Before her recent departure overseas, “reform” was Julia Gillard’s major theme both in her efforts to carve out a purpose for her government, and in her attacks on the Opposition.
Since the 1980s, economic reform has, along with budget surpluses, become not just a key benchmark by which Australian governments are assessed, but a raison d’être for parties in government. Reform is no longer a finite process but a permanent revolution demanded by business, the media and many politicians themselves, with the agenda shifting over the last decade from major economic restructuring to further tax reform, a “human capital” agenda and a seamless national economy – not to mention endless demands from business for “reform” in the form of corporate tax cuts. If governments aren’t reforming, they’re considered useless.
This is most assuredly a good thing, as a quick glance at other developed countries, where political cultures do not support tight fiscal policy or put such a strong emphasis on economic reform, demonstrates at the moment.
As the standard-bearer of reform in the 1980s, Labor has been happy to be judged by this framework, even though it turned its back on major reform like the GST and privatisation in the Howard years. And despite its recent track record of failure on the CPRS and the RSPT, Julia Gillard is eager to be seen as following in the footsteps of the politicians from what should now be dubbed the Golden Age of Reform — Hawke, Keating, Howard and Costello.
This is not a case, as I discussed yesterday, of Labor allowing its opponents to frame the political narrative. Reform is – in part – Labor’s own narrative. Moreover, Labor has had some success in keeping ownership of it as the reform focus has shifted from “hard” micro-economic reform to the perceived “soft” agenda of human capital, centred on territory that is more naturally Labor’s: health, education and skills. This agenda emerged in the Howard years, partly driven by the Bracks Government, but it succumbed to politicking between a Liberal Commonwealth and Labor states. Labor has adopted the agenda and made a great deal of progress with it, particularly in education, courtesy of Julia Gillard’s activism. She achieved in three years much more than the Howard Government certainly managed.
Where Labor has lost control of the reform narrative is in relation to the purpose of “reform”. Reform is not — contrary to the impression given by some commentators – a goal in its own right, but must serve the interests of the community. The Hawke and Keating Governments excelled at selling reform as being in the interests of the voters most likely to oppose it – their own constituency — by emphasising reform as forming part of a broader purpose of governing in the interests of workers and their families. This job was altogether easier for Hawke-era Labor because it could do so via the Accord, which bought union cooperation with a difficult reform agenda in exchange for “social wage” outcomes such as Medicare and superannuation. The Accord is now regarded as a relic of a bygone era when unions were much larger and altogether more truculent, but it should be seen as a key tool in securing a more consensual community-wide approach to the job of overhauling the Australian economy that Hawke and his Cabinet embarked on after 1983.
It also sent a clear message from Labor to working families that it had their interests at heart.
Courtesy of the (Labor-initiated) arrival of enterprise bargaining, and the steady diminution of the union movement, an Accord-based approach is obviously no longer available to Julia Gillard and Wayne Swan. But there is nothing in its place to convey the purpose of reform. Labor now speaks endlessly of the need to undertake reform, without explaining to voters what’s in it for them. While Labor has struggled to ever lead the Coalition in polling on which party is seen as better economic manager, it still has a very strong brand on the issue of managing the economy in the interests of working families. Even during Labor’s nadir during the election campaign, it still performed strongly on this indicator. On 9 August, when Labor looked headed for defeat, Essential Research found that Labor, despite trailing the Coalition in “best party at managing the economy”, 38% to 44%, had a strong lead over the Coalition on “best party at handling the economy in a way that helps working people in Australia”, 44-35%.
It was a message that Labor campaign strategists only faintly understood, to their great cost.
It’s there that Labor needs to take the “reform” narrative, better connecting up its ostensible reason for governing with the direct interests of voters, rather than continually prosecuting the case for reform without ever explaining just what reform is for, or more particularly who it benefits. Without that sort of frame, Labor’s efforts at reform don’t look grounded in any core principles. And that’s not just about communicating effectively with voters: if the CPRS or the RSPT were developed and sold as being fundamental parts of Labor’s agenda of managing the economy in the interests of working people, it’s hard to believe they would have been so readily abandoned on the advice of focus group-driven party apparatchiks.
Bernard, we don’t need a Prices and Incomes Accord in current times. When was the last time your heard or saw the unions via the ACTU take on the Federal Government over anything? The previous Accord and its spin offs have so weakened the unions that they can just about manage a squeak over things that they don’t like, mostly via the announcements of the CFMEU and the AWU. The Accord period and later, and the accompanying deregulation and restructuring of the industrial system have produced a cautious, conservative, some would say completely inert and inactive trade union movement. Head Offices of unions are career paths for aspiring Labor politicians although even this seems to be shifting now to career paths for aspiring Green politicans as well. The communist influence in unions died years ago and the raucous, bumptious union official, shop floor trained and ready to take on anyone is no more. Some would say these people generated more heat than light in the past but they most certainly generated ideas, debate, activity, and gains for working people via the union movement and the Labor Party.
How are they meant to explain anything? They get strips ripped off the minute they open their mouths.
Bernard, the Progressive message is constantly warped through the rightards media owned cartel’s fear campaign on everything. It’s why the conservatives and its big brother in arms, religion, exists. Fear is the only weapon the rightards have over the masses to keep power. If we had good journo’s in this country and not just puppets of fear, we would get the progressive message truthfully reported, God forbid. Next to the outrage at coning a few desperate farmers or voters, enticed into panic by their own political reps lies to protect their own political skin, ‘for example, that is a true outrage that needs reporting’. Reality would be a good place to start for all you budding journos, make a name for yourselves, and become the heroes you wish to be. Just because “letting a good story get in the way of the truth”, is a great saying, doesn’t mean journo’s have to live by it. “The only thing to fear is fear itself” FDR, is a much better slogan to work and live by. Think of all the great journos of the past, and what they stood for. You wont find Bolt’s name amongst the great ones, maybe the infamous if he’s lucky, so don’t join him Bernard.
Bernard, what makes you think that GST was a reform? iIt is a tax that hits the lower paid, the poor and the unemployed worse than any others. It certainly is not a progressive tax. If you had to collect and account for it to the tax office you would not consider it a reform. Our office manager hates it. It has turned her from a Liberal supporter to Liberal hater.
The Howard Workplace Laws showed the union movement what you eventually get by co-operation with government. You seem to be sadly misinformed. It was a con on the Labor State Governments. They got the proceeds but the Howard government made sure they got nothing else, hence the tremendous backlog of public works in the Howard years that the Rudd government had to try to make up.
Sorry Bernard but more investigation before you write would help!