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Is this a real Labor Budget?

By Tristan Ewins - posted Monday, 16 May 2011


The commitment to regional Australia illustrates that where country-independent MPs hold leverage over a minority Labor government, they will be in a position to 'deliver the goods.' A mutually beneficial move could be for these independent MPs to enter into a 'pact' with Labor now, foreshadowing the possibility of another minority government, involving guarantees of a continued flow of resources for regional Australia. This could even provide a spur for additional independent contenders. Emphasis on consolidating regional population centres could ultimately be crucial in ameliorating the effects of urban sprawl in the major cities, with the accompanying infrastructure shortages

But Tony Windsor must reconsider his demand that Carbon Tax money be diverted from compensation for affected groups to investment in renewable energy programs. If there is to be new investment here it needs to be funded separately. Overcompensation and support for trade-exposed industries are just too crucial for Labor in 'selling' the Carbon Tax and achieving re-election. And despite talk of 'cash churning,' the resulting market signals should still provide the desired effect.

Disappointments

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Perhaps the most glaring disappointment is the government's capitulation regarding the never-ending campaign of vilification against the unemployed, single parents and to some extent disability pensioners.

Disability Support Pension (DSP) recipients under 35 will face a more stringent "impairment test." They will also be compelled to attend regular interviews (every three months) reassessing their capacity to work. This will apply to those "assessed as having a work capacity of at least eight hours a week" http://www.jennymacklin.fahcsia.gov.au/mediareleases/2011/Pages/b05_10052011.aspx.

With regard to 'NewStart', the unemployment benefit: long-term unemployed will now be compelled to 'work for the dole' 11 months of the year, two days a week http://thecourierpigeon.com.au/government-gets-tough-on-the-unemployed/851664/.

And unemployed 21 year olds will be shifted to the 'Youth Allowance' (at a rate $43 a weekless than the poverty-level NewStart allowance). The targeting of this demographic seems largely arbitrary, and hence unfair. Many people will be of this age upon completion of tertiary study. For young people thrown into unemployment, and struggling to pay rent and bills, search for work, and feed themselves, this is a cruel blow. Perhaps some of the costs will simply be passed on to parents.

And yet Single Parents will be shifted on to NewStart Allowance (a $56/week reduction) when their child/children reach the age of 12 (down from 16) http://www.businessspectator.com.au/bs.nsf/Article/Groups-question-tough-love-welfare-GQGNM?opendocument&src=rss.

One wonders whether the politicians, who expect these women (and some men) to raise a young family, and balance this task with paid work, understand the pressures and demands of raising a family alone. Do they really suppose a 12-year-old child is in a position to care for themselves? The stresses of these new arrangements will undoubtedly also 'flow through' to young dependents in the form of emotional pressures and academic disadvantage.

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The unemployed and single parents comprise 'soft targets,' the vilification of whom is regularly beat up in the dominant right-populist monopoly media. And even still, expectations that savings can be made by targeting 'rorting' of the Disability Support Pension betray a lack of understanding of how debilitating some conditions, for example mental illness, can be.

It warrants the question: does Labor accept the logic of its own policies, or is this a 'sacrifice' to placate those looking for scapegoats? Already Abbott is claiming so-called 'tough love' measures do not go far enough. So if Labor's policies do comprise some strategic 'sacrifice,' then will this logic of retreat know any end?

Yet even amongst these attacks upon the most disadvantaged, 'The Australian' and Tony Abbott are talking of a 'class war' against 'middle Australia' with some welfare cutbacks for households on $150,000/year and more http://www.theaustralian.com.au/national-affairs/budgets/thats-not-a-knife-wayne-swan-as-budget-cuts-middle-class-welfare-but-increases-jobs/story-fn8gf1nz-1226053971008.

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About the Author

Tristan Ewins has a PhD and is a freelance writer, qualified teacher and social commentator based in Melbourne, Australia. He is also a long-time member of the Socialist Left of the Australian Labor Party (ALP). He blogs at Left Focus, ALP Socialist Left Forum and the Movement for a Democratic Mixed Economy.
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