John Menadue

  • Chris Clohessy. Bad reading leads to destructive religion.

    The recent terror attacks in France have highlighted a number of issues, all needing further discussion. One is the reality that it took an attack on European soil to provoke such a reaction – 1.6 million people marching in Paris, led by forty or more world leaders. But militant groups, under Islamic guise, have been slaughtering people for an extended period of time – in Nigeria, in Pakistan, in Syria and Iraq – in the last few weeks Boko Haram terrorists have killed over two thousand in Nigeria. The world reaction, compared to its reaction to Paris, has been negligible, suggesting an inconsistency in the way we value human life.
    A second issue is whether free speech can legitimately include hate speech. The reason that I don’t walk down the street calling out racial or bigoted epithets at people of colour, or of a particular culture or religion, is because I am neither a racist nor prejudiced against people who are different, but also because such behaviour is profoundly wrong. In that sense, I quite rightly do not have complete freedom of speech: both the civil law and the moral law forbid speech that is hateful: leading one to ponder whether the now popular #jesuischarlie slogan believes that bigoted or hateful speech is a permissible part of free speech. Charlie Hebdo is an unpleasant publication: not satire, for satire is subtle and clever, but simply crude, bigoted and unfunny. Those who speak in its defence insist that religion is an idea, and that ideas can be attacked. But Muhammad, or Pope Benedict or Jesus of Nazareth are not ideas: they are people, and Charlie Hebdo attacks them brutally and regularly. In 1946 the judges at Nuremburg unanimously sentenced to death a Nazi named Julius Streicher. He had never killed anyone: but he did publish an appalling newspaper call Der Stürmer, which incited anti-Semitic feeling mostly by its cartoons caricaturing members of the Jewish faith. So, can free speech legitimately include hate speech? If not, then we don’t have freedom of speech: and who knows, maybe that’s not a bad thing after all.
    But no cartoon could ever be as offensive as the taking of a single human life: the slaughter of men, women and children, young and old, armed and unarmed, Christian, Muslim, Jewish, Yazidis and so many others in the last few months by men and women claiming to act in the name of Islam, remains the most pressing issue. It is not because these are educated Muslims living Qur’anic principles that the massacres are happening, but because they are uneducated people, Islamic only in name or in the slogans they carry, who consistently fail to read their sacred texts correctly. A sacred text cannot be read and then acted out: there is a middle step, that of authentic interpretation which, if bypassed, leads to all sorts of fundamentalisms. The issue with the Qur’an is not whether it exhorts to violence – at times it does – but whether or not those exhortations were for their time only, or whether they have a universal and timeless validity. As long as a portion of people read their text incorrectly, we will continue to experience behaviour in the name of religion which is destructive and  life-threatening.
    *Fr Chris Clohessy is Parish Priest of Newlands/Claremont in the Archdiocese of Cape Town. He is South Africa’s leading Catholic Scholar in Islamic Studies and wrote this guest column for the Jesuit Institute.
  • John Menadue. Why are the Nordics so successful? Part 2.

    You might be interested in part 2 of these articles on the Nordics.

    In my earlier postcard from Denmark, I described the Nordic success.

    I didn’t mention that they are rated the happiest people in the world, have the lowest rates of corruption and are on track to achieve their target of 50% renewable energy by 2020. Copenhagen is a very liveable city.

    But why have Denmark and other Nordics, Finland, Sweden and Norway been so successful?

    Obviously a small country like Denmark with less than six million people has advantages in terms of social cohesion. A small population makes for stronger personal and community ties, and national unity. But a smaller population does not have the advantages of scale although with higher value added production this is probably less of a problem than in earlier years.

    Amongst their other features, the Vikings were great traders. That tradition continues today with Danes actively pursuing overseas markets. The people are well equipped to do so. In my admittedly brief stay in Copenhagen I did not find any local who was not reasonably fluent in English. It contrasts sharply with our failures in developing Asian languages to equip us in our region.

    In the 1970s and early 1980’s Denmark came to the conclusion that it’s remarkably high taxes and high welfare was not sustainable. Changes needed to be made, but in the process they did not shred everything from the old model. The country continues to have high taxes and provides very generous welfare. This reflects the close linking of national identity and social responsibility which is central to Denmark’s welfare model.

    On discovering that the old social democratic consensus was no longer working, Denmark let some of it go with remarkably little fuss and introduced new ideas from across the political spectrum. They were determined to push through reforms. There was a hard-headedness and pragmatism about it.

    This pragmatism explains why the new consensus so quickly replaced the old one. Few social democratic politicians now want to dismantle the conservative reforms put in place in recent years. Denmark has seen an amalgam of left and right wing policies that are broadly agreed across the community. Winners don’t take all in Denmark. Compromise is essential. A left wing coalition led by Social Democrats and Social Liberals was returned to power in 2011.

    An underlying factor in the successful changes in recent years has been strong trust in government. The Danes do not see the state as a dead hand. They see government as enabling opportunity, promoting individual autonomy and social mobility. They trust their government and politicians to a remarkable degree. What a contrast it is to Australia.

    This Danish trust in institutions is quite remarkable. A survey by the European Commission in November 2012 found that 53% of Danes had public trust in institutions. In Europe it was only 32%. By comparison in Australia, Essential Media reports that our ‘trust in institutions’ ranges from above 50% for the High Court, the ABC and the Reserve Bank but down to 20% or lower for trade unions, business groups and political parties. We have a long way to go to catch up to the Danes and other Nordics in trust in public institutions. We badly need to renew our public institutions that have been badly damaged. Just think of the deliberately created chaos in our last Parliament.

    Trust in government has been a feature in Denmark for centuries. That results in high quality people joining the public service. Citizens and companies pay their high taxes without a great deal of complaint, and play by the rules. Government decisions are widely accepted and few go to the courts to settle disputes.

    This trust in institutions is reflected in the fact that Danes expect their public leaders to keep their word. In his History of Denmark, Professor Knud J.V.Jespersen puts it this way.

    ‘The fundamental attitude of modern Danes is that the state is a friend and ally, not adversary, a protector and not an enemy. This is very much an unconscious result of the fact that for generations, the Danes have been accustomed to a state of law fashioned by the Danish Law to express… the relationship between the individual, society as a whole and the state. … The code stated that any promise intended to create obligations of a legal nature should be considered as binding irrespective of the form of the promise and whether it related to commerce or any other contractual circumstance. Even a verbal promise to give a present or to sell a property was considered as binding as if it had been in writing. … It is still true in Denmark that a man is a man, his word is his word, and should anyone in public life in modern Denmark fail to deliver on his word or promise, the public will judge him accordingly….

    The most recent and spectacular example of this was when the previous Prime Minister, Poul Nyrup Rasmussen made a public promise in the run-up to the 1998 elections not to tamper with the rules for early retirement. When he did so anyway, after forming a government, he was embroiled in a crisis of confidence from which he never recovered. He lost the next election in 2001, not so much because he had chipped away at the system of early retirement benefits, which most people anyway thought was a sensible thing to do, but because he had breached a fundamental principle of Danish Law, the binding contract, which dates back to the Fifth Book of the Danish Law.’

    As part of this trust in government Danes insist on honesty and transparency. They insist on rigorous scrutiny with access to almost all official records.

    In the economic sphere, they let the economy rip but underpin that very liberal approach with support and retraining for those who are unemployed. The labour market is very flexible. Universal and free education encourages all students, regardless of social background, to achieve their potential. In taxation, husbands and wives are treated separately and on equal footing. Universal day-care for children makes it possible for both parents to work full time. This Danish emphasis on building human capital is not only a key to greater equity but major economic benefits.

    That commitment to human capital development is dramatically shown in its support for skilling in architecture, design and film.

    The Danes have clung to a strong public funder in health and have refused to go down the path of subsidised, costly and inequitable private health insurance

    The Danes have clearly shown the benefits of getting a few important things right. They are pragmatic enough to make major changes when necessary. We could learn something from that in Australia at the present time.

    At its core, the Danes have trust in institutions and government in particular. They see the government as a positive influence. Freeloading by any group or person is not tolerated. Governments in turn must earn that trust. Trust is perhaps a little fuzzy and hard to define. But we instinctively know it is essential in both private and public life.

    The greatest damage to public trust in my lifetime was the dismissal of the Whitlam Government in 1975.Our Governor General and High Court Justices deceived the Prime Minister and damaged our public institutions. We have not recovered from that appalling episode. Our ‘betters’ who extol the importance of institutions and the value of conventions, trust and tradition were the very people who caused such damage.

    We could learn from the Danes about good governance and trust, and the importance of developing human capital. They are the keys to their success.

     

  • John Menadue. What does Labor stand for? Part 6

    You might interested in this repost of part 6 on the economic role of government.

    The economic role of government

    In addition to key principles the second immediate issue is the economic role of government. Those who would benefit from weak and distrusted government have deliberately undermined the legitimacy of the public sector.

    We are often told that there is really no difference between the major parties. In some respects that is unfortunately true but I suggest there is a major and continuing difference. And that difference is over the role of government. The Labor Party has always rejected the view set out in the Liberal Platform ‘that only businesses and individuals are the creators of wealth and employment’

    Australians have been encouraged to forget that their prosperity is based on both public and private goods. To many people government has become ‘invisible’, except as a vehicle for distributive welfare. Australians have lost sight of the contribution of the mixed economy, not only in providing public goods, but also in ensuring that the forces of greed and short-sightedness don’t lead to economic and social collapse. It is noteworthy that despite the continued denigration of government and the public sector, the three most trusted institutions in Australia are public institutions – the High Court, the ABC and the Reserve Bank. In the survey by Essential Research there was not a private group in the top eight most trusted groups and institutions in Australia. The three least trusted groups were business, trade unions and political parties.

    Even conservatives acknowledge that only the public sector can provide some services such as national defence and management of the money supply. In addition, however there are economic functions where private funding or provision is possible but only at high economic cost, with distorted incentives and with serious consequences for equity. These include education, health insurance, energy and water utilities and communication and transport infrastructure. In these and other areas there are market failures for which prudent economic principles require a strong government role in funding or provision. Unless Labor articulates and defends the proper economic role of government – a pre-requisite to improving Australia’s weak taxation base – economic growth will be restrained by inadequate public spending and investment.

    Of these investments, the most important is human capital to ensure that people can develop their capabilities so that they can contribute to their full potential through employment, business or unpaid work. In the competitive global economy of this century, human capital is a nation’s only secure asset. Scandinavian countries demonstrate this. A population with skills and with incentives which match rewards to contribution will draw less on distributive welfare, preserving public revenue for needed social insurance and public goods. The best antidote to disadvantage and low self-esteem is not welfare but well paid and meaningful employment.

    Labor will find it hard to make these investments if it allows itself to be depicted as the party of big welfare spending. In fact conservative governments, because of under-investment in human capital and physical infrastructure, and neglect of economic adjustment, have spent strongly on distributive welfare to compensate for inequalities rising from a weakened economic structure. Over the last 50 years, social security assistance has risen from 5% of Australians’ household disposable income to 12%. Examples of this expanded social security assistance are baby-bonuses, family allowances and superannuation concessions for the wealthy. Governments are moving to wind back some middle class welfare, but the justification is more about immediate budgetary management rather than an expression of principles. Rather, Labor should be the party which ensures that Australia becomes less reliant on distributive welfare. Instead of referring to ‘the education revolution’ in isolation, it should present its human capital policies in the context of a unified set of principles in infrastructure, education, health, environmental  protection, underpinned by principles of investing in capabilities, nurturing individual freedom and autonomy and supporting social inclusion.

    There is an opportunity to differentiate Labor from what has emerged as continuity between Howard and Abbott in that both are strong on distributive welfare while ready to sacrifice other aspects of government which would strengthen the economy’s capacity to provide well-paid and productive employment with less need for social transfers.

    A reframing of policy in terms of strengthening the economy in order to reduce the need for distributive welfare would not only neutralise the ‘right’s’ attack on Labor as the party of the welfare state but would also give a unifying theme to many policies. It would link policies in industry adjustment, infrastructure, education, health and social inclusion. It would overcome the false framing of a trade-off between equity and efficiency. It would give Labor parliamentarians an opportunity to engage more openly with the public without the need for spin and carefully prepared texts.

     

    In the last 5 blogs I have argued that Labor should be explicit about the principles that drive policies and programs. Those key principles were

    Fairness

    Freedom

    Citizenship

    Stewardship and

    Ethical responsibility

    In addition to these principles Labor should stand for democratic renewal, including of itself and the key role of government in a strong economy and society.

     

  • Wendy Sharpe – Asylum seeker portraits and stories

    The Asylum Seekers Centre is presenting an art exhibition – ‘Seeking Humanity’ – by renowned Australian artist, Wendy Sharpe. It opens in Ultimo, Sydney, on 17 February, for four weeks, before moving to Canberra on 20 March, and then Penrith.

    It is not about politics, but puts a human face to those who have fled situations of great danger in their home country in search of safety and freedom in Australia. The video has been very successful, with over 500 people viewing it within the first 24 hours.

    A previous Archibald winner and 2014 finalist, Wendy has drawn portraits of 39 asylum seekers and refugees. Through her art, she shares their lives with us to show that underneath all the troubles and politics around the issue, we are all the same. That we all have the same hopes and dreams.

    More info – http://asylumseekerscentre.org.au/seeking-humanity

  • John Menadue. Postcard from Denmark on the Nordic Success

    For holiday reading, you may be interested in this repost.

    I have been interested for many years in the economic and social success of the Nordic countries, Sweden, Denmark, Finland and Norway. Together they have a population of about 26 million.

    But what triggered my recent interest and decision to visit Denmark was the sheer pleasure of watching several Danish TV series –Borgen, The Killing, The Bridge. They are the best TV series that I have seen in years and far superior to the tosh that we often get from the US and sometimes from the UK. The Danish film industry receives government finance, but more importantly the Danes have invested heavily in human capital and the talent shows in these TV series. Portrayal of a country’s cultural life is important for the country to understand itself better. But in the case of Danish films, I have found them attractive enough to come and visit Copenhagen and spend some tourist dollars. Although I should say that Copenhagen is expensive.

    In 2012, the World Economic Forum and several related agencies ranked the four Nordic countries the best performing in the world. The ratings covered global competitiveness, ease of doing business, global innovation, corruption perception, human development and prosperity. Whilst the Nordics ranked 1 to 4 in the world, Australia ranked number 12.

    Last year The Economist, a conservative magazine, published a special survey of ‘The next supermodel’. The Nordics were the supermodel. It said ‘If you had to be reborn anywhere in the world as a person with average talents and income, you would want to be a Viking. The Nordics cluster at the top of league tables of everything from economic competitiveness to social health to happiness. They have avoided both southern Europe’s economic sclerosis and America’s extreme inequality. Development theorists have taken to calling successful modernisation “getting to Denmark”.’

    It added ‘The Nordics also offer something for the progressive Left by proving that it is possible to combine competitive capitalism with a large state; they employ 30% of their workforce in the public sector compared with an OECD average of 15%. They are stout free-traders who resist the temptation to intervene even to protect iconic companies. Sweden let Saab go bankrupt and Volvo is now owned by China’s Geely. But they also focus on the long-term – most obviously through Norway’s ($US884billion) sovereign wealth fund and they look for ways to temper capitalism’s harsher effects. Denmark, for instance, has a system of “flexicurity” that makes it easier for employers to sack people, but provides support and training for the unemployed. Finland organises venture capital networks.’

    The Nordics have traditionally had high taxes and high welfare spending along with strong economic growth and low unemployment. But the global financial crisis and membership of the European Union has forced readjustment and reform to reduce taxes and welfare spending.

    These changes are broadly supported by all the major parties. But the sales tax on new cars is still 180%. There are also heavy fuel and parking charges. This shows up in Copenhagen where it is one of the few major cities in the world not being strangled by cars. On the road you have to watch out for bicycles as much as cars. The 25% VAT includes food and restaurants.

    Taxes generally are amongst the highest in the world but the community seems broadly to accept them because it is confident that the government will spend the tax money for worthwhile purposes and with equity.

    In Denmark there are two or three strong parties and four or five other significant parties. No party has won an outright majority since 1901. No single party has formed a government alone since 1982. With multi parties, negotiation and compromise is essential. The record shows that new governments maintain the thrust of previous government policies although making changes around the edges.

    Capitalism is given a fairly free hand and there is acceptance that firms will go bust. But the Danes and others go all out to protect the most valuable resource, their human capital. People who lose their jobs through structural change are given good income support and meaningful retraining.

    The Danes have excellent schools and government funded and free health care. They root out corruption and rent seekers. If only we would do the same! Denmark has one of the most liberal labor markets in Europe with a very high rate of social mobility. In information technology and the internet they are ahead of most. 79% of eligible men work and 72% of eligible women work. Child care is readily available. The Danish gross government debt as a proportion of GDP is well below the US and Europe.

    In Denmark there is a strong tradition of different classes getting along with each other which is not surprising with such a small population (5 million) and a strong neighbour like Germany to the south.

    The absolutist monarchy took serious note of the French Revolution and decided that their survival depended on not resisting democracy and living modestly. Politicians think that it is smarter to be seen riding a bike to work rather than using a government limousine.

    The Nordic model is still work in progress with many changes necessary with I suspect more means testing. But they have probably reached the future ahead of others and are grappling with problems that others will face in the years ahead.

    The major stain on public life in Denmark, as it is with so many other countries in Europe, and even in far-away Australia, is the xenophobic attacks against refugees and migrants by political conservatives. Only last weekend in neighbouring Sweden the anti-immigration party, Sweden Democratic, polled 13% of the vote.

    In my next postcard from Denmark, I will try to describe why the Nordics and Denmark in particular have been so successful, despite high taxes, generous social services and more recently, significant increases in refugees at least compared with the size of their populations.

    Obviously organisation is easier in countries with small populations, but I suspect that the most important reason for Denmark’s success is good government. The Danish people see government not as a dead hand or the purveyor of red tape, but very largely an enabler of opportunity and freedom.

     

     

  • John Menadue. What does Labor stand for. Part 1

    You might be interested in this repost .  It was part 1 of a six part series. Part 6 will be reposted tomorrow.  John Menadue

    Labor’s constituency

    The Labor primary vote has declined from about 45-50% fifty years ago to 35-40% today. Labor has lost its clear identity with the ‘working class’ and what it stands for. Its natural constituency and membership has declined. To contain the loss, Labor has increasingly committed itself to focus groups, marginal seat strategies and ‘whatever it takes’. Values, principles and ideas have given way to marketing of products .Money has replaced membership as the driving force of campaigns. The trade unions remain the most important institutional Labor supporter. The unions have a proud record but their influence is out of proportion to their role in the community and the ‘Labor constituency’.

    Principles as the basis for policy

    If Labor is to differentiate itself from conservative parties, it needs to express that difference in a clear set of principles which accord with the best of Australians’ values. Otherwise the political contest is reduced to satisfying short-term materialist ‘aspirations’, appeasing vested interests and managing the media cycle. In such a contest, Labor is engaged in a futile struggle, for the Coalition is adept at conveying the misleading impression that it is the ‘natural party of government’, particularly because of its supposed competence in economic management. Joe Hockey’s performance as Treasurer shows that this supposed competence is a myth but conservative commentators still persist with the myth.

    From community values a set of principles of public policy can be developed – principles which define Labor in contrast to other parties. Those principles can underpin a coherent set of policies and programs which implement those policies.

    Values > principles > policies > programs.

    Moving to the ‘right’ on issues such as refugee policy and health care simply legitimises the conservative position – a position from where exploitation of people’s fear is likely to drive out sensible and reasonable political debate. Selectively compromising – a little socialism here, a little free market there – as was the strategy of Britain’s New Labour – only confuses Labor supporters and the electorate because it presents inconsistent values.

    Social democrat parties, including Labor, were founded on an optimistic view of human nature and on recognition of the public sphere where people realise their full capabilities. These ideas can be expressed in consistent and coherent principles such as stewardship, the common wealth, including enhancement of social, environmental and institutional capital and protection of natural resources.

    In his emphasis on the ‘social question’, John Curtin gave effect to these principles, acknowledging that only a strong society, including a strong and respected government, can support a strong economy. And of course there is no point in an economy that does not serve social ends.

    Curtin’s social democratic vision contrasts sharply with the Liberal Party platform ‘that only businesses and individuals are the creators of wealth and employment’, a view that reduces government to a burden rather than a contributor to the common wealth. Curtin’s vision contrasts with the notion that ‘a rising tide lifts all boats’, which legitimises destructive social divisions, which encourages people to separate themselves from society in physical or metaphorical gated communities (private schools, private health insurance), which allows the connection between contribution and reward to be severed, which encourages rent-seeking, speculation and protection of privilege rather than productive investment and which compensates the ‘losers’ with social security handouts.

    Just as Labor governments provided leadership to face great challenges in the 1980s, so too today Australia faces even greater challenges – climate change, population ageing, dilapidated infrastructure, commodity based exports, deficits in human capital and a weak base for public revenue. The politics of ‘what’s in it for me’ discourages us from facing these challenges, for there will have to be trade-offs: some will have to pay more than others and some will have to forego benefits now for the sake of longer term benefits. Such transitions can be painful, but are more likely to gain support when people understand the principles underpinning public policy.

    When the Labor Party is unified around a set of principles it can still have a robust debate about how to give effect to those principles. But it would be in control of its message because its parliamentary representatives can engage with the electorate in a consistent and sincere voice, with less reliance on ‘talking points’ and spin and with less concern with the immediate reaction of focus groups. Labor supporters would be much more prepared to accept political compromise if they know that there is strong leadership and there is broad agreement on key values and principles. Labor leadership has to be patient and consistent around these values and principles – and never go backwards. Authenticity and sincerity are then easily recognised.

     

  • John Menadue. Co-payments and the government’s attack on general practice.

    You might be interested in this repost.  

     

    A strong primary health care system based on general practise is the key to a sustainable health service. Unfortunately the government is doing its best to weaken general practice.

    Primary care offers the best prospect of improved quality of care and increased efficiency, particularly through new work practices. The evidence is worldwide that primary care provides

    • A greater focus on prevention and chronic care for our ageing population.
    • Care at lower cost e.g. specialist care in Australia is more than double the cost of care by a general practioner.
    • Faster medical treatment
    • Consolidated service delivery to overcome fragmentations.
    • A seamless one-stop approach
    • Consolidated history with test results
    • Better access for all.

    Primary care reform is the single most important strategy for improving our health and making the health system sustainable This is true for all countries, developed and undeveloped..

    Community level prevention and primary care is essential to restoring universality and efficiency in Australian healthcare. Further, health services should be delivered at the most local level possible – the principle of subsidiarity.  The dignity of patients is best safe guarded by treating patients in their homes or as close to their homes as possible.

    Hospitals should be the last resort. They are very expensive. A visit to a hospital emergency department costs ten times the cost of a visit to a GP. Too often politicians, the hospital lobby and the media keep telling us that hospitals and hospital beds are the top priority. They are not.

    We need to improve general practice rather than weaken it as the government is doing. At the same time we need to review the way doctors are remunerated. Fee-for-service puts up costs and discourages integrated care. The government should consider two possible changes. The first is that the MBS schedule be amended to permit private practices to remunerate a supervising general practitioner in their practices. That supervising GP would be remunerated for over-sighting the treatment and referral of patients and their records. The second is that the government should offer to negotiate contracts with practices, both corporate and non-corporate, that will commit to the delivery of integrated care. I expect that the government would be agreeably surprised at the number of GP practices that would respond because of their concern about the ‘turnstile’ nature of a lot of general practice in Australia today. Doctors should be remunerated for keeping patients healthy rather than remunerating them when their patients are sick. What a perverse incentive we have in FFS!

    A related key to a sustainable heath system is health workforce reform, particularly in primary care. We have tens of thousands of health professionals whose skills are underutilised or undeveloped – nurses, allied health, pharmacists and ambulance officers. About 10% of normal births in Australia are managed by midwives. In NZ it is over 90%. We have about 400 nurse practitioners when we should have thousands. The medical colleges have disproportionate influence in controlling access to the professions.  Medical training is strongly focused on acute care in hospitals, whereas most of the work of future doctors will be with chronically ill patients in the community. Few are trained to work in team practices. Primary care is not seen as an attractive option for young doctors. Only 13% of final year students have any interest in working in primary care, and only 13% would consider working in rural areas. General practice must be made more attractive and better paid compared with specialist care, but not via fee-for-service.

    Our health sector is wracked by nineteenth century work practices. It is the largest part of the Australian workforce. It is the fastest growing. We are regularly told that we need to improve the productivity of the Australian workforce. But the largest part of the Australian workforce in the health sector is not mentioned. We have seen the dramatic benefits in productivity improvements through workforce reform in many areas. But those gains are small beer compared with the potential gains with health workforce reform, leveraged by such means as wider access to MBS and making all Commonwealth health funding conditional on substantial workforce reform.

    We need substantially improved health work practices to improve the efficiency of our health sector and to lower health costs. It is also necessary to expand the professional opportunism for tens of thousands of health care workers.

    But workforce reform is hard because the AMA is determined to protect the territory of doctors in the name of quality and safety in health care.

    The key to a sustainable health system is in primary care and general practise associated with workforce reform. But the government is undermining general practise and talks endlessly about the need for workforce reform but is not game to tackle the vested interests in the health sector.

     

  • John Menadue. Be careful what you wish for.

    You may be interested in this repost.  John Menadue

     

    Be careful what you wish for.

    With the Victorian election result the Labor Party may be hoping to see the demise of Tony Abbott in the New Year. But it should be careful what it hopes for.

    Gough Whitlam successfully crippled Billy Snedden as the leader of the Liberal Party in 1974 and got Malcolm Fraser in his place, a much more substantial leader.

    Paul Keating pulled the rug from under Alexander Downer and got John Howard instead. We know that John Howard proved to be a much more formidable opponent than Alexander Downer.

    What if Tony Abbott was deposed or stood aside and a new leader, after a brief honeymoon, went to an early election?

    What is not clear at this stage is when Rupert Murdoch will tap Tony Abbott on the shoulder and tell him that he is no longer marketable and that a new leader would be easier to sell!

    Sitting behind the serious problems of the Liberal Party is a nagging concern, what does the Labor Party stand for?

  • Building more roads is not 21st century thinking.

    In my blog of 3 January, I discussed our love affair with cars and how cars are crippling our cities.

    In the SMH on January 12 this year, Jacob Saulwick takes up the issue of our failure to face up to the futility and cost of building more roads. See link below to the article. John Menadue.

     

    http://www.smh.com.au/business/building-more-roads-is-not-21st-century-thinking-20150111-12lstx.html

  • Charlie Hebdo – Freedom of expression in an imperfect society.

    In this article, Paul McGeough in the SMH says ‘Yes, it is utterly inappropriate to go round shooting those who cause offence, but is it appropriate to go round causing offence?’ Paul McGeough also recalled that when Charlie Hebdo republished the controversial Danish cartoons of the prophet Muhammad in 2006, then French President Jacques Chirac issued a swift rebuke.  ‘Anything that can hurt the convictions of someone else, in particular religious convictions, should be avoided – freedom of expression should be exercised in a spirit of responsibility’. John Menadue

    http://www.smh.com.au/world/charlie-hebdo-total-freedom-of-expression-has-little-chance-of-survival-in-an-imperfect-society-20150112-12mgih.html

  • John Menadue. Mission creep in Iraq again

    I have reposted below my blog of September 1 last year about the developing pattern of mission-creep in Iraq. Now, four months later, we are seeing it happening again. Last week in Iraq Tony Abbott made it clear that Australia was receptive to any further requests to send more Australian military to Iraq. 

    Tony Abbott, with John Howard, have both been part of our disastrous intervention in Iraq. We now intend to continue and expand it. 

    War is a serious business, but Tony Abbott doesn’t seem to think so, given how easily he makes one military commitment after another. Last week he was pictured admiring the vinyl decal stickers on the side of an RAAF fighter denoting each Iraq bombing mission. What a thoughtless, provocative piece of stupidity to have decals on our fighter in the first place, let alone having the Australian Prime Minister looking on approvingly.

    The mission creep continues and how obviously our Prime Minister seems to be enjoying it.  

     

    In an excellent article in the SMH  [31.8.2014], Paul McGeough writes of our still being at the beck and call of the US and the mission creep already evident as we rejoin the war in Iraq.

    http://www.smh.com.au/federal-politics/political-opinion/australia-still-at-americas-beck-and-call-20140831-10albb.html

    Have we forgotten Vietnam and all the other disastrous wars that we have got involved in at the request of the US? Invariably they started with humanitarian aid, then advisers, then logistics support and all the way from there to full-scale military involvement in causes we didn’t understand – except that the US was an ally and we had to be loyal. In Vietnam we lost with disastrous consequences for ourselves, but mainly for the Vietnamese people. In Vietnam and later in Iraq and Afghanistan our role steadily expanded. We are already seeing this mission creep again today in northern Iraq.

    We are now committed again to Iraq whilst refusing debate in our parliament. We were told by the Minister for Defence that ‘Were we to delay making decisions as the events confront us, people’s lives will be seriously at risk.’  This is an echo of the false reasoning we have been given in the past. Just forget that our ill-advised decision to join the war in Iraq was based on flawed information and costs hundreds of thousands of Iraqi lives. That foreign intervention in Iraq sowed the seeds of the disaster we are now seeing in that country. For centuries foreign interests have failed dismally in trying to control events in Iraq and Afghanistan. Don’t we ever learn?

    Our latest commitment to help the people of Iraq began as humanitarian air-drops. Now we are to provide arms to a break-away province in the north of Iraq. In that province there are strong elements of the Kurdistan Workers’ Party which is a proscribed terrorist organisation. How will we ensure that the arms we are supplying will not finish in the hands of the PKK?

    The mission creep has occurred quickly. It has now moved from humanitarian and military supplies to include our Special Air Services to protect air drops of food and deliveries of weapons. It won’t be long before the SAS is asked to extend its role.

    But what are our ‘friends’ doing to combat the Iraqi State? There is speculation at the moment rather than clear information that IS is receiving support from some of our friends.

    • France, Switzerland, Austria and Spain seem to have paid ransom money to IS for the release of their nationals. Presumably that has been done with the support of those governments. It is estimated that over the last five years IS has earned Pds75 million in ransoms for more than 50 European captives.
    • The Director of the Centre for Research and the Arabian World at the University of Mainz in Germany has commented recently that ‘The most important source of ISIS funding to date has been support coming out of the Gulf States, primarily Saudi Arabia, Qatar, Kuwait and UAE. Aren’t these countries our friends with strong trade, investment and aviation links? The Director added ‘Saudi citizens now compose the largest contingent of foreign fighters in ISIS.’ He commented further that the funding was ‘less from the Saudi Government than rich Saudis’.

    IS is also drawing on local resources. It looted the Central Bank in Mosul of $US429 million. The Iraqi Army that we had helped train fled and left their uniforms and weapons behind. IS has access to oil wells in Syria and Northern Iraq.  In the same way as the mafia it extorts taxes from businesses and individuals.

    Surely we should be told more about what is involved in our recent rejoining of the war and what we are attempting to do, and how we will avoid the mistakes of the past. Surely the Australian Parliament should be the primary forum for this debate. With Simon Crean as Leader of the Opposition the ALP opposed our joining the US invasion of Iraq in 2003. That same leadership is sadly lacking today.

    In terms of our own security, we will now be less safe. The head of ASIO has told us.

  • Charlie Hebdo and Algeria.

    Robert Fisk of The Independent traces the Charlie Hebdo massacre back to the French occupation and disaster in Algeria. See link to this article below.

    http://www.independent.co.uk/voices/comment/charlie-hebdo-paris-attack-brothers-campaign-of-terror-can-be-traced-back-to-algeria-in-1954-9969184.html

  • John Menadue. Getting back on the front foot.

    The tide is turning on climate change. It is going out on Tony Abbott and Rupert Murdoch. They will never admit it but the efforts of the Rudd and Gillard Governments will be vindicated.

    It is time for the ALP to really go onto its front foot on climate change. In recent months they have been extraordinarily quiet. It is not good enough to rely on the failures of the Abbott Government. The ALP needs to develop and prosecute its own policies.

    People in South Australia must be extremely worried about recent bushfires and now predicted heavy rainfalls. But we are hearing little from the ALP about climate change. The Opposition’s Shadow Minister for The Environment, Climate Change and Water, Mark Butler, comes from South Australia.

    The evidence on the dangers of climate change is mounting almost daily. Australians are feeling and sensing that weather patterns are changing significantly. The climate change deniers, like Tony Abbott, Alan Jones, Maurice Newman, Dick Warburton and Rupert Murdoch, will surely find that their denial has been unwise and damaging to our national interest.

    Tony Abbott tells us that one of his great political successes has been the abolition of the carbon tax. His opposition to the tax was one of his ‘signature policies’. Increasingly we are coming to see that he has misled us. The carbon tax and the associated emissions trading scheme were necessary and good policies.

    The evidence on climate change is mounting month after month after month.

    Last week the Australian Bureau of Meteorology told us (see link here) http://www.bom.gov.au/climate/current/annual/aus/

    • 2013 was our warmest year since records began in 1910. 2014 was our third warmest year. The 2014 spring was the warmest on record. Our mean average temperature in 2014 was 0.91 degrees above the 1961-1990 average.
    • Globally, 2014 may be the warmest year on record. No year since 1985 has observed a below average global mean temperature and all of the ten warmest years have occurred since 1998.
    • In Australia there was near average rainfall in 2014, but it was dry in the East and along the West coast.
    • Sea surface temperatures have remained high around Australia, with all five years between 2010 and 2014 within the eight warmest years on record.
    • There was extreme heat and significant warm spells.
    • There were significant bush fires, particularly in early spring.

    Despite Tony Abbott and Rupert Murdoch and the deniers, public opinion is shifting. In a survey released in 2014 the Lowy Institute showed the first increase in public concern over climate change in six years.  Almost two thirds of respondents said the government should be giving leadership on climate change.

    The international climate change conference in Peru late last year showed an increasing willingness by countries to take action on climate change.

    Despite attempts by Tony Abbott to sideline climate change at the G20 meeting in Brisbane, the presidents of the US and China signed a major agreement to combat climate change.

    In the fifth report of the Intergovernmental Panel on Climate Change, the world’s most eminent climate scientists overwhelmingly agreed that climate change is a serious and developing problem.

    Pope Francis will weigh in in a few months’ time with the first ever Vatican teaching on climate change.

    But here, the Australian Government is rolling out its pay the polluter Direct Action Plan and trying to wind back the renewal energy target.

    Agriculture Minister Barnaby Joyce in October last year outlined his plans on competitiveness in agriculture and how farmers needed to adapt to climate variability. But there was no mention of climate change. This is quite remarkable as there is probably no group in Australia that is likely to be more affected by climate change than Australian farmers. But tagging along behind the Liberal Party for the sake of a few ministerial posts, the National Party is failing to provide effective leadership for rural Australia.

    The tide is turning on climate change.

  • Walter Hamilton. Crunch Time for Abenomics

    Is it time to declare Abenomics, the recession-busting strategy of Japanese Prime Minister Shinzo Abe, a failure?  If so, was the recent Japanese election purely an exercise for Shinzo Abe to protect himself and the ruling coalition from a half-awake electorate before the deluge?

    Launched with much fanfare in 2012, Abenomics promised to cure deflation, revive economic growth, break down structural rigidities in the economy, unlock the talents of women in the workplace and salvage the nation’s deficit-drowned budget. In two years, it has achieved none of these objectives; nor, arguably, has it brought any of them within reach.

    Deflation:

    After briefly ticking up to around 2% per annum––the central bank’s target––Japan’s core inflation rate has declined again to 0.7%, with some major retailers reporting a further drop in turnover during the recent end-of-year sales. One of the paradoxes of the current situation is that, despite historically loose monetary policy, money in circulation is tight. Japanese households, once famous for their high savings ratio (20%+), are now forced to dip into their savings (i.e. the nation’s domestic savings ratio has turned negative) just to keep their heads above water.

    Growth:

    Recent GDP data revealed Japan had fallen back into recession. Domestic demand remained a drag, as was––more surprisingly––private investment. The economy has contracted in six of the past 11 quarters for which official data are available. Manufacturers have lowered their expectations, according to the latest Tankan survey, the most authoritative indicator of future trends. If the GDP figure comes in positive for the final quarter of 2014, as some predict, it will be because a weaker yen has helped to boost external demand. However, with European economies going backwards, Chinese growth abating and the U.S. recovery maturing, an export-led recovery hardly seems feasible.

    Structural Rigidities:

    Structural change is harder to achieve in any economy and must be considered a medium to long-term objective. The problem is that the Abe Government has not clearly articulated what Japan’s future economy should look like. Though it has declared a willingness to join the Trans-Pacific Partnership––the regulatory and investment treaty being promoted by the United States––negotiations between Tokyo and Washington have been painfully slow. Interest groups hostile to the TPP, from the medical to the agricultural sectors, are doing their best to hold up a deal. Free trade agreements with China and South Korea remain a long way off, partly because of soured political relations.

    Lately, Abe has put more emphasis on corporate tax reform. One of the ruling coalition’s first actions after being re-elected was to approve a cut in the corporate tax rate by 2.5 percentage points to 32.1%, effective from this April. Another cut to 31.3% is due to follow a year later. The government also delayed the next scheduled consumption tax increase and unveiled a slew of other tax changes and incentives, although nothing radically new was announced. Whether these measures can stimulate demand remains doubtful, given that less than a third of Japanese corporations, according to Reuters, are actually paying tax (the rest are either unprofitable or making use of credits from earlier losses).

    Women:

    Abe says he wants more women to stay in the workforce (60% quit work when they have their first child) and be given opportunities to advance (female representation on company boards is just 1%). But he is up against a competing lobby among his conservative allies who want greater action to stem Japan’s falling birthrate. Some progress has been made­­––for instance, an expansion of childcare places––but there is a deep-seated cultural bias in the workplace against full female participation. Long hours of overtime remain the norm in companies, big and small. Studies have shown that the overtime ‘phenomenon’ has less to do with lifting productivity than with maintaining male-dominated corporate hierarchies. Anecdotally there is little evidence of change.

    Deficit:

    Government debt in Japan, equivalent to more than two years of gross domestic product, has continued to climb under the Abe administration. The fiscal 2015 budget is likely to add about 38 trillion yen (A$380 billion) to the debt. Few observers now believe the government can meet its target of balancing the primary budget (excluding debt serving commitments) by 2020. Fiscal hawks, however, are fighting a rear-guard action, and social security spending is being screwed down, further widening the gap between the ‘haves’ and ‘have-nots’ in society. With fiscal expansion apparently no longer an option, there is a growing tension within Abenomics between expansionary and contractionary policy settings.

    Upside:

    The most important, and unexpected, wind-shift in favour of Japan, in recent months, has been the collapse in the prices of oil and other natural resources. The depreciation of the yen, engineered by the central bank to help revive corporate profits and support employment, had led to a sharp increase in the prices of finished imported goods and in the input costs of businesses. Energy imports swelled Japan’s large trade deficit, especially after the Fukushima nuclear disaster, but significant relief can be expected in 2015.

    Wages:

    For some observers, the key to the success or failure of Abenomics is wages growth. Professor Hiroshi Yoshikawa of Tokyo University is one prominent economist who has argued that reversing falling wage-rates, and not monetary easing (the primary focus of Abenomics Mark I), is the way to break the deflationary spiral. Abe’s own economic advisers have derided Yoshikawa’s thesis, but it seems the more pragmatic Abe is starting to pay attention to the professor. At their annual end-of-year soiree, Japanese captains of industry were exhorted by the prime minister to use higher profits to pay higher wages this year. While pressure from the top will probably have some effect, big companies may hand out larger bonuses (which can be adjusted downwards again later) rather than increase base pay-rates.

    The year ahead:

    Having just returned from a fortnight in Japan, my impression is that conditions have not fundamentally improved. It is easy to gain a false impression, if you are a tourist who only visits the corridor between Tokyo’s Ginza and Shibuya districts, where glitzy retail outlets always seem to have well-heeled customers. But go to the outer suburbs of the capital or to provincial towns and you will find evidence of continuing economic stress: shuttered commercial streets, miserably low casual wage-rates, depopulation, and decaying infrastructure.

    Even in the trendier parts of Tokyo, businesses are struggling to attract customers. One anecdote will suffice. I took lunch at a new restaurant in Aobadai that, judging from the smart décor and linen service, could be expected to leave me $50-$75 out of pocket for my meal, if it were in Sydney or Melbourne. I selected a course that included soup, bread, salad, pasta, dessert and coffee. The food was beautifully prepared, delicious, and in generous proportions. It cost me $11. How the restaurant could pay its rent, wages and materials costs, and still make a profit, was a complete mystery.

    Japan seems to be surviving on a mysterious, mathematics-defying, leap of faith. Perhaps what we are witnessing will, in time, bear out the old adage ‘it is always darkest before the dawn’. Though I would never underestimate the capacity of the Japanese to reinvent themselves, it is hard to escape the conclusion that something just doesn’t add up.

    Journalist and author Walter Hamilton reported from Japan for eleven years for the ABC.

     

     

     

  • John Menadue. If I were a Muslim…

    The brutality and assasination of the editors and cartoonists of Charlie Hebdo must be condemned. Those responsible must face and perhaps have faced the full consequences.

    But if I were a Muslim, I would have been offended by the Charlie Hebdo cartoons. They were not a critique of Islam but gratuitous insults. I expect my Christian faith to be respected. Religious tolerance requires respect for other people’s beliefs.  The cartoonists at Charlie Hebdo did not do that.

    We live in a fragile and pluralistic world and we must be aware of the consequences of what we do and say. Surely that is what fraternity and solidarity is about – respecting the rights and beliefs of others.

    Both the New York Times and The Guardian have refused to publish the Charlie Hebdo cartoons. I believe that shows mature judgement.

    Charles Walton of the the University of Warwick sets out in the link below the problem when free speech becomes a kind of fundamentalism. This article was published in The Conversation on 9 January.

    http://theconversation.com/when-free-speech-becomes-a-kind-of-fundamentalism-36039

    Extremism in any religion is a major concern. We need to consciously build relations with moderate Islam so that the extremists can be isolated. Building relations with Islam goes far beyond anti terrorism action. It involves economic, social and political action so that young Muslims in particular are not isolated in frustration and urban ghettoes.

    The west has exploited the Middle East and antagonised Islam from the time of the Christian Crusades. The Middle East has been attacked, colonised and its resources exploited. That inevitably leaves a legacy of hostility.  That hostility must be addressed on a range of fronts.

    Andrew MacLeod in The New Daily writes about the need for the West to undertake a wide range of activities that will encourage and support moderate Muslims and at the same time isolate extremists. The link to this article is below.

    http://thenewdaily.com.au/news/2015/01/09/must-rethink-islam/?utm_medium=email&utm_campaign=The+New+Daily+Saturday+10115&utm_content=The+New+Daily+Saturday+10115+CID_c2ce349d983fb49cc7796b4c588d8994&utm_source=&utm_term=Why+a+heavy+handed+approach+to+Islamic+extremism+will+not+work#.VLGlodSO5uc.gmail

  • Corporate tax avoidance.

    The Parliamentary Library has prepared a report for the Senate inquiry into corporate tax avoidance.  The report provides background on this issue as well as a summary of what other countries are proposing to address corporate tax avoidance by multinational companies. See link to report below.  John Menadue

    http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2014/December/Senate_inquiry_into_corporate_tax_avoidance

  • A taxing tale of two peak bodies.

     

    In the SMH on 2 January, Michael West drew attention to the ways that two BCAs were treated differently. The Blind Citizens Australia (BCA) learned that it had been subject to federal government funding cuts. Another BCA, the Business Council of Australia, did much better. ‘Only a week earlier the government had backflipped on a proposed tax-avoidance reform entailing some $600 million in tax deductions that multinational companies could claim on interest on their debts in offshore subsidiaries.’ For the full story from Michael West see link below.  John Mendue

    http://www.smh.com.au/business/a-taxing-tale-of-two-peak-bodies-20150101-12gcty.html

  • Max Corden. Without revenue, Australia can only have half a budget debate.

    The missing element in this week’s mid-year economic and fiscal outlook, and more broadly, in current government policy, stares Australians in the face. Revenue needs to be increased. Increasing taxes, reducing tax concessions and eliminating loopholes are all options, which I and other commentators have argued for.

    For example, journalist Peter Martin has shown that if compulsory superannuation contributions were taxed as income, i.e. like wages (rather than being taxed at a concessional rate) there would be a net gain to the budget of approximately A$12 billion a year. But there are many other measures to consider, all designed to increase revenue. Prominent is the ending of negative gearing.

    Many of these possibilities, and more, were discussed in the Henry tax review, with many more expected to be discussed in the forthcoming white paper on tax reform. But this should have been the first order of business. This is where the solution to the “budget crisis” lies. There is, indeed, no reason why there should be a crisis.

    Corporations and households all borrow – and as a result go into debt. Why can’t governments do the same? At present Australia’s federal public debt is modest (relative to GDP) compared with the debt of most comparable countries. Why then create this air of panic or, at least, guilt?

    Click to enlarge

    There are two explanations.

    The first is that the Coalition has demonised deficits. In its view Labor produced deficits for several years but it – the Coalition – will produce surpluses by some specified time. It seems they believed in the demons they created, and as a result made unwise promises. Perhaps they genuinely believe that deficits are “bad””. Some of them even thought that the deficits of 2008-9, which were produced deliberately for Keynesian reasons to avoid excessive unemployment during the global financial crisis, were dangerous.

    There is a second, more rational, explanation for being concerned about budget deficits and setting the attainment of a surplus as a target. Too much debt leads to having to pay higher interest rates and, with the accumulation of debt, a bigger burden on the budget. All this is obvious. But there is the problem of political discipline. Less discipline on spending leads to more debt. Someone who has a tendency to alcoholism is wise to stay off alcohol altogether. This is the argument from prudence. But it can be carried to extremes, as it is at present.

    It is quite surprising that in the mid-year update there is a massive concern about a budget deficit and the objective of getting to surplus, relative to a concern about the state of the economy at a time when there is excessive unemployment. Is the government’s focus sensible?

    Click to enlarge

    The blame game

    Treasurer Joe Hockey blames (1) the sharp fall in the iron ore price, (2) the Senate and (3) the adverse inheritance from the previous government. With regard to commodity prices, one can never foresee world price changes precisely, but way back in the Howard years, when the iron ore price rose so much, there were plenty of people who saw the probability – not the certainty – of a later decline, and recommended caution (Ross Garnaut was one of them).

    With regard to the cross-bench Senators, they have reflected public opinion. They simply bear out the observation that the biases of the budget, as originally presented by the Treasurer, were not in tune with Australian historical attitudes and public opinion.

    Click to enlarge

    To what extent are the policy decisions of previous governments to blame for excessive spending commitments? The Gonski education reforms and the proposed establishment of a Disability Insurance Scheme under the Gillard government can take some of the blame. Perhaps there were other (possibly irresponsible) decisions as well. But what the budget statement seems to ignore is the severe harm done by the “Howard Gift”, namely the five personal income tax reductions and superannuation concessions of the Howard Coalition government.

    The elephant in the room

    Commentators like me are sometimes accused of being “economic rationalists”. Well, this is an area where more rational thinking is needed. The GST might be broadened and increased (though Hockey seems loathe to do so). Even the carbon tax might be reinstated, since it would both help to finance the budget substantially and bring about a desirable reduction in carbon emission. Both these widely-canvassed and very rational ideas, while economically sound, would encounter political and public opposition, particularly the broadening of the GST. Bipartisanship is needed here.

    Given the missing elephant of revenue, the mid-year update can be summarised as follows: Government spending can and will be cut, but the possibility of increasing revenue is not considered. The Australian government is required to live within its means, the means being defined as ruling out measures that generate extra revenues. The aim is to minimise the size of government irrespective of the purposes and efficiencies of the various governmental activities.

    The only hopeful sign is the admirable recent decision of the government to produce its tax white paper in 2015, which presumably includes the possibility of increasing revenue – the missing element in the budget update.

    Max Corden is Professorial Fellow in the department of Economics at University of Melbourne.

    This article first appeared in ‘The Conversation’ 19 December 2014.

  • John Menadue. Australia and the White Man’s Media

    I have said many times that a person from Mars who read and listened to Australian media would conclude that we are an island parked off London or New York with little relationship to Asia. Our news and media coverage is so derivative, relying heavily on the BBC, CNN and other news and entertainment houses in the UK and the US .We are recyclers.  Tony Abbott delights in our being part of this Anglosphere with its British monarchy, Sirs and Dames.

    My main concern about the ABC is its meagre coverage of our region by its foreign correspondents. That coverage is grossly inadequate at the present time and I expect that with the current funding cutbacks the situation will worsen.

    Having said that about the ABC, it must be conceded that it is much more regionally oriented and less derivative and parochial than the commercial media in Australia.

    But the ABC has a particular responsibility to project and respond to our regional interests. The importance of our region was on show only last week with the visits of President’s Xi and Widodo and Prime Ministers Abe and Modi and others. The Asian region accounts for almost 60% of Australia’s two way trade.  Seven of our top trading partners are from the Asian region.  Asian investment is increasing. China, Japan and Korea are three major sources of tourists. Our educational institutions depend very heavily on foreign students, particularly from China and India. India is now the top source of migrants. These trends are clear and are likely to accelerate.

    We speak glibly about our future in the Asian Century and the need to equip Australia for its future in Asia, but our media remains fixated on London and New York.

    I don’t accept that the ABC should cut its foreign correspondents in our region. A Board that is seriously interested and concerned about Australia’s future would be expanding our coverage in and of the region and cut costs in lower priority and domestic areas. Unfortunately the Board and senior management of the ABC is largely bereft of anyone with experience in or of Asia.

    I am also inclined to the view that there are pockets of waste in the ABC that need excising.

    The Prime Minister has clearly broken another promise with funding cuts to the ABC and SBS and Malcolm Turnbull made a futile effort to explain away the clear breach of promise.

    The government also throws a red herring across the track by suggesting that the ABC cuts are about getting the budget into shape. There is also a nasty factor at play and it is called political revenge by the Abbott Government which would like the ABC to be as compliant and supportive as the Murdoch media. Cutting funds to the ABC also does a favour to Rupert Murdoch who supported the Coalition in such an unprofessional and unprincipled manner at the last election. Further, Rupert Murdoch and his sons have conducted a relentless campaign against both the BBC and the ABC.  They don’t like public broadcasters. News Corp has polluted the media in the three major English-speaking countries of the world.  It is too horrible to contemplate the consequences for Australia if there was no ABC and News Corp filled the space.

    But my main concern at the moment is about the failure of our media, including the ABC to respond appropriately to the facts of our geography and our national interests. The structure of our media was laid down over 100 years ago. It is still north Atlantic oriented.

    In the White Paper ‘Australia in the Asian Century’, October 2012, the government was advised in the following terms about our media.

    ‘Media is central in shaping perceptions and enhancing communications between Australia and the region, and the information revolution offers unprecedented opportunities to connect in new ways. … The content and coverage of the region in Australia’s media needs to improve. This is the responsibility of media organisations themselves. It is an important part of the whole of Australia approach to building links and engaging with Asia that is needed. … We will request the boards of the ABC and the SBS to examine how to promote more extensive coverage of the Asia region in all aspects of their content and programming, with special attention to news and information coverage, to ensure their content reflects the depth and diversity of our regional connections.’ P271/2

    We have been warned and told directly, and in quite explicit terms, about the importance of our media for our future in the region.

    The only media organisation that will redress our north Atlantic orientation is the ABC. Only the ABC can fill the gap as the business model for commercial media and journalism collapses.

    But with the cutbacks to the ABC, it will now be much harder.

    The commercial media has failed its responsibilities in regional coverage. The ABC has done much better, but that is now at risk.

    We really do have a White Man’s Media that is failing to advance our interests and responsibilities in the Asian region.

     

     

  • Israel must be its own worst enemy.

    The Palestinians have requested that they join the International Criminal Court. It could be a double-edged sword if both Palestinian and Israelis were brought before the International Court. But most people would believe that joining the International Court would be an important way to demonstrate that the Palestinians wanted to join the international community and be subject to its norms.

    But both Israel and the US opposed the request. Robert Fisk in The Independent on 6 January this year underscores the futility of policies in the Middle East.  See link below. John Menadue.

    http://www.independent.co.uk/voices/comment/robert-fisk-the-real-reason-why-israel-and-the-us-dont-want-palestine-to-join-the-international-criminal-court-9956751.html?utm_source=indynewsletter&utm_medium=email05012015

  • John Menadue. Is the state being captured by special interests?

    In his recent book, ‘The Origin of Political Order and Political Decay’ Francis Fukuyama of ‘End of History’ fame, focuses on how even developed and democratic societies can be captured by powerful vested interests. He suggests that this has happened in the US with the coalition of extremists in big business, the Republican Party and the Tea Party.

    First there was the crippling of the political process in the US with money and lobbying; then followed the capture of the state.

    It is a warning for us. We have the institutions of democracy- responsible government, a parliamentary system, the rule of law and a ‘free’ press. But we run a serious risk of these institutions being hollowed out by powerful, wealthy and unrepresentative vested interests.  In Australia we are seeing what Ross Garnaut has called a ‘diabolical problem’, the power of the polluter lobby. Ken Henry has spoken of the appalling public debate on key issues.

    Perhaps the only US lobby group that we are not tracking is the gun lobby

    There is no better illustration of the threats we face than donations by the rich and powerful to buy favours from political parties and the state. The US sets an appalling precedent with its Supreme Court opening the flood gates for political donations.

    Our mining sector has an effective veto on mining tax reform. For $20 million the mining lobby threatened the elected government and saved itself billions of dollars in tax. Will any Australian government in future ever seriously address reform of our mining taxes?

    The payment of tax in Australia by many wealthy people and large corporations is optional. It is costing us tens of billions of dollars each year. Fifty seven percent of our ASX100 companies have subsidiaries in tax havens. One third of the top ASX200 companies pay company taxes of 10 % or less. The statutory rate is 30%. We need to hear from senior executives before a Royal Commission how  companies like Westfields, Glencore, Ikea, Google, Apple and News Ltd can avoid so much tax.

    Wealthy and powerful interests are handed out tax benefits in superannuation deductions, capital gains, negative gearing, family trusts, salary packaging and subsidies to coal, oil and gas companies. Yet we are told that we have to cut back on welfare concessions to fund the disability program. Australian government expenditure is one of the lowest in the developed world but wealthy interests keep proposing cuts to government spending and cuts in taxation.

    With over 60% of newspaper circulations in Australia, News Ltd is a major supporter of vested interests including Big Tobacco. It is an obstacle to informed debate on key public issues. News Ltd aided our disastrous involvement in Iraq and is vehemently opposes serious action on carbon emissions. News Ltd is polluting the public debate in Australia more than any other company.

    The ABC is under attack by News Ltd and other powerful interests.

    With journalists under-resourced, the media depends increasingly on the propaganda and promotion put into the public arena by vested interests. The Australian Centre for Independent Journalism at UTS found in a survey of major metropolitan newspapers published in Australia in 2010 that 55% of content was driven by public relations handouts from lobbyists and their associated public relations arms.

    There are over 900 full time independent lobbyists working in Canberra. That is over 30 lobbyists for every Cabinet minister. On top of these third party lobbyists there are special interests who conduct their own lobbying, e.g. Australian Mining Council and Australian Pharmacy Guild. On top of these lobbyists in Canberra, there are the lobbyists in state capitals. These lobbyists encompass the whole range of interests; mining, clubs, hospitals, private health funds, business and hotels that have all successfully challenged government policy and the public interest.  They are doing great damage in undermining the public interest.

    The health ‘debate’ is really between the Minister and the Australian Medical Association which opposes workforce reform, the Australian Pharmacy Guild that restricts competition, Medicines Australia which exploits its monopoly pricing power and the private health insurance companies which get a taxpayer funded subsidy of over $6 b per annum to undermine Medicare. All these vested interests effectively push aside the public interest.

    The wealthy private schools, with their influential alumni, lobby against needs-based funding which is necessary for both equity and efficiency.

    Most of the business economists that we see on television to ‘inform’ us are employees of banks and other financial institutions. They are unlikely to tell us about the conflict of interest of financial advisers employed by the banks. Public intellectuals have gone missing in action.

    Many of the ‘think tanks’ that pose as independent are funded by secret and  powerful interests. Yet we take them seriously.

    The wealthy polluters successfully destroyed an emission trading scheme and the carbon tax. We no longer have any credible program to reduce carbon emissions.

    We have seen enormous concessions given to casino operators without proper public processes and transparency.  The casino operators lobby both sides of politics.

    The wealthy and powerful have little sense of their enormous privileges and the damage that they are wreaking. During the debate on the mining tax we had the richest people in Australia such as Gina Rinehart and Twiggy Forrest protesting from the back of trucks about how the poor mining companies were being threatened. They should have been laughed off the political stage but we took them seriously. They tell us that the sky will fall in if their privileges are challenged. .

    One of the objectives of the privileged and News Ltd in particular is the discrediting of the whole political process and politicians. They are concerned because it is through political action that their privileges will be challenged. They tell us that only the private sector produces benefits for the community and that the government is both a burden and inefficient. Yet governments have been great contributors in the past and must be in the future.

    The discrediting of our parliament and government reached a peak during the last parliament with disruption and wild accusations of corruption. We need to improve our political processes because they are essential to any reform of our democratic institutions and countering vested interests.

    We face a serious threat with the hollowing out of our democratic institutions through the actions of wealthy and powerful vested interests. We should not take our liberal democracy for granted. It faces a serious threat from within.

    It is getting late and dark.

    Where is the protest movement to check the abuses by the wealthy and powerful and the takeover of the state for their own purposes?

  • The Chinese are coming.

    After WWII the financial hegemony of the US and Europe in the IMF and International Bank was established. Later, the Japanese came to dominate the Asian Development Bank. That is now being challenged by China. See article below by William Pesek in ‘Bloomberg View’, subject ‘China steps in as world’s new bank’.  John Menadue.

    http://www.bloombergview.com/articles/2014-12-25/china-steps-in-as-worlds-new-bank

  • Mary Chiarella. Co-payments, general practice and workforce reform.

    If there’s a problem in primary health care then nurses are (and always have been) the solution. 

    Susan Sontag wrote in 1978 “Illness is the night side of life: a more onerous citizenship. Everyone who is born holds dual citizenship, in the kingdom of the well and the kingdom of the sick”. I was working in palliative care nursing when I first read this and it struck me that, continuing the metaphor, nurses were therefore like tour guides for those negotiating these health care kingdoms of both the well and the sick. We provide the translator services (“what did they say nurse?”), the coordination of meetings and events (“I need an appointment to see…”); the advice on what to do and how to do it (“I don’t know how to work this spacer thing”), and always, always, always the assistance to do whatever needs to be done when people lack “the necessary strength, will or knowledge” (Henderson, 1966) to do it themselves.

    If we look to primary health care (PHC) there is clearly a need for “tour guides” in this space, whether it be to help them stay in the kingdom of the well or to assist them to travel in the kingdom of the sick. John Menadue has suggested the key is to rethink funding for general practice. I would go further. The key is to rethink who provides the bulk of PHC and then think about how to fund it.

    In 2009 I compiled a compendium of nurse-led PHC models in 38 countries for the World Health Organisation (WHO, 2009).The elements of PHC identified for reporting purposes in the template were that each service, programme or project should:

    • provide essential health care based on practical, scientifically sound and socially acceptable methods and technology;
    • be universally accessible to individuals and families;
    • involve full participation of the community;
    • have a cost that the community and country can afford to maintain;
    • foster self-reliance and self-determination;
    • be an integral part of the country’s health system and overall development; and
    • have an entry level for patients located close to the heart of the community.

    The main needs of the populations served were those of the chronically ill and the elderly, basic social and infrastructure needs, psychological and mental health needs, maternal and child health needs and acute care needs (particularly in war zones).

    To provide a local example of what is possible, the work of an Aboriginal renal nurse practitioner in Australia with both indigenous and non-indigenous groups suffering from end-stage renal disease brought about significant health gains. The need for this role was identified as a result of the rising number of people needing acute dialysis 24 hours a day. A retrospective study of the causes of this rise suggested that 80% of the patients had risk factors that, if addressed early enough, would have prevented admission to the tertiary referral hospital for acute intervention. These risk factors were further examined and the diagnostic, clinical and referral skills required to address them were evaluated, and it was found that the scope of practice of a nurse practitioner met the requirements. The community nephrology nurse practitioner was able to develop and implement nursing models that integrated evidence-based clinical management with nursing advocacy for quality of life.

    Two key areas, considered central to the success of the case studies, presented challenges for a number of contributors. These were the issues of reliable and adequate funding and resources, and challenges to narrow thinking about the capacity of staff to take on new roles. The issue of sustainable funding; access to other resources such as medication, equipment, textbooks and staff created significant challenges. Some projects were completely or predominantly funded through the charitable sector (for example Chile, Haiti, United States). For example, a US project working with a poor community in Chicago sought its primary funding from a charity, and supplemented it with grants from no less than 16 funding sources and a further 13 in-kind donation sources. The time required to undertake the fundraising, administration and reporting on so many donations takes the nurses away from much-needed care delivery.

    In addition, there were a number of reports of medical and some nursing staff having difficulty in letting go of conventional and stereotypical thinking about who ought to perform which tasks. This issue has been much studied and discussed (Chiarella 2002) and has been described in relation to affirmative action as the ‘myth of the meritocracy’ – the possibility of work being taken on by another group, unless similarly qualified, is unthinkable because they are seen as incapable of meeting the challenge (Hall 1997). Yet there is ample evidence and experience to show that different personnel and community members are capable of equal, high quality participation in health care decision-making and delivery. Strong claims to maintain the status quo are often made on the grounds of safety and quality, but the evidence about the outcomes demonstrates this resistance to change is based only on protecting professional power and privilege.

    There is such potential to harness the skills of nurses to provide first class primary health care in this country, yet currently we seem to move further and further away from this potential and back to outdated models of health care provision that service only those who can afford to pay.

    Mary Chiarella is Professor of Nursing, Sydney Nursing School, University of Sydney.

  • John Menadue. Our love affair with cars.

    We are infatuated by the convenience of our cars, particularly at holiday time.

    There are clearly major economic and social benefits but the costs both economic and social are going to become much more apparent. How can we continue to realise the benefits of car travel, but minimise future costs.

    There are enormous political problems in addressing the cost of traffic accidents, traffic congestion and carbon pollution from cars, but we need to start thinking seriously about a suite of options to minimise the damage that cars will continue to inflict on our economy and society. It is not only a political problem in terms of disruption of our lifestyles but the political problem is intensified because of the power of the automobile lobby and the large construction firms who want to keep building more and more freeways and tollways.

    I posted two earlier blogs on this subject. They were ‘Increasing the petrol tax is good policy’ on 9 May 2014 which included an earlier post, ‘Cars are killing our cities’.

    Some people suggest that public transport is the answer to the damage caused by car accidents, car congestion and pollution. But it is only part of the answer. Cities like London and Paris have very good public transport systems, but they still have problems of car congestion, accidents and pollution.

    The fact is we need to curb our use of cars.

    In 2013 a report by eight of the nation’s transport, health and planning organisations estimated that congestion on our roads is costing Australia about $10 billion p.a. This is projected to increase to $20 billion by 2020.

    The Bureau of Transport and Regional Economics estimated the cost of road accidents at $17.85 billion in 2006. When the cost of loss of life is included, the total cost of road crashes increased to $28 billion in 2006. There are reservations about these estimates, but they are the best that are available. Almost all commentators believe that the cost of road accidents is conservative and in any event the data is eight years old.

    According to the Australian Government Department of the Environment, ‘transport’ contributed 17% of our greenhouse emissions in 2013-14. The highest contribution of greenhouse gasses was ‘electricity’ which contributed 33% of greenhouse emissions.  Clearly greenhouse emissions from transport are a serious problem.

    We need to consider seriously a range of measures to maximise the benefits of car travel and to minimise the cost.

    We invariably complain about the cost of petrol, but we pay some of the lowest petrol prices in the OECD and petrol prices in Australia today are the lowest for four years. In the September quarter this year only Canada, Mexico and the US amongst OECD countries paid less for petrol than we did. The tax component of our petrol prices was the fourth lowest in the OECD. For these and other reasons, I support the government’s reintroduction of the indexation of petrol taxes which John Howard abandoned in 2001. Reintroduction of the indexation of fuel excise would be useful transport policy to discourage car use as well as making a small contribution to the budget.

    The Henry Tax Review recommended a traffic congestion tax. Well implemented, a congestion tax would encourage more rational use of our roads. We would have an incentive to travel outside peak congestion periods. It would provide an incentive for employers and for schools to move to more flexible work and school hours. London and Singapore have taken action on traffic congestion with clear public support.

    Just as the sensible carbon tax was designed to impose a charge on companies that pollute so motorists should pay a tax when they choose to travel in peak hours. Such a tax would have to be a state tax. Who is game!

    We need to consider increased sale taxes and registration fees. In almost every respect these imposts in Australia are much lower than in the rest of the world. In Denmark the sales tax on cars is 143%, in Finland 53%, the Netherlands 48% and Sweden 30%. In Australia it is 10%.

    A feature of many European countries is smaller cars, not the large SUVs that are so common in Australia. A Toyota Hilux emits double the carbon dioxide of a Toyota Carola. In addition to the high levels of pollution from large vehicles they obviously occupy more road and parking space. A useful approach would be to increase the sales tax and registration fees of these larger vehicles and reduce the fees for smaller vehicles with a neutral financial result for the government. Higher fuel excise would also discourage car use.

    We also need to tighten emission standards for all our vehicles. The Climate Change Authority says that the new tougher emission standards to operate from 2018 are one of the best and least costly options available to reduce carbon emissions from cars. In doing so we would bring Australian emissions into line with international standards.

    We also need to ensure that in future there is effective integration of transport and urban development policies. So often urban planning is deficient where there is no convenient or efficient means of transport except by car.

    These issues will involve hard political decisions. We cannot put off indefinitely addressing the problems of car use.

    In the short term we should be very cautious about repeated proposals from federal and state governments for more and more ‘freeways’ that only shift the bottleneck and line the pockets of construction and finance companies..

    We do need improved public transport and many major cities of the world show that that is possible. But we can’t avoid facing up to our own infatuation with cars. We are all guilty of helping to kill our cities.

    .

  • Maggie Callingham. Top schools ‘top’ because someone has to be bottom.

    Across Australia Year 12 students are collectively holding their breaths to see what results they’ve achieved and, consequently, what their futures hold.

    Only hours after their release, many secondary schools proudly display their best results on billboards for passers-by to see. Newspapers select high-achieving students to profile. As schools promote these glowing results, it’s worth highlighting that many have had the invisible slave of the disadvantaged schools working for them.

    That is, the high-profile academic success of some schools has occurred as a result of social stratification – the increasing gap between students into schools of low socio-educational advantage and schools of high socio-educational advantage – as well as differential funding arrangements. Around Australia, some condone these arrangements in the name of “school choice” while others condemn them in the name of “school equity”.

    School choice

    Australian states and territories each have their own version of one or more senior secondary certificates that promote pathways for their students – usually into some form of further education or the workforce. Victoria, for example, has the academic, university-oriented Victorian Certificate of Education (VCE), as well as the practical, vocationally-oriented Victorian Certificate of Applied Learning (VCAL). However, the relatively high public profile of VCE results can incline schools seeking an academic reputation to offer only VCE – and in some cases, the even more prestigious International Baccalaureate (IB).

    Schools that promote their academic orientation and excellence usually do so to attract predominantly upper or middle-class families, or those aspiring to such classes. In addition to using expensive advertising to recruit their students, many academic schools provide scholarships to entice high-achieving students away from their neighbourhood schools. The pressure on these schools to maintain reputations for strong academic scores can motivate them to focus more on grooming their star academic learners and less on affirming their applied learners, or on catering for students from disadvantaged backgrounds requiring additional support.

    In pursuing such a strategy, academic schools privilege a select group: conforming, middle-class, elite-performance students. As a result, students and families that do not fit into the compliant, middle-class, academic profile of the school may find they are overtly or covertly encouraged to seek another school. The actual wording of this encouragement may be couched in language that indicates the student needs to find a new school “to suit his or her needs”, but the subtext is clear: the school is safeguarding its academic reputation and status. The outcome for these schools is an increasingly homogenised and advantaged school community.

    School equity

    In contrast, Victorian schools that offer both VCE and VCAL pathways meet an equity principle under which VCAL was introduced in 2002, to ensure that all students are able to access a senior secondary program of study. Schools prepared to take all-comers may find themselves catering not only for bright local students who haven’t been tempted elsewhere, but also non-academic students other schools have chosen to ignore or reject.

    As a result, these schools can be perceived as less successful than their high-achieving counterparts because their outcomes are likely to be skewed toward non-university pathways such as apprenticeships, traineeships, vocational courses or employment.

    These are each valid pathways, but as the Australian government acknowledged when it looked into youth transitions in 2009, much work is required to promote vocational pathways so they are seen as equal first-choice options. Unfortunately, five years on, little has changed in Australia regarding this public perception.

    One reason disadvantaged students are more likely to choose a less academic pathway such as VCAL can be found in Australia’s national and international testing results. Both NAPLAN and PISA results reveal that the lower the social class of an Australian student, the lower his or her test scores.

    It seems reasonable, therefore, that students who have been disadvantaged from an early age, the time when they learn foundation skills such as reading and writing, will be less inclined to pursue the reading and writing-oriented VCE. It is also not surprising that VCAL might better appeal to young people from economically disadvantaged families who then seek job-related pathways as a means to gain crucial financial independence or contribute financially to their families.

    School funding

    It’s no secret that schools don’t operate under similar funding conditions. Recent researchreveals funding increases from 2010 to 2013 across the three main school sectors are inversely proportionate to the socio-educational advantage of their student populations.

    Click to enlarge

    This growing social stratification and inequitable funding between advantaged and disadvantaged schools represent a critical equity issue for Australian schooling. While recommendations from the 2011 Gonski review of school funding attempted to address this inequity, it clearly continues.

    At a time of year when many advantaged schools celebrate their students’ high scores, it’s important to point out the contribution that disadvantaged schools have played in their success. It’s also timely to highlight the growing number of flexible learning programs in Australia that teach diverse student populations, including those with complex needs related to their disadvantage.

    These schools and programs too have valid stories to tell of their students’ successful academic and vocational results obtained under far less advantageous conditions. Unfortunately, these achievements are unlikely to appear on billboards or in newspaper articles.

    Maggie Callingham is a PhD candidate at the Victoria Institute for Education, Diversity and Lifelong Learning at Victoria University.

    This article first appeared in ‘The Conversation’ on 15 December 2014.

  • Malcolm Fraser. Australia’s dangerous ally.

    The National Interest, in its January/February 2015 edition has just published an article by Malcolm Fraser, ‘Australia’s dangerous ally’. The National Interest is not sold on news stands in Australia, but it is available online.

    Malcolm Fraser concludes his article by suggesting several steps that Australia should take to address problems in our relationship with the US.  First, the removal of US task force out of Darwin. Second, closure of facility at Pine Gap. Third, expanded diplomatic facilities and relationships in our region. Fourth, a boost to Australia’s defence force spending to about 3% of GDP.

    This article is based on submissions that Malcolm Fraser made to the 2015 Defence White Paper.

    The link to the article is below.

    http://nationalinterest.org/feature/america-australias-dangerous-ally-11858

  • What a disgrace! Australia at the UN on Palestine.

    Concluding our two year term on the Security Council, Australia voted against the proposal in the Council demanding Israel and the occupation of Palestinian territories end within two years. For the resolution to pass, nine votes were needed. Eight countries voted in favour of the resolution, including China, Russia, Luxembourg, France and Jordan. Five countries abstained, including the UK and South Korea. Only two countries voted against the resolution, the US and Australia.

    Over the years there have been a number of UN resolutions. Australia’s voting on these important resolutions can be found in the table in a blog from the Parliament of Australia ‘Diplomatic terrorism’: Palestinian statehood, the United Nations, and Australia’s voting record.  See link below.  John Menadue

     

    http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/FlagPost/2014/December/Palestine_at_the_UN

  • Glencore buying Rio Tinto could burn hole in Hockey’s pocket.

    In the SMH on December 20, 2014, Michael West draws attention to Glencore’s checkered history on paying tax and the consequences for Joe Hockey’s budget if Glencore acquired Rio Tinto.

    Michael West said that ‘billions of dollars in tax payments are on the line, not to mention job losses and the spectre of this country seeding control over a large chunk of its natural resources to a secretive group of commodity traders ultimately run out of Switzerland.’

    Glencore has a colourful history. According to an Australian public radio report the company was founded by Marc Rich and Company in 1974 by billionaire commodity trader Marc Rich who was charged with tax evasion and illegal business dealings with Iran in the US, but pardoned by President Clinton in 2001.

    For link to Michael West’s article, see below.

    http://www.smh.com.au/business/mining-and-resources/glencore-buying-rio-tinto-could-burn-hole-in-hockeys-pocket-20141219-12ao4a.html

  • John Menadue. What a remarkable thing to say!

    As reported in the SMH of December 22/21 this year, Dyson Haydon, who heads the Royal Commission into Trade Union Governance and Corruption, said the following in respect of Julia Gillard. Her ‘intense degree of preparation, her familiarity with the materials, her acuteness [and] her powerful instinct for self-preservation made it difficult to judge her credibility’.

    What an extraordinary and remarkable things to say by a Commissioner who is a former High Court Judge.  Would he have preferred Julia Gillard to be un-prepared and incompetent before the Royal Commission? If he could not find against her credibility he should have left it at that and refrained from gratuitous comments.

    The Royal Commission that we really need is an enquiry into massive tax avoidance by wealthy individuals and large corporations who are paying minimal or no tax at all.

    There is a lot of privilege and unfairness in Australia that needs exposure and correction.

  • Rodney Tiffen. Murdoch – The tabloid tweeter tangles the truth.

    With two glaring exceptions, Australian public figures and media outlets generally rose to the challenge during the long siege at Martin Place this week. Mike Baird and Tony Abbott spoke with calmness and compassion, careful not to inflame the situation or do anything to encourage bigoted and unjustified reactions. The media – especially theABC, Nine, Seven and Sky News – reported the long hours of uncertainty, when very little was happening, with restraint, generally resisting the temptation to speculate in the absence of verified facts. While some false reports and rumours were broadcast, a sense of professional responsibility prevailed.

    In a sensitive, ongoing situation like this one, when TV can be viewed by hostage-takers, it is important that broadcasts avoid detailing planned police operations or inflaming relations between perpetrators and captives. They must also do all they can to preserve the dignity and anonymity of the hostages. The TV channels, and radio presenter Ray Hadley (who was in phone contact with hostages), acceded to police requests not to broadcast statements made under duress by hostages, or to report all they knew about what was going on inside the cafe.

    The first exception to this restrained coverage was the Daily Telegraph, whose special afternoon wraparound was headlined “Death cult CBD attack: IS takes 13 hostages in city cafe siege.” Desperate for sales and attention, the ailing tabloid seems to take the view that all publicity is good publicity. In this case, though, in addition to its manifest inaccuracies, the paper’s misplaced sensationalism jarred with the anxious and sombre public mood.

    The other jarring intervention was a tweet the following morning from the paper’s owner, Rupert Murdoch. “AUST gets wake-call with Sydney terror,” announced the American mogul. “Only Daily Telegraph caught the bloody outcome at 2.00 am. Congrats.”

    Murdoch saw a terrorist rather than a deranged individual, and on the basis of that hasty appraisal believed that Australia needed to wake up. What’s more, apparently oblivious to all the TV footage of the climax and the live online newspaper coverage (including that of his own paper, the Australian), he thought only his Sydney tabloid had caught the key action.

    If a political figure had made these comments – inaccurate, insensitive, alarmist – they would have attracted immediate and sustained criticism, but Murdoch has somehow attained a unique status in Australian public life. His frequently outrageous comments are certainly criticised in social media and on internet news services, but not, of course, by the two-thirds of daily newspapers he controls. The Fairfax papers and the ABC tend to either ignore his comments or treat them with undue respect. And, despite everything we’ve learned in recent years about the behaviour of his companies, it is almost certain that no one from the two major political parties will comment adversely.

    American journalism scholar Jay Rosen has criticised what he calls “he said, she said” journalism, a device used by news media to achieve “balance” at the expense of any serious search for the truth. When Rupert Murdoch appears in the Australian media, however, it is more a case of “he said, and he also said.” Perhaps this has been most evident this year, with Murdoch’s high-profile July visit to celebrate the fiftieth anniversary of the Australian.

    This was Murdoch in an expansive mood, most notably in an interview on Sky News. He gave his views on climate change, which he thought was overplayed as a problem. “Climate change has been going on as long as the planet is here,” he told viewers. The “most alarmist” scenario was that there would be a 3ºC rise in a hundred years. “At the very most, one of those [degrees] will come from man-made [sources].” If the sea level rises six inches, it would be a “big deal, the Maldives might disappear, but we can’t mitigate that… we just have to stop building vast houses on seashores.”

    These fanciful propositions seem to come entirely from within his own head. They were picked apart on internet news sites and in social media, but within the metropolitan papers and on ABC TV they were simply reported at face value.

    The most striking aspect of Murdoch’s current political views is their extremist content. The billionaire is now a proponent of a US Tea Party–style ideology – especially the view that government is the problem rather than part of the solution – although thankfully he hasn’t adopted that movement’s pro-gun views.

    Even when he expresses less extreme views, his grasp of facts can be shaky. Weighing into the debate about Australia’s 457 working visa last year, for example, he advised Australia to follow the United States in welcoming new arrivals. “I’m a big one for encouraging migration,” he told Sky News. “Just look at America.” No media reporting these words pointed out that nearly 28 per cent of Australians were born overseas, but just 13 per cent of Americans.

    But the greater impact comes from the way Murdoch expresses these views. Apart from the large number of inaccuracies in his public interviews and tweets, their key characteristic is dogmatism and intolerance. So, during his July visit, he described the NBN as “a ridiculous idea” and deplored investment in “windmills and all that rubbish.” He has been equally scathing of renewable energy investments in Britain, which have, he says, ruined the English countryside with “uneconomic bird killing windmills. Mad.” “Mad” was also his considered verdict on British efforts to contribute to the resolution of the crisis in the eurozone.

    His tendency to stereotype and malign those he disagrees with has often caused him trouble, perhaps most notably when he asked, via Twitter, “Why is Jewish-owned press so consistently anti-Israel in every crisis?” You’ve got to give Murdoch credit, said American political commentator Peter Beinart. “He’s packed a remarkable amount of idiocy and nastiness into 140 characters.”

    Under Labor, Murdoch thought Australia was a “weird place mucking up great future,” and that “Gillard once good education minister, now prisoner of minority greenies. Rudd still delusional, who nobody could work with. Nobody else?” His most constant hostility is towards the Greens: “whatever you do, don’t let the bloody Greens mess it up.”

    This style pervades his newspapers. “Kick this mob out,” the Daily Telegraph’s front-page headline on the first day of its 2013 election coverage, embodied not only the proprietor’s view, but also his style. And yet, at the same time as his media organisations are a force debasing the level of public debate, his utterances fail to attract the scrutiny received by those of other public figures. •

    Rodney Tiffen recently published ‘Rupert Murdoch: A Reassessment ‘.

    This article was first published in Inside Story on 18 December 2014.