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'New Labor' giving way to 'Old Labor'

By Tim O'Hare - posted Wednesday, 17 December 2014


Only in New South Wales has the Labor Opposition struggled to gain traction and that's more to do with the ongoing ICAC investigation and the ineffectiveness of Labor Leader John Robertson than any objectionable policy platform.

Given the latest success, what's the issue then?

The issue is that Labor has failed to present a sustainable approach to long-term government.

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In its thirteen years in office the Hawke-Keating government achieved currency reform, deregulated the financial market and QANTUS, introduced the HECS system to make tertiary education both equitable and affordable and privatised the Commonwealth Bank.

At the core of this was the Prices and Income Accord negotiated with ACTU Secretary Bill Kelty.

It was the belief in trade unions as economic partners alongside industry and a recognition that to achieve long-term economic reform you have to carry people with you.

Because of this and Bob Hawke's enduring consensus style, the Labor Party was able to achieve far reaching economic liberalisation that the Liberal Party would have struggled to achieve.

Not only is this a testament to Hawke and Keating's place as innovators in Australia's economic history but also of the pragmatic leadership of Bill Kelty.

This has been subsequently lacking with his later successor in the ACTU Greg Combet's close association with protectionists.

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Calls for a renewed Accord by previous AWU Secretary Paul Howes have been abandoned by his successor Scott McDine.

History shows that quick fixes and wanton meddling in the economy will more than likely end in tears for Labor governments.

Despite Kevin Rudd branding himself as a Blairite 'economic conservative' the Rudd government presided over a 10.5 billion dollar stimulus package, propped the near lifeless car industry indeterminably and failed to facilitate community consensus on its carbon reduction scheme.

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About the Author

Tim O’Hare is a Sydney-based, freelance commentator, originally from Brisbane. He has written about a range of subjects and particularly enjoys commenting on the culture wars and the intersection between politics, culture, sport, and the arts.

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