The coalition government’s bankrupt economic policies

Fifth, the Government has, for the first time, dismissed the Head of Treasury and appointed a replacement from outside Treasury who was an investment banker but worked in Treasury until 1993. The apparent reason for such unique action was the Government's disapproval with the views of both the dismissed Head and his next in line. The chosen appointee's macro-economic views appear to echo those of the Government. This is a disturbing precedent for future governments and a perilous path for the pursuit of government policy. The purpose of an independent merit-based public service is to provide impartial, fearless policy advice. The new Treasury Head proclaims support for the free market "austerity" policies of the European Union during and since the GFC –the very policies which have led to massive increases in unemployment in almost every European country. Leading Treasury staff, whose academic background would almost certainly have led them to support economic stimulus in times of rising unemployment which we are now entering, will face a serious dilemma. Will the new appointee lead us down the European path?

There is inadequate space to deal with many other Government policies that are likely to have deleterious effects on the economy and public welfare. These include the watering down of the previous government's FOFA legislation to regulate financial advisors; the possible adverse effects of the Trans Pacific Partnership Agreement on some controls over the environment, medications and legislation (existing and potential) concerning tobacco, alcohol and food products; the near-free rein given to foreign investment in housing, farmland and corporation takeovers; and continued government subsidies and loans to the many new profit-based private training colleges, who this year will receive $1.6 billion (the science budget was cut $151 million), despite a flood of evidence (revealed on the ABC 7.30 program from ex-students and staff) of many colleges, including the largest, deliberately recruiting unsuitable students, signing them up for expensive courses, providing little effective training and submitting false documents to the Government; and all this while training-based government TAFES suffer substantial cuts.

Conclusion

This Government has demonstrated massive incompetence in formulating their economic policies and their budget. Such is this incompetence since coming to Office they appear to rely on deception as a principal means of gaining acceptance of their policies.