Solving the real problems

We have a budget problem.

It’s not a budget emergency. Everyone agrees about that… at least, everyone who understands about national finance and economics, which is unfortunately only a minority of the voting public, and none of the current Coalition government to hear them tell it.

By current standards, by any measures you care to name, Australia is currently doing very well compared to every other nation in the G20. Taking all of the various factors together, it’s impossible to deny that Australia is in the best economic state in the world.

The justification for immediate, sweeping, deep cuts to government expenditure is looking pretty shaky.

With that said, it is prudent for us to realise that Australia does face some severe fiscal challenges in the coming decades. Some of these are the result of demographics. Some are historical, and some are being wilfully ignored or exacerbated by the Coalition government’s policies.

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Could they?

Next week, the 19th session of the Conference of the Parties to the UNFCCC and the 9th session of the Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol will be held in Warsaw. These sessions are a continuation of the process that included the important and internationally accepted Kyoto Treaty, and are building towards a final meeting with the intention of creating a binding, internationally agreed treaty on climate change mitigation, in 2015.

Not entirely surprisingly, the Abbott Coalition government will not be sending a Minister nor a senior representative. This omission is regarded as “highly unusual“, but from a government openly skeptical of the human impact on climate change (or the very existence of it) and hostile to most accepted forms of responding to it, it can perhaps be understood. It is disturbingly ironic that the Environment Minister, Greg Hunt, will instead be in Parliament trying to dismantle Australia’s world-leading attempt at carbon abatement through an emissions trading scheme whilst his international counterparts will be at a global conference discussing ways to implement exactly this kind of scheme.

More disturbingly, the government has cancelled consultations which were already planned with domestic business representatives and foreign diplomats to brief them on Australia’s stance at the talks. These consultations are traditionally held in advance of this annual meeting and some have suggested that their cancellation indicates rifts and disagreements within the Abbott government about the appropriate approach. But a more sinister possibility exists.

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What do we do instead?

So it’s over; the Coalition has triumphed in the contest of ideas and will (eventually, one hopes) form a government.

Tony Abott has been described as the most effective opposition leader in a generation. This may or may not be accurate, but it cannot be argued that he has achieved his goals with a combination of balls-to-the-wall confrontation and maintaining a small target on his weakest points. The question now becomes what kind of a Prime Minister he will make, and what his collection of Howard-era ministers will do now they’ve reached power in 21st century.

The first thing we need to understand is that what the Coalition government will do, now it’s in power, is not what they said they would do while they were in opposition. Continue reading