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Tag Archives: Joe Hockey

No ‘love’ in the Abbott Government’s ‘tough’

Prime Minister Tony Abbott and Treasurer Joe Hockey have taken to describing their budgetary cruelty as an act of “tough love” for which we may well rail against them in the present, but will respect them for in the years ahead, presumably when we can see how their tough love has achieved the goal of all tough love, that is to bring the poor amongst us to their senses and force them to live non-vulnerable, standing-on-their-own-two-feet lives, or die.

Tough love is a phrase usually associated with advice given to parents of drug-addicted offspring: refuse support in order to achieve a drug-free outcome. It demands that one have sufficient strength to withdraw all assistance that might enable the addict to continue on their self-destructive path. It requires the stamina to watch another spiral into an abject desolation and marginalisation that is allegedly entirely his or her own doing, and in which, the theory would have it, the addict will hit their own personal bottom line and in so doing begin the long trip back to sobriety and a decent life. I have no idea if it works or not.

There is no love in the tough Abbott and Hockey are dealing out to the vulnerable who will bear the brunt of their withdrawal of government support. Indeed, it is very telling that Abbott and Hockey appear to equate (with no evidence whatsoever to support their bigoted assumptions) economic vulnerability with anti social addictions, and have set about “curing” the vulnerability by withdrawing already meagre support in the deranged belief that if you make people starve, they will stop being vulnerable. Vulnerability is, in the Abbott and Hockey ideology, a choice, and people must be forced to stop making it by using the harshest possible methods until they hit their bottom line, and wake up one morning enlightened, repentant, and ready to get a job.

This government has no interest in equality. The admirable ethos of the “fair go”, so inimical to what we fondly think of as our national character, has been mangled beyond recognition in the first few months of the Abbott incumbency. Instead, we have Hockey thundering why should you pay for someone else’s education, completely overlooking the fact that someone else paid for his. We contribute to the costs of educating others because it benefits all of us. Educating people gives us the professionals who are absolutely essential to our daily lives and well-being.

Abbott and his government are in the business of installing a new regime of truth, one that is foreign to us, a regime that casts fairness and concern for others in a negative light, a move that is made even more inexplicable by the Christian affiliations of the PM and his Treasurer. The marriage of religion and neo liberalism apparently spawns an extreme of wilful ignorance, and the inevitably cruelty that accompanies the trait.

In his excellent piece in The King’s Tribune, Tim Dunlop argues that progressives need to change the current conversation, that there is little to be gained in agitating for a change in LNP leadership, or castigating Abbott, pining for Turnbull or bringing back the ALP in its current configuration. The Australian ALP appears to be in its own downward spiral, following the lead of the UK Labour Party, described by George Monbiot in this Guardian piece as selfishly committed to inequality in its acts of omission, and its commitment to supporting aspects of the obscene Tory attacks on that county’s vulnerable.

What progressives must do, Dunlop argues, is work from the premise that we do want a country in which it is possible to offer everyone a fair crack at a decent life, a premise that will lead us in a very different direction from that offered by the LNP. The way in which we might achieve this revolution is by vocalising our resistance to the government’s imposition of inequality as a way of life in our country, using protest and withdrawal of labour. Where there is power there is always resistance, as Foucault noted, and the most powerful form of resistance available to citizens in situations such as ours is taking to the streets, as often as we have to, and letting the government know we are not a people who desire the increased suffering of the already vulnerable, rather we are a people who will fight for the fair go.

There is no love in the Abbott government’s tough. Much as Abbott and Hockey seek to portray themselves as men of character who are willing to risk short-term popularity for long-term gain, the reality is these men have gone for the jugular of the most vulnerable human beings in our country. There will be no long-term gain for the vulnerable. There will be increasing hardship, despair and disintegration. Abbott and Hockey will deliver us a new underclass, generations of citizens who have never been given a fair go.

Vulnerable people have never experienced entitlement, that is the province of the wealthy and comfortable. The age of entitlement is not over, it thrives. The age of the fair go has come to a sticky end, and we will all be the poorer for its death.

This article was originally published on No Place For Sheep.

 

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What a State demands, what a citizen gives, and what Abbott and Hockey simply don’t understand

“The State has a responsibility to its citizens,” writes Dr Strobe Driver in this guest article. But does the current government recognise this? All indications suggest not.

Recent history and the dreaded ‘age of entitlement’ mantra

The rhetoric from the Abbott-Hockey mantra of the ‘age of entitlement’ appears to be getting more manic as a viewing of the ABC’s Parliament Question Time will attest; and as other Coalition ministers join the fray. Moreover, the reinforcement that it is getting due to the persistency of the mantra heralds that somehow, some way, we had this ‘entitlement’ bestowed upon us by the liberal-democratic nation-state. This is however, not the case and as much as Abbott would have the populace of Australia leave his mantra unquestioned, there is much more to the where ‘entitlement’ debate. Of course, and as can be expected by a Conservative neo-liberal government, the mantra quickly shifts focus to some within the State not being ‘deserving’ of the care of the nation-state. In order to suggest the opposite of the Abbott-Hockey mantra and that in fact Australians duly deserve their ‘entitlement,’ requires a balance needing to be struck in the argument. One that shows the population actually worked for its fair share of the so-called ‘entitlement.’

First of all, however, the imbalance in light of current political machinations regarding who is deserving and who is not, can easily be observed in two examples: aged pensioners are the deserving recipients of welfare; and the unser-30s are not. To be sure, the reason why pensioners have been targeted as the most ‘deserving’ one can assume is they will form a significant voting bloc at the next election. A reasoning for the under-30s being targeted is they are prone to being selective about employment; and possibly not wanting to work at all. As patently false as this may with regarding the under-30s, the Conservatives have convinced themselves it is true and have set about turning the information into a ‘fact.’

Why the under-30s are being ostracised in this way is difficult to understand as from the perspectives of chronological, structural, functional and in particular fiscal, they will be the ones that underpin the future pensions and lifestyles of the very ministers – Abbott, Hockey, Cormann, Andrews, Robb, and Abetz – who are driving the mantra. This forces any observer to question whether they understand the way in which economies-of-scale actually operate, and/or whether they are simply so slavish to the neo-liberal agenda per se, that nothing else is able to penetrate their idealised version of the way an economy should operate.

Furthermore, by punishing these people in such a way is to suggest that the under-30s are ‘on their own,’ which in and of itself collides with their fellow ex-treasurer’s (Peter Costello) ideal that a woman should have ‘one child, for mum, one for dad and one for the country’ which has as its undertone that the country values an individual’s worth (if only for their ‘future of Australia’ populating capabilities). Here we are some twenty years on and those same children that were born in the mid-1990s are about to get their ‘reward’ for being under-30. Although it is a germane observation, there is something that should nevertheless be mentioned: it is the under- (and people in their) 30s that have the majority of the children.

Whilst the above has dealt only with certain groups in society it is important at this point to expand on the notional understanding of what the State ‘is’ and what it ‘wants,’ and who supports ‘it’ as an entity. The State as an entity is interested, via its ruling elite, in its own existence and wellbeing. This is and remains, a continuum. Where does it get its well-being and ongoing existence from? The answer is its people. More to the point, the population-geography mix of a State is able to shed some light on how the State manages its populace and of course, some do a better job than others: Sri Lanka does an appalling job and Sweden does an excellent one.

Other nation-states aside there is the matter of Australia and how it manages its people and it is timely to talk about the nation-state in general, in order to come to understand how much it has demanded of a given populace. In placing what the nation-state has demanded will offer a ‘balance’ and counter the ‘entitlement’ argument that the Abbott-Hockey mantra invokes. The following is an historical précis of how the nation-state came into existence and why a citizen – in this case one living in the nation-state of Australia – should demand his/her entitlement regardless of his/her position on the socio-economic ladder; and regardless of what ‘entitlement’ the Abbott-Hockey team thinks an individual is ‘worth.’

The beginning of the nation-state

In 1648 the Treaty of Westphalia (TofW) came into being after Western Europe (as it is now called) was laid waste from the Sixty Years War. It was decided amongst the political elite that bordered-regions were needed so that defined geographical territories – what is now called the nation-state – should exist in order to create sovereign realms. In doing this there would no longer be accidental straying into the territory of another, and therefore hostile responses would be minimised because of this understanding. Borders would remain permanent and due to core agreements there would be less frictions and less wars. The TofW would achieve peace, or in the case of an actual war taking place, it would allow for a ‘just war’ to be the answer to any quarrels, and this would reside in either defending a given territory and the expulsion of an intruder; or it could also allow for an invasion into the intruder’s territory in order to establish a greater peace – exiting the territory when the problems were over was also required. Powerful nations now refer to this as an ‘exit strategy.’

Needless to say, there have been many, many wars since the inception of the TofW, however what we are interested in here is how did those wars, whether they were invasions or defence-driven, manage to take place? The short succinct answer to this question is sovereign nation-states used their populations as battering rams against each other–this still is the case regardless of whether the nation-state should have ‘matured’ beyond this paradigm. A major outcome of the scenario alluded to here is that the ruling elite of the ‘State’ were in the process of building their realm usurped clans, groups, tribes and many other peoples, and in doing so forced homogeneity onto all within their particular realm. In simpler terms, the State drew in domestic peoples and took over the role a clan elder would encounter in his/her role in the group. The State then made the people/s that had been usurped its ‘citizens.’ In this process of state-building the State gave ‘entitlements’ to their people in order to keep them loyal, fed and happy lest they need them in a crisis; and lest they rebel should their basic needs not be met.

Of course, it is an arid argument and a moot point to understand that some did a much better job than others (and this applies equally in contemporary times). England for instance, from about 1750 until 1919 excelled at this particular ‘model’ of ‘state-building’ to the point of making England into a world power: pax-Britannica. During, and before this time others were also exceptional at this as well, Spain, Portugal and France to name only a few.The British achieved status whilst the elite began to care for their people, and the people in turn incrementally began to offer loyalty, labour and encouragement. The United State of America also achieved this for their Anglo-settlers, via the twin grips of manifest destiny and patriotism. Of course this was also achieved, sometimes to a much greater degree than in England by countries such as Sweden, Finland, France and Denmark.

International politics aside, it is timely to ask what do Abbott and Hockey want from their populace? It is not too long a bow to draw to say that the Conservatives want loyalty, obedience and a strong sense of nationalism from (and for) Australia’s populace. What they appear to not understand is, that it requires an effort on the part of the State to keep these desired traits in the populace in place. The way in which a government can achieve this is either through brute force which is a delicate balance as the civilian population will rebel at the slightest hesitation of a ruler’s power, or to actually reward citizens for their loyalty and patriotism. When viewed from the perspective of the people of a State these ‘entitlements’ could and should be seen of as, ‘repayments’: a reward for being loyal to the ‘model’ that influences and controls their lives on a day-to-day basis, and one that the ruling elite continually force upon them.

Australia: 2014

The upshot of the above when seen from a different perspective is to suggest that the State under Abbott, Hockey and Andrews has no, or at the very least a declining, duty-of-care to some of its citizens – in this case the under-30s. The under-30s are not in need of care by the State as they are essentially capable of living on nothing and can find their own way in life without the input of the State. What is more, the shift of an ‘entitlement’ to somehow becoming a handout from the State for ‘no reason’ – even though one could argue it is the fault of the State in not creating enough jobs – is to observe that the Abbott-Hockey mantra has redefined ‘entitlement’ to ‘privilege’. Hence if there is any fiscal input into an under-30s life then it will be seen of as a ‘gift’ and not something State ‘should’ do, in other words the State will choose whether a person is of worth and if the under-30s do not conform to the (increasingly) rigid and draconian State-driven elements (such as ‘get a job or else’) in place they will be fiscally expunged from the State’s care. This is a shocking turnaround for a developed nation-state such as Australia; of a liberal-democratic country; and of a supposed egalitarian nation-state.

The future: a possible scenario

Let’s move to the future and assume that Australia reaches a crisis in the Asia-Pacific region and that a war with China/Indonesia/Russia (one or as a combination) is imminent. Who would fight this war of the future? Surely it will be the under-30s? The ones who the State thought were not deserving of care under the Abbott-Hockey-Andrews mandate. If a crisis of this magnitude happened – and it is important to note here, that the Asia-Pacific will be the next geo-strategic flashpoint – the State would without doubt, call upon the under-30s to show their loyalty, join the fight and embrace the needs/requirements of the nation-state of Australia. However, the State would be indulging in an acute double-standard if the Abbott-Hockey-Andrews fiscal and safety-net austerity were allowed to continue, as it has told them that as a part of the population – those in their late-teens and throughout their 20s–they are not worth the duty-of-care of the State. Perhaps pensioners can be called upon to join the fight? As loyal as pensioners’ may be to the State, their ability to fight a war is obviously nonsensical, so it stands to reason the young will be called upon – as has been the case in all wars.

Regardless of whether the above were to take place is a moot point as what is important is the argument that all Australians are worth being cared for equally, and that it is in fact the duty of the State. The frightening aspect of the Abbott-Hockey mantra is the divisiveness and separation it will cause in the community, and if the abysmal treatment of the under-30s is allowed to take place, it may produce a lost generation that has no hope and no trust in the State. Indeed, in a worst-case scenario the under-30s may decide they have no obligation to defend it as it has not cared for them. Would this ever happen in Australia?

Take a look at Spain or Greece for an insight into what a State can do in showing it simply doesn’t care about its young; and punishes them with austerity measures regardless of the fact that it was not the young who were responsible. The mess their political elders got them into is of their own making and was not caused by the young, and moreover, the elders have reneged on their ongoing responsibilities to their young. A shameful reflection on expecting the young adults to absorb the neglect of the State through punishment and in doing so shun what the liberal-democratic State has historically and incrementally encouraged: a high duty-of-care for its citizens. If borrowing money to care for the young is the cost of a civil and prosperous, well-educated society then it is worth it, as the ramifications of austerity are horrendous, from which it will take decades for Australia to recover.

The State has a responsibility to its citizens as it demands so much from them, and it will continue to do so. It’s time the political elite understood this and were aware that loyalty comes from giving and not from taking away. The nation-state of Australia may well need the people it is punishing today, to fight a war tomorrow.

This article was first published on Geo-Strategic Orbit and has been reproduced with permission.

Related article:

People ‘cost too much’: the Abbott Government and Neoliberalism

 

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Worth a thousand words

A picture can be worth a thousand words. Sometimes, you get tired of writing at length on the stupidities, mendacities and offenses of the Government, and the Tony Abbott government is giving us plenty of length to write. But sometimes it’s not the most literate or well-written essay or a finely-tuned turn of phrase that can have the greatest impact and be the most memorable criticism. Sometimes it takes a bit of sarcasm, or perhaps even a picture or two.

The following memes are thus offered for all to share. Feel free to copy, put them up on Flickr or Facebook or Google +. Distribute, copy, and feel free to suggest more.

notsurprised

No surprises? No excuses.

hockey_cigar

Meme based on original photo by Jane Caro

 

What’s $7? “One packet of cigarettes costs $22. That gives you three visits to the doctor. You can spend just over $3 on a middy of beer, so that’s two middies of beer to go to the doctor.”

Independent

Compilation based on images from abc.net.au

If you want to complain about my independence, take it up with the Speaker.

 

“The unemployed, the sick, the welfare recipients hit by the budget, they’re not going to be dancing, are they?”

notmymates

Photo: memegenerator

“Mates help each other; they don’t tax each other.”

offensive

Photo: tumblr.com

Just a blight on the landscape.

notdirecting

Compilation based on images from abc.net.au

Coincidentally raising my hand just before the Speaker stands up. Oops!

 

Maths is a marvellous thing

Like climbing mountains, maths is a marvelous thing. It is objective rather than a matter of opinion. It can’t be argued with. A fact is a fact.

But like many other powerful tools, maths can be used for evil in the hands of the unscrupulous.

Take our present government – please.

On a Liberal Party page called “The Prime Minister – securing Australia’s economic future” our fearless leader makes certain claims.

“When the Coalitions (sic) last left office, Australia had a $20 billion surplus and $50 billion in the bank but over six years, Labor squandered this and ran up five record deficits and a further $123 billion in projected deficits and gross debt headed towards $667 billion.”

Firstly, how many Coalitions do we have? There is the one with various forms of the National/Country party – are there other agreements I should know about?

Now, how about those numbers.

From the 06-07 Budget papers:

“Net debt, which reached zero in 2005-06, improved by $25.4 billion over the financial year to -$30.8 billion”.

From the 07-08 Budget papers:

“Over 2007‑08, the level of Australian Government net debt improved to reach ‑$42.9 billion by 30 June 2008”.

Labor won the election on November 24, 2007, so the Coalition left a net debt somewhere between -$30.8 and -$42.9 billion – not the $50 billion claimed by Mr Abbott.

In 2006-07, the Australian Government general government sector recorded an underlying cash surplus of $17.2 billion, not quite the $20 billion claimed but that could have been the case by the time of the election.

When Mr Abbott said we had $50 billion in the bank when these “Coalitions” left office he was speaking about net debt, albeit somewhat inaccurately. Gross debt is another matter. The Howard government never eliminated gross government, and never once since Federation has any government eliminated gross government debt. Nor should it and no government ever will. As at 30 June 2007, our gross debt was $58.284 billion.

In the first decade of the century, Australia struck it lucky. A voracious global appetite for commodities meant that we could sell unimaginable quantities of our mineral resources at unimaginable prices. The result was a windfall to our public coffers of at least $180 billion over and above long-term GDP growth trend over the six years from 2002 to 2008.

In 2001-02, a ton of exported thermal coal sold for around US$27. A ton of iron ore went for US$13. By 2008-09, these prices had reached US$131 and US$106, increases of fivefold and eight-fold respectively.

In 2001-02, we exported 90 million tons (mt) of thermal coal and 165 mt of iron ore. By 2008-09, these figures were 115 mt and 363 mt. Eight years into the decade, growth in exports of these two commodities alone were delivering an extra $49 billion in national income to Australia each year. The gold price increased by 600% from 2001 to 2011, while the value of our liquid natural gas exports almost doubled over the same period to $11.1 billion.

What Tony also fails to mention is that $61 billion of the reduction in net debt came from the sale of Publicly Traded Enterprises (PTEs) between 1993 and 2006.

Telstra $45.6 billion

Commonwealth Bank of Australia $6.8 billion

Airports $8.3 billion

Qantas $2.1 billion

Having a look at the profits of these companies (OK maybe not Qantas), one wonders whether we should have shown less haste in selling off our assets to reduce a debt that could have been paid off from the profits these companies make. We would also be able to afford a real NBN because we wouldn’t be paying Telstra billions for the privilege.

And it’s not like the Howard government stopped borrowing money. Even though they were raking money in from the mining boom and the sale of assets, including most of our gold reserve at rock bottom prices, the Howard government went to capital markets on no fewer than 400 occasions to borrow money.

Between March 1996 and November 2007, there were 135 lines of bonds that were taken to market in various bond tenders which were issued with a face value of $51 billion, while there were over 280 T-Note tenders with a face value of over $220 billion.

Indeed, in the three months before the November 2007 election, the Howard government went to the bond market on 8 separate occasions to borrow money with a series of bond tenders. Even during the election campaign, just 11 days from polling day, it borrowed an additional $300 million in bond tender number 236. In the final term of the Howard government, from October 2004 to November 2007, there were 43 bond tenders or times the government borrowed money. If we had tens of billions in the bank, why was he still borrowing right up until the death?

In its last five years, the Howard government spent $250 billion, including $133 billion in new spending and $117 billion in tax cuts. Australians could be sitting on a $300 billion sovereign wealth fund to rival the oil-rich nation of Kuwait if we had banked the budget windfall of the now deflating mining boom.

Compared with gross debt, net debt is a better measure of a government’s overall indebtedness as it also captures the amount of debt owed to the government. Which begs the question as to why Hockey and Abbott use net debt when referring to Howard and gross debt (projected in ten years’ time no less) when referring to Labor?

For some historical perspective, gross Australian Government debt increased from around 40 per cent of GDP in 1939 to around 120 per cent of GDP in 1945. By 1974, it had declined to around 8 per cent of GDP.

Net debt reached 10.4 per cent of GDP in 1985-86. It took only three years (from 1986-87 to 1989-90) to reduce net debt by around 6 percentage points of GDP.

Ignoring the war years, net debt peaked at 18.1% of GDP in 1995-96. According to Mr Hockey’s own budget, gross debt in May 2014 was $319 billion and, in 2014-15, net debt for the Australian government is estimated to be $226 billion (13.9 percent of GDP) as opposed to the $667 billion bullshit.

Tony tells us that Labor ran up 5 record deficits. Whilst this may be true if you look at scary numbers with lots of zeroes after them, it is completely false if we talk percentages of GDP. For example, the deficit in 83-84 was 4.2% of GDP, as was the peak deficit in 2010 at the height of the stimulus spending. Since 2010 the deficit has been decreasing and was 1.2% of GDP in 2013.

Then there is Tony’s claim that Labor left “a further $123 billion in projected deficits and gross debt headed towards $667 billion”.

This claim is based on MYEFO which can only be described as a Coalition propaganda sheet rather than any sort of realistic fiscal outlook so I will treat that document with the ignore which it deserves and go back to PEFO which was an independent assessment of our fiscal outlook just before the change of government, based on Labor policies.

According to PEFO, the cumulative underlying cash balance (total deficit) over the forward estimates was $54.6 billion with a surplus in 2016-17. Mr Hockey’s budget shows a cumulative deficit over the same period of $107.4 billion – a deterioration of $53 billion in 9 months, with no surplus predicted over the forward estimates.

Mr Abbott then goes on to say:

“Our plan will strengthen the economy, create jobs and reduce Labor’s debt by almost $300 billion. We need to take action now or an even greater burden will fall on our kids’ generation. Now, the Labor Party is desperately trying to scare people by spreading untruths about the Budget. For example, they won’t tell you that funding for schools and hospitals increases each and every year under our Budget. And that the rate of the pension will continue to go up twice a year, every year.”

By Mr Hockey’s own words, the debt is projected to rise to $226 billion in the next financial year – reduce Labor’s debt by $300 billion? I don’t think so.

And speaking of our kids, how about the danger you are placing them in, both physical and fiscal, by taking no action on climate change.

And what the Coalition won’t tell you is about the myriad of cuts to health and education and pensions. Yes, there will be increases on current funding each year but they will be much smaller than previously agreed to and many programs and concessions have been cut. They also do not take into account population increase which necessitates yearly increases in funding regardless of any reforms.

Joe Hockey said “Of the 17 top surveyed IMF countries, Labor left us with the fastest growth in spending of anyone in the world … and they left us with the third highest growth in debt of anyone in the top 17”. This is true if you look at percentage increases but if you spent $10 last week and then $20 this week, that represents a 100% increase, so these figures mean nothing without context.

Saul Eslake, chief economist at Bank of America Merrill Lynch, says Mr Hockey’s comments “represent only a partial summary of what the IMF actually says in this section of it its report”. He says Mr Hockey omits one important conclusion, “namely that Australia would still have the second-lowest general government net debt as a per cent of GDP among the countries shown by 2018”.

In its generally upbeat assessment of Australia’s economic position, the IMF says “gross debt is expected to peak at around 32 percent of GDP in 2015 and is among the lowest in advanced nations”.

Elsewhere, in the fund’s recommendations for Australia’s fiscal policy, it says “Australia’s modest public debt gives the authorities scope to delay their planned return to surpluses in the event of a sharp deterioration in the economic outlook”.

There is only one side of politics trying to scare people by spreading untruths. Maths doesn’t lie.

 

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The romance of the retro PM

The more we see of Tony Abbott the more we are see of a person to dislike and distrust. And what we see emerging is a Prime Minister who would be more suited to leading a country in the 1950s – not the 21st century, writes Ricky Pannowitz.

The 1950s were a time of great cathartic change in everything from design to popular culture. Owning a 50’s retro car is more about perception than functionality. The regressive experience may be romantic, but it is ultimately expensive to maintain and less functional for the modern imperative. Can Australia afford a retro prime minister in a modern age?

It is no accident that Tony Abbott is a man who has gone from being the romantic notion of a simplistic bygone era to uncomfortably impractical. Like a shiny old reconditioned car in a showroom reminding us of a reminiscent past, there are many impracticalities and hidden issues that were not apparent beyond a new paint job and the aggressive sales pitch. After Tony left the showroom his transgression of trust saw a fickle voting public, transfixed by the mantra of sales spin, hit by the reality of something impractically different from what they were sold. The sagacity of wisdom from experts experienced in the realism of such decisions was barely audible beneath fervour of pitched hype. People were told across the board, the real Tony Abbott is a radical religious neo con, not this guy they are selling as centre centric. Any old school mechanic would tell you this ride will be uncomfortable, unreliable and ultimately expensive. Was Australia sold a lemon by crooked salesmen or is it a case of the buyer beware?

Friedrich Nietzsche wrote; “When we are tired, we are attacked by ideas we conquered long ago.”

Just as we look back at the attitudes from another less progressive and enlighten time as cultural cringe, equally cringe worthy is the attitude to Abbott’s regressive assault on the hard fought rights of ordinary Australians. The very fact that the ideals, which have been fought and won with bipartisan acceptance long ago, are in Abbott’s sights is in itself a glaring example of his reckless judgement in embarking upon a politically suicidal assault on social cohesion. The sociology of political change tends to occur after a slow conciliatory process which culminates in a glacial shift that is usually in step with changing attitudes of contemporary society. Reconciliation, gender equality, sexual equality, racial equality, universal heath care, superannuation, equitable quality education, anti discrimination, protection from vilification, humanitarian responsibility, equitable immigration, a healthy public broadcasting sector, freedom of press, freedom of speech, the minimum wage, fair industrial relations, economic sustainability, research and technological capitalisation and welfare for the disadvantaged, affordable healthcare to name a few are all measures of Australia as a progressive egalitarian society. Then there is Tony Abbott; a radical ideologist who maintains a narrow centric view embodying the current pendulum swing to the furthest right axis of the social divide. Abbott is putting it all or nothing out there at once in an expedient assault of his ideological will with indifference to consequence. There is no doubt that this is all propagated by a free ride on the populous news cycle which is afforded far more democratic weight than its current erroneous substance should allow. It’s also punctuated by a heavy agenda as there are much money and favour behind Tony’s assault. A 880 million dollar tax bill payed to a media proprietor who supported him during the campaign that could possibly be a down payment to purchase the soon to be privatised telecommunications infrastructure which would monopolise delivery of his future content. Abbott has many such scores to settle in his rise to the top job.

John Avlon who wrote; “A wingnut is someone on the far-right wing or far-left wing of the political spectrum – the professional partisans, the unhinged activists and the paranoid conspiracy theorists. They’re the people who always try to divide rather than unite us” Partisan Division is a tactic that has served Tony Abbott well, until now.

Abbott represents the remnants of everything that connotes an old world view of a young, rich colonial power trying to punch above its weight on the world stage. A nation struggling with the shame of its arrogant colonial past whilst seeking to define the identity of its future as a progressive independent multicultural nation.

To understand Abbott one must look at the ideology of that which shaped him in his formative years as a student on the SRC at Sydney University. Deeply religious, highly opinionated and in contempt of anything that he considered to be of lesser social value or challenged his moralised ideological thinking; Abbott was a radical religious conservative chauvinist. Where others use university to explore, test and challenge convention through the development of critical thinking, Abbott was a defiant sycophant of ultra conservative class elitism, preferring to oppose and demonise progressive social thinking flippantly as a ‘socialist disease’ or ‘communist propaganda’. He dogmatically shoehorned all philosophy into the supposition of his inflexible world view. Tony Abbott was a political operative of Bob Santamaria, an ultra conservative religious anti communist in the 70’s who was the voice of catholic ultra conservative right. Santamaria groomed Abbott as the new charge of ultra conservative Catholicism which would ultimately come to embody the neo conservatism of the Tea Party movement and Toryism.

Abbott sees himself as a man of great morality, however this is at odds with his actions which define him as a bare knuckle combatant moralist who will say or do anything to win political advantage. Abbott is consistently a contradiction of his christian values, even when the issue on the table is at odds with the best interest of Australian society. Abbott demonstrates hypocrisy by virtue of his past and present actions. A fundamentalist catholic who entered the priesthood but ultimately failed due to the constraints of ethical dilemmas presented by his burning political ambition driven by a dogged lust for power at any cost. Abbott’s views are those of a religious conservative Australia in less progressive times that most Australians would rather forget than revisit. A dark age of xenophobic ardour, coercion of challenge to conventional institutionalism, suspicion of sociological advancement, political tyranny, scaremongering, corruption steeped in misogyny and the bigotry that maintained an indefensible position of religious faith over personal choice. Abbott believes there is no case for the separation of Church and state, in fact his religious beliefs consistently promulgate Christian influence over his Prime Ministership and publicly funded programs.

It was apparent to anyone that knew anything of Abbott’s politics and ideology before the election that he was incapable of governing for the majority as Tony Abbott knows no middle ground. Abbott’s view is all black or white; for or against as compromise is just not in his DNA. Tony is a poor negotiator who treats everything as a political game to win rather than a bipartisan outcome for the common good no matter what’s on the table. Abbott gives no quarter considering anything but ‘all or nothing’ weak and effeminate, irrespective of what the fallout or social consequence may be.

Image courtesy of the conversation.com

Image courtesy of the conversation.com

Abbott’s general tactic for even the most extreme obstinacy is usually to deny or offer a conditional, insincere apologetic acknowledgement to minimalise political capital before reloading to maintain assault. This is a man who has strategically manoeuvred to make his move at a time when political discourse in the country has arguably hit the lowest ebb in the nation’s history. Abbott has taken Howard’s most extreme regressive policies that tapped into the dark underbelly of prejudice, racism, hatred, misogyny and class welfare; then amplified them one hundred fold into a sensory assault strategy based on divide and conquer. The new ‘Minister for Women’s Affairs’ has long held grudges and his retribution can sometimes appear contemptibly childish to prove a point. Simplistic language dispenses a bitter pill administered with faux spin that is manufactured for the political expedience of powerful ideological encroachment rather than any visionary social progression. Tireless three word sloganism as a grinding, unrelenting mantra for political sleight of a back hand to his detractors.

This continuing language of deception is evidentiary in a budget that is little more than a manifesto of social engineering rather than a statement of prudent economics. Every thread of the Australia’s social fabric at odds with neoconservative ideology is attacked as unsustainable, unwarranted, superfluously unimportant or irrelevant. We all must do the ‘heavy lifting’ as Australia just can’t afford anything that Tony is opposed to and anyone who questions the budget with conflicting factually inconvenient critique is a ‘fiscal vandal’. The message behind the transparency of the language is arrogant, insulting and rhetorical ‘heavy grifting’ at best. The process of implementation of the budgets methodology was a prequel led by the “Commission of Audit”. This was a series of warning shot across the bow of middle Australia designed as conditioning for the predictable shock and awe of an unnecessarily tough budget to come. “You will thank us”, he reiterated, “we’re making the necessary hard decisions”. “Budget Emergency” “Big Black hole” Tony’s fire truck had arrived and its full of gasoline.

Under the scrutiny of experts across the political divide and with superficial micro explanation by the architects, both the audit and budget just don’t add up. Abbott is not a good orator with a fundamental understanding of economics at best. His subsequent response affirms he is in fact an “economic simpleton”. When pressed to explain himself he resorts to the rhetoric of slogans, outright lies and attack, all tactics that served elect him. This may well work in a election campaign but as a PM under the microscope in clear air, its a different proposition. The treasurer delivered the budget, tried to explain it and his approval together with his confidence rating severely tanked just like Abbott’s. Abbott and Hockey are not good performers under pressure, especially when thrown to the wolves without a script. The sheer weight of this ideology is drowning Abbott and Hockey and may well sink this government. Abbott’s freestyle oratory incompetence has seen a series of gaffs unbecoming and unworthy of his high office, further eroding his already dismal relationship with the Australian voting public. The mean spirit, retribution, hash cruelty, and inequality coupled with lack of detail, poor salesmanship with the absence of any qualified evidentiary substantiation underpinning the methodology constitutes a the budget bordering on amateurishly incompetent at best. If an election was held now this government would be deservedly decimated into political wasteland. The harsh critical analysis from all corners of society is a resounding vote of ‘no confidence’ in the Abbott Government ‘trying it on’. Such fervent discrediting asserts Abbott’s first budget to be nothing more than the wish list of corporate interest, free market capitalists led by assumptions from a socially disconnected elite. A doctrine of those who shape the ideology machine of the controlling neo right of the LNP.

Australia underestimated Abbott and his ability to tap into a festering reserve of underlying hatred, intolerance and political apathy that has polarised political debate in Australia. The reality of political lies is when they are exposed the voting public’s retribution is brutal and unforgiving. John Howard is testament to this fact and he was popular, a luxury not afforded Tony Abbott. Consequently Abbott may well be the most hated Prime Minister since Billy McMahon. History will not be kind to this government, especially now the cloaked reality has lifted and the sobriety of the real Tony Abbott’s rhetorical lies hits his enticed aspirants in the hip pocket. The voting public have began to realise they have been conned, surprised and subject to the will of a man that has no plan other than rhetorical propaganda simplified to three word slogans as a means to impose his extremist ‘retro’ ideology. Everything that Abbott said he was not and would not do, he is doing or has done. He has abandoned the people who believed his lies hoping to win them over with more of the same medicine show. This is of no surprise to those who understood Abbott before he was hastily reinvented. The real Tony Abbott is a man who embodies the personification of everything that he professes to be against such as entitlement, dirty deals, subterfuge, character assassination, slush funds, political perks, corruption, nepotism, racism and misogyny. This is evident by his words and actions. The real Tony Abbott has no shame whatsoever. When faced with the prospect of being caught in a lie, he compulsively qualifies the lie with another. The real Tony Abbott has the auspicious honour of being unpopular when elected and descending lower in the polls, all the while selling himself by claiming a mandate.

There aren’t many people left for Tony Abbott to upset. As thick skinned and unfazed by being disliked as Tony is, there is not much possibility of Abbott riding this out unscathed. Abbott and his cohorts have been very sloppy along the way, with a trial of political impropriety that is lying in waiting for the next headline. Abbott’s biggest miscalculation may have been to arrogantly open a can of worms that his machine will not be able to control. The bygone political operatives of the time they wish to emulate had the benefit of controllable information, however in an instantaneous information age nothing is controllable. The process of lighting a fuse to test credibility and competence with show trials, may well see Abbott with nowhere to run. Tony was born to rule and has fulfilled his ambitious quest to do so against all odds, but for how long and at what price? The gloss is washing off the car, the tyres are flat, it’s overheating, blowing smoke, this lemon is breaking down on the first leg of the journey. It may have seemed like a romantically good idea at the time but ultimately this bomb is an impractical rusty relic destined for the political scrap heap no matter how you paint it.

When you reduce the complexity of consequence down to the simplistic, the devil is always in the detail and the detail is most certainly in the devil they didn’t know.

Joe Hockey; wealthy complacency

If there was any stand-out from Joe Hockey’s performance on Q&A it would have been his ability to permeate the studio with an overwhelming odor of wealthy complacency, with weasel words thrown in for good measure.

It was with considerable smugness that Joe Hockey admitted that the GP co-payment, “. . .is a new tax – or a rabbit.”

We didn’t say we wouldn’t raise any taxes. That’s absurd because we went to the last election promising to introduce a levy for the paid parental leave scheme“, Mr Hockey said.

Tony Abbott’s original argument was that this addition to upper class welfare, and ‘signature policy’, was the insistence that the PPL was not a tax; it was a levy. However, and currently in vogue and up until Hockey’s appearance on Q&A, all was but a mere levy and not a tax. The consequences of Hockey’s statement, is that according to himself, both he and Prime Minister Abbott made deliberately misleading statements, and on numerous occasions.

That is, “We did say we wouldn’t raise any taxes…”, (because) the PPL levy is in fact a tax.

It seems that the words ‘tax’ and ‘levy’ are bandied about by the Liberal Party, changed at whim and to which ever circumstances suit. Those who voted Liberal on the premise that Abbott would get rid of Labor’s “great big new tax” must be bitterly disappointed as we now have an even bigger, great big new tax … or series of them.

However, should we care to address the practicalities of this issue, there is a world of difference between a PPL with a proposal that this be paid by “a 1.5% levy on the biggest companies” and a $7 GP co-payment taxed on GP visits, pathology and X-rays, and which would further distort access to medical treatment for those on the lowest incomes. This is akin to stating that the economic impact of the cost of two beers to an old age pensioner has an equivalent impact as on a business entity, and an extraordinarily wealthy one at that. Abbott and Hockey’s insistence that they be ‘right’ – and all of the time, often leaves logic in its wake.

In Abbott and Hockey-world, business being business and poor people being poor people, it will of course be business who will be compensated for the PPL tax/levy by receiving an equivalent tax cut of 1.5%. Might there be any equivalent breaks for those having to fork out for Hockey’s other tax – the GP co-payment? No of course not. Hockey’s proposition that the PPL tax/levy is therefore equivalent to the GP co-payment therefore falls so flat as to not only be just an illusion, but could be counted as a blatant attempt at deception.

On the debt levy, will the the richest 3%’s contribution/levy likewise put unreasonable pressure on anyone’s ability to feed, clothe and house themselves? Doubtful, unto too ridiculous to contemplate. The Liberals have gone to great lengths to ensure the wealthiest that this is a very temporary tax hike. And what would it matter anyway? . . . this cigar and Moët et Chandon tax will be easily be absorbed through multifarious untaxed lurks – “superannuation concessions, dividend imputation, negative gearing and family trusts.” Tony Abbott and Joe Hockey have now successfully reinforced the image that to themselves and most of the front bench, that the obscenely wealthy remain as they always have been, The Untouchables.

You can be assured that these changes (with the exception of the debt tax) are not just for a couple of years, but forever. Along with this decimation lurks in the background cuts to science, Aboriginal health and education, with extreme pressure on the states to privatise almost everything. And all the while the reaction from both Abbott and Hockey is smirking disregard. Abbott “Dismisses concerns”, the headlines read and this is apart from the lewd wink aimed at a pensioner forced into working on a sex-line as the only thing available to her. Any empathy? Any sympathy?

However, most perplexing was the ‘carrot’ offered by Hockey in the form of medical research. That is, suffer now and one day if we splash enough cash at the problem so that ‘we’, and where all other countries have failed, will by some act of divine providence cure the world of all of it’s ailments.

Today (17th December, 2013), Treasurer Joe Hockey cut:

• $100 million in funding for Westmead Hospital
• $10 million from the Children’s Medical Research Institute and $12 million from the Millennium Institute – one of the largest medical research institutes in Australia working on cancer and leukaemia research, heart disease, eye and brain disease and heart and respiratory disorders.
• $15.1 million from the life-saving Cancer Care Coordinators program. Despite knowing that Australians in regional areas have a lower life expectancy and find it more difficult to access life-saving treatment the Government has decided to cut this funding.
• $6 million for Medical Resonance Imaging service at Mt Druitt, the cutting of the $10 million life-saving Queensland Cancer Package, $15 million from the Flinders Neo-Natal Unit, the $10 million Western Australia cancer team, and the $50 million stroke package.
• $3.5 million from the Biala Health Service, the only free sexual-health clinic in Brisbane.
• The Coalition will scrap the $100 million committed for the redevelopment of the Victorian Eye and Ear Hospital.

It seems that the Abbott Government taketh with one hand to return ‘who knows what’ at some unspecified time in the future. Why would anyone cut funding from medical research into things such as cancer and childhood leukaemia, only to siphon it off to be paid to ‘who knows who’ at some non-specific time in the future? The cynic in me asks the question, who is set to gain from this? Which multi-national benefactor might it be? I believe that there are certain hints and clues provided by certain photos of Tony Abbott and his ‘sponsor’.

The Liberal Party’s own website provides that the projected $20 billion will not be achieved until around 2024-2025. “To establish the Fund, approximately $1 billion in uncommitted funds from the existing Health and Hospitals Fund will be transferred into the Fund at its inception”, which is supposed to be 2015-2016. But wait a moment; hasn’t the Abbott Government already cut an (estimated) half billion dollars from existing medical research and services? Hockey’s gushing at the government’s beneficence and commitment to human-kind suddenly loses it’s rosy bloom.

But don’t worry, there is some good news contained in Joe Hockey’s attempt at a budget: there will be more roads – well, in the cities at least.

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GP Co-Payment: Policy Analysis

Even Tony Abbott and Joe Hockey seem confused about their Great. Big. New. Tax on doctor’s visits, as announced in their horror budget two weeks ago. It’s still not clear exactly how this policy will be applied and who it will be applied to. While the government who introduced the tax go back to the drawing board to try to work out how it actually works, I thought it might be useful to do some policy analysis of my own, by interviewing my brother-in-law. I know this is a radical idea and one Abbott and his government clearly haven’t considered, but let’s throw in some facts from an expert. My brother-in-law can provide these facts in an expert manner since he is a GP:

Peter Dutton has said he decided the government should introduce the Medicare co-payment while visiting his doctor. Dutton explained that people should contribute to visits to a GP because this would make the health care system more financially sustainable. This doesn’t strike me as a consultative policy analysis process. If Dutton had chosen to investigate the effect of this policy in a more consultative way, who should he have spoken to?

Changes to the Medicare architecture should be undertaken through liaison between the Department of Health, the AMA [Australian Medical Association], the College of General Practice and State Health Departments.

As a practicing GP, what is your opinion of the Abbott government’s proposed Medicare $7 GP co-payment policy?

The proposed Medicare co-payment and its associated changes to Medicare have the potential to be very destructive to patient care for a couple of reasons.

Firstly, it will deter people from discussing minor symptoms that they have with their GP, which often are a warning sign of more serious illness. This can lead to patients presenting with more advanced or severe disease, which may ultimately present a higher cost burden for the government.

Secondly, the capacity for general practices to be flexible in their billing to patients with limited financial resources is significantly reduced under the proposed changes.

Thirdly, hospital emergency departments will see a major increase in the volume of people with minor ailments presenting for care. Already, approximately 30% of patients presenting to an emergency department are non-urgent or semi-urgent conditions that could be managed in a GP setting. I suspect this proportion will increase significantly after the introduction of the co-payment.

Finally, the co-payment may influence doctors to manage their patients in a less-than-ideal manner, as GP’s may try to protect their patient from additional fees. For example, the GP may not undertake a planned review of an infected wound the next day to see if the antibiotics are helping. Or the GP may defer referring the patient for pathology tests that might have picked up the serious electrolyte abnormality. There is a significant potential for the quality of care to deteriorate.

What influence will the $7 Medicare GP co-payment have on the total price GPs will need to charge their patients rather than bulk-billing? Will there be an administration fee charged on top of the $7 fee?

This will vary depending on the way the practice currently bills. Some practices charge all patients a fee with a gap. The proposed Medicare changes will reduce the amount that patients get as a rebate and they will therefore have a larger gap (however, the co-payment per-se won’t be paid).

It is practices that bulk-bill patients who will see the most impact. For example, a general practitioner that chooses to bulk-bill a pensioner for a standard consult will have a 24% decrease in their income for that patient, and if they charge the co-payment without an additional fee on top, then their income will drop by 11%.

For example, here is the current situation where a standard consult for a pensioner is conducted:

Medicare Rebate ($36.30) + bulk-billing incentive ($6.60) = $42.90

And here are the proposed changes:

If no co-payment is charged then total income for consult is:

Medicare rebate ($31.30) = $31.30

If co-payment is charged:

Medicare rebate ($31.30) and low-gap incentive ($6.60) and co-payment ($2.00) = $39.90

As a general practitioner who runs a small business, these reductions in income have the potential to make the business unviable. My practice is considering its options but it is likely that we will simply have to charge concessional patients a gap of approximately $11 to maintain business viability (this will essentially keep our income stable). We are exploring other options such as reducing the duration of consults from 15 minutes to 12 minutes or reducing the number of supporting staff, but these options all have a negative impact on patient care.

What types of patients will this co-payment affect the most? Do you expect certain types of patients to visit their doctor less often?

This will have the most impact on patients who have chronic illness. In particular; the elderly, those with mental illness, diabetes, high blood pressure and children with recurrent infections. The impact will depend on how the medical profession and medical practices change their fee structure after the changes are introduced. It is unclear whether the large bulk-billing organisations such as Primary Health Care will continue to bulk-bill or whether they will charge the co-payment. I suspect that the overall impact of these changes will be much more severe than expected as many general practices like mine will change from conducting ‘mixed-billing’ (bulk-billing concessional patients and charging gap for non-concessional patients) to conducting private (gap) billing for all patients.

What types of illnesses and conditions will people suffer from more severely if they don’t see their GP as often?

Chronic illnesses such as diabetes, hypertension, asthma, heart disease and those with mental illness are likely to be the hardest hit.

I also expect that some diseases will be picked up later. For example, a woman with a minor breast symptom who delays having it checked and it ultimately is found to be a breast cancer.

Another example is that if a patient reports an unusual mole early and it is excised and found to be an early melanoma, there is very little risk of the cancer spreading and cure is usual. However, if the melanoma is diagnosed after spreading, it is generally regarded as incurable and the costs of newer chemotherapies for melanoma are astronomical in comparison.

What affect do you think the GP co-payments will have on the overall health of the community and on the health budget bottom line?

There is likely to be a negative effect on general health in the community. I suspect that we will see some diseases that have been declining in severity, such as heart attacks or advanced breast cancer, either plateau or even increase in frequency.

I suspect the health budget will largely be unchanged, as while there will be a reduced number of general practice consultations and pathology/imaging rebates, there will be an increase in the number of more advanced diseases. There will probably be some cost-shifting as the more advanced cancers and heart disease will be cared for through the hospital system, whereas there will be less costs coming from general practice.

Do you think it was responsible of the Abbott government to use the revenue from the GP co-payment to build a future fund to fund scientific health research?

Increased funding for research is sorely needed. If there is a co-payment then I would support its proceeds going to research, however, I believe this funding should go to non-corporate research such as through the CSIRO or universities. I am concerned that corporate grants will be given for research by pharmaceutical companies that do not need government support.

The funding to the states for the provision of hospital care should also be increased if the co-payment is introduced as the further demand will outstrip already limited services in our public hospitals.

So there we have it. Not only some much needed facts, but clear analysis that shows the government haven’t thought through this policy. Either that, or they have and they don’t care about the detrimental impacts on our community. Sigh.

[twitter-follow screen_name=’Vic_Rollison’ show_count=’yes’]

Let’s be absolutely crystal clear about this

Photo by The Daily Telegraph

Photo by The Daily Telegraph

If you click on the official Prime Minister of Australia government page the first thing you will read is:

“Over six years, Labor ran up a $667 billion debt on the nation’s credit card.”

Aside from wishing that the Prime Minister of Australia had a more visionary or engaging opening line, it is a bald faced lie and that isn’t a good way to convince people to trust you.

You will be subjected to a rolling slide show of Tony, Joe and Matthias, photographed in various serious looking poses. Is anyone else getting sick of these photos of Tony sitting at tables with people surrounded by lots of booklets and oversize graphs? Is that supposed to convince me that he knows what he is doing? Because he has his photo taking wearing a white lab coat trying to look into a microscope am I to say oh well the $7 co-payment must be a good idea?

But back to the lie.

“Ran” indicates past tense – in fact Tony Abbott specifically states that this happened “over six years”. What he fails to mention is that the figure of $667 billion was a projection for possible debt in ten years’ time from Hockey’s MYEFO report produced last December, and it included increased Coalition spending decisions like the $8.8 billion gift to the RBA and all the interest that will cost us, and the foregone revenue from the carbon and mining taxes, and changed assumptions about future unemployment – in other words it was a political exercise designed to come up with as big a number as they could so they could then justify draconian measures as they claim to be reducing it.

Using the term “nation’s credit card” is purely designed to cause fear. The nation doesn’t have a credit card. In fact we actually print money and can do so if we have to as they have done in the US. Credit cards can get individuals into serious debt and the interest rate is crippling. Using that term makes people think of that rather than a sensible understanding of how government finances work.

While the Coalition continues to peddle this lie I will continue to remind people of the truth because the Australian people have a right to know the real state of our finances. And because nothing pisses me off more than getting lied to about important stuff.

So what is the truth?

The independent pre-election economic and fiscal outlook’s (PEFO) medium term projections, using long-standing methodology, show that on Labor’s policy settings the Budget reaches a modest surplus in 2016-17, surplus grows to 1% of GDP in 2020-21 and net debt returns to zero in 2023-24.

The latest Budget update shows net government debt for 2013-14 of $191.5bn, or 12.1% of Australia’s GDP (not $667 billion Mr Abbott). By contrast, net government debt in advanced economies around the world averages 74.7%, according to the International Monetary Fund.

Gross debt in 2023‑24 is projected to be $389 billion with surpluses projected to build to over one per cent of GDP by 2024-25. There are no surpluses predicted over the forward estimates, there is a higher debt, and surplus of 1% 4 years later than predicted by PEFO using Labor policies.

After the GFC hit, the deficit peaked at $54.5bn, or 4.2% of GDP, in 2009-10 – less than half the advanced country average. In 2012-13, the federal deficit was $18.8bn or 1.2% of GDP, compared to an advanced economy average of 4.9%.

The claim that Labor left “fiscal time bombs” and secret cuts and spending is another blatant lie. In the 2013-14 Budget, Labor took the unprecedented step of releasing 10 year figures for the National Disability Insurance Scheme and Gonski school reforms, demonstrating how they were funded over the long term. Those figures, as well as the efficiency dividends on the public service, were there for all to see. The fact is that Tony’s election promises were made knowing this but, as we saw, working out how to pay for his promises was not on his mind.

Australia is one of only 10 economies in the world with AAA ratings from all three agencies – in the company of other countries with strong public finances like Germany, Canada, Sweden, Singapore and Switzerland. This status shows our finances are considered to be stronger than those of the vast majority of advanced economies – including the US, the UK, Japan, France and New Zealand.

Despite headlines to the contrary, and ill-informed statements by the Prime Minister, the agencies have confirmed our credit rating with a stable outlook.

I hesitate to compare government finances with individual or business finances, but I will say this. When you go into significant debt, you usually aren’t looking to pay it off completely the next week. The decision to go into debt is made by looking at your assets, your ability to service the debt, and the value of the investment of the debt.

We do need to make some changes. There will never be a time when fine-tuning isn’t needed because we live in an ever-changing world with an often volatile global economy. Situations change requiring adjustments to be made.

We are not in any sort of crisis. We have the luxury to be able to do long term planning to meet the challenges of the future whereas so many other countries are having to make decisions for the short term as a matter of survival.

Tony Abbott is looking for a legacy for himself rather than for our nation. He wants to say the debt was huge and I made it smaller and he doesn’t care if he has to lie about figures to make this look true. If he really wanted to reduce debt why on earth would he stubbornly insist on his paid parental leave scheme? Why wouldn’t he look at negative gearing and superannuation tax concessions and capital gains reductions? Why would he buy 58 fighter jets that won’t be in service until sometime next decade?

The “Infrastructure Prime Minister” is building the Abbott Highway to Hell to speed up the path to destruction and he is more than happy to sacrifice anyone who can’t help him along his way.

 

“The visionary lies to himself, the liar only to others.”

The Charter of Budget Honesty was introduced to stop incoming governments from claiming the previous government lied about the true state of the nation’s finances. The heads of the Treasury and the Finance Department are required to put out their own set of numbers, the Pre-Election Fiscal Outlook (PEFO), during the election campaign. This gives a neutral baseline against which we can assess the new government’s figures. PEFO is the only set of Budget forecasts that truly belong to the bureaucrats – all other documents (like the Budget) are issued by ministers.

The outlook in PEFO was remarkably close to the figures in the Economic Statement issued by Chris Bowen and Penny Wong just before the election was called. The public servants in PEFO projected the Budget balance out for a decade. They found that the Budget was on track, before the election, to return to surplus in 2016-17 and keep improving from there, eventually hitting a surplus of about 1% of GDP by 2023 with net debt approaching zero.

Despite the Charter and the neutral numbers in PEFO, Joe Hockey still played the Budget black hole card. The new government’s mini-Budget (MYEFO) contained dramatically bigger deficits than the bureaucrats’ PEFO projections, with no surpluses in sight.

The line Hockey has been pushing is that not only did Labor hide the level of deficits in the current budget cycle, but that it left a series of hidden spending commitments in the unpublished years beyond forward estimates.

“From 2017-18, payments are projected to increase substantially (a real increase of almost 6 per cent in just one year) because Labor back-ended expenditure in a number of key areas and hid it from the public.”

Strange…this member of the public was able to find all those figures without the aid of any staff. In fact PEFO specifically says “Specific program estimates are included across the ten years for DisabilityCare Australia, the National Plan for School Improvement, and the Nation Building 2 and Nation Building 3 programs.”

Labor in fact revealed the funding for the National Disability Insurance Scheme in the budget last May, with new spending broken down out to 2019.

“The Australian Government will provide $19.3 billion over seven years from 2012-13 to roll out DisabilityCare Australia across the country. This brings the Australian Government’s total new investment in DisabilityCare Australia to $14.3 billion over the period.

The Australian Government will provide funding of $11.7 billion to DisabilityCare Australia in 2019‑20, the first year after full national rollout. This represents 53 per cent of the $22.2 billion total cost of running DisabilityCare Australia, with the States and Territories providing the remaining funding.”

This was to be funded by the increase to the Medicare levy.

Likewise the spending for the Gonski reforms was spelled out in detail as was its funding.

“The Budget provides an additional $9.8 billion over six years from 2014‑15 for new needs-based school funding arrangements.

To ensure that the National Plan for School Improvement will be fully funded, the Government has needed to make tough decisions — redirecting savings from higher education, self-education tax deductions and business taxation; and better targeting family payments.

In addition, a range of national partnerships for education will be ceased (or not renewed) and funding will be redirected to the National Plan for School Improvement. As well as helping pay for this historic reform, these saving decisions will also will help improve the position of the budget in the next few years.”

Labor copped a lot of flack for its proposed cuts to university funding, which were really a smaller increase rather than an actual cut. The reason they are opposing these savings now is because they made the cuts to fund education reforms, not to spend on roads.

Hockey also bemoaned supposed hidden funding increases to foreign aid and defence.

“The fact is Labor’s left us with a massive forecast increase in foreign aid, a massive increase in defence – for example in one year, there’s meant to be a real increase in defence spending of 13 per cent, a 66 per cent increase in foreign aid.”

The increase in foreign aid was also in the budget papers - it was actually a reduction on previously proposed spending, with the government’s Millennium Development Goal commitment to lifting foreign aid to 0.5% of gross national income put back another year to 2017. The government spelt out its planned increase in foreign aid up to and including 2017-18.

As Crikey pointed out in April,

“Labor invited the Prime Minister to spell out the government’s MDG policy, which he duly did: aid is to reach 0.5% of GNI when the budget returns to surplus. Which raises the question of why, in Hockey’s Mid-Year Economic and Fiscal Outlook in December, Hockey left Labor’s MDG aid funding increase intact, in defiance of the government’s own policy. The answer, of course, was that it would inflate the budget deficit for 2017 and beyond.”

And on defence, the budget tells us that defence spending for the 2014-15 financial year will rise by $2.3 billion to $29.3 billion, a real increase of 6.1%, with a commitment to building defence spending to two percent of GDP within a decade. So it seems that wasn’t a nasty surprise either.

Interestingly, the Labor budget also said “Government has chosen not to offset the hit to revenue in the near term, as it would come at significant cost to jobs and growth.”

In a budget press release, Joe Hockey said

“While the former Government left Australians with $123 billion of deficits and no path back to surplus, our budget repair efforts have meant that deficits in our first four years are now projected to be $60 billion, with a surplus of well over one per cent of GDP projected by 2024-25.”

Ummmm, according to Treasury and Finance, Labor policies would have got us to surplus in 2016-17 with a surplus of 1% of GDP by 2023.

Hockey goes on to say

“Gross government debt is now forecast to be $389 billion in 2023-24, compared with the $667 billion left behind by the former Government. This reduction in projected debt of nearly $300 billion also assumes that we provide future tax relief to address bracket creep.”

I am not sure why he keeps talking about gross debt, I assume because it is a bigger number, but he really should look at the government’s own website which says

“The August 2013 Pre-Election Economic and Fiscal Outlook (PEFO) estimated that net debt would rise to 11.7% of GDP in 2013–14 and peak in 2014–15 at 13.0% of GDP. These levels of net debt are not unprecedented in Australia. Between 1970–71 and 2011–12, net debt level as a percentage of GDP exceeded 10.0% ten times (mainly in the 1990s)..…compared with other advanced economies, Australia’s net debt levels are comparatively low, and have been for some time.

The PEFO projected a return to surplus of 0.1% in 2015–16.

Although Australia’s fiscal balance fell to a low in the context of the GFC, its structural budget balance is reasonable compared to other advanced economies.”

When Hockey says that Labor left us with a debt of $667 billion, he is quoting a figure from his own MYEFO document which included his decisions to cut revenue from the mining tax, the carbon tax, the 15% tax on superannuation income over $100,000 a year, and the Fringe Benefits Tax rort on novated leases.

It also included his inexplicable decision to hand $8.8 billion of borrowed money to the Reserve Bank. The sale of Medibank Private - a $4-5 billion contribution to the budget - will be spent on roads because Abbott wants to be an “infrastructure prime minister”, when it could cut the budget deficit or the debt. That could be $13-14 billion off the deficit and debt right there - or an interest saving of more than half-a-billion dollars a year. Scrap the company tax decrease, scrap the Paid Parental Leave scheme, close a few corporate tax loopholes and tax concessions for the wealthy and we would be well on the way to addressing the challenges of the future.

So what it boils down to is that Hockey confected a large future debt to justify ripping the heart out of our most vulnerable so he can say he is being “responsible” by getting the young, the sick, the unemployed, the elderly, the disabled, the single parents, and anyone else who doesn’t have a voice, to pay for his claim that he might improve his own fictional bottom line in ten years’ time.

In the mean time we will give up the Gonski reforms, the real NBN, all action on climate change, environmental safeguards, research, renewable energy, hospital funding, universal healthcare, the ABC…all while sending a large percentage of the population into poverty.

The carbon tax doesn’t sound so bad now, does it?

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.”

― Friedrich Nietzsche

 

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The Budget: All cruelty springs from weakness

Image source: laberal.blogspot.com

Image source: laberal.blogspot.com

 

It can’t be denied any longer, conservatives really do believe they have no responsibility to the vulnerable, and it is perfectly acceptable to the Abbott government that those who can least afford it endure the most harsh of financial limitations.

This piece in the Sydney Morning Herald reveals that while high income couples stand to lose scarcely at all, families on benefits may lose up to 10% of their income. Known as “Detailed family outcomes,” this information was withheld from the budget, contrary to custom, by Joe Hockey, obviously because it reveals the Abbott government lie that everyone will be doing their fair share of the heavy lifting allegedly required to get the budget back on track.

Abbott also stated in an interview with Alison Carabine on Radio National Breakfast this morning that the highly paid, such as politicians, judges and senior public servants, will suffer a pay freeze for twelve months, costing Abbott something like a $6000 addition to his $500,000 plus benefits salary package. Not even the most witless among us could possibly believe this can be in any way comparable to the situation of a young person without resources denied Newstart benefits, and low-income families and pensioners having to choose between a middy, a treat for the kids, the doctor’s bill, and medicine, for which they will also have to pay more.

Pensioners also stand to lose extras such as free car registration, and reductions in rates, water and electricity. These concessions were made available to the people in the community who were recognised as vulnerable and needing assistance by governments unlike this one, governments who were capable of making such acknowledgements.

The question I am waiting for a journalist to ask the Prime Minister and the Treasurer is, why are they placing an intolerable burden on the most vulnerable while the wealthy are called upon to do comparatively very little?

What is it in the conservative psychology that makes such unfairness acceptable to them?

No country can afford to be governed by people who hate and fear vulnerability, as do these Australian conservatives. Far from being adult such people are dangerously immature, incapable of understanding any life experience other than their own. Convinced of its superiority, this government asks little or nothing of those best placed to contribute to the country’s needs, while demanding that those least able, relinquish what little they already have. In other words, the Abbott government is determined to punish the vulnerable for their vulnerability.

All cruelty springs from weakness, declared the philosopher Seneca. Wealth and power do not guarantee strength of character, and it’s hard to detect that quality in Abbott and Hockey. Strength of character requires the ability to identify vulnerability and refrain from taking advantage of it. Hockey and Abbott have indeed identified the vulnerable, and have proceeded to take the most appalling advantage, of the kind they would never dream of imposing on the wealthy and comfortable.

Conservatives are, in general, weak and cruel. Our government is weak and cruel. We are in dangerous times, with this weak and cruel government. As we have seen with the treatment of asylum seekers in this country, (and this has been demonstrated by both major parties) once the bar has been lowered for the treatment of a particular group of human beings, it is very easy to escalate ill-treatment.

This budget is devastating for the vulnerable, and pays no mind to their survival. This budget will lower the bar on the treatment of vulnerable people in our society. It will become easier to treat them even more harshly, to consider them even less worthy, to demonise them as threats and parasites, just as has been done to asylum seekers in the last fourteen years. And in the way of things, as history has demonstrated over and over again, ill-treatment becomes normalised, and scapegoats become the bitter focus of a community’s fears and discontents.

Beware of cruel governments. They will only become more cruel. Because they are, at their heart, cowardly and weak, and when the cowardly and weak attain power, the vulnerable will be the first they destroy.

This article was first posted on Jennifer’s blog “No Place For Sheep” and reproduced with permission.

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I have a mandate

In 1963, when Martin Luther King articulated his dream for the future of his children, he touched the hearts and minds of people around the world. He spoke of a world of equal opportunity for all, a world where children would be nurtured, a world where people would be safe and free from hatred and intolerance.

He spoke of the shameful situation where, 100 years after emancipation, “the Negro lives on a lonely island of poverty in the midst of a vast ocean of material prosperity.”

As I listened to this speech again, I could not help but compare it to the vision, or lack thereof, from our current government. “I have a mandate” does not quite have the same ring to it. Aiming to leave our children debt free seems such a paltry goal, one that is naively unattainable and questionably desirable.

Where is the plan for the country we want to be? Where is the path to the world Martin Luther King dreamed of?

Tony’s dream seems to change daily. Early in the piece, stopping the boats was his main aim. Endless hours in Parliament were devoted to a count of boat arrivals and deaths at sea. Countless headlines told us how a few thousand asylum seekers were destroying our way of life.

Since taking office, Operation Sovereign Borders has been the one policy that has an open-ended budget – whatever it takes. Everything is sacrificed to stop the boats – tens of billions of dollars, our relationship with our neighbours, our international reputation and the reputation of our Navy. We are even prepared to sacrifice the lives of those people who have come to us seeking safe haven, and risk the mental and physical health of asylum seekers and their children by incarcerating them indefinitely, even though they are the victims and have committed no crime other than to ask for our help.

In an attempt to appeal to female voters, Tony took an awkward foray into the world of feminism by promising a generous paid parental leave scheme to encourage “women of calibre” to have babies. His caring new persona was backed up by interviews with his female relatives and uncomfortably private revelations from his female Chief of Staff. This very costly and widely unpopular scheme remains in the budget after a slight trim which barely affects its cost.

Closer to election time, it once again became a referendum on the carbon tax. This great big new tax on everything was wrecking our economy and driving up the cost of living for ordinary Australians. Tony promised to save us $550 a year from our power bills because pensioners were having to choose between eating and being warm.

When the carbon tax was shown to be working in reducing demand, and the economy kept growing with low inflation, the focus shifted more to integrity and trust.

“So my pledge to you is that I won’t say one thing before an election and do the opposite afterwards because fibbing your way into office is what’s brought our public life into disrepute.” – January 31, 2013

“We will be a no-surprises, no-excuses government, because you are sick of nasty surprises and lame excuses from people that you have trusted with your future.” – August 25, 2013

Despite alarmist rhetoric warning of a budget emergency, an economic crisis, and a debt and deficit disaster, Tony promised repeatedly in that simplistic manner he has of counting off on his fingers, no cuts to health, no cuts to education, no changes to pensions, no changes to the GST and no cuts to the ABC and SBS.

During one of a million election doorstops a reporter asked him: ”The condition of the budget will not be an excuse for breaking promises?”

”Exactly right” replied Tony. ”We will keep our commitments that we make …” he went on to say for the umpteenth time in the campaign.

I have a mandate! (image by ausopinion.com)

I have a mandate! (image by ausopinion.com)

Buoyed by an overwhelming victory in the election and being handed the keys to the safe, each Minister seemed to go off on their own path to glory.

Warren Truss was the warm-up act, re-announcing funding for roads that had previously been funded. Apparently, if you close off funding from one source and then fund it from a different source then you can claim it as your own initiative, a strategy they are also using in education.

We then have spokesmodel Jamie Briggs with the big introduction…”It really gives me pleasure to introduce to you, the indescribable, the incompatible, the unadorable…..Prime Minister for Infrastructure.”

Tony has gone on a flurry of spending on roads that have not had the appropriate studies done. They are not high on the list of priorities carefully constructed by Infrastructure Australia. Rather than making voters happy, many of these roads are striking opposition from residents and businesses who are demanding more information. One of the main criticisms is that these bits of roads do not link up to integrated public transport networks. They may provide routes for freight trucks but they are not helping commuters get to work. Endless kilometres of bitumen carrying thousands of cars to nowhere.

Roads seem to be the only plan to address the growing unemployment situation. How many people can it employ? What do these people do when the road is finished? What assets are we selling to build these roads? What employment plans are there for people not suited to building roads?

Joe Hockey devoted his time to strategies to make himself look good. He immediately borrowed $8.8 billion to give to the RBA. He then pulled off the most amazing sleight of hand by convincing people that the figures in MYEFO were Labor’s debt and deficit. Ignore the fact that this document was actually the debt and deficit using Coalition policies, lie about the debt by quoting a possible debt in ten years’ time and attribute it to Labor, inflate the deficit with your own spending and assumptions, and then produce a Budget that reduces your own inflated deficit by taking money from the most vulnerable in our society.

Joe is also future-proofing himself by getting sick people to contribute $20 billion to reduce the deficit. Do not be fooled into thinking this money is going to medical research. It is not. The interest earned by the money is to go to research but the principal will sit there untouched to make Joe’s bottom line healthier, courtesy once again, of our most vulnerable.

Scott Morrison enjoyed the limelight as he went on his relentless campaign of showing just how big a bastard this country could be, spending money hand over fist.

Christopher Pyne immediately began remoulding education to his priorities which seem to focus on our Judeo-Christian heritage and the ANZAC legacy. He also wants more mention of Conservative politicians and the role of big corporations in shaping our identity. Rote learning and teacher-based instruction will replace research, discovery, initiative and creativity.

When you hear Christopher say he has put an extra $1.2 billion into education to sign up the remaining States to the Gonski reforms, he got that $1.2 billion by ripping almost $1 billion out of the trades training centres programme and the rest of it by abolishing the before and after school care program. And now we find that they have ripped a further $80 billion out of funding to the States for health and education.

Andrew Robb has been signing Free Trade Agreements quicker than they can be printed. The reason other countries are willing to sign so quickly after years of negotiation is because this government is prepared to give up so much for so little in return purely so they can say we got the job done.

Our Health Minister is busily dismantling Medicare and our Environment Minister is getting rid of all environmental protections in his haste to approve more coal mines and more logging. Our Social Services Minister is removing gambling reforms, cutting welfare and pensions, and encouraging people to stay married regardless of how bad it is.

Our communications Minister is unravelling arguably the greatest potential boost to productivity this country would have seen, and breaking his promise to protect our National Broadcaster.

The rhetoric has now changed. The main promise was apparently to fix the budget. All other election promises can be sacrificed to achieve this one. I do believe that governments have to be flexible enough to adapt to changing circumstances but I do not believe that the situation has changed so drastically as to warrant the attack we have seen in this budget.

As Hugh Mackay says

“this is a profoundly disappointing budget. It’s not the economics; it’s not the politics; it’s the clear sign that this government has young people, the sick, the poor, the unemployed, the elderly and the marginalised in its sights.”

A joint press release by the cigar-smoking duo of destruction says

“Gross government debt is now forecast to be $389 billion in 2023-24, compared with the $667 billion left behind by the former Government.”

In his MYEFO document produced in December, which included Coalition spending, Joe Hockey said:

“Net debt is expected to be $191.5 billion (12.1 per cent of GDP) in 2013‑14 and is expected to reach $280.5 billion (15.7 per cent of GDP) in 2016‑17.”

I always impressed on my children the importance of telling the truth, especially if something bad had happened. “If I know the truth then I can work out how to best help you.” I would say to this government, you have a mandate to tell the truth. If you are honest with us and prepared to listen to advice, let’s work together to first of all determine what sort of future we want and then how to best achieve it. You need to start from scratch.

Can you do a better job than Joe Hockey?

Joe Hockey (image from news.com.au)

Joe Hockey (image from news.com.au)

I have read a lot since the budget has been brought down as have, no doubt, many of you. I have also listened to the spin from Joe Hockey, and the responses to date from a great range of people. I could give my responses to what Hockey said at the Press Club, and some very interesting quotes but, quite frankly, I got sick of listening to bullshit.

So I thought my time would be better spent deciding how I would fix things.

The Coalition approach is to make some people wealthy so they will employ more of the rest of us. As least I think that is the plan. Economy has replaced the word society so it becomes increasingly hard to understand why things are being done – what are our goals, what are we trying to achieve. Surely the economy is only a means to an end rather than THE end.

I understand that we need to raise revenue and cut spending. Here are a few ideas. Feel free to add your thoughts.

Cap and freeze defence spending at $20 billion a year. If a real threat emerges we can increase this. Saving $50 billion

Cancel the order for the 58 extra jet fighters and get by with the 14 we have already ordered. Saving of $24 billion

Cancel the changes to the Paid parental leave Scheme. Saving $22 billion

Cancel Direct Action and keep the carbon pricing scheme. Saving of $10.6 billion

Scrap the fuel tax credit to mining companies. Saving $11 billion Scrap the fuel excise indexation. Loss $3.4 billion. Net saving $7.6 billion

Keep the mining tax. Saving $5.3 billion

Find a better solution for asylum seekers that does not involve our Navy except to rescue people in distress, does not involve offshore processing, and most definitely does not involve disposable liferafts costing millions. One that actually helps people. If you let them work while their application was being processed we might actually get some taxes from them rather than incarcerating them or giving them below poverty handouts. Saving…..hard to tell but it would be several billion.

Scrap the 1.5% decrease in company tax until the country can afford it. Also scrap the 1.5% levy for the PPL.

Keep the requirement for people claiming car business usage to maintain a log book for 3 months once every 5 years to justify their claim. Saving $1.8 billion

Make the 2% increase in taxation on income over $180,000 permanent. How much this will make is dependent on if we tighten up on tax avoidance, otherwise the revenue will be nothing and for those as creative as Rupert and Google, we could end up owing them money.

Negative gearing should only apply to new building with certain greenfield developments slated as owner-occupied only.

Introduce a Financial Transactions Tax on various categories of financial transactions including: stocks, bonds and currency. If implemented on a global basis, its projected revenue could be as much as US$400 billion a year, depending on the size of the levy imposed, the size of the reduction in trading (if any), and the number of implementing countries/jurisdictions. In the US alone it has been estimated that annually, between US$177 and $353 billion could be raised.

A flat rate of 0.05% has been proposed on all financial market transactions, many experts actually advise vary rates (of between 0.01 and 0.5%) depending on the transaction (stocks, bonds, currency, commodities, swaps, derivatives, etc). The UK stock exchange, one of the largest in the world, already has a 0.5% tax on share transactions.

Forget buying Tony a fleet of new planes to carry around business people and journalists. Saving over $600 million.

Keep the Clean Energy Finance Corporation. Saving $400 million

Tighten up the tax concession for superannuation. There are huge savings to be made there. At least reinstate the tax targeting earnings on superannuation pensions above $100,000. Saving $313 million.

Cut the exploration subsidies to mining companies. Saving $100 million.

MPs should fly by commercial flights rather than private jets. Flights to football games, the races, weddings, book signing tours, charity events, fun runs, should be paid for by the MP rather than being seen as an entitlement. Accommodation for these events will also not be provided as an entitlement. Don’t know how much it will save but Tony Abbott as Opposition Leader claimed over $1 million a year in entitlements.

Legalise voluntary euthanasia. This not only gives terminally ill people a choice which may give them peace of mind, it would also save an enormous amount of money which is spent in the last month or two of life.

Having just saved lots of money, here is how I would like it spent

Help lift people out of poverty by increasing the Newstart payment by $50 a week. Child poverty has increased 15% in the last decade. Welfare and pensions should be linked to average weekly earnings rather than the CPI to keep the relative quality of life.

Instead of reintroducing the ABCC, reintroduce the Commonwealth Employment Service who actively provide a link between employers and the unemployed, helping people find jobs without having to go through agencies who take a cut of their wage or hire them out as contract employees with no workplace entitlement to paid sick or annual leave.

Action must be taken about the housing crisis. We must change negative gearing concessions, introduce stricter foreign ownership restrictions on residential properties, make some new developments owner-occupied only, increase government partnership agreements to provide affordable housing and housing for the homeless.

Invest in education by implementing the full Gonski reforms and re-opening the trades training centres. Keep University fees capped and introduce more scholarships.

Invest in research by immediately refunding the CSIRO and giving them back their independence. Support other promising research through our universities. Do not provide a slush fund for pharmaceutical companies.

Invest in the renewable energy industry through the profitable CEFC and grants to businesses who implement sustainable practices.

Invest in preventative health. Ask the health experts to come up with ways to better spend the health dollars. Do not make access more expensive. I note that the doctors get $2 out of the $7 for all co-payments. I don’t think doctors are the ones most in need of a payrise at the moment.

Build a proper FttP NBN because it would have enormous productivity benefits, encourage entrepreneurial enterprises, give more flexible workplace options, reduce demand for and consequences of transport, open up educational and health applications, improve the lives of rural and elderly Australians.

Continue with the full rollout of the NDIS.

Keep the schoolkids bonus.

Increase wages and training to childcare and aged care workers. Provide affordable childcare and aged care. Community nurses and respite providers do a fantastic job of helping the elderly and disabled stay in their homes for longer which saves us a fortune. As do carers. Tony Windsor said a Senate committee was advised that if we could keep 20% of elderly people in their homes for one year longer we would save $60 billion over the next ten years.

Increase action on climate change because the social and economic cost is only going to escalate for every moment of delay.

Continue the gradual increase of the superannuation guarantee to 12%.

Increase spending on public transport with Infrastructure Australia prioritising projects.

Increase foreign aid and pressure on governments who commit human rights abuses. Increase our humanitarian intake, open processing centres in transit countries, and speed up the process.

I am sure I have left out many ways to save money and many things that would give a better return on money spent but my brain is tired. Yesterday’s budget was physically and emotionally sapping.

Hockey’s Gold

Hasn’t Hockey come a long way from Jovial Joe? Once upon a time, Joe was the friend of ‘everyman’ trekking with Rudd on the Kokoda Track, and gaining substantial publicity for himself via promotion of this persona on Sunrise and other publicity stunts, and with the gall to wear Shrek ears:

I’ll protect ya, Fiona. I’ll protect ya. It’s unlawful, Fiona. The good government is gonna rescue you, Fiona.”

Somehow that persona, and much to the bewilderment of many, mysteriously evaporated; and I would date it from around the time that Hockey decided that he had the need to divest himself of, what shall we call it… ‘friendliness’, and to endow himself with some modicum of ‘seriousness’. Therefore, Jovial Joe seemingly overnight morphed into an attack dog, vicious and nasty.

Shadow Treasurer Joe Hockey has told a Liberal party rally in Melbourne that he “should have drowned” the newly appointed Prime Minister Kevin Rudd when he walked the Kokoda Track with him in 2006.

One should ask: Why? Clearly Hockey had spent considerable effort being the jockey on the Rudd horse, but once his ‘you beaut mate’ Rudd became PM, Rudd was clearly of no further use.

Rudd in his naiveté clearly believed that it was a genuine friendship, inviting Hockey to his daughter’s wedding. An invitation which Hockey refused, supposedly at the instructions of John Howard. Hockey, however, clearly believed that the ‘time was ripe’ for the old switcheroo; bye, bye Jovial Joe and hello to the new Joe.

However for those somewhat closer to the coalface, of the real Joe Hockey; none of this and which was to follow, would have come as a surprise. In December 2012, Michael Taylor wrote: ‘Joe Hockey, Welfare to Work, and a pack of damn lies’.

It is hard to keep a lie hidden forever, especially if you don’t dust over its tracks.

Things then became decidedly nastier …

The Courier Mail today ran a story revealing that would-be Treasurer Joe Hockey failed to declare a family interest for most of the duration of his Parliamentary life.

Mr Hockey declared the directorship of Steel Harbour Pty Ltd held by his wife, Melissa Babbage, in May last year among a series of “new positions” under spouse declaration rules. But business records show Ms Babbage was appointed to the role in 1998. Pecuniary interest register declarations are supposed to be made within a month.

It seems that we now have bingo, and from the Sydney Morning Herald, and it should be noted that this comes from the ICAC investigations:

Treasurer Joe Hockey is offering privileged access to a select group including business people and industry lobbyists in return for tens of thousands of dollars in donations to the Liberal Party via a secretive fund-raising body whose activities are not fully disclosed to election funding authorities.

And the influence includes:

The FSC’s members, including financial advice and funds management firms, stand to benefit from the changes to the Future of Financial Advice (FOFA) laws being considered by the federal government, which would involve a winding back of consumer protections introduced by Labor.

Basically, what Joe Hockey is offering is access to one of the country’s highest political offices in return for annual payments. It is clear that Hockey must now stand down. Hockey is about to deliver a budget which from all accounts will hit hard those least able to pay, pensioners, the disabled and add a tax (a supposed ‘levy’), plus sell off Australia Post, Defence Housing, Snowy Hydro and Australian Hearing; and as recommended by the hand-picked Commission of Audit, while at the same time demanding $22,000 for individuals to enter his inner sanctum. Come on, Joe, who do you have already lined up as buyers? And do mates’ rates apply?

I encourage all to read the above quoted article by the Sydney Morning Herald’s Sean Nicolls, and draw your own conclusions.

 

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A Fair Go

Is everybody given a fair go in this country?

Not anymore, says Peter Barnes, and definitely not with a government intent on taking away the services and support most needed by the nation’s poorest.

But what is even more disgraceful, laments Peter, are the lies that these people have to take a ‘hit’ for the sake of (what is already) a strong economy.

“A fair go” could be Australia’s motto.

It’s a phrase that’s uniquely Australian, and one on which we pride ourselves: Fair go, mate!

There are other versions that nobody but an Australian would understand: “Fair dibs”, and of course “Fair suck of the sauce bottle”, but they all mean roughly the same thing.

Fairness, and balance.

A national poll a few years ago showed that 9 out of 10 us think “a fair go” is important. It’s a simple way of summing up most of the things which, when we’re polled, we say are most important : Health, Education, Employment, the cost of living, and more generally the Economy.

We understand, as Australians, that that’s what a fair society is about. A fair society is one where you look after the sick. A fair society is one where you look after the old. A fair society is one where you care for the young, and they get the best education possible. In a fair society everybody would like to be rich, but nobody wants to be rich if it means that the sick get sicker, we neglect the old, the poor get poorer and we endanger our children’s future. Wealth is nice, but not wealth at any price, and not if there isn’t a fair go.

We understand, as Australians, that sometimes times are tough and sometimes they’re easy, but a fair go means that if we’re “doing it tough”, then everybody’s doing it tough, not just some.

In particular, not just the battlers.

This article was first published on Peter’s blog infinate8horizon and has been republished with permission.

“Mate, if we’re doing it tough then everyone deserves a fair go, especially the battlers.”

That is fair dinkum Australian.

Which is why it’s so hard to understand what’s happening in Australian politics right now.

Because we’re not doing it tough, not everyone is getting a fair go, and stone the bloody crows, the people who are getting the worst deal are the battlers!

What the hell is wrong?

All of the national and international statistics show that we’re not doing it tough. In fact, compared to practically everybody else in the world, we’re doing it easy. In a recent visit, Andrew Neil laid out his summary of our economy, and Treasurer Joe Hockey agreed with him. Andrew Neil is former editor of the Sunday Times, founder of Sky TV News, and publisher of The Spectator. He compared Australia to the other members of the G20.

Let’s remember that the G20, of which we are a member, represent 85% of global GDP, 75% of global trade, and two thirds of the world’s population. It isn’t everyone, but it’s most of those who matter economically.

Neil pointed out that there isn’t a single other country in the G20 that can match our economic statistics, and Joe Hockey agreed:

  • A budget deficit of less than 3% of GDP
  • A national debt that’s only 23% of GDP
  • Twenty two years of continuous growth
  • Unemployment less than 6%
  • A strong currency
  • Massive mineral resources

In other words, there may be one or two countries who are better on one measure or another, but taken all together, nobody in the G20 can match us. Nobody. And Joe Hockey agreed.

Economically we are the luckiest country in the G20, and hence probably the world.

That is not doing it tough, by any measure. Quite the opposite.

We are in a better position than just about anybody else in the world to create a fair society. I won’t bore you with more statistics, but we actually spend significantly less than most comparable countries on pensions, health care and other social benefits. There are some graphs at the end of the article.

Even if we were doing it tough, we’d expect that everyone would share the pain. In the spirit of fair go, we’d make sure that the weakest and poorest didn’t end up getting hurt the worst.

But they are about to.

All of the talk leading up to the budget has been about cutting services, about reducing services, about “unsustainable” services, about coming economic disaster. Our social welfare is apparently too expensive, we have to pay again for the health system we’ve already paid for, we can’t afford as much for education or disability. It’s all doom and gloom for the sick, the poor, the old and the young. Even though we’re not really doing it tough.

But there’s no pain or doom and gloom for business.

We have the best economic credentials in the G20, and for some reason we’re going to make life harder for the battlers, and business isn’t going to feel a thing. Have you heard the Minerals Council, or the Business Council, or any other business lobby screaming about the upcoming budget? No. The only people screaming are the ones who can least afford it.

This is the opposite of a fair go. This is bullshit.

Other countries with worse economies than ours are managing a fair society, and are looking after their young, their old, their sick and their poor. Why can’t we?

This is selfish, greedy, lying, unfair, un-Australian bullshit.

We have one of the luckiest countries in the world, and to make a few people even richer we’re going to take money and services away from those who can least afford it, even though we don’t really need to.

That’s a bastard act.

That’s not what Australia is about. That’s not what Australians expect, or respect, or deserve.

It’s not a fair go, it’s bullshit.

This article was first published on Peter’s blog infinite8horizon and has been republished with permission.

 

poverty rates among over 65s

Image courtesy of infinite8horizon.wordpress.com

 

Budget Emergency?

Image courtesy of infinite8horizon.wordpress.com

 

Are taxes too high?

Image courtesy of infinite8horizon.wordpress.com

 

Where can we find budget savings

Image courtesy of infinite8horizon.wordpress.com

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Merchants of Hypocrisy: Open for the Business of War

As the situation between Russia and Ukraine deteriorates to the brink of war, is our government entertaining the thought of joining in on this war, asks Loz Lawrey.

“Nothing is free. Someone always pays”, says Joe Hockey, “we must live within our means”.

Much has been made of the two simultaneous messages appearing on one newspaper’s front page: severe cuts to pensioner entitlements and the extravagant outlay of some $12.4 billion on weapons of war.

Accusations of hubris and hypocrisy are mere water off a duck’s back to this Coalition government, who are convinced they can do whatever they wish whenever they wish, regardless of public opinion.

Tony Abbott still claims an irrefutable mandate to make choices and decisions with little consideration, consultation or advice. As with John Howard, ‘instinct’ and ‘belief’ are enough. In other words, unfettered open slather prevails: “You elected us, so we’ve won and we’ll do as we please. About anything. And everything. Because we can”.

The joint strike fighter jets will, according to Abbott, “ensure our edge as a regional power . . . you just don’t know what’s around the corner . . . the world remains a difficult . . . and often a dangerous place”. Confrontational, assertive language. Some might call it the language of a warmonger.

Weasel-speak, flung about like a certain proverbial substance, is used to distract us and disrupt our analytical thinking before we reach any conclusions, a sort of bait-and-switch operation which leaves us ignoring important issues and giggling at trivia.

A slogan is uttered, a camera flashes, a ‘gotcha’ moment happens, and in the confusion important questions go unasked and unanswered. The media pack moves on.

Meanwhile the warm fireside tone of the delivery belies the harsh message aimed at preparing us psychologically for the kicking and beating this brutal government intends to consciously, deliberately, inflict upon Australian society.

Hockey’s psychobabble continues: “It is about the we, not the me” (sounds a bit like socialism) . . . “more use of co-payments must be made” (definitely conservatism).

But is it babble? Or well-crafted spin to prepare us for war? Australia’s apparently irreversible engagement with the U.S. and subservience to its foreign policy seems really stupid and ill-advised whenever the sabre-rattling between the U.S. and China or Russia begins.

Isn’t this how it works? Step one: encourage recession by talking down the economy and defunding everything. Step two: follow through with austerity measures to ensure across-the board misery. Step three: encourage minority-blaming, thuggery, social dislocation. Step four: mission accomplished: the people are crushed and ready for war.

I was born several years after the conclusion of World War Two. During my whole life war and conflict have been constants on the world stage, and Australian soldiers have died overseas in Korea, Malaya, Borneo, Vietnam, Afghanistan, Iraq and elsewhere.

One thing you can count on with the human race; we’ve always got a war going on. And Australia has always been prepared to send its young men out as cannon-fodder at the whim of the U.K. or the U.S. on the flimsiest pretext.

Remember the Weapons of Mass Destruction which never were? There are many who wonder why John Howard hasn’t been tried as a war criminal for committing our country to the U.S.’s unjustified invasion of Iraq in which so many Iraqis, Americans and Australians died.

What is war other than schoolyard bullying writ large? A line is crossed, battle is engaged, and the reason for it all is forgotten in the heat of the action. Bait and switch, again. And again.

The invasion of Iraq was not sanctioned by the United Nations. At the time, Howard justified the action by saying it had “a sound legal basis” in previous decisions of the security council. As usual, clever language was used to deflect questions and criticism about the lack of U.N. support.

Today both Howard and George W. Bush are happily retired while a country lies in ruins, her people struggling to subsist within a legacy of destruction and conflict.

Is this what we can expect from Abbott? Another neoconservative bequest of misery, poverty and unrest? Blind unthinking subservience to the megalomania of a foreign power which believes it owns the world? Young Australians scattered about the globe to die for nothing? Young lives to be chewed up and spat out by a global military-industrial complex that prevails to this day, the same one Dwight D. Eisenhower warned the world about in 1961?

How does the lie prevail, the lie that tells us something good is accomplished by slaughter and destruction?

As far as the Iraq war went, here’s how Howard justified it: “The government strongly believes that the decision it has taken is right, it is legal, it is directed towards the protection of the Australian national interest and I ask the Australian community to support it”. And support it we did.

Well, perhaps not all of us, but if we didn’t speak out then we too supported the invasion. I’ll declare myself here: I felt the outrage, but I didn’t express it. To my shame, I didn’t speak out.

Divided and conquered, we bury our misgivings and swallow the bitter pill of nationalism. We allow ourselves to accept the necessity for a conflict we don’t even comprehend. Then we participate in that conflict, convinced of the righteousness of our purpose. And history repeats.

That’s how they get away with it. By our silence we give consent. John Howard will never be brought to trial, because we would also be judging ourselves.

The huge government spend on fighter jets can only be seen as a “toys for the boys” indulgence by Abbott and Co. It’s hard to imagine our little airforce taking on Russia, the U.S. or China. And if we’re to ride on the coat-tails of the Yanks, don’t they have enough jets already? And what’s the real context of this? Defence? We’re hardly a match for a superpower, with or without jets.

Yesterday U.S. Secretary of State John Kerry issued a stern warning to Russia over the situation in Ukraine, saying “Whatever path Russia chooses, the United States and our allies will stand together in our defense of Ukraine”. More sabre-rattling. And what did Abbott say again? ” . . . you just don’t know what’s around the corner . . . the world remains a difficult . . . and often a dangerous place”.

Is it simply that there’s a mood in the world for war?