Back in 2011, then-prime minister Julia Gillard decided to use the Sydney Institute’s annual nosh-up to attempt to define herself and her government better. She’d already used an oration in honour of Gough Whitlam that month to outline a peculiar fetishising of manual labour in which, she explained, “we respect the efforts of the brickie and look with a jaundiced eye at the lifestyle of the socialite”. When speaking to Gerard Henderson and co, she went further and devoted most of the speech to the “dignity of work”; Gillard appeared eager to define herself as an avatar of a stern, self-punishing obsession with hard yakka.
Gillard’s problem at that point was that it wasn’t very clear exactly what her vision for Australia was, and because Kevin Rudd had deliberately sabotaged her election campaign, she lacked a majority government that would have better enabled her to do so.
Malcolm Turnbull, who spoke at the Sydney Institute last night, might be in similar circumstances to Gillard with a feral ex-PM trying to destroy him and a bare parliamentary majority, but he has the opposite problem. At the start of his prime ministership, Australians had a very clear idea of what Turnbull stood for and his vision for Australia. Only problem is, he has spent every waking moment since then negating every aspect of that definition, to the point where the only reliable guide to Malcolm Turnbull now is what the right of his party demands.
Given the opportunity afforded by the Hendersons to free-range in any direction he chose, Turnbull decided to focus on the quintessentially Australian virtue of … competition. Yes, you may have thought mateship, or a fair go, or something equally cliched was at the core of the Australian character, but in the view of the Prime Minister, it’s competition:
“There is nothing more Australian than competition — deep in our DNA is the drive to be first, to show that we can take on the world, and win, in any field. Whether we are breaking sporting records like Danni Roche did in hockey, just down here in the front row, or achieving the most consecutive years of economic growth, we compete on our merits and we expect excellence. Australia needs to draw on that spirit more than ever as we face our biggest test — the race to compete for jobs, investment and exports with the most dynamic markets of the 21st century.”
“Complacency is deadly,” Turnbull went on to warn. “Only the keen competitive eye can see the way to continuing success.” You can keep Gillard’s “jaundiced eye” — now we have the “competitive eye”.
A keen eye of any kind would spot a number of factual errors in what follows. “Most of the burden of high company taxes is borne by workers,” Turnbull says. This is a repeatedly discredited falsehood from company tax cut advocates, as explained by, inter alia, the US Congressional Budget Office, which has shown the burden falls primarily on capital.
Turnbull claims “Australian businesses are reaping the rewards” of the government preferential trade agreement with China, when, as the Productivity Commission has noted, such agreements simply involve export diversion from one market to another, with “modest” impacts on national income at best.
“India wants to provide energy security to its people through a full range of technologies, including nuclear, clean coal, natural gas and renewables,” Turnbull said. “Australia is well placed to provide many of the raw materials.” Sadly for Turnbull and other believers in the myth of “clean coal”, Australia is not well placed to provide coal to India because the Indian government has repeatedly — last year and then again this year — stated its intention to end all coal imports.
Turnbull’s claim that “there used to be a time when both sides of politics recognised that cutting company tax was the way to deliver greater investment, greater productivity and more employment” overlooks how Turnbull and his party blocked Labor’s company tax cut designed to offset the impact of the mining boom.
But, whatever — Turnbull is as entitled as any other politician to make shit up. What’s more interesting is his theme of competition. However clunky that speechwriter-sackable segue from success on the sporting field to economic growth, much more so than Gillard’s attempt to portray herself as an Iron Lady of early-rising, hard-working, callus-handed tradies, Turnbull’s theme rings true.
Australia does love competition. That’s why we waste hundreds of millions of dollars on funding elite sport, in the hope of winning a few medals at the strikingly corrupt Olympic games. That is, we like our competition government subsidised, thanks very much. And, as it turns out, that’s entirely appropriate for Turnbull’s idea of competition, too.
We impose huge costs on the economy — especially the construction sector — to protect and subsidise our unviable steel industry, via our spectacularly inefficient anti-dumping system. We’re spending up to $15 billion more than we need to to make naval submarines in Adelaide for the sake of around 2800 jobs and a few Liberal seats. We are propping up unviable dairy farmers with half a billion dollars in cheap loans (like anti-dumping, a singularly inefficient means even of achieving protectionist ends). We’re imposing an expensive and inefficient tax on imports to deter consumers from shopping online. We’re preparing to throw money at a vast, unviable coal mine in Queensland under the guise of a “northern Australian infrastructure fund”.
That “keen competitive eye” lauded by Turnbull is an eye for a handout, for a subsidy, for a tax break, for protection from genuine competition. Australian businesses enjoy one of the G20’s lowest average company tax rates, but they want more — or, rather, less, a lot less, even those who pay little or no tax. If nothing else, Aussie businesses are world champions at convincing governments to look after them.
“Australia needs to draw on that spirit more than ever as we face our biggest test – to find politicians of substance and good motive, who aren’t benighted by party ideologies, who aren’t caught up in irrational exuberance for economic theories that are proven not to work.” There, fixed!
I can’t disagree with your assessment of Malcolm, BK, but am left with the feeling that you’re indulging in similar lazy and cliched thinking. You’re a journalist Bernard, has the thought never entered your head that you actually produce nothing, nothing of substance anyway, and that perhaps a more honest living is one that actually does, you know, produce things? Has that thought never crossed your mind? It isn’t that hard labour is glamorous, it is that ‘making things’ actually speaks to the human soul, is part of our DNA, and probably much of our mental ill-health is associated with an underlying sense that we are all off chasing phantoms. I admit culpability here, and have to overcome my nothingness in the world of spreadsheets with weekend labour that actually produces things, for fun.
“We’re spending up to $15 billion more than we need to to make naval submarines” that will be built with steel of the highest standards, which is a good idea really if you want to plumb the depths, I would have thought. If my son were a submariner, I’d want Australian steel in those damned subs.
Anti-dumping measures are essential for free trade. I don’t know why you can’t get that BK. You can’t have free trade without them, otherwise it’s just a free for all for governments to subsidise everything.
A lazy and stupid government on ideological auto pilot, I hope that your writing doesn’t end up in the same ward!
Thanks Brekkie for saving me the trouble of writing that to BK.
It is truly amazing how intelligent people can be so deep in the Great River of Egypt.
If Journalists produce nothing (“nothing of substance anyway”), you could probably throw in academics, schoolteachers and doctors into the same category, since their not down on the production line making anything either.
There’s more than one way to make a submarine or a car. You could manufacture it in Adelaide, grow it in Queensland, mine it in WA, or make it offering services in Sydney.
Oh Matt! School teachers and doctors produce nothing? They helped produce you didn’t they? (With apologies to your mum and dad.)
Norm, I’m just asking why the poster thinks that BK “produces nothing”, and what basis S/he makes that judgement.
Yes, I believe that teachers, doctors and journalists make valuable contributions to our economy.
Apologies, and well deserved rebuke, Matt. In a tired and emotional moment, your otherwise obvious irony went right over my addled brain.
Isn’t “competition” all about flogging it?
“We impose huge costs on the economy — especially the construction sector .— to protect and subsidise our unviable steel industry”
That’s one thing I cannot understand, how did it end up being unviable given that we are sitting on top quality iron ore and coal and shipping costs of finished steel would be less than the large volume of both we ship for others to make steel?
How did we end up being a quarry instead of doing value adding?
Simple. Years of ineffectual non visionary governments kowtowing to vested interests
For Db
Sheeit.
I come from an iron and steel background and have worked, as a labourer, for the Big Australian at making ships and other metallic type things and I saw first hand the practice of political and corporate rorting and corruption that destroyed the Oz steel
industry in favour of corporate profits for said Big Australian elsewhere.
Yes I’ve been there too (BHP Newcastle 1992 where I saw how badly it was administered) but there is more than one player in the steel industry.
I think you’ll find that Donald Horne answered that question in “The Lucky Country” – his much misunderstood classic – which shows “a first class country with 2nd or 3rd rate politicians”.
Venal, ignorant, bigotted, ideologically constipated and morally myopic.
And those are their better points.
And don’t forget that Pyne is going to build another Australian maritime college in South Australia for presumably more LNP votes, when we already have a really well thought of one in Tasmania.
We ought to be competing to cooperate better with each other. Those who can find ways to work together rather than focusing on making up ways to be “better” than someone else collaborate poorly, are less creative and productive. Competing to get more government largesse, I think, was the point you are making BK, and this seems to be the least challenging intellectual exercise. Finding ways to cooperate and develop synergies – that requires intellect and trust and genuineness.