Category: Politics

  • Ian  McAuley. Is capitalism redeemable? Part 2: Karl Marx’s and Henry Ford’s shared understanding

    Karl Marx was the intellectual father of communism, grandson of a rabbi. Henry Ford was the quintessential American industrialist, anti-union and anti-Semitic.

    They shared one insight, however. They both knew that capitalism could destroy its own markets. A plentiful supply of workers would keep wages low, to the benefit of industrialists. But those same industrialists needed markets for their products, and an underpaid workforce wasn’t going to be able to afford the products coming off the industrialists’ assembly lines.

    Marx saw this as the root of capitalism’s undoing. Ford saw it as a challenge.

    In 1914 Ford doubled workers’ pay, an act based not on generosity, but on well-calculated self-interest. He wanted a loyal and productive workforce, with a stake in the success of the enterprise.

    His move was a rejection of the nineteenth century idea that capitalism needed a pool of workers with nothing to offer but their brawn, facing starvation if they did not accept the industrialists’ meagre offerings. He realised that his assembly-line model of mass-production required a mass market of well-paid workers, and that it was in his interests if other industrialists did likewise. Unemployed workers, or workers working for miserable wages, weren’t going to be able buy T-Model Fords.

    That notion of production and consumption, where wages come back to the industrialists as demand for their products, became a central tenet of economics. A well-paid workforce is a basis for capitalism’s success.

    That understanding was built into the Australian understanding of capitalism from early on, codified in the 1907 Harvester Judgement, establishing the idea of a basic wage. Tariff protection was the mechanism which would allow for a recognition of the shared interests of industrialists and workers. The journalist Paul Kelly was to call it the “Australian Settlement”.

    So strong was the idea of the Australian economy depending on a well-paid workforce that in the 1950s and 1960s the Country Party, which one would expect to favour free trade, supported tariff protection. Jack McEwen, the Party’s leader, realised that farmers’ most reliable markets were prosperous Australian households.

    Tariff protection is well past its use-by date, but the idea that a fully-employed and well-paid workforce underpins a successful economy is no less valid now than it was in 1907 or 1914. Also, as Ford understood, when labour is cheap workers are not properly valued. A reasonably high minimum wage helps see that workers are employed productively. (Australians visiting the United States, where in some states minimum wages are as low as $5 an hour, are often surprised to find people in low-productivity jobs, pumping gasoline or walking the streets wearing sandwich-boards advertising local businesses.) Former US Labor Secretary Robert Reich, in his work Outrage, clearly attributes America’s recession and sluggish recovery, in large part, to its low-wage economic structure.

    In 2008, when the Global Financial Crisis hit Australia, the Rudd Government, acting on sound advice from Treasury, understood the urgency of maintaining domestic demand and stopping unemployment from rising too high. The cost was a rise in government debt to a modest level – modest both by Australian historical and by contemporary world standards. Those who misrepresent this cautious intervention as causing a “budget emergency” never mention the cost of inaction which would have seen much higher unemployment – people doing nothing instead of building school classrooms and halls, insulating houses and constructing highways, and maintaining their connection to the workforce. Nor do they mention the IMF’s praise for Australia’s policy response, and its more recent criticism of those countries that pursued austerity in response to the GFC. It’s a callous attitude, oblivious not only to the economic cost of unemployment, but also to the misery suffered by people excluded from participating in productive activity.

    Perhaps those same people who criticize the Rudd Government’s GFC response are locked into a nineteenth-century model of capitalism. Rather than striving for an economic structure  that can support a well-paid workforce, they envisage a future based on low wages. The present Government has taken a lead by reducing real wages for those on the public payroll, and its proposals on pensions, Newstart allowances and foreign workers are all designed to keep downward pressure on wages.

    It’s an agenda that meets with the approval of business lobbies, who, like Marx, still see the world through the lens of class conflict. They don’t seem to realize that they are undermining the capitalist system they claim to support.

    And they still see “low taxes” and “small government” as the path to private sector prosperity – the subject of the next contribution.

     

  • Ian McAuley. Is capitalism redeemable? Part 1: From markets to market societies

    Republican victories in the US midterm elections have given conservatives a psychological boost, just days before the twenty-fifth anniversary of the fall of the Berlin Wall. (For the record, the 1989 collapse of European communism was a victory for those Germans, Hungarians and others who risked all to stand up against tyranny, but it has been appropriated by American conservatives as a triumph of unfettered markets over government.)

    Those celebrating the midterm results may be overlooking other recent developments, such as the resounding defeat of the Swedish centre-right coalition which had tried to privatize health and education. Even the midterms were less than a decisive endorsement of the Republicans’ free market agenda: several states voted to lift minimum wages, and by a quirk in the US electoral system there was a concentration of central and southern states going to the polls. These are the poorer states where the agenda is far more complex than traditional “left/right” conflicts.

    Perhaps people have forgotten the Global Financial Crisis, or as it has come to be known, the Great Recession, when cowboy behaviour in financial markets would have crippled the world economy had governments not bailed them out.

    And in celebrating the fall of the Berlin Wall it is easy to overlook communism’s contribution to capitalism. In its role as a rival ideological suitor it kept capitalism on its best behaviour. As the Marxist historian Eric Hobsbawm wrote in his reflection on the twentieth century:

    It is one of the ironies of this strange century that the most lasting results of the October revolution, whose object was the global overthrow of capitalism, was to save its antagonist, both in war and peace – that is to say, by providing it with the incentive, fear, to reform itself after the Second World War, and, by establishing the popularity of economic planning, furnishing it with some of the procedures for its reform.

    With their supposed rival discredited, capitalism’s champions have been pushing boundaries aside. In some countries – the English-speaking countries in particular – it is becoming beyond question that the best government is small government, and that markets should be left to their own devices.

    The Bank of England Governor Mark Carney at a conference on “inclusive capitalism” earlier this year warned about such thoughtless exuberance:

    All ideologies are prone to extremes. Capitalism loses its sense of moderation when the belief in the power of the market enters the realm of faith.

    Seventy years ago, when economists and politicians were considering the postwar order, the Hungarian economist and philosopher Karl Polanyi warned about a coming “great transformation”, when the market would be unleashed from its previous constraints.

    Since markets had first emerged, Polanyi pointed out, they had been subject to society’s norms and moral codes, and generally limited in space (the market place) and time (market days and fairs). They had been constrained by notions of a “fair price” and rules against usury. He foresaw the postwar order, however, as one in which people would live in a “market society”, and the organising principles of society would be the those of the market.

    As it happened, the immediate postwar order saw a tamed version of capitalism. The Great Depression was fresh in people’s memories, and communism still had followers. (Menzies won the 1961 election on Communist Party preferences directed away from Labor.)

    But from the early 1980s, with the election of Thatcher and Reagan in in the USA, capitalism became more triumphant and more aggressive, and by now Polanyi’s prophecy has largely come to pass. We have let the market take over more of our physical and metaphorical space. With commercial television and the internet even our homes are subsumed into market space. Our roads are turned over to private companies to operate as tollways, and to make sure we can’t escape the market, public space is becoming cluttered with billboards. And, most seriously, we are increasingly allowing the profit motive to intrude into health and education – areas we once considered to be subject to the rules of social obligation.

    The Harvard philosopher Michael Sandel in his book What Money Can’t Buy: The Moral Limits of Markets points out some of the extensions of the idea that everything is on the market: some Californian prisoners can buy a cell upgrade; $500 000 will buy you a visa to migrate to the United States; you can sell space on your exposed skin for tattoos carrying advertising; a lobbyist can hire you to stand in a queue to meet a congressman. He goes on with a list that makes prostitution look positively respectable by comparison.

    Possibly because this transformation has been gradual, we have tended to underestimate its extent. And possibly because some of the earlier restrictions on markets were dysfunctional (such as the closure of all shops, even garages, for 45 hours from noon on Saturday), we have assumed that the alternative to poor regulation is no regulation.

    We have let the profit-driven private health insurance industry into health financing, using clumsy, expensive and ineffective mechanisms, such as “community rating” to try to restore some equity. We have let for-profit corporations enter what we now call the “market” for education. We talk about the “labour market”, as if people are tradeable commodities like iron ore or soy beans.

    The pushback, where it has occurred, has been insipid. Politicians, even those supposedly on the “left”, talk about policies “balancing” economic and social objectives, and businesspeople talk about “triple bottom line” reporting, as if there is some tradeoff between economic and social outcomes.

    But, Polanyi would ask, what is the point of economic activity if it does not contribute to social outcomes? We laugh at the apocryphal story of the officer who said during the Vietnam War “we had to destroy the village in order to save it”, but we let pass the equally silly idea that we must somehow compromise social objectives to achieve economic objectives.

    The market must be restored to its place, not above or beside society, but contained within society, subject to its norms.  The mixed economy, where markets, civil society and governments all do what they do best, has served us well in the past, but the fashionable “small government” ideology is leading us down a destructive path.

    Markets are capable of bringing great prosperity, but when left to their own devices can be destructive. Like an obese patient eating himself to death, capitalism needs to be protected from its own excesses.

    In following articles I will touch on capitalism’s self-destructive forces, and on what we must do, through the governments we elect, to protect it from those forces, because there is a danger that in response to its failures we will reject it altogether. The alternatives to properly-regulated capitalism are rather unattractive.

     

  • Frank Brennan.  A tribute to the cautious, quirky, humorous, honourable Wayne Goss

    Those of us brought up in Queensland owe a lot to Wayne Goss. I first met him when he was instrumental in setting up the Aboriginal Legal Service (ALS) in Brisbane in 1974. He was the articled clerk. Roisin Hirschfeld was a young social worker at the ALS. They later married and their two children went on to become Rhodes scholars. With Mark Plunkett, I used go in one day a week to the ALS as a volunteer law student. Matt Foley was there in the wings too. (Plunkett went on to sue Joh Bjelke Petersen for conspiracy to pervert the course of justice when the police commissioner was precluded from investigating assaults on student demonstrators. Foley became Attorney General in the Goss government.)

    Wayne was a no nonsense fellow with a real commitment to justice for Aboriginal Australians during the difficult Bjelke-Petersen days in Queensland. He had a quirkish and devilish sense of humour. He put himself on the line, committed to legal representation for indigent Aborigines, appearing constantly in the courts, day in and day out. He would always come back to the office with a smile and a joke about the latest put down he suffered at the hands of the unforgiving magistrate not much given to pleas invoking past dispossession. He was irrepressible. He delighted in the quirks of human nature, especially from the bench, and later in the parliamentary chamber. He knew there had to be a better way.

    In 1989, seeing off Joh Bjelke-Petersen who had been rolled by his own, he beat the National Party at the polls and was elected premier.  In his first term, he decided to do something about Aboriginal land rights in the most difficult state of the federation. He did this when there was no political or legal imperative to do so. He acted because he believed it was right. He believed in Aboriginal self-determination within the life of the polity. He retained the services of two young Aborigines to advise him – Noel Pearson and Marcia Langton. His chief bureaucratic adviser was Kevin Rudd.

    As ever, he proceeded cautiously attempting to balance all interests.  He announced his “modest, blanched and responsible” land-rights package telling the Queensland public: “We rejected out of hand the Northern Territory approach as being too radical both in the way it affects the community generally and the specific impact on agriculture and mining.”

    Despite his best efforts, things turned sour and Aborigines knocked down the gates of Parliament House. He was understandably very hurt, but philosophical about the course of post-colonial relations. Wayne was unerring in his commitment to do what he could to alleviate the unjust plight of the first Australians.  He was no starry eyed romantic.  He never lost his sense of humour, or his unwavering commitment to justice for the first Australians.

    Three years ago, Wayne and I appeared together on the negative side of one of those “Intelligence Squared” debates.  By this time Wayne had gone under the knife repeatedly, taking on the brain tumour that finally took him.  He was as quirky and good humoured as ever.  The topic was: “If we populate, we perish”.  The chief protagonist for the “yes” case was Dick Smith who turned up with lots of free copies of his book Population Crisis which he distributed to the audience.  Wayne responded:

    Ladies and Gentlemen, because you are a sophisticated audience, our team has decided that we will not be offering bribes in the form of free books nor will we be trying to scare the pants off you with predictions of the end of the planet.  We believe that the policy debate should be lifted to a higher level.  What I think I need to do is to reframe the issue: if Australia does not increase its population, you know what will happen? We’ll get older; we’ll get less productive; we’ll lose our spark.  You know what happens after you age and get greyer and greyer and greyer? You perish.  Think about it.’ 

    His last words in that debate were, “Friends, Australia has a great opportunity. Let’s seize it.”  He did and so should we.  I was honoured to know him. He was a very honourable man.  May he rest in peace.

     

  • William Grimm MM. Japan’s ‘inside-outside’ culture guarantees a bleak future.

    Society’s overwhelming suspicion of ‘foreigners’ will eventually lead to its decline.

    Japan is a dangerous place. The country is prone to volcanoes, earthquakes, landslides, tsunamis and typhoons. The earthquake and tsunami that three years ago took more than 18,000 lives brought that fact to the attention of the world. But, smaller quakes are a daily occurrence. In the week before my writing this, there were 32 earthquakes in Japan.

    Though dangerous in one sense, socially Japan is an extraordinarily safe country. Serious crime is rare, and generally enforced and obeyed safety regulations protect most residents from natural disasters and accidents.

    In the wake of the 2011 quake, tsunami and nuclear plant meltdown, observers outside the country remarked on the fact that the disaster was not followed by the looting and social disturbances that would be expected in most other countries. Japanese social cohesion is the pride of the nation.

    That cohesion, however, may ultimately prove more destructive than all the volcanoes, earthquakes and other natural risks.

    Ironically, though Japanese society is safe, research has shown that the Japanese as a whole are noteworthy for the degree to which they are untrusting and wary of others. That may be linked to a basic Japanese cultural trait: the division of society into “inside” (uchi) and “outside” (soto), or “us” and “them”.

    When combined with a tendency toward group cohesiveness, the result can be a strong sense of group identity vis-a-vis members of other groups. In fact, when Japanese introduce themselves outside their own group, they often do so by declaring their group identity: “I am Tanaka of such-and-such company (or other corporate entity).” This can give an adversarial cast to social relations.

    One who declares his or her “inside,” also declares others to be “outside.” So, when Tanaka-san declares that she is part of Company A, she is also declaring that she has no connection with Companies B-through-Z.

    That lack of connection is not absolute; it is contextual. If Tanaka of Company A and Satoh of Company B were to find themselves in the presence of someone from outside the realm of their rivalry, they would form a temporary new “inside”. So, if they were to encounter a widget maker from India, they would become “Japanese widget makers Tanaka and Satoh”.

    So, in a sense, it is the presence of an “outside” that defines oneself in a relationship in Japan.

    The most obvious “outsider,” reinforced by the very word used to describe them, is the foreigner. The Japanese word gaijin (foreigner) is written with the characters for “outside person”. To say, “I am Japanese,” means, “I am not a foreigner”.

    The ‘foreigners’ most encountered by Japanese are some 500,000 ethnic Koreans, the descendants of people who came or were brought to Japan as workers when Korea was part of the Japanese empire (1910-1945). They are still “outsiders” though they were born, raised and educated in Japan.

    Right-wing hyper-nationalists who are often supported by members of the ruling political party are especially outspoken against the “special treatment” Korean outsiders receive. There is no overcoming the “us” and “them” mind set.

    There are, of course, exceptions, but the general lack of involvement by Japanese in international organizations is one indicator of the boundaries that the uchi-soto mind set make almost un-crossable.

    Barring the arrival of aliens from another planet who would then be the cosmic equivalent of that Indian widget maker, it is unlikely that the average Japanese would be able to transcend nationalism to say, “We humans, we earthlings”.

    So, the “us” and “them” adversarial distinction toward foreigners is going to continue. And that will probably make inevitable the decline of Japan.

    The Japanese inability to treat as insiders ethnic Koreans who have been in Japan for four or more generations indicates that the country is not going to be able to open its borders to immigration, though such immigration is desperately needed.

    Japan’s population is already declining, and the latest projections predict that depopulation will lead to a decline in Japanese economic indicators in 25 years or so. Japan, which once reached the number two spot in the world economy and was touted as a possible number one will, in fact, become a small, politically and economically insignificant group of islands off the coast of the Asian mainland.

    An attempt to stave that off was made a couple of decades ago when special visas were granted to the descendants of Japanese who had emigrated to Brazil, Peru and Bolivia a century ago. It was thought that they would fit in as insiders and work in Japan’s factories, since they were somehow or other Japanese.

    However, they were not Japanese. They were Brazilians, Peruvians and Bolivians who had Japanese ancestors. Culturally, they could not be insiders, and so the government has not only cut back on the program, but is actively sending the “outsiders” back to whence they came.

    Japan continues to refuse to accept immigrants, and is unlikely to do so in the future because the exclusionary psychology of uchi and soto will not allow it. The social cohesiveness defined by uchiand soto will eventually lead to the end of Japan as a major nation.

    William Grimm has lived in Japan since the early 1970s, is a Catholic priest, writer and Publisher of UCA News, the Catholic news service for Asia.  This article first appeared in UCANEWS.com on November 7, 2014.

  • John Coleman. How things changed in 1972.

    As a journalist-bureaucrat 42 years ago, for me nothing illustrated more the bewildering speed of Gough Whitlam’s rollercoaster reforms than the removal of the last vestiges of the White Australia policy.

    I was publications editor for the Australian Information Service in Canberra, then Australia’s apolitical, overseas information agency. Part of my job was to produce the Australia Handbook which, with a print run of multiple thousands, was sent to our high commissions and embassies around the world for distribution.

    It was traditionally a dull, military-style manual, printed in black and white, updated each year by government departments and sought to give a comprehensive, factual account of Australia from its beginnings to its current economic, social and cultural achievements.

    Fresh from Fleet Street, I introduced full-colour, including a wraparound cover showing the yet-to- be opened Sydney Opera House, and revamped the layout and text.  Inevitably, there were delays, but with the election of the Whitlam government in December 1972, we were confident, with the book complete in those early weeks of 1973, there would be mostly minor changes for that year’s edition.

    But extensive changes were ordered. The revision was a nightmare; the book was on film and the amendments had to be laboriously stripped in.

    Poring over the revised text, I worried especially about the section on immigration which noted that following the 1966 policy review, it had been possible for non-Europeans ”to be considered for entry as migrants: Applications are considered individually on their merits, and approval is subject to their capacity to integrate…

    “Most approved applicants have been people eligible to practise in the professions in Australia. The application and approval rates have been increasing gradually though the numbers remain relatively limited. Non-Europeans are admitted as visitors, for business or as tourists…”

    Then – startlingly – Australia’s objective to maintaining a “homogeneous” society. I knew enough from Whitlam’s pronouncements that the White Australia policy was on the way out and took the text to a senior journalist colleague in the Immigration Department.

    The next few minutes, as he phoned a superior, were straight out of Yes, Minister, my colleague echoing, “Leave it in…take it out… leave it in…take it…” We took it out.

    We didn’t catch up in that edition with significant steps which, as the Immigration Department now notes in a fact sheet, the Whitlam government was to take later in 1973: legislating that all migrants of whatever origin be eligible for citizenship after three years’ permanent residence; issuing policy instructions to overseas posts to totally disregard race as a factor in the selection of migrants; and ratifying all international agreements relating to immigration and race.

    We did manage to squeeze in the announcement that from the 1974 academic year fees would be abolished at universities, college of advanced education and technical colleges, and that the government planned to discuss with the states assuming full responsibility for financing tertiary education.

    Medicare, still some time off, didn’t make the book, but we told how patients could insure themselves for hospital treatment through voluntary membership of non-profit health insurance organisations, contributions ranging from 70c to $1.90 a week for families.

    We reported the maximum weekly rate for unemployment benefits was $17 “with lesser rates for unmarried younger people,” but noted it was proposed to increase the rate for a married couple to $37.50 and single people to $21.50.

    We highlighted the mineral boom, pointing out the resources accounted for about a quarter of all our exports with manufacturing growing “spectacularly”, contributing  more than a quarter of GDP (that’s now halved). And we said the Snowy Mountains Hydro-electric Scheme, begun in 1949, was nearing completion.

    On the Arts, we quoted Prime Minister Whitlam that a new Australia Council for the Arts would be created with seven boards, ranging from Theatre to Aboriginal Arts. We pictured Professor A.D. Hope as one of the nation’s distinguished poets and told how movies like Wake in Fright were creating interest overseas.

    On international affairs, we complemented Australia’s increasing focus on participation in regional associations and relations with Asian and Pacific nations with a full-page picture of Indonesia’s President Sukarno. On Defence, we said Australia’s strike aircraft included Canberra bombers and Mirage fighters. Among sporting stars, we named Olympic gold medallist Shane Gould and tennis champions Evonne Goolagong and Margaret Court.

    The book had prolific statistics; among them, Australia’s population was estimated at 13 million, Aborigines at 140,000 and expected to double by the end of the 20th century.

    John Coleman is a freelance journalist and travel writer.

     

     

  • John Mant. Tribute to Gough Whitlam

    It is difficult to make this speech – so much to say about this great man and his times.

    I observed him from a number of angles:

    • Working with Tom Uren and Gough Whitlam on urban policy proposals before the elections.
    • Assisting my friends Peter Wilenski and James Spigelman in their work on the administrative orders for the new government.
    • As Uren’s principal advisor for the first year I attended that amazing two man Cabinet meeting when we made the first great installment on changing Australia.
    • During the first year of the government I was closely involved in a number of critical issues.
    • Finally I worked as the PM’s principal private secretary in the five months before the coup.

    And coup it was, make no mistake about that.

    A coup which was successful because of one of the PM’s most enduring qualities – an assumption that people would behave properly and constitutionally.  During the crisis, which was totally engineered by typical dishonourable acts and subterfuges by the Right, the PM’s central focus was to preserve Australian (and British) parliamentary tradition, namely that governments are made in the People’s house.  This belief mirrored his commitment to ‘one vote one value’.

    He assumed, wrongly, that his determined opponents, and especially the Governor General, would be similarly motivated. A person with a more cynical view of people may have been less trusting.  But then that person wouldn’t have been Gough Whitlam.

    His approach to policy reflected this.

    Gough Whitlam believed that governments can do good things for people. This was a view shared by others in the days which were before the Right launched its propaganda war to convince everyone that governments were the problem rather than the solution.

    Gough Whitlam’s approach to policy also reflected the realist tradition of Sydney University:  a thing is a fact only if it exists; any number particulars do not prove a general proposition.

    He therefore was a shining example of The Enlightenment.

    As such, he had difficulty in accepting those who would not face the facts – those whose views were driven by love of the past, superstitious dogma or cyclical political advantage.

    This, and his prodigious capacity for work and his legendary (and, for staffers, disquieting) memory for detail, drove The Program.  During the long years of Opposition he worked on it: rational, transforming, exciting.

    Assuming others would share his analysis, The Program was to be implemented. Unfortunately the quantity and quantity of his front bench too often meant some were not up to the tasks he set.  The Program was too rational for some, too rushed for others, not sufficiently flexible to respond to changing economic settings.

    But enough was achieved to make a real and beneficial difference to many lives.  Nobody else in Australia’s short history can claim to doing so much good.  For that we can be grateful for Gough Whitlam’s long and productive life.

     

    John Mant is currently a Councillor on the City of Sydney Council.

  • Walter Hamilton. Japan and China: agreeing to disagree

    In diplomacy, sometimes a nod is as good as a wink. You can argue later over the question of who nodded first (if at all). The leaders of Japan and China are maneuvering towards their first face-to-face meeting after two years of chilly and occasionally belligerent relations. To enable the meeting to happen officials on both sides have been engaged in a tortuous diplomacy of the nod/wink kind.

    The Japanese have a word, nemawashi, which loosely translates as ‘spade work’. They are masters at the patient, protracted negotiations––and accompanying softening up process––necessary to bring off a business deal, public works project or diplomatic coup. Their obvious equals in this are the Chinese.

    Two years ago, the centre-left government of Yoshihiko Noda, jammed in a wedge by right-wing agitators, took the fateful decision to nationalize several islands in the Senkaku group, close to Taiwan, which have been administered by Japan for most of the past 120 years. This, as far as China was concerned, changed the status quo in the two countries’ management of their territorial dispute over the islands.

    The Communist Party gave the green light for widespread protests in China, which sometimes turned violent: Japanese business premises were attacked, trade flows declined sharply and Chinese tourists stopped visiting Japan. When Chinese military vessels and aircraft started aggressively intruding into the sea and airspace around the islands, and Beijing unilaterally declared an exclusion zone in the East China Sea, it seemed possible that a military conflict might be triggered.

    The replacement of the Noda administration by the conservative LDP-led government of Shinzo Abe in December 2012 only sharpened the conflict. Abe adopted a hardline ‘no recognition’ policy towards China’s claim to the Senkaku (Diaoyu) islands and deployed additional military resources to defend Japan’s interests.

    Though the risk of an ‘accidental’ clash remained real, this writer never believed a military conflict was imminent, for several reasons. First, it was not in Japan’s interest to start one. Secondly, China knew that its naval power, at this stage, was not sufficient to be assured of victory. Thirdly, the Chinese economy is going through a delicate transition to a lower pattern of growth and would be vulnerable to any shocks flowing from a military clash with Japan. Finally, the Senkaku/Diaoyu issue is essentially about muscle flexing; the islands have little intrinsic value. In an exercise of muscle flexing, the idea is to display your biceps and triceps without actually lift the weights. This goes for both Abe and China’s President Xi Jinping.

    Diplomacy, rather than war, always held out the best solution for both sides: hence the months of backroom meetings aimed at achieving a result that allows both to maintain face. The APEC leaders forum, which kicks off in Beijing tomorrow (Monday), is the obvious occasion for a first tête-a-tête between Abe and Xi. It’s not a guaranteed success, but it seems likely that it will mark the start of a new modus operandi for managing the territorial dispute.

    The fact that the meeting will happen in China satisfies Beijing: ‘Japan came to us’. The formula to be adopted, according to reports, is that both sides will ‘agree to disagree’ over which has sovereignty over the islands. This would satisfy Tokyo by falling short of an open admission that China has a claim to the islands. The two leaders are also expected to endorse the work of officials, undertaken during the past year, to put in place a conflict-resolution protocol for de-escalating situations that could give rise to a military clash.

    The presence of a great number of coast guard and military vessels from the two nations, not to mention their competing fishing fleets, in the crowded East China Sea has been causing alarm in the neighbourhood and beyond. If Japan and China can agree on a better way to manage the consequences of their dispute, even if they cannot resolve it fundamentally, much will have been achieved.

    The other concession sought by China is that Abe should stop making visits to the controversial Yasukuni Shrine in Tokyo, a symbol of Japan’s wartime aggression, and do more to acknowledge the nation’s past mistakes.

    On these issues, the diplomats will have been throwing out their most delicate nods/winks. But remember, the horse is blind. Abe almost certainly will not publically abandon his prerogative to visit Yasukuni––but having stayed away during the recent autumn visiting ‘season’, he may already have sufficiently signaled his intention to tread carefully. (Other members of his Cabinet, however, have continued to visit the shrine where 14 convicted Class ‘A’ war criminals are commemorated among the 2.5 million war dead whose spirits are enshrined there.)

    Whether the two leaders can bring to their talks anything constructive on the vexed issue of historical accountability is very unlikely. The meeting, in fact, may prove little more than a handshake and a photo opportunity: the first step on a long and difficult road back to a saner future.

    Walter Hamilton reported from Japan for the ABC for eleven years.

     

     

     

     

  • Graham Freudenberg. Bjelke Petersen was an innocent.

     

    What is the real meaning of the G20 security farce in Brisbane? It is a massive exercise in political intimidation. It is a demonstration of the power of government to prevent or limit the most basic democratic rights of free speech, protest and assembly. Perhaps the worst thing about it is that, in the atmosphere of these times, this intimidatory assertion of authority is accepted without question as normal, routine and completely justified. There is a long term conditioning process of work here.

    The original target of the G20 security operation was demonstrations that might be organised by protest groups along the lines of Seattle or ‘Occupy Wall Street’. Why should such dissent require any more than ordinary measures of police supervision, backed, for this occasion, by enhanced intelligence work? Why should 900 heavily armed troops be involved in non-violent civilian protest, even if inconvenient to the authorities and unsightly for the visitors? One would have thought that a display of democratic protest would have been salutary to the likes of Putin and the rest.

    But the way this has been done – and spun in an extraordinary mixture of secrecy and selective publicity – has caused Brisbane citizens to believe that it is all about ISIS etc. In a single newscast on 3 November Channel 7 Brisbane had three juxtaposed items: an army rehearsal for a response to a random off-the-street kidnapping; an appeal by Premier Newman to citizens to come into the CBD during G20, lest Brisbane ‘look like a ghost town’; and the serving of a keep-way order on some poor ratbag officially designated as a ‘serial pest’ (shades of ‘The Skull‘ who used to haunt election meetings in Sydney in 1969 and 1972).

    Of course the most innocent explanation is that all this is not about protecting the people or the visiting Heads of Government but to protect the collective backsides of officialdom. But when we link the deification of the Australian soldier in connection with the First World War Centenary with this current involvement of the Australian Army in civilian control, it is not difficult to see the eventual outcome, intended or not: a pervasive and permanent acceptance of the use of the Australian military forces as a routine extension of the police power, against the exercise of the most fundamental democratic rights.

    As Goering said, ‘To control the people you only have to tell them they are being attacked. It works every time in every country.’

  • Antony Whitlam. Tribute to Gough Whitlam

    The Honourable (Edward) Gough Whitlam, AC QC

    State Memorial Service

    The Honourable Antony Whitlam QC

    Sydney Town Hall

    5 November 2014

     

    Auntie Millie Ingram gave a moving Welcome to Country. I also wish to acknowledge the Gadigal people of the Eora nation on whose land this notable building stands. I pay respect to Gadigal elders – past and present – and to so many other indigenous Australians we are honoured to have join with us today, including members of Vincent Lingiari’s family.

    This is a celebration of the life of Edward Gough Whitlam. I shall try to remember that.

    Gough himself, when speaking on occasions like this, had a tendency to become so enthusiastic in his advocacy of projects associated with the departed person that the subject of the proceedings rated only a cursory mention.

    I am Gough’s eldest child. The only advantage primogeniture appears to have given me upon my father’s death, is this speaking slot.

    Gough, of course, would have loved to speak today, but the rules of the game necessarily disqualify him. That is just as well because I gather the Town Hall is booked tomorrow!

    There can be no complaint about Gough’s family cycle. True, his dear wife of nearly 70 years, our mother Margaret, predeceased him. But they both far exceeded all actuarial estimates for their generation.

    Gough’s only sister, Freda, survives him and we are delighted that she is here today.

    All Gough’s children are here today. There are four of us – and that is now the final count. I say this because, not so long ago, when Gough was growing older and more frail and, as Catherine says, more lovable, a visitor to his office politely asked how many children he had. Gough looked up and answered: “Four” and then with a cheeky smile and eyes glinting he added: “…….. so far”. Gough was also a much loved patriarch for his grandchildren and great-grandchildren.

    Today’s speeches remind us of Gough’s purpose in life. They were delivered with power and beauty that leave us all in awe.

    Cate is a woman of courage and conviction who refuses to be boxed in by her talent in theatre and in cinema. Noel is an iconoclast of great forensic skill, with a poet’s gift for language that he employs tirelessly in the interests of all Australians. Coming from a younger generation, their assessments of Gough’s impact are especially satisfying. Cate and Noel have added great lustre to this occasion.

    Graham and John are, of course, of the Labor Party. Graham was Gough’s collaborator from the time he became Leader. John was Gough’s closest friend and confidant in the last years of his life. They are both family, and they know how grateful we are to them for what they have had to say.

    Gough’s time in government was the pinnacle of his career. It is a particular pleasure, therefore, that Doug McClelland, Les Johnson, Kep Enderby and of course, Paul Keating, are here with us today. Unfortunately Bill Hayden and Tom Uren are unwell and cannot attend. Bill’s moving tribute to Gough is etched in our hearts and minds.

    For Gough, public service remained the most noble pursuit and there was no more important or honourable occupation than being a member of parliament. All his life he placed his faith in parliamentary government, responsible government and the two-party system.

    To the end of his days Gough was conscious that he owed everything that he had been able to achieve in government to the selfless efforts of members of the Australian Labor Party and to the confidence placed in him by so many of them.

    The media coverage of Gough’s death has been generous, and we have been greatly touched by the affection and respect from the public.

    There has, of course, been an information overload about the details of Gough’s life. However, I will flesh out two subjects.

    First, the matter of religion. Gough’s irreverent wit should not be misconstrued. It is true that Gough himself was not a religious person. However he grew up in a strongly religious household. His mother came from a prominent Baptist family in Melbourne. In Canberra Gough’s parents and his sister became Presbyterians. At the Canberra Grammar School, Gough repositioned himself as an Anglican. He married our mother Margaret in the Church of England, and he was astute to have each of us baptised and confirmed.

    Gough’s sister, Freda, was moderator of the Uniting Church in this state.

    Gough’s love of history informed a broad knowledge of religion. As children we were aware of this early. To keep us occupied on long car trips there were no video games or sing-alongs. Rather we were bombarded with the most exquisite detail of the doctrine and liturgy in different rites of the Christian Church. Gough did not claim to be a scholar, but he did have a lifelong fascination with religion.

    Gough employed religious imagery in his speech. Many of his attempts at self-parody about matters divine have been recalled with evident amusement during the past fortnight.  As I have said, Gough himself was not a religious person, but by his background and disposition he did not scoff at people who were religious and he was genuinely respectful of their beliefs and moral values. They included many of his closest friends.

    In every way, Gough was ever keen to inculcate in his children the virtues of religious tolerance. Plain courtesy and consideration for others was a big part of that. And of course, this was more than just religious tolerance. It was a quality that informed so much of what he aspired to do for our society as a whole.

    Now a little more biography and geography.

    In 1947 our family (comprising Gough, Margaret, me and Nick) moved to Cronulla. When Gough entered parliament in 1952, his seat of Werriwa included the whole of the Sutherland Shire and extended all the way down to Helensburgh and right across to Liverpool. My favourite boyhood memory of election campaigning with my father is of him trawling for votes, armed with a loud speaker, not being driven along streets in a flat-bed truck or a van, but motoring along the Woronora River in a “tinny”.

    In 1955 there was a redistribution, and the Shire and points south were cut out of Werriwa. The new seat extended along an axis north from Liverpool to the western edge of Parramatta at Wentworthville. So at the end of the school year in 1957 the family (now increased with the addition of Stephen and Catherine) moved to a new house at Cabramatta. That is where Gough and Margaret lived until he became Prime Minister. He never had a flat in town. During the whole of that time (for the last 13 years of which Gough was successively Deputy Leader and Leader of the Parliamentary Labor Party, with functions to attend all over the metropolis), if he was in Sydney, Gough slept at home in Cabramatta.

    Against that background, you can imagine my surprise, in the wash-up of Gough’s death, to read one of the more antic commentators thrillingly expose “the myth that Whitlam was a western suburbs kid made good”. I had never heard of such a myth. Has anyone? I did know that he had lived most of his adult life far from the centre of town in two houses built on unsewered blocks of land.

    I did know that for 20 years he had been an energetic local member in western Sydney where he had witnessed the problems of its rapid development, and where, with his vast knowledge of European culture, and the history of the Mediterranean people, he accorded unfeigned respect and dignity to all the area’s many immigrants.

    After parliament Gough remained vigorously engaged in our national public debate on many issues. Constitutional reform and equality of electoral enrolment spring to mind, but it is difficult to think of a significant topic on which he did not feel obliged to express a view.

    It was a brilliant decision of Bob Hawke’s government to send him to UNESCO. It got him out of the way and it allowed Gough to employ his great talents in the interests of world heritage and culture.

    Many talented and dedicated men and women have served on Gough’s personal staff. Until he became Deputy Leader in 1960 there was only his electorate secretary, the late Norma Thompson, whom we always knew as Miss Thompson. She operated from a corner in his office in the old Federal Members Rooms in the Commonwealth Bank’s “money box” building in Martin Place.

    Of the others engaged over the last half century, it would be invidious to single anybody out. They all endured his occasional changes in temperament, but at the same time they will all know how much he valued the contribution of each of them. It is truly gratifying that so many of them have taken the trouble to join us here today.

    Stamina is an essential ingredient in the make-up of any successful politician. Gough was lucky enough to have it in spades for most of his life.

    For the past few years, Gough has lived in an aged care facility at Lulworth where he was wonderfully looked after by everyone.

    Until the last couple of months Gough continued to go into his office four times a week. There were also increasingly frequent attendances upon all kinds of health professionals. Again I will not single anybody out. They know how grateful we are to each of them for their skill and care.

    The grace and serenity with which Gough accepted the decline in his health were quite striking. My brothers and I owe a particular debt to our sister, Catherine.

    The man whose appearance always brightened up his demeanour and to whom all his children are forever indebted for his devotion and love, is his driver, Michael Vlassopoulos.

    This is a State Memorial Service. Prime Minister, we are most grateful to you for authorising this occasion.

    We are also conscious of the great honour done us by the presence of HE the Governor-General, HE Lady Cosgrove and so many other distinguished persons and representatives of foreign governments who have gathered with Gough’s family, friends and supporters here today.

    It is a particular pleasure to welcome so many from Papua New Guinea, including Prime Minister O’Neill and Gough’s old friend, Grand Chief Michael Somare.

    At the start of today the genius of William Barton reminded us that we are here in Australia, a land where the indigenous peoples have lived for thousands of years. The road to reconciliation and recognition started with the Whitlam government, but it should be remembered that its land rights proposals were in substance implemented by Malcolm Fraser’s government.

    The attendance of representatives from the Gurindji people is a truly humbling testament to Gough’s legacy.

    Events at Wave Hill are the subject of the moving song written and performed today by Paul Kelly and Kev Carmody. This song was written in the early 1990s around the time of Paul Keating’s great Redfern speech. Soon after, a brilliant young aboriginal lawyer called Noel Pearson came to public attention in the wake of the Native Title cases. The road ahead may be tortuous and difficult for all Australians but we need not be divided on partisan lines.

    The artistry of the orchestra and choirs today has been sublime and utterly spellbinding. Gough’s idiosyncratic predilections in the music for this occasion have been brilliantly vindicated.

    The next piece, Jerusalem, was the recessional hymn at Margaret’s memorial service. William Blake was, just like Gough, a radical. An Oxford theology professor has written that the words of this poem “stress the importance of people taking responsibility for change and building a better society”.

    In that spirit, it is a fitting piece to end the celebration of Gough’s life, and the symmetry provides a neat memory for us.

    Thank you all for coming.

  • Noel Pearson. Tribute to Gough Whitlam.

    The Honourable (Edward) Gough Whitlam, AC QC

    State Memorial Service

    Noel Pearson

    Sydney Town Hall

    5 November 2014

     

    Paul Keating said the reward for public life is public progress.

    For one born estranged from the nation’s citizenship, into a humble family of a marginal people striving in the teeth of poverty and discrimination, today it is assuredly no longer the case.

    This because of the equalities of opportunities afforded by the Whitlam program.

    Raised next to the wood heap of the nation’s democracy, bequeathed no allegiance to any political party, I speak to this old man’s legacy with no partisan brief.

    Rather, my signal honour today on behalf of more people than I could ever know, is to express our immense gratitude for the public service of this old man.

    I once took him on a tour to my village and we spoke about the history of the mission and my youth under the Government of his nemesis, Queensland Premier Joh Bjelke-Petersen.

    My home was an Aboriginal reserve under a succession of Queensland laws commencing in 1897.

    These laws were notoriously discriminatory and the bureaucratic apparatus controlling the reserves maintained vigil over the smallest details concerning its charges.

    Superintendents held vast powers and a cold and capricious beauracracy presided over this system for too long in the 20th century.

    In June 1975, the Whitlam Government enacted the Aboriginal and Torres Strait Islanders Queensland Discrimatory Laws Act.

    The law put to purpose the power conferred upon the Commonwealth Parliament by the 1967 referendum, finally outlawing the discrimination my father and his father lived under since my grandfather was removed to the mission as a boy and to which I was subject the first 10 years of my life.

    Powers regulating residency on reserves without a permit, the power of reserve managers to enter private premises without the consent of the householder, legal representation and appeal from court decisions, the power of reserve managers to arbitrarily direct people to work, and the terms and conditions of employment, were now required to treat Aboriginal Queenslanders on the same footing as other Australians.

    We were at last free from those discriminations that humiliated and degraded our people.

    The companion to this enactment, which would form the architecture of indigenous human rights akin to the Civil Rights Act 1965 in the United States, was the Racial Discrimination Act.

    It was in Queensland under Bjelke-Petersen that its importance became clear.

    In 1976 a Wik man from Aurukun on the western Cape York Peninsula, John Koowarta, sought to purchase the Archer Bend pastoral lease from its white owner.

    The Queensland Government refused the sale. The High Court’s decision in Koowarta versus Bjelke-Petersen upheld the Racial Discrimination Act as a valid exercise of the external affairs powers of the Commonwealth.

    However, in an act of spite, the Queensland Government converted the lease into the Acher Bend National Park.

    Old man Koowarta died a broken man, the winner of a landmark High Court precedent but the victim of an appalling discrimination.

    The Racial Discrimination Act was again crucial in 1982 when a group of Murray Islanders led by Eddie Mabo claimed title under the common law to their traditional homelands in the Torres Strait.

    In 1985 Bjelke-Petersen sought to kill the Murray Islanders’ case by enacting a retrospective extinguishment of any such title.

    There was no political or media uproar against Bjelke-Petersen’s law. There was no public condemnation of the state’s manuover. There was no redress anywhere in the democratic forums or procedures of the state or the nation.

    If there were no Racial Discrimination Act that would have been the end of it. Land rights would have been dead, there would never have been a Mabo case in 1992, there would have been no Native Title Act under Prime Minister Keating in 1993.

    Without this old man the land and human rights of our people would never have seen the light of day.

    There would never have been Mabo and its importance to the history of Australia would have been lost without the Whitlam program.

    Only those who have known discrimination truly know its evil.

    Only those who have never experienced prejudice can discount the importance of the Racial Discrimination Act.

    This old man was one of those rare people who never suffered discrimination but understood the importance of protection from its malice.

    On this day we will recall the repossession of the Gurindji of Wave Hill, when the Prime Minister said, “Vincent Lingiari, I solemnly hand to you these deeds as proof in Australian law that these lands belong to the Gurindji people and I put into your hands this piece of earth itself as a sign that we restore them to you and your children forever.”

    It was this old man’s initiative with the Woodward Royal Commission that led to Prime Minister Fraser’s enactment of the Aboriginal Land Rights Northern Territory Act, legislation that would see more than half of the territory restored to its traditional owners.

    Of course recalling the Whitlam Government’s legacy has been, for the past four decades since the dismissal, a fraught and partisan business.

    Assessments of those three highly charged years and their aftermath divide between the nostalgia and fierce pride of the faithful, and the equally vociferous opinion that the Whitlam years represented the nadir of national government in Australia. Let me venture a perspective.

    The Whitlam government is the textbook case of reform trumping management.

    In less than three years an astonishing reform agenda leapt off the policy platform and into legislation and the machinery and programs of government.

    The country would change forever. The modern cosmopolitan Australia finally emerged like a technicolour butterfly from its long dormant chrysalis.

    And 38 years later we are like John Cleese, Eric Idle and Michael Palin’s Jewish insurgents ranting against the despotic rule of Rome, defiantly demanding “and what did the Romans ever do for us anyway?”

    Apart from Medibank and the Trade Practices Act, cutting tariff protections and no-fault divorce in the Family Law Act, the Australia Council, the Federal Court, the Order of Australia, federal legal aid, the Racial Discrimination Act, needs-based schools funding, the recognition of China, the abolition of conscription, the law reform commission, student financial assistance, the Heritage Commission, non-discriminatory immigration rules, community health clinics, Aboriginal land rights, paid maternity leave for public servants, lowering the minimum voting age to 18 years and fair electoral boundaries and Senate representation for the territories.

    Apart from all of this, what did this Roman ever do for us?

    And the Prime Minister with that classical Roman mien, one who would have been as naturally garbed in a toga as a safari suit, stands imperiously with twinkling eyes and that slight self-mocking smile playing around his mouth, in turn infuriating his enemies and delighting his followers.

    There is no need for nostalgia and yearning for what might have been.

    The achievements of this old man are present in the institutions we today take for granted and played no small part in the progress of modern Australia.

    There is no need to regret three years was too short. Was any more time needed? The breadth and depth of the reforms secured in that short and tumultuous period were unprecedented, and will likely never again be repeated.

    The devil-may-care attitude to management as opposed to reform is unlikely to be seen again by governments whose priorities are to retain power rather than reform.

    The Whitlam program as laid out in the 1972 election platform consisted three objectives: to promote equality, to involve the people of Australia in the decision-making processes of our land, and to liberate the talents and uplift the horizons of the Australian people.

    This program is as fresh as it was when first conceived. It scarcely could be better articulated today.

    Who would not say the vitality of our democracy is a proper mission of government and should not be renewed and invigorated.

    Who can say that liberating the talents and uplifting the horizons of Australians is not a worthy charter for national leadership?

    It remains to mention the idea of promoting equality. My chances in this nation were a result of the Whitlam program. My grandparents and parents could never have imagined the doors that opened to me which were closed to them.

    I share this consciousness with millions of my fellow Australians whose experiences speak in some way or another to the great power of distributed opportunity.

    I don’t know why someone with this old man’s upper middle class background could carry such a burning conviction that the barriers of class and race of the Australia of his upbringing and maturation should be torn down and replaced with the unapologetic principle of equality.

    I can scarcely point to any white Australian political leader of his vintage and of generations following of whom it could be said without a shadow of doubt, he harboured not a bone of racial, ethnic or gender prejudice in his body.

    This was more than urbane liberalism disguising human equivocation and private failings; it was a modernity that was so before its time as to be utterly anachronistic.

    For people like me who had no chance if left to the means of our families we could not be more indebted to this old man’s foresight and moral vision for universal opportunity.

    Only those born bereft truly know the power of opportunity. Only those accustomed to its consolations can deprecate a public life dedicated to its furtherance and renewal. This old man never wanted opportunity himself but he possessed the keenest conviction in its importance.

    For it behoves the good society through its government to ensure everyone has chance and opportunity.

    This is where the policy convictions of Prime Minister Whitlam were so germane to the uplift of many millions of Australians.

    We salute this old man for his great love and dedication to his country and to the Australian people.

    When he breathed he truly was Australia’s greatest white elder and friend without peer of the original Australians.

    Noel Pearson is an Aboriginal Australian lawyer, land rights activist and founder of the Cape York Institute. This is the full text of the speech he gave at Gough Whitlam’s memorial

     

  • John Faulkner. Tribute to Gough Whitlam

    The Honourable (Edward) Gough Whitlam, AC QC

    Senator John Faulkner

    State Memorial Service

    Sydney Town Hall

    5 November 2014

    “Dying will happen sometime.  As you know, I plan for the ages, not just for this life.”

    As those words show, Gough Whitlam always thought – and planned – on a grand scale.

    In the past fortnight Australia has reflected on what Gough meant to, and achieved for, our nation.

    His government, cut short though it was, transformed our country in ways that still endure, four decades later.

    The optimism and energy which he represented, which he embodied, were and remain emblematic of a vision of Australia as an independent, confident, outward looking, generous nation.

    He was a great Australian Prime Minister – great in every sense of the word.

    His prodigious gifts would have guaranteed success in any career he chose – but they were perhaps most uniquely suited to the occupation he made so completely his own.

    His formidable memory, pointed wit, remarkable intellect and soaring imagination made him feared at the dispatch box and inspiring on the campaign trail.   He was meticulous in his attention to detail, without losing sight of the “light on the hill” he urged our Party to set aflame once more.

    In a time when so many are so cynical about politics, let us remember that this great Australian chose politics as a cause and a lifelong passion.  Let us remember what he achieved through the practice of politics.

    The policies he advocated and later enacted looked outward to the world and forward to an Australia where all citizens had the opportunity to realise their ambitions and make good on their potential; an Australia where the government accepted responsibility for the commonwealth and the commonweal of our citizens.

    The Whitlam Government gave us:

    Medibank.  Reforms to bring fairness to secondary and tertiary education.   The first federal legislation on human rights, the environment and heritage.

    Sweeping electoral reforms.  The vigorous promotion of the arts.   Land rights.  Equal pay for women.

    An end to conscription.  The reconfiguration of our foreign policy to reflect a confident, independent Australia.

    All legacies of the Whitlam Government.

    Yes, there were mistakes.

    Gough never pretended to perfection or to sainthood – well, hardly ever!   Although, when he set off the metal detector at airport security he would blame his “aura”.

    And, when interviewing him in 2002, I insisted we discuss some of his Government’s failings, telling him that the documentary couldn’t be hagiography, his response was “Comrade, why not?”

    His achievements and his legacy are not diminished by the knowledge that he had human flaws and human failings.

    Nor are they in any way diminished by his unwavering, life-long commitment to Labor.

    He was a staunch constitutionalist, a consummate parliamentarian and a great Prime Minister.  He was all these things – and he was a Labor man.

    His policies, his programs and his instincts were profoundly Labor.

    He was a great Labor Prime Minister – and a great Labor Leader before it.
    He chose Labor as his cause despite the imperfections he understood and strove to remedy for so long, and ultimately so successfully.

    He chose Labor as a young navigator on active service defending our shores at the time of Australia’s greatest peril.

    It later gave Gough great pleasure to say that the first Whitlam Ministry (the duumvirate, as he liked to call it, just Lance Barnard and himself) was the only Federal Ministry to be comprised entirely of war veterans.

    Gough chose Labor because his faith in the transformative power of government is fundamentally a Labor faith.

    His belief in the role and the responsibility of our democratic institutions – and those who serve in them – to look forward, to strive upward, is fundamentally a Labor belief.

    As was his conviction in the power of progressive politics to build community consensus behind reform, and to enact those reforms in Government.

    Gough’s faith in Labor’s great and enduring mission was not diminished or discouraged by the Party’s flaws.

    He was neither indifferent nor resigned to the problems he saw.  His instinct and his determination was to solve those problems rather than use them as an excuse to abandon the effort to harness the power and shoulder the burden of government.

    I am reminded of a remark he made about a recent ALP National Conference that he labelled a “fiasco”. He said “it was so busy avoiding controversies that it failed to produce policies”.

    Gough did not shy away from controversy.  He took on vested interests within his party.  He set about changing a culture comfortable with defeat.

    He set about modernising, reforming and making the Australian Labor Party electable once more.

    When Gough became Deputy Leader and then Leader, the Labor Party was still struggling with the scars of the Split.  He fought in every Party forum to solve those long-standing problems.

    He was not afraid of taking on opponents in debate.  He believed in advocacy. The public saw the flashes of brilliance, the breathtaking brinkmanship, but never the many patient hours of negotiation and persuasion.

    In response to critics who decried compromise and made a fetish of ideological purity, Gough retorted:  “Certainly, the impotent are pure”.

    It may seem now that his success was inevitable, but the course he charted was filled with risks.  It took both confidence and courage.
    His irresistible attraction to the perfect bòn mót sometimes led him to antagonise those whose goodwill he needed. Beginning an address to the National Press Club with the words “Vipers, ladies and gentlemen” made his targets laugh. Calling the National Executive “the 12 witless men” did not.

    He came close to expulsion from the Party, close enough to devise with Margaret the plan that she would run for Labor preselection in the seat of Werriwa if necessary.

    Gough’s relentless commitment to victory in the Dawson by-election, ended the plan to expel him – and deprived the nation of Margaret Whitlam MP.

    The Party and policy reforms Gough achieved as Leader brought Labor into line with community expectations.

    He made the ALP electable.

    More importantly, he made the ALP worth electing.

    And in 1972, those many years of dedication culminated in a campaign that encapsulated the community consensus for change that Gough had so patiently nurtured – “It’s Time.”

    Through all of it, Margaret was always by his side – though never in his shadow.  They remained inseparable in the decades after Gough left politics.

    Despite the dismissal in 1975, and a second crushing election defeat in 1977, he did not become discouraged, or disillusioned. Gough remained indefatigable, irrepressible, and unflagging.

    In the years that followed, among many other roles and activities, he became Australia’s Ambassador to UNESCO. When asked by a journalist what qualifications he had for the appointment, he replied: “Young lady, neither you nor I have the time for that long an interview”.

    And always, Gough remained a committed and enthusiastic advocate for the causes he believed in, for Labor’s cause.

    Few leaders become their generation’s inspiration.

    Even fewer inspire the generations who follow.

    Gough Whitlam was one of those few.

    He showed us what we, at our best, can aspire to be.

    His achievements, in Opposition and in Government, in Parliament and in the Party, are undeniable proof of the power of politics wedded to principle; of the capacity of government to change our nation for the better, and forever.

    His extraordinary contribution will remain an enduring example of how dedication, determination, and courage can advance the great cause to which Gough dedicated his long and enthusiastic life; as he himself said:

    “to promote equality, to involve the people of Australia in the decision-making processes of our land, and to liberate the talents and uplift the horizons of the Australian people.”

  • Graham Freudenberg AM. Tribute to Gough Whitlam.

    The Honourable (Edward) Gough Whitlam, AC QC

    State Memorial Service

    Graham Freudenberg AM

    Sydney Town Hall

    5 November 2014

     

    This is the greatest privilege of my very privileged life.  And I thank the Whitlam Family for it.

    Gough Whitlam sets Time itself at defiance.  Can it really be 45 years ago, he stood right here to open his epic campaign in 1969? Is it really 42 years since it was time at Blacktown in 1972 – making anew and forever his own, John Curtin’s clarion call to the men and women of Australia?

    We had developed a little ritual between us.  Before a speech he would touch me on the shoulder for luck.  He didn’t forget even amid the tumult of Blacktown. “It’s been a long road comrade, but I think we are there”.  He knew how much the words and the touch would mean to me at such a moment.  You would go to the barricades for such a man.

    The Whitlam touch is on us all.  He touches us in our day to day lives, in the way we think about Australia, in the way we see the world. He touches still the millions who share his vision for a more equal Australia, a more independent, inclusive, generous and tolerant Australia.  And a nation confident of its future in our region and the world.

    And in that world context – you will forgive an old man’s pride, but the last time he performed that little gesture was in 2001, as we entered the Great Hall of the People in Beijing, the scene of his triumph thirty years before, over fear of China.

    But his great stage was the House of Representatives – stage, pulpit, arena.  For a decade, he won memorable victories in the House of Representatives.  In 1975, he fought his mightiest flight, in defence of the House of Representatives, and suffered his worst defeat, on the verge of victory.

    First and last, Gough Whitlam was the Member for Werriwa.  More than a place in outer Western Sydney. To him, modern Australia in the making – with all its growing inequalities in “schools, hospitals, cities” – his shorthand for all the social conditions for decent Australian living, including, dare I mention, sewerage in the suburbs.

    He saw that only the nation’s Parliament and the nation’s government could bring quality and equality to areas of Australian life, where Canberra had never before dared or cared.

    From Werriwa too, came his magnificent obsession with electoral equality, one vote, one value.  He believed with a passion, that this our nation of immigrants must crash through the barriers of intolerance and prejudice about birth or background, race or religion.  This was a new voice, new themes, a new agenda for Australia.

    The Whitlam agenda remains part of the Australian agenda. “Contemporary relevance, comrade” – that was his watchword. And if ever he soared too high – or too long – there was always the other member for Werriwa, Margaret, to bring him back to earth.  And Mick Young.

    “The fun is where I am, Mungo”.  The irrepressible Mungo McCallum had asked him if he missed the fun of Canberra when Bob Hawke sent him to liven up Paris.

    Gough was very serious about making us laugh.  Not least at himself, and his ego.  There was a lot of laughter in the Whitlam years.  Some tears too.  But always, energy, urgency, enthusiasm, for the high and noble calling of political service.  Drive and purpose for his Party and his country.

    He believed profoundly in the Australian Labor Party as the mainstay of Australian democracy and equality. And always, there was the sense of living Australian history.  And making it.  In his rich and mellow autumn, he worried occasionally lest he be like King Charles, remembered mainly for losing his head.

    Your tributes, your presence here today, attest his true place in the hearts of his fellow Australians.

    Paul Keating is right: “There was an Australia before Whitlam, and there was a different Australia after Whitlam”.  He was the bridge. Within the wonderful continuity of our national life, our long parliamentary democracy underpinned by strong political parties, Gough Whitlam built a bridge.

    As he put it in 1972: “Between the habits and fears of the past and the hopes and demands of the future”.  Optimism, enthusiasm, confidence – against fear, prejudice, conformity.  That is his enduring message to the men and women of Australia.  Never more than now.

  • As the Berlin wall fell, checks on capitalism crumbled.

    The Economics Editor of the Guardian, Larry Elliott, describes how capitalism is facing an increasing crisis. He says that after the fall of the Berlin wall, we have seen the dark side of the post-Cold War model. Instead of trickle-down, there has been a trickle-up. Instead of the triumph of democracy there has been the triumph of the elites. We are seeing this in so many ways – the avarice of bankers, growing inequality, executive salaries and greed. This article suggests that the Vatican may be right that markets must be underpinned by morality. For this interesting and challenging account, see the link below.  John Menadue.

    http://www.theguardian.com/business/economics-blog/2014/nov/02/post-cold-war-capitalism-moral-roots-ancient-places

  • John Menadue. ‘No eulogy is equal to such a name’

    In a celebratory Mass for Gough Whitlam, Fr Ed Campion recalled the brief inscription to Machiavelli in the Franciscan Church of Santa Croce in Florence. ‘Tanto nomini nullum par elogium, 1527’.

    Look around and we see monuments to Gough Whitlam everywhere – Medicare, needs-based education funding, recognition of China, no-fault divorce, university education, land rights, an end to White Australia, and …….A eulogy may be superfluous

  • Richard Woolcott. Whitlam on the world stage: Courage, vision and wit

    Gough Whitlam had political courage and a vision for Australia. A forward-looking, pragmatic realist, he sought to reshape Australia’s approach to the countries of North and Southeast Asia, the region in which we are forever situated.

    It was stimulating to be a senior official in the then Department of Foreign Affairs when Gough became prime minister on 2 December 1972 and the winds of change swept so forcefully through this country. Three days after his election, Whitlam said:

    …the change of Government provides a new opportunity for us to reassess a wide range of Australian foreign policies and attitudes…the general direction of my thinking is towards a more independent Australian stance in international affairs, an Australia which will be less militarily orientated and not open to suggestions of racism; an Australia which will enjoy a growing standing as a distinctive, tolerant, co-operative and well regarded nation not only in the Asia Pacific region but in the world at large.

    Whitlam certainly did ‘reassess a wide range of Australian foreign policies and attitudes’. It was Whitlam who pushed through Australia’s transfer of recognition from Taiwan to China and the need to substantially develop relations with Indonesia, our large and growing neighbour of increasing importance.

    Whitlam redirected Australian foreign policy away from its established World War II roots based largely on the ‘anglosphere’. He also acknowledged that the US and its allies, including Australia, had virtually lost the war against North Vietnam. He completed the withdrawal of Australian forces from the Vietnam War and abolished conscription, which was feeding young Australian troops into a losing conflict.

    On East Timor, Whitlam’s critics maintain he gave ‘the green light’ to Suharto for the Indonesian invasion in December 1975. Between 1973 and 1975 I was present at all Whitlam’s meetings with Suharto (in Jakarta, Wonosobo, the Dieng Plateau, and in Townsville and Magnetic Island in Queensland). Gough told Suharto he believed the best outcome of the decolonisation of this neglected Portuguese colony would be for it to become part of Indonesia. But he maintained this would need an educational process of some years in East Timor, Portugal and Indonesia, followed by an act of self-determination.

    Indonesia knew at the highest levels that Australia would not condone the use of force. Indonesia invaded East Timor on 7 December, almost a month after Gough had ceased to be the prime minister.

    Gough’s active and productive involvement in foreign affairs was not without error. I think it was a mistake to confirm that Australia recognised Latvia, Lithuania and Estonia as part of the Soviet Union. And while Gough made some good diplomatic appointments — for example Stephen Fitzgerald to Beijing and Mick Shann to Tokyo — he also made the bad political appointment of Senator Vince Gair to Ireland.

    Gough has been criticised for damaging relations with the US. I accompanied Gough on his visit to Washington in 1973. President Nixon and Dr Kissinger were annoyed by the Australian Government’s changing attitude to Vietnam and Cambodia. In my view, their criticism was fed largely by highly critical remarks made by other ministers such as Jim Cairns, Clive Cameron and Tom Uren.

    Gough was determined to pursue an independent Australian foreign policy within the framework of the alliance with the US. He believed the alliance did not equate to compliance, and that understanding China’s policies and role in the region did not equate to supporting it where we had disagreements.

    Gough was attuned to the end of Western colonialism and wanted to avoid Australia being seen as the last European colonial power in the region. It was for this reason that he wanted to hasten the movement of Papua New Guinea towards independence, which he did in close co-operation with then Chief Minister Michael Somare.

    His strong support of an Australian republic was reinforced naturally by his dismissal by the Governor General. But he also saw the need for an Australian republic in the wider context of Australia’s identity in the world. He saw the final public abandonment of the White Australia policy, which he acknowledged was started by Prime Minister Harold Holt in the late ’60s, in the same light.

    I had many conversations with Gough Whitlam over a period of 45 years. I recall clearly that he said to me in 1973, ‘I have always had a long-standing and deep belief that we must have good relationships with China, Indonesia and Japan as well as with the United States and Great Britain.’

    It was a pleasure to travel with him. While he expected well informed, culturally sensitive and carefully evaluated advice from officials, he was receptive to other views. I observed during these trips that many leaders were impressed by Gough’s knowledge of their countries, histories and cultures, which he was often able to relate to Australia. This was particularly evident in his eight hours of discussion with Chinese Premier Zhou Enlai. In Manila the head of the Catholic church, Cardinal Sin, was surprised when Gough detected a mistake in a Latin inscription in the Manila Cathedral. After checking, the Cardinal had it changed.

    Gough had an excellent and at times self deprecating sense of humour. There are many stories I could quote, but two will have to suffice.

    On an official visit to Papua New Guinea we attended a colourful Sing-Sing in Goroka. A local who was very short in stature and wearing little more than bird of paradise feathers on his head and red and white football socks on his feet was standing beside me looking at Gough and me. I realised he wanted some explanation. I had acquired some very rusty Pidgin, and when he next pointed at Gough, I said to the Papua New Guinean, ‘Him long fella number one belong Australia.’

    An Australian official turned to me. ‘Do you realise you have just referred to the Prime Minister as the biggest prick in the country?’

    Overhearing this, Gough said to me, ‘Thank you comrade. Not all my attributes are known to public servants.’

    Another story I recall was when I was travelling with Gough on a somewhat criticised visit he made to 15 countries in four weeks. In The Netherlands, as we waited in an outer office to call on the prime minister, Gough browsed through the London Times. He looked up and said, ‘Have you seen this comrade? Guinea-Bissau, Bangladesh and Grenada have just been admitted to the United Nations. They are creating these countries more quickly than I can visit them.’

    Gough was a towering figure in the pantheon of regional leaders. I am proud to have served him as a foreign policy adviser and from March 1975 as ambassador to Indonesia.

    This article was first published by the Lowy Institute on 28 October 2014.  Richard Woolcott was Secretary of the Department of Foreign Affairs and Trade, and amongst other appointments, Australian Ambassador to Indonesia.

  • Hugh Cortazzi. Does right-wing extremism threaten Japan’s democracy?

    In my blog of 29 May 2014 ‘Australia-Japan – friends should be frank’, I referred to the tipping point in Japanese domestic politics with the growing ultra nationalism being promoted by Prime Minister Abe. Sir Hugh Cortazzi, who served as Britain’s ambassador to Japan from 1980 to 1984 has expressed similar concerns about trends in Japan. In an opinion piece in the Japan Times on 3 November, he asked the question ‘Does right-wing extremism threaten Japan’s democracy?’  The link to this article is below. John Menadue.

    http://www.japantimes.co.jp/opinion/2014/10/31/commentary/japan-commentary/does-right-wing-extremism-threaten-japans-democracy/#.VFarwvmsU5L

  • Michael Keating. Rebalancing government in Australia. Part II

    Taxation Reform and Vertical Fiscal Imbalance

    Another third and final reason for national government pre-eminence over the States in our federal system is of course the national government’s domination of taxation, widely described as ‘vertical fiscal imbalance’ or VFI. Paul Keating called VFI the glue that holds our nation together, but for the States and the champions of States’ Rights, VFI is regularly trotted out as the root cause of centralism.

    In the past the national government has passed payroll tax back to the States, and more recently the States now receive all the proceeds of the GST. It would, however, require very big further changes to taxation arrangements for the States ever to achieve full financial self-sufficiency.  While broadening the GST and/or increasing the rate would offer material assistance to the States, the revenue from the GST would need to increase by around 90 per cent in order to replace completely the revenue that the States presently receive from the Australian government though various specific purpose payments. Clearly such a 90 per cent increase in the GST is most unlikely. Indeed the scale of the change and its implications for the balance between indirect taxation and income taxes would have major implications for equity.

    Consequently, in order for the States to become completely financially independent they would need to raise a substantial amount in their own names by way of the income tax. In principle this might be possible if the States and the Australian Government were able to agree an arrangement for the States to share in the proceeds of the national income tax. But do the States want to do this and would the Australian Government agree?

    In fact in the past the Fraser Government offered the States the chance to levy a surcharge on top of the Commonwealth income tax, but none of them took up the opportunity. Apparently the States preferred to continue the arrangement whereby the Australian Government took the blame for the level of taxation, while they spent the proceeds, and were then able to cry poor and blame the Commonwealth whenever their service provision was considered deficient.

    Equally for the Australian Government to exercise its responsibilities for national economic management and performance it would need to control the share of the income tax proceeds that the States received. This would need to be a fixed share, and not allowed to vary from year to year according to the preferences of the States; otherwise such variations could play havoc with the Australian Government’s macro-economic policy. But in that case it is questionable how much independence the States would really gain. Indeed the stage could then be set for a return to the traditional argy-bargy about how much general purpose funding the Commonwealth should make available. While at the same time the Australian Government would have lost any financial influence over the national objectives that specific purpose programs are presently meant to achieve.

    Conclusion

    While there is a case for broadening the GST and increasing the rate, with the proceeds to flow to the States, this in itself is unlikely to change significantly the nature of our federal-state financial relations. Instead substantial VFI will most likely remain, in which case we cannot really expect much change in the incentives and consequently the behaviour of either the Australian Government or the States.

    Furthermore, the biggest problem facing all levels of Australian governments in recent years has not been so much the balance of revenue between the Australian Government and the States, but rather finding sufficient revenue to fund the services that Australians are demanding without recourse to continued borrowing. Thus in the last full year of the previous Labor Government (2012-13) the Australian general government sector payments represented 24.1 per cent of GDP; in fact a bit less than their long term average over the previous twelve years since 2000-01 of 24.5 per cent. While by comparison government revenue represented only 23.1 per cent of GDP in 2012-13 – quite a bit less than the average of 24.3 per cent over the previous twelve years. So it is reasonable to conclude that we have a revenue problem rather than an expenditure problem right now. Furthermore, this need for additional revenue may well increase further over the next decade or more because of the ageing of the population and increasing expectations such as have led to the demands for additional funding for the National Disability Insurance Scheme.

    The reality is that tax reform inevitably uses up scarce political capital. In these circumstances the priority must be to restore the Australian Government’s access to revenue; for example by reducing and even removing many of the expensive tax concessions and plugging present loopholes. Restoring the integrity of the tax system in this way is much more important than a futile pursuit of a non-existent ‘big-bang’ solution to improve the operation of our federal system. Such an approach is almost certainly impractical and could never gain the necessary consensus. Instead incremental progress is much more likely and in practical terms probably the best way forward to an improved federal system for Australia.  This incremental approach will need to be based on a continuation of case-by-case discussions for the various programs and regulatory areas leading to the rationalisation of the respective roles and responsibilities of each level of government.

    Although this approach to reform sometimes seems slow and tedious, past experience shows that it can achieve results. And the pace of reform can be speeded up by a Prime Minister who is prepared to make reform of the federation a priority and provide the necessary leadership, as was demonstrated by the cooperation achieved at the time of the Keating Government.

    Finally we need to remember that, as Abbott himself concedes ‘The federation we have – with all its flaws – has spawned a vibrant democracy, a strong economy and a cohesive society that millions of migrants have chosen to join’. Not only is there no real possibility of radical change in our federal system, neither is there any need for it.

     

  • Michael Keating. Rebalancing government in Australia. Part I.

    The Future of Federalism

    Tony Abbott recently announced that he wants ‘to create a more rational system of government for the nation that we have undoubtedly become’. As Abbott describes it, achievement of this more rational system is dependent on developing a consensus based on ‘a readiness to compromise and mutual acceptance of goodwill’.

    Understandably the initial reaction of many people was to question whether these lofty (although familiar) aspirations had really been embraced by the most negative and populist politician in living memory. But there is no doubting Abbott’s chutzpah, and perhaps the real regret is that he does not seek to bring a similar rational approach to more significant issues, such as climate change or to the many questions still to be answered regarding our re-engagement in Iraq.

    Nevertheless, we should take Abbott at his word and consider what are the options for a more rational federal system for Australia, and what difference it might make. Broadly there are two aspects to possible reforms:

    1. Clarifying and rationalising the respective roles and responsibilities of each level of government, and
    2. Resolving the mismatch between what each level of government is supposed to deliver and what they can actually afford to pay (commonly described as vertical fiscal imbalance or VFI)

    Often both these aspects of reform are linked, but it would be possible to make progress on one without changing the other – indeed the Keating Government, which established the Council of Australian Governments (COAG), made significant progress on reforms affecting roles and responsibilities, while ruling out doing anything about VFI. So I will deal with these two aspects separately, starting with roles and responsibilities in this comment, and then with taxation in a subsequent comment.

    Rationalising Roles and Responsibilities

    The arguments for ‘restoring the State’s sovereignty’ based on clearly defined separate roles and responsibilities for each level of government are that:

    • Adoption of the subsidiarity principle to maximise devolution will improve democratic accountability by bringing government closer to the people with the federal government only performing those tasks that cannot be performed more effectively at an intermediate or more local level
    • In addition democratic accountability will be further improved as this separation will eliminate the “blame game’ and the opportunities for cost shifting between levels of government
    • There will be an improvement in efficiency because the extent of overlap and duplication between different levels of government would be greatly reduced.[1]

    On the other hand, despite the intellectual attraction of these arguments in favour of separate roles and responsibilities for each sovereign government, realistically reform of our federal system also needs to consider just why our Federation has in fact evolved in favour of greater national involvement in regulatory functions and the provision of services that were originally the sole responsibilities of the States.

    In my view two key reasons for this increasing pre-eminence of the national government are first, federation was always intended by the States to lead to the creation of a national market; indeed that is why one of the first steps was to remove tariffs on interstate trade.  But now that we have a national market, and furthermore are facing global competition, businesses want common standards and licensing across a wide variety of fields; for example, everything from rail gauges, regulation of heavy road transport, company law and national competition, to food standards and the recognition of qualifications.

    Second, the responsibilities of government have grown. At the time of Federation pensions did not exist, but the Australian government now has constitutional responsibility for income support, including subsidising critical needs such as medical services, pharmaceuticals, and rental housing. Equally since World War II the Australian government has been expected to manage the macro-economy to ensure full employment and reasonable price stability.  Allied to this the Australian government also has responsibility for population policy, especially through migration, and for the growth in productivity and workforce participation which together determine the overall growth of the economy.

    These various national functions and responsibilities are, however, not self contained. Today the various functions of government are heavily inter-related in a way that was much less true one hundred years ago, when we were all much less closely connected. For example, productivity is heavily dependent on the skills of the workforce, but these skills are in turn dependent on the quality of the education and training systems of the States. It is simply not possible for the Australian Government to meet its responsibilities while being unconcerned about the effectiveness of various State government services.

    In addition, people by and large think of themselves primarily as Australians. Indeed ever since the 1920s when the Grants Commission was first established, there has been an Australian consensus that the access to basic public services should potentially be the same wherever you lived, and that you should not be disadvantaged if you holiday or move more permanently between States.

    In these circumstances the direction of reform of our federal system over the last twenty years or so has been to try and take account of both the importance of devolution in favour of greater democratic accountability, while ensuring that national responsibilities for the welfare of the Australian people and the performance of the national economy can also be met.

    In practice this has meant that in these twenty odd years there have been only one or two examples of agreement to clean-lines separation of government responsibilities. For example, the Keating Government agreed to withdraw from all forms of road funding except for designated ‘national roads’ where the national government was the sole source of funding. This should have ended the ‘blame game’ because for each and every road a designated government was solely responsible. Nevertheless, some States continued to lobby for a Commonwealth take-over of some of their major roads, and eventually this clear division of responsibilities broke down when the Howard Government re-entered road funding generally, presumably in response to political pressure, particularly from the National Party.

    More generally this approach to reform, which attempts to balance devolution with maintaining the national interest, has led to a shift in favour of national regulation of markets, with the latest major change being the enormous increase in the scope of Commonwealth regulation of workplace relations instituted by the Howard Government using the corporations power. In partial contrast, in the case of the provision of public services, there has been a much greater acceptance of shared responsibilities, but with each level of government having a separate role. At least in principle, this model assumes that Commonwealth will focus on the achievement of outputs and outcomes that have been agreed with the States, but the States should then have considerable discretion as to how those outputs and outcomes will be achieved, having regard to their own local circumstances.

    To my mind this is the sensible way for reform of our federation to proceed. Nevertheless it is not without its difficulties:

    • Progress is inevitably slow as each service needs to be considered on its particular merits involving a case-by-case process
    • There is an unresolved issue as to what sanctions if any might be appropriate where a State fails to meet the agreed outcome/output targets; and especially where this reflects under-funding by the State.

    In addition, it needs to be remembered that funding the provision of services through the States is not necessarily the best way for government to bring service delivery closer to the clients. In a number of instances the Australian Government is now directly funding non-government organisations to provide services and also private providers who can be closer to their customers than State bureaucracies. For example, the Australian Government has directly funded autonomous universities for many years, although almost all universities were originally established by the States; the providers of labour market and training programs, including TAFE, have a history of being directly funded by the Australian Government; and the proposed model for the National Disability Insurance Scheme will involve direct Commonwealth funding of providers.

    [1] This last alleged benefit from a clearer separation of Commonwealth-State powers and functions is often exaggerated. Even if we assume that the Australian public servants involved in the administration of programs involving payments to the States represented complete duplication and had zero productivity, sacking all of these people would reduce total Australian Government payments by around 1 per cent, representing a saving equivalent to only 0.3 per cent of GDP.

    Part II will be posted tomorrow.  ‘Taxation reform and vertical fiscal imbalance’

  • Eric Walsh. Gough Whitlam – Australia’s greatest reforming Prime Minister.

    Australian media had never seen anything like it. Suddenly print, radio, television and social media were overwhelmed – blanket coverage of a single event.

    Edward Gough Whitlam, Australia’s 21st and greatest reforming Prime Minister, was dead.

    Newspapers were turned over to almost complete coverage ,not only of the fact that the former PM had died, but with coverage of the extraordinary series of changes he made to life and living in Australia in a short three years in office more than 40 years ago.

    Throughout Australia newspapers (including News Limited) carried full facial photographs and wrap- arounds of up to 8 pages, outlining the major events of the Whitlam Era. Radio talkback shows were flooded with Whitlam tributes, anecdotes and testimonies. Greek, Chinese and other ethnic newspapers         who might occasionally give front page treatment to a political event but rarely to a personality, featured the late reformer all across their covers.

    Aboriginal leaders lauded Whitlam as “a brother” who had made great steps in advancing land rights and other interests of Australia’s native people. Within two days newspapers worldwide had made more than one and a quarter million references to Whitlam and what he had done for Australia.

    Television stations began screening hours of features on the Whitlam era, listing the dozens of major changes initiated by Whitlam and which were still part of Australian life.  Social media were similarly overwhelmed.  At one stage one media site registered more than 410 accolades to Whitlam in just over an hour.

    These came from professional people acknowledging the importance of Whitlam’s free universities in building their careers, from people who themselves or their families had come through health crises thanks to Medibank which was won against strong political opposition only after the holding of a Double Dissolution election. Others, from formerly unsewered sections of our major cities, expressed gratitude for the new comfort in which they now lived thanks to Whitlam’s initiatives. And there were dozens from men, now of mature years, who in their youth had been saved from possibly perilous tours in the Vietnam War by the Whitlam intervention. And there were many others.

    Nowhere, it seemed, was there anyone who had not had some aspect of their lives affected by changes made by Gough Whitlam 40 years ago and which have been left untouched by succeeding Governments.

    No other major event – the outbreak of World War II, the unexpected (in Australia) death of King George VI, the passing of Churchill or Menzies has generated nearly the outpourings that followed the death of Gough Whitlam.

    But somehow this impressive cross section of the Australian community, including media masters, had somehow got it wrong. In one quarter we were told Gough was not great; the endless string of enduring changes for which he was responsible, it seems, had just routinely happened.

    The political battles which Gough was forced to fight over recalcitrant political opponents to win these changes it seemed had never occurred.

    For this unusual view we have three principal authorities – all unsurprisingly from the Murdoch Press. Miranda Devine who is considered to be a mere convenience in her predictable religio-political views by thinking conservatives but is actually taken seriously by some others;  Andrew Bolt, who having failed to distinguish himself in mainstream journalism, has won some notice with his nutty extremism; and Greg Sheridan who was immortalised in an online publication some years ago in a hilarious two page listing of his erroneous predictions and fatuous assessments and, more recently, reinforced this criticism removing any doubt about his worth as a commentator with the novel assertion that George W Bush would come to be seen as one of the great US Presidents.

    For the millions who somehow “got it wrong” the list of Whitlam’s accomplishments is awesome – almost endless. It is as impressive as it is long.

    Organisations like the Federal Court, the Foreign Investment Review Board, The Trade Practices Commission, The Administrative Appeals Tribunal, every day institutions in Australia today, came from Whitlam initiatives.

    The Honours system, which is now exclusively Australian, came when Whitlam discarded the borrowed British system of Knights and Dames. He started the move to scrap “God Save The Queen” and adopt an Australian anthem of our own. He put “Australian” rather than “British” on our Passports for the first time.

    Whitlam started the process of granting Independence to Papua New Guinea, finally abolished the White Australia Policy, he introduced legislation for equal pay for women and introduced benefits for single mothers and homeless people. He created the Australia Film Commission, introduced FM radio and colour television, removed the necessity for a paid licence to watch television and, in his first year, doubled the amount of Government money directed to the Arts in Australia.

    He created the Australian Law Reform Commission, the Consumer Affairs Commission, established the National Film and Television School in Sydney and unveiled the plaque launching the construction of Australia’s National Gallery.

    At the Government level he amalgamated five Defence oriented departments – Army, Navy, Air Force, Supply and Defence into a single Defence entity. He split Australia’s largest, but most cumbersome department, the Postmaster Generals, into two efficient and highly profitable sections, Telecom (now Telstra) and Australia Post. The list goes on.

    For the first time he went  beyond the provision of Science blocks to Catholic and other Non-Government Schools providing, for the first time, assistance to all schools on a needs basis (something that may have appealed to Miranda Devine), he gave votes to 18 year olds whom the previous Government had unhesitatingly drafted for war in Vietnam while denying them any say in the governance of their country. He legislated for no fault divorce and for the first time introduced parental leave for Commonwealth employees.

    The handful of detractors who would have us believe that these reforms had somehow “just happened” ignore the fact that almost, without exception, they were bitterly opposed in both Houses of Federal Parliament by the Liberal-Country Party Coalition of the day. From the recognition of China to the exit from Vietnam and the creation of our enduring health system, Medicare, opponents fought to frustrate the Whitlam Government. These critics also ignore the fact that there had been 23 years – a generation – of non Labor Government and four non Labor Prime Ministers leading up to 1972 where there had been no action on these fronts or, indeed, any evidence that they had even been contemplated.

    And while these remain among the hallmarks of Whitlam’s accomplishments leaders like Howard who in 11½ years left us two unhappy wars and a GST, Turnbull and Abbot continue to assert that the Whitlam Government was somehow totally inadequate.

    One reminds the reader that in more than 20 years and three non Labor Prime Ministers since, not a single major Whitlam reform has been reversed – surely a matter of some disappointment to those who assess the Whitlam reign as a failure.

    Eric Walsh was a long-time member of the Canberra Press Gallery, and Press Secretary to Prime Minister Whitlam.

     

     

  • Kelvin Canavan.   Gough Whitlam: a tribute to an education visionary.  

    I first met E. G. Whitlam when he spoke at a series of ‘State Aid’ rallies in Sydney prior to the 1969 federal election.  He was in full voice before a Catholic community that had packed halls and cinemas on eight Sunday evenings, demanding financial support for their schools from federal and state governments.

    The final gathering was in the Sydney Town Hall.  Around 5,000 people crammed into the upper and lower levels, and on the George Street steps.  The proceedings were broadcast live on radio station 2SM.

    His message was always the same.  Australia must increase spending on education and both government and Catholic schools should be funded according to need. Gough had a very clear view that the Commonwealth must make “a comprehensive and continuous financial commitment to schools, as it has to universities.”

    A few years ago, I located a sound recording of the Town Hall speeches.  I sent a copy to Gough who phoned me the next day with his reminiscences of the campaign by Catholics for financial assistance for their schools.

    Over the past 40 years, I have had many discussions with Gough.  He spoke about the struggle in the early 1960s to change the attitude of the ALP to state aid.  He was convinced that Labor was unelectable until the divisive issue of school funding was resolved.  He also believed that funding all schools was the right thing to do.  It was a justice issue, not a religious one.

    He took considerable pride in the role he played in ensuring that all students had access to well-funded schools.

    On a number of occasions, he came back to the 1969 rallies.  He lamented the passing of public meetings that provided a stage for a gifted orator.  “Television is a poor substitute for the Town Hall,” he said.

    Gough played a key role in changing the attitude of the electorate to the funding of Catholic schools. He gave legitimacy to the claim by Catholic parents for some government funding for their schools.

    Much of the opposition to the funding of Catholic schools by governments, and the sectarianism that was very obvious in the 1950s and early 1960s, had largely disappeared by the early 1970s. Whitlam played a key role in this change of attitude across the electorate.

    When elected in December 1972, Gough established the Interim Committee of the Australian Schools Commission.  This committee reported back in May 1973 (Karmel Report) and funding for all schools was increased immediately.

    In Sydney Catholic schools, the benefits of the long-awaited funding increases were felt immediately.  Additional teachers were employed and class sizes reduced.  Teacher salaries came in line with colleagues in government schools.  Programs to meet specific needs of students were introduced and teachers had access to a range of Commonwealth-funded professional development courses.  The survival fears of the late 1960s were quickly replaced by a new optimism, and the decline in Catholic school enrolments was soon arrested with the opening of new schools in the growth areas.

    While the Whitlam government lasted just three years, successive governments have continued to fund Catholic schools along the same trajectory, and the Commonwealth is now a major player in school education. Today, Catholic schools in NSW receive nearly 80 per cent of their annual income from federal and state governments or about $8,000 per student.  When Whitlam was elected in 1972, the comparable figure was about $122.

    By reforming the way that governments funded schools, Gough Whitlam changed forever – and for the better – the educational landscape in Australia.

    Br Kelvin Canavan, fms

    Br Kelvin Canavan has been a leader in Catholic education since he was appointed Inspector of Schools in the Catholic Education Office Sydney in 1968. He was Executive Director of Schools from 1987 to 2009 and was appointed Executive Director Emeritus: Catholic Schools, Archdiocese of Sydney in 2009.

     

  • Annabelle Lukin. When governments go to war, the Fourth Estate goes AWOL.

    A year after the 2003 invasion of Iraq, the University of California, Berkeley, conducted a postmortem of the media coverage of the so-called “Iraq war”. The conference included academics, journalists, UN weapons inspectors and diplomats.

    UC Berkeley also invited Lieutenant Colonel Rick Long, whose job it had been to prepare journalists to be embedded with American forces as they rolled into Iraq. The invasion would soon be described as “the greatest strategic disaster in US history”, by no less than retired Lieutenant General William Odom, a former senior military and intelligence official in the Carter and Reagan administrations.

    But, as Long told the gathering, the strategy for managing the media had been beautifully executed:

    Frankly, our job is to win the war. Part of that is information warfare. So we are going to attempt to dominate the information environment. Overall, we were very happy with the outcome.

    When we needed them most, the Fourth Estate rolled over and let the military establishments of the belligerent countries tickle their tummies.

    By “we”, I mean the thousands upon thousands of dead Iraqis, the millions of Iraqis made homeless, the dead and permanently disabled servicemen and women and the constituents of the belligerent countries who saw trillions of their hard-earned tax dollars flushed down the sewer of the military industrial complex.

    Democracy depends on informed and engaged citizens

    When Dwight Eisenhower coined the term “military industrial complex”, the US president and former general prescribed only one antidote to the potential misuse of its power, an “alert and knowledgeable citizenry”. But Eisenhower’s alert and knowledgeable citizenry requires a critical and independent media.

    Sadly, it is not that hard to take legions of journalists along on a military adventure. It helps that media moguls get a nice windfall when America is “at war”. Murdoch used his used his newspapers – he owned 175 at the time – to support the 2003 Bush-Blair-Howard Iraq invasion.

    But the coverage by papers like the New York Times and the Washington Post was also so poor that both apologised to their readers for the gullible fashion in which they bought into the official narrative.

    The narrative of war

    Ideologies around “war” run deep, so deep that when a country is “at war” – or “a mission”, as prime minister Tony Abbott prefers to call the current exercise against Islamic State – its media get caught up in the “rally around the flag” effect.

    I say “war”, in scare quotes, because what made the last “Iraq war” a “war” is not self-evident. The observable phenomena of “war” – the violation of sovereignty, the bombardment of cities, towns and remote outposts, the rolling tanks and marching armies – look exactly like a “crime of aggression”.

    One is the stuff of honour and sacrifice, the other, according to the 1946 Nuremberg judgment, is:

    … the supreme international crime, differing only from other war crimes in that it contains within itself the accumulated evil of the whole.

    Media mouthpieces

    For the military to “dominate the information environment” they have to naturalise their version of reality. They need us to believe their acts of war are warranted. They need journalists to use their words – their words for “the enemy”, their words for what makes this enemy especially “evil”, and their words for what they are doing.

    They need us to believe that their killings and maimings, their destruction of property and infrastructure, their creation of new refugee camps, are legitimate because this is part of a striving towards some greater good.

    They need the media to echo and reiterate the aims and goals of “the mission”, to report uncritically announcements about “the campaign” and to fill news stories with ongoing updates on “operations”.

    And they need the media not to mention whose pecuniary interests are being served, never to seriously consider whether the military actions are legal, and to avoid historical facts, context or comparisons which could provide an alternative view of what is going on, and what it might lead to.

    Once the official version gets momentum, it doesn’t matter if things go wrong. If some journalists report on “collateral damage”, or disquiet about “strategies” or “tactics”, this won’t shake the firm foundations on which the dominant narrative rests.

    The ABC’s record on Iraq

    My research into the ABC coverage of the initial invasion of Iraq in 2003 shows how this same old script was allowed to run its course.

    I examined the ABC’s nightly news bulletin and its flagship current affairs program during the initial period of the Coalition invasion of Iraq (March 20 to April 2, 2003), when the “Iraq war” dominated the news. The ABC put five correspondents in Washington, but had none in Baghdad and none at the UN in New York. In this period, not one news item on the ABC was solely devoted to covering Iraqi civilian deaths – but there were four separate stories on the killing of a cameraman working for the ABC.

    The ABC’s embedded reporter dramatised the experience of one troop of marines, with vignettes of individual marines and banal recounts of their reactions to daily events. By levelling his vision squarely on one small group of American soldiers, his reports lacked the wider context of the unfolding invasion.

    He reported, wrongly, that Iraq had fired scud missiles. If his source was the Australian Defence Force, he missed the correction they issued the following day.

    From the Coalition media centre in Qatar, the ABC’s correspondent told viewers that Australia’s mission had “a code name all of its own” and that Australia would have a “frontline role”. He recounted the comings and goings of HMAS Anzac and the FA-18 Hornets, and gave details of events and places so far away from his personal gaze that he could have been in Timbuktu. He reported that the bombing of 1000 Iraqi soldiers was a case of the Coalition “heading off fighting”.

    The ABC duly regurgitated Australian Defence Force briefings. Three days into “the war”, the ABC news anchor, in a tone suitable for announcing a world cup victory, reported that Australian forces had “engaged the enemy”.

    The ABC used Defence Department footage of Aussie soldiers boarding a civilian Iraqi boat with a cargo of dates. They did not acknowledge the provenance of the footage, or that it had nothing to do with the content of the story. Instead, they reported the view of Defence Force Chief Peter Cosgrove that our diggers had just prevented “mayhem in the Gulf”.

    Australian forces were “fighting on the frontline”. The “elite armed forces of Australia” were “intercepting Iraqi ballistic missile sites (sic)”. Our navy divers, ABC viewers were told, were doing the hard yards to clear a port for the delivery of Australian humanitarian aid. In fact, the aid was a boatload of stranded AWB wheat that the government had stepped in and taken off AWB’s hands.

    The invasion of Iraq was reported by the ABC as Coalition troops “crossing the Kuwaiti border”.

    We got the “rules of engagement” story – the one that trumpets the ADF pilot for aborting a “mission” for fear of killing civilians. Here, it is being recycled for Iraq War mark III, so eerily familiar that plagiarism software would detect the similarities.

    On the 7.30 Report, Kerry O’Brien interviewed a panel of Australia’s “best military minds”. In my study of the questions O’Brien put to his panel, I could not avoid the conclusion that the 7.30 Report was, in this period, a megaphone for the official narrative. And in this way, it helped legitimise the 2003 invasion of Iraq.

    These military experts made wild predictions: Saddam was dead, the “war” would soon be over, the Coalition would be able to take charge of Baghdad because their tanks had “a very good frontal arc”. They had free rein to roll out their pseudo-scientific military twaddle about the campaign’s “centre of gravity”, “the modern battlefield” and the war’s “psychological phase”. These “experts” showed not even a glimmer of understanding what was to come.

    The ABC journalists who strayed from the script – Linda Mottram and John Shovelan – endured official complaints by then-communications minister Richard Alston. Their words were raked over by a bevy of review panels.

    Outside the chorus line

    Of all the gigs that journalists do, reporting on “war” is the toughest. Not because of the dangers – though these must not to be underestimated. But when reporting “war”, journalists face off against the world’s most powerful vested interests and compete with society’s deepest cultural mythologies.

    At its best, the Fourth Estate uncovered the My Lai massacre, the Abu Ghraib scandaland the incestuous relations in the Bush era of retired military officers, the US Defence Department and the “defence” industry.

    In this incarnation, the Fourth Estate frightened even Napoleon. In his words:

    Four hostile newspapers are more to be feared than a thousand bayonets.

    But the military’s “reality” is powerful, insidious and covert. It is seductive.

    To be truly independent, you can’t just criticise it, you have to stand right outside it. You have to find your own words, and you to have know some history. Then your language will sound “ideological” – like Fisk or Pilger – because you’ll no longer be humming the military tune.

    Annabelle Lukin is the Senior Lecturer, Linguistics at Macquarie University.

    This article first appeared in ‘The Conversation’ on 28 October 2014.

  • Ian Verrender. Think Whitlam ruined our economy? Think again.

    There has been much comment about Gough Whitlam’s performance as an economic manager. Ian Verrender, the Economics Editor at the ABC, presents an alternative view.  See link below.  John Menadue

    http://www.abc.net.au/news/2014-10-27/verrender-think-whitlam-ruined-our-economy-think-again/5842866

  • Adam Kamradt-Scott. Mining companies must dig deep in the fight against Ebola.

    The current outbreak of Ebola virus in West Africa shows no signs of halting. More than4,500 people have died and many thousands more are infected. Despite the creation of a new United Nations mission to tackle Ebola and commitments of thousands of western military personnel to help combat the disease, the virus is still “winning the race”.

    In September, UN Secretary-General Ban Ki-moon called on the international community to donate US$1 billion to help fight Ebola. Yet one month later, despite dire predictions that we could see 10,000 cases a week by December and 1.4 million cases by January 2015, the UN has received less than 40% of the funds needed.

    While the main focus is on what governments are or are not doing, the role the corporate sector can play in the current crisis has received very little attention.

    Is the mining sector doing enough to fight Ebola?

    With six of the world’s ten fastest growing economies in Africa and rich mineral resources that include major iron ore deposits, the region has attracted considerable foreign investment over the past decade from some of the world’s largest resources companies.

    Yet while such companies continue to promote their corporate social responsibility credentials, the response to the current Ebola crisis has been utterly inadequate.

    For example, according to the UN Financial Tracking Service, Rio Tinto, which operates two mines in Guinea and boasts that it has worked in Guinea for more than 50 years, has donated just US$100,000 to the UN Ebola Virus Outbreak – West Africa Appeal. Guinea remains one of three countries in the region most severely affected by Ebola.

    In a statement obtained for this article, a Rio Tinto spokesman said the company had donated GNF$1.5 billion (US$220,000) to date to health organisations, including donating 10,000 prevention kits containing soap and chlorine for hand-washing, constructing latrines and conducting public awareness campaigns in the Guinean “sous-prefectures” of Boola, Beyla and Kouankan.

    Another Australian resources company, BHP Billiton, which has mining operations in Guinea and Liberia, has donated a total of US$400,000.

    The London Mining Company, which owns an iron ore mine in Sierra Leone that generated US$299 million in revenue in 2013, has claimed to be assisting with the construction of a 130-bed Ebola treatment facility. This assistance, though, equates to the loan of a surveyor and fuel to help clear the land – the actual construction of the facility will be “at cost” and operated by the United States and Irish governments.

    Beyond this, in terms of financial contributions, the London Mining Company joined a consortium of businesses that collectively donated US$279,643, but independently the company has donated just US$122,100 to the UN Ebola Appeal.

    Yet even these extremely modest contributions compare favourably to some Canadian-based firms such as Aureus Mining Inc, which has offered equipment (on loan) but has donated just US$30,000; while IMAGOLD has donated a mere US$35,000.

    For their part, mining companies have stressed their efforts to protect employees and contractors, citing the initiation of public education campaigns and testing regimes underway at various operations.

    However, the media focus has invariably been on how the Ebola crisis is affecting business, rather than asking what larger role these companies – many of which stress their ties to local communities – may make.

    It seems clear that many of these companies see it primarily as a government role and their own as using influence to lobby. Aureus chief executive David Reading was one a number of senior resource company executives who co-signed a letter calling for a stronger global response to the crisis.

    What about the rest of the corporate sector?

    This contrasts to the efforts of other corporate donors. By any measure, the leading private sector contributor to the Ebola crisis has been the IKEA Foundation which, according to the UN, has donated over US$6.7 million to the Ebola Virus Outbreak – West Africa Appeal. This is followed by General Electric which has donated US$2 million, and Kaiser Permanente and GlaxoSmithKline, which have donated US$1 million each.

    A number of other corporations have made either in-kind or cash donations to the UN Fund. Some of the companies that have donated cash include the Bridgestone Group (US$500,000), Coca-Cola (US$248,000), DuPont (US$250,000), and Exxon Mobile (US$225,000).

    In-kind contributions have also been received from companies like the Chevron Corporation (ambulances), Ericsson (collecting donations), FedEx (shipping logistics), the McKesson Corporation (medical supplies), 3M (medical supplies), and the Shell Oil Company (petroleum and vehicles), among others.

    Certainly the UN has encouraged the corporate sector to donate resources, even publishing an Ebola Business Engagement Guide.

    Multi-billion dollar corporations – those with the financial capacity to do much more – however, have been slow to respond. And without exception, even the contributions that have been made pale into insignificance against the contribution by the founder of Facebook, Mark Zuckerberg, who personally donated US$25 million to combating Ebola.

    In the meantime, the virus continues to spread. World leaders, including former UN Secretary-General Kofi Annan, have expressed “bitter disappointment” at the international community’s lack of response. While much of the focus may appropriately be on governments, the corporate sector also has a responsibility to step up.

    In launching a fresh campaign for funds, Ban Ki-moon recently declared:

    This is not just a health crisis; it has grave humanitarian, economic and social consequences that could spread far beyond the affected countries.

    Let’s hope the message is heard.

    Dr Adam Kamradt-Scott is Senior Lecturer at University of Sydney. This article was first published in ‘The Conversation’ on 21 October 2014.

  • Mike Steketee. Whitlam: the power of persuasion.

    This article was first published by The Drum.

    Gough Whitlam’s sheer presence, drive and ambitions disguised some deep flaws. But his vision and achievements stand in stark contrast to the politics we often have seen since, writes Mike Steketee.

    “It’s time”. It seemed like a modest slogan for a momentous event – after 23 years, a new government led by a towering figure promising sweeping change.

    But it was perfectly pitched for maximum impact. Not all Australians were swept up in the political euphoria but all but the most died-in-the-wool conservatives could see that after 23 years, with the party of Menzies now under the leadership of the comical Billy McMahon, the Liberals had reached their fag end.

    In his first election as leader in 1969, Gough Whitlam secured a 7 per cent swing and gained 18 seats to reduce the Gorton government’s majority to seven. To some extent, it was a predictable correction following the landslide Coalition win in 1966 but its size – the largest swing since 1943 – spoke to another factor: for the first time for many years, Labor under Whitlam looked like an alternative government.

    In Canberra, there was a feeling of irresistible momentum, with Labor sweeping all before it at the next election.

    At least that is how it felt as a 20-year-old reporter arriving in the national capital in 1969. Canberra then was a mecca for journalists. Working cheek by jowl with politicians in the confined quarters of the old Parliament House, there was a sense of being part of great national events.

    In part it was the Whitlam style – what his speechwriter and first biographer, Graham Freudenberg, called “a certain grandeur”. His intellect dazzled, his wit sizzled.

    “Who’s this – Aristophanes?” he said as I walked into the opposition leader’s office and encountered him talking to his staff. Without the benefit of an education in the classics, I had to take the first opportunity to repair to the parliamentary library to discover that Whitlam was referring to an ancient Greek playwright. About all we had in common was a beard.

    The mood of the time could not be more different from the all-pervading cynicism surrounding politics today. There was a rare idealism: Australians dared to dream that a government could build a better, bigger nation than the outpost of the Empire that we sometimes still had trouble putting behind us.

    Whitlam elevated politics to a higher plane, convinced of what could be achieved through an expansive role for government and a more confident and independent foreign policy. As he put it in his policy speech for the 1972 election, ever since his entry to parliament in 1952:

    I have never wavered from my fundamental belief that until the national government became involved in great matters like schools and cities, this nation would never fulfil its real capabilities.

    Allied to this was a faith in his own powers of persuasion. He believed that patient, detailed explanation in countless public forums could convince the public, as he had first convinced his own party, of the merits of a national health insurance scheme that left no one facing crippling debts because of a medical condition; of a system of school funding based on student needs; of broadening access to university education by removing fees; of the national government funding basic services such as sewerage neglected by the states.

    If he received the nation’s trust, he would return the favour by keeping his promises – a novel idea in today’s politics. There was a warning sign in the 1972 election result – a swing of only 2.6 per cent, delivering a modest majority of nine seats. There was less a wholehearted embrace of the Whitlam revolution than a wary endorsement of the need for change.

    But this was overlooked in the euphoria of victory. The Program, as Whitlam called his policies (or less formally, the New Testament), was holy writ, especially now that he had received a mandate from the people to implement it. He would forge ahead, crashing through the political barriers and trusting his reforms would bring their own reward.

    In the modern context, when politicians barely dare move a sinew without reference to the opinion polls, it was a refreshing approach. But it also was the start of Whitlam’s undoing. To the extent that he thought of it at all, economic policy was a given. The assumption was that continued economic growth would bring with it the increase in revenue that would finance this expanded role of the government.

    As he said in his policy speech for the 1972 election: “Within Australia today we do not have to plan to ration scarcity but to plan the distribution of abundance, not to restrict shares but to secure a fairer share for all.” After 23 years out of office and with Whitlam’s determination to carry out his mandate, he and his ministers were not to be diverted from their grand plans.

    It was not Whitlam’s fault that Middle East oil producing nations decided in 1973 to use their stranglehold over supplies to extract greater returns, resulting in a quadrupling of oil prices and the new economic phenomenon of stagflation – recession combined with high inflation. But he was responsible for Australia’s ambivalent and inadequate response, which fluctuated from pulling in the reins to the government spending its way out of recession.

    Sounder economic policies, even at the cost of breaking or delaying promises, may have provided a stronger defence against opponents. Members of the Liberal and Country Party opposition, together with a conservative business establishment, simply did not accept the legitimacy of a Labor government. To them it was an aberration, to be rectified at the earliest opportunity.

    It is often forgotten that the Coalition parties not once but twice tried to bring the government down by blocking the budget in the Senate. The first time was in 1974, after less than 18 months in office, when Whitlam responded to the opposition threat by calling an election, which he won but with a majority reduced from nine to five. It was another warning sign.

    The following year, with the government in a much weaker electoral position, Whitlam defied Malcolm Fraser’s attempt to force an election, triggering the nation’s greatest political crisis. The fact that Labor held a majority in the parliamentary chamber that determines who forms a government was not enough to confer it legitimacy in the eyes of the opposition, even for the remaining year or so that it would have continued until its almost inevitable defeat.

    While it is now generally accepted that Governor-General John Kerr had the constitutional right to dismiss Whitlam, the enduring criticism is that he deliberately deceived Whitlam about his intentions, giving the prime minister no opportunity to react to warnings.

    Whitlam’s sheer presence, his drive and his ambitions for the nation disguised some deep flaws. But his vision and the achievements that flowed from them stands in stark contrast to the myopic, reactive politics, we often have seen since.

    Mike Steketee is a freelance journalist. He was formerly a columnist and national affairs editor for The Australian. 

  • John Menadue. Winners in the privatisation of Medibank Pte

    Many would expect that the 3.8 million members or policy-holders of MBP who are arguably the owners of the company, would be the financial winners in the proposed privatisation.

    But not a bit of it. Some of the 3.8 million members will seemingly get some preferential issue of shares. But it will be chicken feed. The two real winners by a country mile will be the numerous advisers to the float, and the senior executives of MBP.

    The once-off winners will be the financial and legal advisers to the float. Together with the brokers, underwriters and sub-underwriters, they will make a motza. Our super profitable and large banks will also make money in the marketing of the shares. The fees and charges by all these intermediaries will run into $50 m plus.

    The long-term winners will be the senior executives of MBP. They are big fans of privatisation.

    There are numerous precedents for the escalation of executive salaries that follow from privatisation. Take the most recent privatisation, Queensland Rail.  The rail company was sold in 2010 and the salary of the chief executive increased from $1.1 million to $5.1 million p.a. His job was largely unchanged, but his salary went through the roof.

    The managing director of MBP George Savvides is already paid $1.2 million p.a.  This is double the salary of our prime minister. Corporate governance analysts estimated that Savvides’ package will increase to about $5 million p.a. MBP’s two other senior executives are now paid $1.85 million p.a. It is estimated that their packages will increase to $3.2 million p.a. each.

    The chief executive, Mark Fitzgibbon, of a much smaller private health insurance company, NIB, has a salary of $1.2 million. But MBP is about four times larger than NIB.

    In the healthcare industry, the top earner is the chief executive of Ramsay Healthcare, earning $8.3 million p.a.

    The senior executives of MBP will be major beneficiaries of privatisation. The 3.8 million policyholders/owners of MBP will get crumbs.

  • Race Mathews. Whitlam eyed our conscience, not our wallet.

    Gough Whitlam’s objective was equality for all. He believed the proper business of politics was to secure informed public consent for necessary change, through objective information from trusted sources.

    He gave back hope to my generation of Labor Party members. Chifley’s “light on the hill” was re-kindled. The party’s electability was restored. His political career invites us to recall the words of Robert F. Kennedy: “Some see things as they are and say ‘Why?’ I dream of things that never were and say ‘Why not’?”

    Whitlam realised from the start that in order for policies to be accepted by the electorate they had first to be understood. Medibank (later Medicare), for example, was explained constantly from 1967 until 1969, and again from 1969 until 1972, in Parliament and wherever public platforms or media attention were obtainable.

    He required the speeches that were prepared for him to be in part repetitious, in order for their proposals to become as near as possible universally accepted. Once a basic theme and content of a speech had been settled, drafts were exchanged repeatedly between him and whoever was doing the writing, until he was satisfied that the best possible outcome had been obtained.

    Speeches such as the definitive “Political and Constitutional Problems in National Transport Planning”, which he delivered for the Department of Civil Engineering at Melbourne University in April, 1968, could take weeks to complete. His memorable 1972 election policy speech was a distillation of all the speeches which had gone before it, as far back as his entry to Parliament in 1952.

    Malcolm Fraser mistakenly supposed that Australians would accept his abolition of Medibank – in defiance of his 1975 undertaking to retain it – because it had been in place for only two months prior to the notorious Remembrance Day Coup. The real strength of Medibank stemmed at that point from the fact that it had been explained to the electorate more thoroughly than any other Opposition proposal in our history.

    A consequent Whitlam government innovation was the creation of the great Investigatory, reporting and recommendatory commissions, such as the Schools Commission, the several post-secondary education commissions and the Hospitals and Health Services Commission. Legislation for a Children’s Commission that would have revolutionised early childhood development, education and care was introduced, but lapsed with the dismissal of the government in November 1975.

    Like the Ombudsman and the Auditor-General the commissions were empowered to inquire as they saw fit into any and all aspects of their respective briefs and report directly to Parliament on the outcomes of their investigations and the recommendations arising from them. Their outstanding work opened up government services to unprecedented levels of scrutiny, facilitated forward planning and budgeting, and enabled informed and constructive public debate at unprecedented levels to occur. Their subsequent abolition at the hands of both Coalition and Labor governments has been a public policy and democratic enfranchisement setback of epic proportions.

    The provenance is plain. Whitlam epitomised throughout his career the Fabian approach to politics and policy development. As he once said tongue-in-cheek of himself, “Among Australian Fabians, I am Maximus”. Each new piece of work he undertook started from the principles of social justice and egalitarianism that had given his career its whole motivation and direction.

    Facts were then painstakingly and meticulously analysed, so that policy options could emerge and be tested.  Once the final form of a policy had been settled, it was fought for with all the formidable force of his intellect and eloquence.

    Australians are accustomed to having their votes sought through their purses and pockets. It is Whitlam alone in the memories of most of us who has addressed himself uncompromisingly to our consciences and intellects. He himself would not necessarily have regarded so sweepingly affirmative an assessment, as inappropriate, as a further flight of self-mockery attests.

    Barry Cohen – elected to the House of Representatives on Whitlam’s coat-tails in 1969 and a Minister under Hawke – has a relevant story in his book, After the Party. It reads:

    I had heard that on the release of the massive tome The Whitlam Government 1972-1975 Gough was asked by an intrepid young reporter whether this was the third major work on his period of government, the others being The Truth of the Matter by himself, and A Certain Grandeur by Graham Freudenberg. He was reported to have replied loftily, “Yes, there was the Crucifixion, the Resurrection and now we have the Gospels”.

    I had tried to check the authenticity of this wonderful story with the man himself but was unable to do so as he was away overseas for a considerable period, fulfilling UNESCO obligations.

    I eventually caught up with him and repeated the story. He paused for a moment before replying, “I must say I can’t recall it, although it has a certain ring to it. However, I can tell you that I do keep ‘THE THREE BOOKS’ together on my office shelf”.

    “The three books?” I inquired innocently. “Yes,” he replied, “The Bible, The Complete Works of William Shakespeare and The Whitlam Government.”

    Race Mathews is former chief of staff to Gough Whitlam and Labor leaders in the Victorian parliament, federal MP and state MP and minister.  

     

  • Hugh White on Australians and War from Honest History.

    In my blog of 20 October ‘It is becoming much easier to go to war’ I highlighted the reasons and the background  to developments since the Vietnam War that are making it much more likely that we will commit ourselves to war. 

    In an earlier posting of March 23 – see below –  I carried an interview with Hugh White.

    We are venturing into very dangerous territory. John Menadue

    Repost

    In this interview in November 2013 and related articles, Dr David Stephens of Honest History has drawn together comments by Hugh White on ‘Australians and war’.

    Hugh White is professor of Strategic Studies at the ANU and a former senior public servant in the Department of Defence. He considers several themes about Australians and war.

    • How ‘soft’ wars have made Australians more bellicose.
    • How the perceived need to preserve the American alliance makes most wars acceptable in Australia.
    • How Australians are reluctant to focus on the purpose of war.
    • How Australians celebrate the experience of war while downplaying the reasons for particular wars; the centrality of Anzac.
    • How romanticising war makes future wars more likely.
    • How these chickens might all come home to roost in the East China Sea in the not too distant future.

    The link for this interview can be found at:

     http://www.honesthistory.net.au/wp/stephens-david-hugh-white-on-australians-and-war/  and click on 188 Hugh White on Australians and War.

    Honest History (honesthistory.net.au) is a coalition of historians and others supporting the balanced and honest presentation and use of Australian history during the centenary of WWI.

  •  Claire Higgins. International legal obligations once shaped our refugee policy

    The refugee policy of the Fraser government is often invoked in debates about Australia’s current approach to asylum seekers. While the small number of boat arrivals between 1976 and 1981 cannot be compared to the many thousands who arrived between 2009 and 2013, the political difficulties in that era were far greater than simply the reception and processing of asylum seekers. By contrast with more recent policy, the Fraser government overcame these difficulties by choosing to fulfil Australia’s international legal obligations under the Refugee Convention and by explaining this imperative to the Australian community.

    Then, as now, the government was acutely aware that Australia was one of the only parties to the 1951 Refugee Convention and its 1967 Protocol within the region. Indeed, Australia ratified the 1967 Protocol only three years before the first Vietnamese boatpeople began to arrive in 1976. The Department of Immigration admitted that Australia was now ‘locked in’ to obligations and ‘had never envisaged’ forced migration on this scale. Yet instead of working to distance Australia from the Convention, the Department of Immigration worked to explain to the public that compliance with international legal and moral obligations was integral to Australia’s ‘credibility and status as a civilised, compassionate nation’.

    In fulfilment of these obligations, the Fraser government established Australia’s first formal refugee status determination procedure and used this mechanism to reassure the public that all boat arrivals were being rigorously assessed. Even though, in reality, the boatpeople could not be repatriated, the government nonetheless declared that only those found to be genuine refugees would remain in Australia. This was a clever strategy. By employing it, the government was able to emphasise the importance of giving due effect to Australia’s obligations under international law while maintaining the appearance of control over the entry of asylum seekers. There was no need to resort to the image of a militarised ‘national emergency’.

    Behind the scenes, the Fraser government was mindful to ensure that its response to asylum seekers should not be in breach of the Convention. The archives record how officials ruled out turning back boats and establishing closed detention centres due to the moral and legal implications of these measures. This was despite intelligence reports that up to 100,000 people could potentially sail to Australian shores. UNHCR records show that even the investigation and deportation of 146 fraudulent asylum claimants aboard the fishing vessel VT838 in 1981 was undertaken with the full knowledge of UNHCR’s Australian office.

    In public, the Fraser government sought to marry arguments about Australia’s international obligations with the need to move on from ‘White Australia’. Instead of expecting impoverished regional neighbours to shoulder the burden of resettlement, as Australia is now doing, the government encouraged the public to see that the admission of asylum seekers would enhance the nation’s standing in the eyes of the world. Efforts to improve Australia’s image abroad would come to nothing, the ministers for Immigration and Foreign Affairs announced, ‘if we now respond to the Vietnamese refugee question in a narrow, ungenerous and emotive way’. Given that the new UN High Commissioner for Human Rights has recently accused Australia of a ‘chain of human rights violations’ in relation to its offshore processing system, these issues are as relevant as ever.

    Working closely with UNHCR to expand and diversify the refugee intake was central to the Fraser government’s long-term vision for Australia’s immigration program. Immigration Minister Ian Macphee collaborated with his Labor shadow Mick Young to speak at public meetings around Australia on the benefits of non-discriminatory entry criteria and refugee resettlement. Macphee and Young recognised that the Indochinese intake was ‘a major wrench to the Australian people’, which brought about ‘more discussion about where our immigration policies were headed than took place at any previous time’. They ‘copped abuse’ from some members of the public as a result. Yet their bi-partisan efforts were based on the belief that these questions were vital to the nation’s future. On reflection, Macphee told the house in 1984, ‘I believe we are now a less parochial people’.

    The number of boat arrivals may have been much smaller during the Fraser era, but the political challenge was great. The Fraser government demonstrated that Australia can give effect to its international legal obligations while carefully managing the public’s response to asylum seekers. In looking to the past we are reminded that these objectives are not mutually exclusive.

    Dr Claire Higgins is an historian and a Research Associate at the Andrew & Renata Kaldor Centre for International Refugee Law at UNSW

     

  • George Lekakis recalls meeting Gough Whitlam.

    Dear John

    I just wanted to share a memory or two with you before this day is over.
    My father came to Australia in 1954 and he always told me that he
    never felt Australian until Gough was elected in 1972.
    In 1993, at the tail-end of my first visit to Greece, my uncle took me
    to the Byzantine ruins of Mystras on the outskirts of Sparta in
    Lakonia.
    We were sweltering that day as we walked about that amazing setting.
    As we were about to leave, a familiar voice came into earshot. I
    turned to see a tall man perched on a walking stick with a
    handkerchief wrapped over his head. I didn’t recognise him at first –
    I had only been hearing Greek for four months. But the voice
    resonated.
    I decided to move closer to the old man who was encircled by a bevy of
    important Greek scholars. As I approached, the scholars motioned me
    away, but there was another bloke – a bearded fellow – who called out
    to me:
    ” Do you wanna meet Gough?”
    “Yes,” I said.
    ” Come over here,” he said.
    About 15 minutes later after Gough had explained the history of the
    place to the bevy, the bearded fellow waved me over.
    I’ll never forget it – at the summit of Mystras, of all places!
    It’s probably not right for journos to have heroes, but I have a couple.
    The Chicago journalist Mike Royko is one of them.
    But Gough touched my family in so many ways.
    Blessings,

    George Lekakis is a writer for The New Daily.

  • John Menadue. Some personal reflections – a light has gone out.

    Gough Whitlam’s death has prompted a quite remarkable bipartisan response in the parliament. And rightly so, for he was a great parliamentarian for over 26 years along with 70 years of public life. His forum was the parliament rather than the street or the protest march.

    He had great respect for the parliament and that is why the subversion of the parliament in November 1975, when he had a clear majority in the House of Representatives, hurt him so deeply. But his bitterness was reserved for one person.

    Listening to the parliament and reading the other media comments I was again impressed by the diversity and the range of changes which he introduced and how institutions and people were changed by the Whitlam years. The comments were more a celebration of his achievements and his vision than a eulogy. He enlarged and expanded Australia in a way that we had not seen before and have not seen since.

    Tony Abbott described him as a ‘giant of our time’. Bill Shorten said that ‘the ALP has lost a giant’. Julia Gillard referred to his ‘highest political courage’. The Governor General called him ‘a towering leader’. Malcolm Fraser called him ‘a great Australian … a formidable opponent’. John Faulkner spoke to the Labor Caucus of ‘Gough Whitlam as a towering figure in our party and in our lives as long as I can remember’.

    Gough Whitlam’s remarkable three years in government didn’t come out of thin air. He spent twenty hard years in opposition thinking, planning and working for what he could do in government. It was a rigorous and tough apprenticeship.

     

    Political and personal courage

    In my blog yesterday I spoke of Gough Whitlam’s courage, energy and determination to keep going despite the enormous obstacles, particularly from the machine men in the ALP who were more interested in retaining power in the party machine than winning elections and helping those in need. Looking back, I pay tribute to his determination to stay the course when he had so many factional and selfish people around him. Sometimes he could have expressed his contempt for them more diplomatically, but they really were ‘f…wits’ as he often called them.  And there are still some remaining.

    One phrase I remember above all others about the problems in the ALP was that ‘the ALP is not a national party. It is a federation of six state parties.’ Progress has been made but the journey he commenced over 40 years ago in party reform towards a national party is still not completed.

    Mick Young

    Gough Whitlam and Mick Young were unlikely political soul mates but they needed each other. Mick Young was the ex-shearer who knew better than others what it was like to wash your hands in solvol. He was grounded amongst working people, knew the trade union movement well and was active in ALP branches. His feet were very much on the ground. He didn’t have great office systems, but his people and political skills were in his head. Gough said that Mick Young was ‘One of the greatest things that happened to the Labor Party when he became Federal Secretary and National Campaign Manager for the 1972 elections’.  Mick Young had commented that in the past in its campaigning, the ALP had more slogans than candidates! He knew of the dysfunction between the party organisation and the parliamentary leader. But he knew that even ‘It’s Time’ and market research would not prevail without the policy and the vision that Gough Whitlam supplied.

    ‘Dame’ Margaret and Family

    Through good times and bad times, ‘Dame’ Margaret and Gough were together. They had their differences as all strong-minded people would. But their love was deep and abiding. For months after Margaret’s death, Gough would invariably commence our conversation ‘Wasn’t that a great send-off for Margaret?’ Her death was a great blow to Gough.

    He remained close to and very protective of his sister Freda who after retirement as Principal of Presbyterian Ladies College became Moderator General of the Uniting Church of Australia. I recall that at Gough’s 80th birthday, Freda said that when Gough left home in Canberra to go to Sydney University ‘the light went out of the house’.

    Gough Whitlam and Malcolm Fraser

    Gough often said that he and Malcolm Fraser had not had a disagreement for thirty years. It was largely true. Malcolm delivered the Whitlam Oration in 2012 in Parramatta. He commenced the oration ‘Men and Women of Australia’. Gough and Malcolm expressed common views about the importance of an independent Australia within the US alliance. They campaigned together for a Republic, against media monopoly and in favour of land rights for indigenous people.

    I remember Gough saying to me in later years that Malcolm was a ferocious political opponent ‘but he never deceived me’. A few months ago Malcolm called on Gough at his Sydney office. He presented Gough with a copy of his latest book ‘Dangerous Allies’. He inscribed in the book ‘Dear Gough, with great respect and great affection, Malcolm’.

    Visits in later days and the bearer of the flame

    Quite separately and for several years, John Faulkner, Daryl Mellam and I visited Gough in his  office in William Street Sydney. Going to the office three days a week was a very helpful break from Lulworth. His staff, driver Michael, Aaron and Penny were great supporters and in the end, carers. Daryl Mellam invariably brought cupcakes that his sister had made with green and gold icing. I usually brought chocolate mousse although Cathy Whitlam said it wasn’t good for him and she had to wash the chocolate out of his shirt.

    I know that Gough particularly valued the regular calls by John Faulkner. Gough had a great affection and regard for John, whom he regarded as the bearer of the Labor flame. John usually obliged by bringing a few bottles of passiona which were very much to Gough’s abstemious taste.

    A secular treasure

    Excuse me for mentioning it, but when the Japanese emperor awarded me the ‘Grand Cordon of the Order of the Sacred Treasure’, Gough congratulated me but said ‘Comrade, you must understand that I am a secular treasure’.

    He meticulously planned Margaret’s funeral and his own. Having been a navigator in Ventura aircraft during the Pacific War, he asked Angus Houston, the then Defence Chief, whether a Ventura could be found to scatter his ashes over Sydney Harbour. Unfortunately, Venturas were no longer flying.

    Gough was determinedly secular; even though he proudly and often recalled that he had topped the examination in religious studies at High School but could not be awarded the prize because he was not a believer. He often described himself as a ‘fellow traveller’ in matters of religion. He was taken by Winston Churchill’s description of himself as ‘not a pillar of the church, but a flying buttress’.

    By introducing needs based funding for schools he did more to help the education of Catholic kids than priests or bishops ever did.

    He enquired frequently about my joining the Catholic Church. He was always interested and never hostile. He often said that ‘the Catholic Church is the big league”. He spoke to me a lot about matters of faith.

    He didn’t mind being confused with Saint Paul. At Fred Daly’s Requiem Mass he read the letter of Saint Paul to the Corinthians. The letter is one of the most moving and challenging in any language. It is quite beautiful. ’For now we see through a glass darkly; but then face to face: now I know in part; but then shall I know even as also I am known. And now abideth faith, hope, charity, these three, but the greatest of these is charity’. After the service a good supporter of Fred Daly ,who probably knew more about the Labor Party than the scriptures came up to Graham Freudenberg, Gough’s speech writer and said, ‘Mr Freudenberg, that was a great speech you wrote for Mr Whitlam’

    At Nugget Coomb’s funeral at Saint Mary’s Cathedral in Sydney, Gough said of Nugget ‘all Australians can say in the words of Paul’s letter to Timothy “Well done thou good and faithful servant”’.

    It can also be said of Gough Whitlam.

    May he rest in peace..