tax policies and exposed Labor to a Coalition attack that fuelled anxieties among insecure, low-income couples in outer-urban and regional Australia that Labor would crash the economy and risk their jobs”.

Labor has long believed in both the policy desirability and the political attractiveness of large dollops of money for education and health in particular.

Beyond a certain point, however, the value of ever more dollars becomes questionable, on both policy and political grounds. Is the community, for example, getting the return it should for the funds put into schools over the past decade?

One can assume – and Anthony Albanese is signalling – Labor will throw around fewer dollars next time.

The review doesn’t target the controversial policies on negative gearing and franking credits. But they’ll be watered down or dumped.

Albanese, speaking to the National Press Club on Friday, said of the franking credits policy: “When you’ve got to explain dividend imputation and franking credits from opposition – tough ask”. He recounted talking to a pensioner worried about the policy – although pensioners would have been exempted and she’d never owned a share in her life.

The franking policy should have had a protection built in to avoid hitting genuinely low-income retirees while still catching wealthy people who’d rearranged their affairs to have little or no income. Shorten was advised to change it, but refused. On Thursday he said “were the universe to grant reruns” he would “take a different position on franking credits”.

It will be a lot easier for Labor to deal with these tax measures than with climate policy.

The review says: “A modern Labor Party cannot neglect human-induced climate change. To do so would be environmentally irresponsible and a clear electoral liability. Labor needs to increase public awareness of the costs of inaction on climate change, respect the role of workers in fossil-fuel industries and support job opportunities in emissions-reducing industries while taking the pressure off electricity prices.”

Indeed. The summary just highlights the complexities for Labor in working out its revised climate policy.

Anthony Albanese has already put the policy, whatever its detail, into a framework of its potential for job creation as the energy mix moves to renewables.

It’s part of his broader emphasis on jobs and growth (accompanied by his pursuit of improved relations with business, never again to be labelled “the big end of town”).

It’s possible increasing public worry about climate change could help Labor at the next election, if the government’s response is seen as inadequate. That won’t, however, make it any less imperative for the ALP to have a better pitched policy than its 2019 election one, which was too ambitious, lacked costings, and was conflicted on coal.

This segues into Labor’s problem juggling its “progressive” supporters with its working class suburban base, to say nothing of those in coal areas. Taking one line in the south and another in the north didn’t work. The unpalatable truth may be these constituencies are actually not reconcilable, but Labor has to find more effective ways to deal with the clash.

Notably, the review points to the risk of Labor “becoming a grievance-based organisation”. “Working people experiencing economic dislocation caused by technological change will lose faith in Labor if they do not believe the party is responding to their needs, instead being preoccupied with issues not concerning them or that are actively against their interests,” it says.

This is an important warning in an era of identity politics. But again, Labor is in a difficult position, because its commitment to rights, non-discrimination and similar values will mean it attracts certain groups and has to be concerned with their problems. It’s a matter of balance, and not letting itself become hostage.

Grievance politics, looked at through a positive lens, is a way of identifying wrongs and injustices and seeking to rectify them. But it is also in part a reflection of the wider negativity infecting contemporary politics, amplified by today’s media.

That culture can add to the problems of a centre left party trying to sell an alternative.

Labor frontbencher Mark Butler recently noted that on the three post-war occasions when Labor won from opposition, it had immensely popular leaders (Gough Whitlam, Bob Hawke and Kevin Rudd), visions for the nation and superior campaigns.

Whitlam sold a sweeping new program in tune with the changing times. Hawke promoted “reconciliation, recovery and reconstruction”. Rudd was welcomed as a fresh face embracing concern about climate change. Albanese has boldly dubbed a series of his speeches (the first already delivered) “vision statements”. But “vision” is an elusive elixir, apparently harder than ever to come by.

Winning from opposition is a struggle for Labor. This makes it crucial to have a leader who can both reassure and inspire swinging voters. Unfortunately out-of-the box leaders don’t come often; in reality, a party has to work with what it has got.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Labor’s election post-mortem warns against ‘becoming a grievance-based organisation’



Former minister Craig Emerson and former South Australian Premier Jay Weatherill have pinpointed key weaknesses in Labor’s 2019 election strategy.
AAP/Julian Smith

Michelle Grattan, University of Canberra

The long-awaited ALP campaign review says Labor lost “because of a weak strategy that could not adapt to the change in Liberal leadership, a cluttered policy agenda that looked risky and an unpopular leader”.

“No one of these shortcomings was decisive but in combination they explain the result,” says the report from former South Australian premier Jay Weatherill and former federal minister Craig Emerson.

While it says Labor’s big tax policies didn’t cause the defeat, the size and complexity of its spending plans “drove its tax policies” exposing it “to a Coalition attack that fuelled anxieties among insecure, low-income couples in outer-urban and regional Australia that Labor would crash the economy and risk their jobs”.

Labor failed to “craft a simple narrative” bringing together its policies, the reviews says.

Its analysis is damning while seeking to be positive for the future, at a time when the ALP remains in shock at its unexpected loss and divided and uncertain about the way forward.

Looking ahead, the report says “policies can be bold but should form part of a coherent Labor story, be limited in number and be easily explainable, making them less capable of misrepresentation”.

“Labor should position itself as a party of economic growth and job creation. Labor should adopt the language of inclusion, recognising the contribution of small and large businesses to economic prosperity, and abandon derogatory references to ‘the big end of town’.”

The report’s emphasis on the importance of Labor tapping into economic growth and being attuned to business reflects the direction in which Anthony Albanese has been seeking to take the party since becoming leader.

The criticism of the “top end of town” language is a direct slap at the rhetoric of Bill Shorten.



The Conversation, CC BY-ND

Just ahead of the report’s release, Shorten said in a Thursday statement that “were the universe to grant reruns” he would have fewer campaign messages, put more emphasis on the opportunities provided by renewable energies, and take a different position on franking credits.

He also said he should have promised bigger immediate tax cuts for working people.

Shorten reiterated his intention to remain in politics for the next 20 years.

The report warns that “care needs to be taken to avoid Labor becoming a grievance-based organisation,” saying it “has been increasingly mobilised to address the political grievances of a vast and disparate constituency”.

“Working people experiencing economic dislocation caused by technological change will lose faith in Labor if they do not believe the party is responding to their needs, instead being preoccupied with issues not concerning them or that are actively against their interests.

“A grievance-based approach can create a culture of moving from one issue to the next, formulating myriad policies in response to a broad range of concerns.”

Addressing the swing against the ALP by low-income workers, the report says the party’s “ambiguous language on Adani, combined with some anti-coal rhetoric, devastated its support in the coal mining communities of regional Queensland and the Hunter Valley.”

In contrast, higher-income urban voters worried about climate change moved to Labor, despite the potential impact on them of the opposition’s tax policies.

Labor lost some Christian voters, “particularly devout, first-generation migrant Christians”, but the review does not find that people of faith in general deserted Labor.

The review does not believe Labor’s values – “improving the job opportunities, security and conditions of working Australians, fairness, non-discrimination on the basis of race, religion and gender, and care for the environment – were the problem at the election, and says Labor should retain its commitment to these values.

“Labor’s policy formulation should be guided by the national interest, avoiding any perception of capture by special interest groups.”

As a debate has raged within the ALP on how Labor should reshape its climate change policy, and notably its targets, the report says: “A modern Labor Party cannot neglect human-induced climate change. To do so would be environmentally irresponsible and a clear electoral liability.

“Labor needs to increase public awareness of the costs of inaction on climate change, respect the role of workers in fossil fuel industries and support job opportunities in emissions-reducing industries while taking the pressure off electricity prices.”

The report says that high expectations of victory caused Labor incorrectly to assume it had a stronger campaign machine and better digital capacity than the Coalition. It also led to “little consideration being given to querying Labor’s strategy and policy agenda”.

Following Clive Palmer’s huge advertising blitz, the review urges caps on spending by high wealth individuals. Also, influenced by the scare campaign that wrongly asserted Labor had in mind a death tax, the review said the issue of truth in advertising should be looked at.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Final 2019 election results: education divide explains the Coalition’s upset victory


The most important reason for the Coalition’s victory was that Morrison was both liked and trusted by lower-educated voters, while Labor leader Bill Shorten was not.
Mick Tsikas/AAP

Adrian Beaumont, University of Melbourne

At the May 18 election, the size of the lower house was expanded from 150 to 151 seats. The Coalition parties won 77 seats (up one since the 2016 election), Labor 68 (down one) and the crossbench six (up one). The Coalition government holds a three-seat majority.

Owing to redistributions and the loss of Wentworth to independent Kerryn Phelps at an October 2018 byelection, the Coalition notionally had 73 seats before the election, a one-seat advantage over Labor. Using this measure, the Coalition gained a net four seats in the election.

The Coalition gained the Queensland seats of Herbert and Longman, the Tasmanian seats of Braddon and Bass, and the New South Wales seat of Lindsay. Labor’s only offsetting gain was the NSW seat of Gilmore. Corangamite and Dunkley are not counted as Labor gains as they were redistributed into notional Labor seats.

Four of the six pre-election crossbenchers easily held their seats – Adam Bandt (Melbourne), Andrew Wilkie (Clark), Rebekha Sharkie (Mayo) and Bob Katter (Kennedy). The Liberals narrowly regained Wentworth from Phelps, but independent Zali Steggall thrashed Tony Abbott 57%-43% in Warringah. In Indi, independent Helen Haines succeeded retiring independent Cathy McGowan, defeating the Liberals by 51.4%-48.6%.




Read more:
Scott Morrison hails ‘miracle’ as Coalition snatches unexpected victory


The Coalition easily defeated independent challengers in Cowper and Farrer.

While Bandt was re-elected, the Greens went backwards in their other inner-Melbourne target seats of Wills and Cooper. Only in Kooyong did the Greens manage to beat Labor into second.

The final primary votes were 41.4% Coalition (down 0.6%), 33.3% Labor (down 1.4%), 10.4% Greens (up 0.2%), 3.4% United Australia Party (UAP) and 3.1% One Nation (up 1.8%).

The final two-party vote was 51.5% for the Coalition to 48.5% for Labor, a 1.2% swing in the Coalition’s favour from the 2016 election. It is the first pro-government swing since the 2004 election.

It was expected the Coalition would do better once the 15 “non-classic” seats were included; these are seats where the final two candidates were not Coalition and Labor. However, 11 of these seats swung to Labor, including a 9.0% swing in Warringah and a 7.9% swing in Wentworth. Eight non-classics were inner-city electorates that tended to swing to Labor.

The table below shows the number of seats in each state and territory, the Coalition’s number of seats, the Coalition’s percentage of seats, the gains for the Coalition compared to the redistribution, the Coalition’s two-party vote, the swing to the Coalition in two-party terms, and the number of Labor seats.

Final seats won and votes cast in the House for each state and nationally.

Four of the six states recorded swings to the Coalition in the range from 0.9% to 1.6%. Victoria was the only state that swung to Labor, by 1.3%. Queensland had a 4.3% swing to the Coalition, far larger than any other state. Labor did well to win a majority of NSW seats despite losing the two-party vote convincingly.

Official turnout in the election was 91.9%, up 0.9% from 2016. Analyst Ben Raue says 96.8% of eligible voters were enrolled, the highest ever. That means effective turnout was 89.0% of the population, up 2.6%.

Education divide explains Coalition’s win

Not only did Steggall thump Abbott in Warringah, the electorate’s 9.0% swing to Labor on a two-party basis was the largest swing to Labor in the country. Abbott’s two-party vote percentage of 52.1% was by far the lowest for a conservative candidate against Labor since Warringah’s creation in 1922; the next lowest was 59.5% in 2007.

While Abbott did badly, other divisive Coalition MPs performed well. Barnaby Joyce won 54.8% of the primary vote in New England and gained a 1.2% two-party swing against Labor. Peter Dutton had a 3.0% two-party swing to him in Dickson, and George Christensen had a massive 11.2% two-party swing to him in Dawson, the second-largest for the Coalition nationally.

According to the 2016 census, 42% of those aged 16 and over in Warringah had at least a bachelor’s degree, compared with 22% in Australia overall. Just 13.5% had at least a bachelor’s degree in New England, 19% in Dickson and 12% in Dawson.

In Victoria, which swung to Labor, 24.3% of the population had at least a bachelor’s degree in 2016, the highest of any state in the nation.

The Grattan Institute has charted swings to Labor and the Coalition, taking into account wealth and tertiary education. Only polling booths in the top-income quintile swung to Labor; the other four income quintiles swung to the Coalition.

Areas with low levels of tertiary education swung strongly to the Coalition in NSW and Queensland, but less so in Victoria. There were solid swings to Labor in areas with high levels of tertiary education.

Some of the swings are explained by contrary swings in 2016, when the Coalition under Malcolm Turnbull performed relatively worse in lower-educated areas and better in higher-educated areas. However, Queensland’s 58.4% two-party vote for the Coalition was 1.4% better than at the 2013 election, even though the national result is 2.0% worse. The large swings to the Coalition in regional Queensland are probably partly due to the Adani coal mine issue.

Morrison’s appeal to lower-educated voters

Since becoming prime minister, Scott Morrison’s Newspoll ratings have been roughly neutral, with about as many people saying they are satisfied with him as those dissatisfied. After Morrison became leader, I suggested on my personal website that the Coalition would struggle with educated voters, and this occurred in the election. However, Morrison’s appeal to those with a lower level of education more than compensated.

In my opinion, the most important reason for the Coalition’s upset victory was that Morrison was both liked and trusted by lower-educated voters, while they neither liked nor trusted Labor leader Bill Shorten.

Earlier this month, The Guardian published a long report on the social media “death tax” scare campaign. While this and other Coalition scare campaigns may have had an impact on the result, they did so by playing into lower-educated voters’ distrust of Shorten. Had these voters trusted Shorten, such scare campaigns would have had less influence.




Read more:
Labor’s election loss was not a surprise if you take historical trends into account


Labor also ran scare campaign ads attacking Morrison for deals with Clive Palmer and Pauline Hanson. But I believe these ads failed to resonate because lower-educated voters liked Morrison better.

I think Morrison won support from the lower-educated because they are sceptical of “inner-city elites”. The Coalition leader emphasised his non-elite attributes during the campaign, such as by playing sport and going to church. Turnbull was perceived as a member of the elite, which could explain swings to Labor in lower-educated areas in 2016.

Parallels can be drawn to the 2017 election in the UK. Labour performed far better than expected in the election, reducing the Conservatives to a minority government when they were expected to win easily. Labour had adopted a pro-Brexit position, which may have sent a message to lower-educated voters that they could support the party.

This offers an option for Australian Labor to try to win back support from lower-educated voters: adopt a hardline immigration policy. Votes that Labor would lose to the Greens by doing this would likely be returned as preferences.

See also my similar article on how Donald Trump won the US 2016 presidential election.

The problem with the polls

The table below shows all national polls released in the final week compared to the election result. A poll estimate within 1% of the actual result is in bold.

Federal polls compared with election results, 2019.
Author provided

The polls did well on the One Nation and UAP votes, and were a little low on the Greens. The major source of error was that Labor’s vote was overstated and the Coalition’s was understated. Only Ipsos had Labor’s vote right, but it overstated the Greens vote by about three points – a common occurrence for Ipsos.

No poll since July 2018 had given the Coalition a primary vote of at least 40%. In the election, the Coalition parties received 41.4% of the vote.

As I said in my post-election write-up, it is likely that polls oversampled educated voters.




Read more:
Coalition wins election but Abbott loses Warringah, plus how the polls got it so wrong


Seat polls during the campaign were almost all from YouGov Galaxy, which conducts Newspoll. The Poll Bludger says these polls were, like the national polls, biased against the Coalition.

Analyst Peter Brent has calculated the two-party vote for all election-day and early votes. The gap between election day and early votes increased to 5.0% in 2019 from 4.6% in 2016. This does not imply that polls missed because of a dramatic late swing to the Coalition in the final days; it is much more likely the polls have been wrong for a long time.

Boris Johnson very likely to be Britain’s next PM, and left wins Danish election

I wrote for The Poll Bludger on June 14 that, after winning the support of 114 of the 313 Conservative MPs in the first round of voting, Boris Johnson is virtually assured of becoming the next British PM. Polls suggest he will boost the Conservative vote.

I also wrote on my personal website on June 6 about the left’s win in the Danish election. Also covered: a new Israeli election, the German Greens’ surge, and the left gaining a seat in the May 4 Tasmanian upper house periodical elections.The Conversation

Adrian Beaumont, Honorary Associate, School of Mathematics and Statistics, University of Melbourne

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Grattan on Friday: Is it good for Labor, or Bill Shorten, for the former leader to stay in parliament?



Kristina Keneally has been announced as deputy Labor leader in the Senate.
AAP/Lukas Coch

Michelle Grattan, University of Canberra

In his first excursion as leader, Anthony Albanese this week visited the Queensland electorate of Longman. This seat tells, in microcosm, the story of Labor’s success and failure, hopes and disappointment between 2016 and May 18 2019.

The ALP wrested Longman from the Liberals’ Wyatt Roy in the election in which Bill Shorten became a Labor hero by bringing Malcolm Turnbull within a whisker of defeat. Then on Super Saturday last July, Shorten held the seat, reinforcing his own leadership and undermining Turnbull’s. But on May 18, Longman went back to the government, as part of Queensland’s rejection of the ALP.

Labor this week has looked like a routed army forced to regroup while it is still bandaging wounds and burying its dead.

The leadership transition was the easy part, with Albanese the only candidate, after the party’s right couldn’t muster support for an alternative. But installing a new frontbench has been a messy process, exposing the downside of factionalism.

The factions are devotees of the “iron law of arithmetic”, so when Albanese demanded Kristina Keneally be given a place, someone in her NSW right faction had to bite the dust. It was especially unfortunate that this was Ed Husic, widely seen as a talented performer, who incidentally is one of only two Muslims in the caucus.

“It seems right that a man should step aside for a stellar woman to take over,” Husic told the ABC.

At the same time, a Muslim friend texted me, “What kind of ‘diversity’ is Albo’s ALP presiding over, when a Muslim-background MP is elbowed out from the frontbench in deeply Islamophobic times? Husic has been very supportive of Muslim communities.”

There were, one would have thought, better candidates than Husic for the sacrifice.

In the Senate, right faction player Don Farrell has also made room for Keneally, who has replaced him as deputy Labor leader there. She was able to mount a claim to this position on gender balance grounds – with Tanya Plibersek replaced by Richard Marles in the deputyship, the two top opposition posts are in male hands.

All in all, the path of the one-time NSW premier has been much smoothed. Keneally only entered the Senate at the start of last year, after a middling performance in the Bennelong byelection. Shorten made her his “bus captain” in the campaign, and planned to ensure she was in a Labor ministry. Albanese has gone out of his way to back her. Not all in caucus are impressed and she’ll have a good deal to live up to in the next three years.

Apart from the loss of Husic from the shadow ministry, the other bad outcome was the dropping of Andrew Leigh. He was shadow assistant treasurer but is non-factional, so he lacked muscle men to preserve his place. Leigh, a former economics professor, did a solid job, and Labor could always benefit from more rather than less economic talent.

And in the week when Ken Wyatt became the first indigenous federal cabinet minister,
Indigenous senator Pat Dodson did not run for the frontbench. Wyatt is minister for Indigenous Australians, the post Shorten had foreshadowed Dodson would have. Dodson is likely, however, to be given some role on reconciliation.

Albanese will allocate portfolios, to be unveiled Sunday, and also announce parliamentary secretaries (the leader chooses these and this could, and should, provide an opportunity to use Husic).

Jim Chalmers, former finance spokesman, is set to be shadow treasurer. He’ll replace Chris Bowen, the architect of some controversial policies, notably the clampdown on franking cash refunds; in the pain of defeat, Bowen is being scapegoated by many. Chalmers, whom some wanted as a “new generation” leader, should be a credible economic face for the party.

Of particular interest will be what portfolio Shorten has. Of more concern, however, will be how the former leader sees his broad post-leadership role.

At this point, Shorten is not showing signs of taking much personal responsibility for the election disaster, although to be fair, he would still be in shock, and it is early days.

In the “grab” from his Thursday speech to caucus, Shorten lashed out. “We were up against corporate leviathans, a financial behemoth, spending unprecedented hundreds of millions of dollars advertising, telling lies, spreading fear.

“Powerful vested interests campaigned against us through sections of the media itself, and they got what they wanted,” he said.

“And I understand that neither of these challenges disappeared on election night. They’re still out there for us to face”.

To Labor voters he just offered “my regrets we did not win”.

Albanese, in his speech to caucus, struck a different note. “I accept my share as a senior shadow minister in the show, for the fact that we weren’t successful”.

Later at a news conference, he was open (as he has been since the election) in acknowledging the flaws in the franking policy, and the problem with “some of the language that was used” in the election (when Shorten targeted “the top end of town”).

More generally, Albanese’s emphasis before the election was different to Shorten’s and that’s also coming out in his early remarks as leader. He stresses his relationships with the business sector, the centrality of economic growth and jobs – and the importance of “aspiration”.

“ Labor will be seen, by all of us, our entire team, as being pro-business as well as pro-worker and I believe that’s exactly where Labor is and where we need to be,” he said.

Given Shorten has chosen to stay in parliament, it’s appropriate he has a shadow ministry and a substantial one at that.

But whether it is sensible for him, or good for Labor, that he remain in politics is another question.

He’s always been a factional player and he and Albanese have long been rivals. Adjusting to a diminished position, avoiding the temptation to criticise his successor even in private, being part of a team that has to move on from the Shorten-era policies – all that will be very hard.

If after a few months he feels he can’t do these things, Shorten should find another career.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

How might Labor win in 2022? The answers can all be found in the lessons of 2019


If Anthony Albanese wants to lead Labor to victory in 2022, he’ll need to grasp the full suite of lessons from 2019’s shock loss.
AAP/Joel Carrett

Chris Wallace, Australian National University

The high tide of analysis concerning the Australian Labor Party’s shock 2019 federal election loss has been reached. It looks like so much flotsam and jetsam with the odd big log – leadership popularity, Queensland – prominent among the debris. Sorting through it, making sense of it, and weighting the factors driving the result really matters. It matters because decisions influencing the outcome of the next federal election will flow from it.

The learner’s error is to grasp onto a couple of factors without considering the full suite, weighting them and seeing the connections between them. What does the full suite look like?

1. Leadership popularity

Labor’s Bill Shorten was an unpopular leader, neither liked nor trusted by voters. The shift from Shorten in private to Shorten in leadership mode in the media was comparable to the shift in Julia Gillard when she moved from the deputy prime ministership to prime minister: the charm and wit went missing, replaced by woodenness and lack of relatability.

Shorten accepted advice to appear “leader-like”, creating a barrier Prime Minister Scott Morrison, who sought to directly connect with voters, was not hampered by. “It is often said of democratic politics,” historian David Runciman has said, “that the question voters ask of any leader is: ‘Do I like this person?’ But it seems more likely that the question at the back of their minds is: ‘Would this person like me?’” Morrison passed and Shorten flunked that test.




Read more:
Why the 2019 election was more like 2004 than 1993 – and Labor has some reason to hope


Shorten generally failed the “theatre of politics”. His suits often looked too big, making him look small. Television footage of him jogging in oversized athletic clothes during the campaign made him look small. Poor production of Shorten in these ways diminished perceptions of him as an alternative prime minister – a professionalism fail that could have easily been fixed but was not.

Lesson: Leadership unpopularity costs votes. Successful “theatre of politics” matters.

2. Supporting players’ unpopularity

Shorten was weighed down by frontbenchers in the key economic and environment portfolios who fell well short in the performativity stakes too. The camera is not kind to shadow treasurer Chris Bowen. While he developed serious policy chops, partly through sustained study of Paul Keating’s history as a reforming treasurer of historic stature, he also picked up Keating’s hauteur, but without actually being Keating and able to pull it off.

The arrogance of Bowen’s franking credits policy comment that “if people very strongly feel that they don’t want this to happen they are perfectly entitled to vote against us” was a defining misstep of the Shorten opposition. It made the leader’s job that much harder.

Shadow environment minister Mark Butler is another to whom the camera is unkind. He embodied the soft, urban environmentalist persona that is poison in those parts of Australia where Labor needed to pick up seats. An equally knowledgeable but more knockabout environment spokesperson – Tony Burke, for example – would have been the cannier choice in a “climate election” where regional voters had to be persuaded to Labor’s greener policy agenda.

Lesson: Appoint frontbenchers capable of winning public support in their portfolios.

3. Misleading polls
The maths wasn’t wrong but the models on which the two-party-preferred vote is calculated have been blown up by this election, an event foreshadowed by recent polling miscalls in Britain.

Long-time conservative political consultant Lynton Crosby’s presence in the Coalition campaign has been invisible except for the tiny but crucial, and completely overlooked, detail that the Liberals’ polling “was conducted by Michael Brooks, a London-based pollster with Crosby Textor who was brought out from the United Kingdom for the campaign”.

The Coalition had better polling. Labor and everyone else were relying on faulty polling that misallocated preferences and uniformly predicted a Labor win – false comfort to Labor, which stayed a flawed course instead of making necessary changes to avoid defeat.

Lesson: Focus on the primary vote, the polling figure least vulnerable to modelling assumptions.

4. Media hostile to Labor

The Murdoch media have created an atmospheric so pervasively hostile to Labor that it has become normalised. It contributed significantly to Shorten’s unpopularity and Labor’s loss. Its impact is only going to get worse with Australia’s nakedly partisan Fox News-equivalent, “Sky After Dark”, extending from pay-TV to free-to-air channels in regional areas.




Read more:
Outrage, polls and bias: 2019 federal election showed Australian media need better regulation


Lesson: Labor has to be so much better than the Coalition to win in this dire and deteriorating media environment. It needs a concrete plan to match and/or neutralise the Murdoch media’s influence.

5. Regional variations

Labor failed to win support in resource-rich states where it needed to pick up seats to win, and suffered a big fall in its primary vote in Queensland.

There is a danger of this being overplayed as a factor since, in fact, not much really changed at this election: the Coalition has two more seats and Labor two less seats than in the last parliament. Further, there are nuances to be engaged with even in hard-core resource areas. More Queenslanders, for example, are employed in the services sector in industries like tourism than are employed in the coal sector; and Labor has a strong tradition in Queensland and is capable of renewal.

The concerns of both sides need to be woven into a plausible policy path forward, with opportunities for different, deeply-held views to be heard and acknowledged as part of the process.

Lesson: Develop “ground up” rather than “top down” policies that integrate diverse concerns without overreacting to what was actually a modest change in electoral fortunes.

6. Weak advertising strategy

Labor’s advertising campaign was complacent, unfocused and completely failed to exploit the leadership chaos and chronic division in the Coalition parties for the previous six years. Why? Labor’s decision not to run potent negative ads on coalition chaos in parallel with its positive advertising campaign is the biggest mystery of the 2019 election – naive in the extreme. It left Labor defenceless in the face of a relentlessly negative, untruthful campaign from the other side.

Lesson: Have brilliant ads in a sharply focused campaign that doesn’t fail to hit your opponents’ weaknesses.

7. Massive advertising spending gap

Along with the hostile media environment created by the Murdoch press, the unprecedented spending gap between the Labor and anti-Labor sides of politics and its role in the Coalition win has passed largely unremarked.

The previous election was bought by Prime Minister Malcolm Turnbull with a $1.7 million personal donation that boosted Coalition election advertising in the campaign’s crucial last fortnight. That now looks like small beer next to the 2019 election’s anti-Labor advertising spending (approximately $80 million when one adds the Coalition’s $20 million spend to the Clive Palmer-United Australia Party spend of $60 million-plus). This is four times the size of Labor’s $20 million ad budget – a huge disparity.

Palmer’s gambit, which creates a friendly environment for him to gain regulatory approval for a Queensland coal mine vastly bigger than Adani’s during this term of parliament, takes Australia into banana republic territory in terms of money politics.

Lesson: Australia already needed campaign finance laws to stop the purchasing of elections. It needs them even more urgently now.

8. Large policy target

Misleading polling showing it was persistently ahead gave Labor false comfort pursuing a “big” policy agenda – that is, making policy offerings normally done from government rather than opposition. If everything else goes right in an election, and with a popular leader and effective key supporting frontbenchers, this may be possible. That was not the case in the 2019 election.

Lesson: When in opposition, don’t go to an election promising tax changes that make some people worse off. Save it for government.

9. Green cannibalisation of the Labor vote

The primary vote of the Labor Party (33.5%) and the Greens (9.9%) adds up to 43.4% – a long way off the 50%-plus required to beat the conservatives. For a climate-action-oriented government to be elected in Australia, Labor and the Greens are going to have to find a better modus vivendi.

They don’t have to like each other; after all, the mutual hatred of the Liberals and Nationals within the Coalition is long-standing and well-known. But like the Liberals and Nationals, though without a formal agreement, Labor and the Greens are going to have to craft a way forward that forestalls indulgent bus tours by Green icons through Queensland coal seats and stops prioritising cannibalisation of the Labor vote over beating conservatives.

Lesson: For climate policy to change in Australia, Labor and the Greens need to strategise constructively, if informally, to get Labor elected to office.

10. Every election is winnable

Paul Keating won an “unwinnable” election in 1993 and pundits spoke of the Keating decade ahead. John Howard beat Keating in a landslide three years later, despite being the third Coalition leader in a single tumultuous parliamentary term.

Morrison won the 2019 election despite internal Coalition leadership turmoil, political scandals and a revolt of the party’s women MPs against the Liberals’ bullying internal culture.

Lesson: Every election is there to be won or lost. Take note of Lessons 1 to 9 to do so.The Conversation

Chris Wallace, ARC DECRA Fellow, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Why the 2019 election was more like 2004 than 1993 – and Labor has some reason to hope


Frank Bongiorno, Australian National University

I recently had cause to look at a large file of material I collected about Mark Latham during 2004. It is full of many of the same columnists who have just campaigned successfully for the return of the Morrison government. They were buzzing with excitement and hubris. News Corps’s Miranda Devine saw an omen in the news that arrived from Paris as the polls opened in Australia:

Jacques Derrida, the father of deconstructionism, died in Paris of pancreatic cancer, bringing to a symbolic end a destructive era of postmodern truth-twisting.

While no one else seemed to draw a bow quite so long, almost everyone could agree that John Howard’s victory was “historic” and that Labor was in “crisis”.




Read more:
View from The Hill: Should Labor jump to new generation leader – and Morrison steal some Shorten policies?


But The Australian’s Janet Albrechtsen’s response to that election brings us closest to the present. Howard’s very lack of a grand vision was precisely what had attracted voters to him, she claimed:

While the Left aches for a top-down vision imposed from above by some Whitlamite, Keatingesque leader, the rest of us prefer the bottom-up Howard version where we get to choose our own vision.

With Scott Morrison, we also have little choice but to choose our own vision if we want one. But Howard, it turned out, had plans if not a vision. He would use the Senate majority voters had sent his way to deal with Australia’s unions once and for all, through WorkChoices. At the 2007 election, Howard lost government as well as his own seat.

Labor supporters despairing of the result of Saturday’s election would do well to recall 2004. It is, to my mind, the closest parallel with what we have just seen. Labor took bold policies to the voters in 2004 and 2019. A Coalition leader managed to persuade enough voters that Labor couldn’t be trusted in economic matters.

Resources industries mattered for both elections, Tasmanian forests in 2004, and Queensland coal in 2019. Labor fumbled each, just as housing – interest rates in 2004, and property values and rents in 2019 – caused Labor grief on each occasion.

Shorten is no Latham, but there were question marks hanging over both leaders that told against their party. Shorten made his mistakes but ran a solid campaign in 2019, gradually hitting his stride.

Latham was no slouch in 2004, either; there has been a conflation of his behaviour after the campaign with that during its course. Writing straight after the election in The Australian, Paul Kelly had many criticisms of both Labor and Latham. But he also thought Latham had campaigned “very well” personally.

The more common comparison of 2019 has been with 1993, John Hewson’s “unlosable election”. There is, of course, something in that and, again, some hope for Labor.

There were reasons to imagine after the 1993 election that Labor was in for the long haul – that it would be the modern equivalent of the post-war Coalition with its 23-year run. The Liberals continued with a broken Hewson, had a brief and disastrous experiment with Alexander Downer, and then settled on a failed leader from the previous decade, Howard.

Few saw the Coalition’s future as bright after Keating’s win. But Labor fumbled its post-1993 election budget and, for all of Keating’s bravado in the house and all of his “big picture” hobnobbing with world leaders such as Clinton and Suharto outside it, the foundations of Labor rule were crumbling.

Is Labor’s “crisis”, if it is a crisis, worse than that faced by the Coalition in 1993 and Labor in 2004? If the ultimate test is electoral success, only the next election will allow us to answer that question.

But there are some alarming indicators. Labor seems to have lost votes to the far right in Queensland and preferences then flowed helpfully to the Coalition. Morrison was able to have his cake – getting the Liberals to put One Nation last south of the Tweed – while eating it north of the Tweed, where he had no sway over LNP preferencing and the Coalition reaped the rewards.

There is an emerging narrative that Adani mattered in key Queensland seats, not so much in its own right but for its wider symbolic significance for the future of coal mining in Queensland and Labor’s commitment to traditional blue-collar jobs.

If so, Labor has a lot of work to do to clarify its policy and messaging, in a state where coal has formed one of the foundations of the economy since the 1960s.

And it needs to do so without damaging its prospects elsewhere by equivocating on commitments to renewable energy and vigorous action on climate change. The old calculation that alienated Greens votes will come back to Labor might still be largely correct, but Labor has never won from opposition when the electorate votes for it only grudgingly.




Read more:
Labor’s election defeat reveals its continued inability to convince people it can make their lives better


It was ironic, in view of Labor’s problems in some regions and outer suburbs, that the two front-runners who initially emerged as Labor leadership contenders were members of the Left faction representing neighbouring seats in oh-so-hip inner Sydney. With Tanya Plibersek withdrawing – and another Sydneysider, Chris Bowen, also bowing out – the leadership is now likely to fall to the Left’s Anthony Albanese. Queenslander Jim Chalmers, from the Right, is considering whether to run.

The terms in which the post-election debate about Labor’s future has been carried on could have occurred after any election defeat in the last 50 years. But the foundational issue for Labor is not where it places itself on the political spectrum, or even whether it can win back voters in the regions, but whether it has any capacity to grapple with the inequalities and frailties that lax, opportunistic and unsustainable policy – much of it dating back to the Howard era – has embedded.

At the 2019 election, Labor proposed chasing revenue by winding back tax concessions to some categories of shareholder, property investor and superannuant. This approach was rejected at the polls. But economic growth and productivity seem unlikely to provide an alternative pathway for a future Labor government, unless there is a miraculous turn-around in the global economy.

No prospective Labor leader should be taken seriously unless he – and it seems it will indeed be a “he” – is at least able to articulate this dilemma.The Conversation

Frank Bongiorno, Professor of History, ANU College of Arts and Social Sciences, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Vital Signs: the ‘ball-tampering’ budget trick they don’t want you to know about



File 20190418 28103 iz9jvq.jpg?ixlib=rb 1.1
Just not cricket: Politicians make promises but obfuscate how those promises will be paid for.
Shutterstock

Richard Holden, UNSW

The first week of the federal election campaign has been dominated by heated disputes about the numbers behind both government and opposition policies.

Both sides are under pressure. Notably, the cost of Labor’s 45% emissions-reduction target has been rightly questioned.

Opposition leader Bill Shorten’s answer to reporters that “our 45% reduction, including international offsets, has the same economic impact as the Liberals’ 26%” didn’t exactly engender confidence.

But the folly of Labor’s environmental plans is another tale for another column.

Our focus here is on how the Coalition is going to cut personal income tax by A$158 billion and balance the budget.

Wild assumptions

Earlier this week the Grattan Institute pointed out the Coalition’s budget assumption that expenditure will fall from 24.9% of GDP in 2018-19 to 23.6% during the next decade amounts to cutting spending by more than A$40 billion a year in 2029-30.

This raised the natural question of exactly where those cuts will come from. According to the government, it’s from things such as lower welfare payments and lower interest payments on government debt.




Read more:
Your income tax questions answered in three easy charts: Labor and Coalition proposals side by side


The Grattan Institute’s Danielle Wood described these assumptions as “heroic”. Yup.

Now, you might wonder why the Coalition’s plan to cut personal income tax doesn’t fully kick in until 2025. Or, for that matter, why its “enterprise tax plan” on corporate tax is scheduled to be phased in over a decade.

Playing outside the rules

The short answer is that for the four years following a budget – the so-called “forward-estimates period” – there are rules about banking spending cuts.

During those four years, cuts need to be specified, or economic parameters need to be varied. And with good reason. That way the actual assumptions the government is making, however fanciful they may be, are plain for all to see.

But beyond the four-year period no such discipline applies. This allows governments of all stripes to make very specific claims about, for example, tax cuts they plan to deliver without having to be at all specific about how they are going to pay for them.

This is all just a conjuring trick. Politicians try to get us to focus on the tangible, specific thing we want – tax cuts, more money for hospital or schools, free cancer treatment – while obfuscating how they are going to pay for it.

It’s dirty pool. It’s not cricket. It’s the kind of thing a mob accountant does. Pick your favourite metaphor.

Bipartisan failure

Of course, treasurer Josh Frydenberg and finance minister Mathias Cormann didn’t invent this unscrupulous practice. Wayne Swan and Penny Wong, as treasurer and finance minister respectively, were guilty of these kind of shenanigans too.

The specifics of the current round can’t even be debated properly, because ten-year “guesses” don’t lay out specific assumptions that can be checked for internal consistency and plausibility.

Sadly, it seems futile to hope for cultural change among politicians and a shift to integrity.

To some extent, we need to be the change we want.

The fact both sides of politics so brazenly play us for suckers is as much our fault as it is theirs. If politicians thought there were real consequences at the ballot box for this sort of behaviour, they would think twice.

But there aren’t. When both sides are guilty it’s understandable that voters become so cynical that they just factor it in and look to other issues.

If more voters were willing to make “cooking the books” a decisive issue, that might change.

Need for incentives

Politicians respond to incentives. My favourite illustration of that is how United Nations officials used to be exempt from parking tickets in New York City. As economists Ray Fisman and Ted Miguel showed, when norms alone governed behaviour, officials from corrupt countries basically parked wherever they wanted. Once city authorities got the ability to confiscate diplomatic licence plates of violators, things improved radically.

So as long as the mainstream media refuses to issue our politicians with the moral equivalent of parking tickets for cooking the books of public debate, politicians are going to keep doing it.

Now, many commentators do exactly that – and some of them are brilliant and fearless. But other folks, on the right and on the left, seem to have the attitude that both sides play fast and loose with the facts so it’s fine for them to call out whichever side they personally like the least.

Actually, scratch “seem to have the attitude”. They’ll tell you that to your face.

When Australian cricket captain Steve Smith and vice-captain David Warner got caught in a ball-tampering racket, there were consequences.

When our elected representative do something similar, but with our nation’s finances –with consequences for growth, employment, welfare benefits, retirement incomes, and climate change – they get a pass.

That’s got to stop; and we’ve all got our part to play.The Conversation

Richard Holden, Professor of Economics, UNSW

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Business-as-usual record on transport leaves next government plenty of room to improve


Marion Terrill, Grattan Institute

This article is part of a series examining the Coalition government’s record on key issues while in power and what Labor is promising if it wins the 2019 federal election.


Election season means transport season: just as the recent New South Wales and Victorian elections gave us massive new transport promises, so too is the federal government relying on the enduring popularity of new roads and rail. But look beyond the rhetoric and the past three years have been largely business as usual. That leaves plenty of room for the next government, of whatever colour, to take a fresh look at how transport promises are made – and plenty of room to improve.

Last week’s federal budget committed to transport expenditure of A$7.4 billion in 2019-20, and A$33 billion over the four-year forward estimates period.




Read more:
Budget transport spending is about par for the course, but the pattern is unusual


The government claims it’s spending a record A$100 billion over a decade. Yet the opposition claims: “Across the four years of this budget, Commonwealth investment in infrastructure actually falls, from A$8 billion to A$4.5 billion.” And Infrastructure Partnerships Australia says recent budgets are down on the long-term average by about A$11 billion over the forward estimates.

How much is the government actually spending?

With such polarised views, who are we to believe?

In reality, the expenditure for 2019-20 is absolutely normal. At 0.37% of GDP, it’s close to the midpoint of spending on transport under treasurers Scott Morrison, Joe Hockey and Wayne Swan. In each of the past ten budgets, annual transport spending in the year following the budget has been 0.26-0.53% of GDP.

What is different is the extent of promises that lie beyond the forward estimates period. The move to a ten-year pipeline of promises might be fine in theory, but an interested elector can rely only on what’s in the budget papers. And from that they would conclude there’s nothing unusual to see here.




Read more:
$500m for station car parks? Other transport solutions could do much more for the money


A new enthusiasm for equity investments

All these figures concern grants to state governments, which are responsible for transport networks. But, in addition to these grants, the federal government has developed an enthusiasm for funding projects “off-budget”. In the past two years, the Commonwealth made equity investments of A$9.3 billion in Inland Rail and A$5.3 billion in Western Sydney Airport.

The Charter of Budget Honesty states that an investment can be treated as an off-budget equity injection only if the government has a “reasonable expectation” of recovering the investment. In other words, the entity must be expected to make a positive return over time.

But this gives governments a lot of latitude. A positive rate of return is not the same as a commercial one. And there seems little likelihood of commercial returns in either case.

For Inland Rail, it’s no secret that the Australian Rail Track Corporation will never be asked to repay the A$9.3 billion, even when project revenues start to flow in 2025. Let’s hope the finance minister is right to insist there’s no prospect the project will need even more taxpayer support, despite the risks identified in the budget papers themselves and by the Commonwealth Auditor-General. With no expectation of repayment, there is no practical difference between this “equity investment” and a grant.

For Western Sydney Airport, the government decided to build the airport itself after Sydney Airport Corporation declined its right to build it. The airport operator said the offer as it stood was “deeply uneconomic”. It cited operational, traffic, financial and political risks.

So it’s hard to share the confidence of the then treasurer (and now prime minister), Scott Morrison, when he said the new airport will “generate an income stream that’s going to pay for itself”.

In both cases, if a future government ends up writing down the fair value of these assets, this will appear on the balance sheet as a change to “other economic flows”. It won’t be separately identified. Nor will the write-down show up in the underlying cash balance figure that the media spotlight highlights on budget night.

The unavoidable conclusion is that pushing transport spending off-budget seriously diminishes not only the discipline that comes from competing for funds through the budget process, but also transparency in how public money is being spent.




Read more:
A closer look at business cases raises questions about ‘priority’ national infrastructure projects


A foray into road pricing is stillborn

In November 2016 the government took an unusually bold step: it committed to holding an inquiry into road-user charging. The then minister for urban infrastructure, Paul Fletcher, was in good company. His commitment to commission a review led by an eminent Australian was in response to a 2016 recommendation from Infrastructure Australia, which invoked a similar recommendation in the 2015 Harper Review of competition policy, which in turn referred to a 2014 Productivity Commission recommendation. And the backdrop to all these reports was a recommendation of the 2010 Henry Tax Review.

But time passed and no eminent person was appointed. More time passed, ministers moved portfolio, and no eminent person was appointed. Finally, in October 2018, current minister Michael McCormack declined to commit to the inquiry.

An inquiry is no more than an inquiry, but a non-inquiry is a commitment to the status quo. Roads funding and roads investment are serious topics, and many commentators have argued that they are the laggards of regulatory reform.

A change to how road use is funded could significantly alter which roads are funded, what maintenance is done, and how networks are managed. It appears to have been all too much for this government. This task awaits a future government.




Read more:
Delay in changing direction on how we tax drivers will cost us all


The alternative government’s most important promises aren’t the sexy ones about electric vehicles. They are Labor’s promises that Infrastructure Australia should assess projects before the decision to invest, and to release assessed business cases. These promises may sound worthy and a little dull, but in reality they are big and welcome commitments.

Less obvious is how to square them with federal Labor’s promise to advance high-speed rail, or the promise to work with the Victorian premier “to deliver the visionary Melbourne Suburban Rail Loop”. Both of these are massively expensive projects with nothing approaching an assessed and publicly available business case.

It would be a significant improvement if whichever party wins government next month were to commit to, and follow through on, careful assessment of transport gaps and problems, consideration of the various feasible solutions, and rigorous evaluation of the preferred approach. And it’s not enough just to do this; it should be done in public.

Let’s hope.




Read more:
Missing evidence base for big calls on infrastructure costs us all


The Conversation


Marion Terrill, Transport and Cities Program Director, Grattan Institute

This article is republished from The Conversation under a Creative Commons license. Read the original article.