With no policy agenda and with the economy sagging, the Morrison government(‘We are the good economic managers’) intends to take us back to what Tony Abbott and Joe Hockey offered us six years ago, an attack on the trade unions again and less red tape.
Six years ago Tony Abbott led off with a Royal Commission on the unions as a curtain-raiser for changes in industrial relations and work rules that would appeal to employers. Despite the best efforts of the Abbott government to determine the outcome of the Royal Commission and discredit the unions and the ALP. It failed. Julia Gillard and Bill Shorten got through largely unscathed.
Now the Morrison government sees John Setka of the CFMMEU as a god-given opportunity to indulge their business friends again and seize the opportunity to attack the trade union movement more generally. This is at a time when the scales have already been tilted heavily against trade unions and when the unions are at their weakest for a hundred years. One reason for the growing inequality in incomes and wealth is the declining influence of the trade unions.
To focus on red tape, Tony Abbott established a Commission of Audit headed by friendly business man Tony Shepherd. A key recommendation of this wasted effort was ‘reducing red tape’. As a result many regulations designed to to protect the public interest were removed or degraded. The Coalition wanted,more opportunities for powerful business interests to exploit their position.
Scott Morrison now also talks about reducing ‘red tape’ to ‘clearing the arteries’ in the economy which will allow business to get on with its job. He said ‘While reducing taxes has had a major impact in the US, it was actually Trump’s commitment to cutting red tape and transforming the regulatory mind set of the bureaucracy that delivered the first wave of improvement in the economy’. Reducing red tape is really code for giving some employers an opportunity to rip off workers and the public even more.
So many in business today put their effort into lobbying for government favours like rolling back regulations instead of raising the productivity of their businesses. They refuse to ‘stick to their knitting’. They are continually knocking on the government’s doors for more favours .
Whilst unions are heavily regulated corporate regulatory and supervisory failure are everywhere.
Just look at a few recent and glaring examples of failed or misplaced regulation.
- In vocational employment we have seen widespread waste of public money and exploitation of vulnerable young people as a result of regulatory failure..
- As Charles Livingstone, in this blog, has pointed out, Crown Casino, other casinos and club and betting interests are just too powerful to regulate. Fines for breach of regulations are miniscule.
- The failure of regulations and regulators in nursing homes has exposed our senior citizens to abuse and death.
- Regulators failed to protect the Murray-Darling Basin from blatant water theft.
- Dodgy entrepreneurs in child care received large payments for children they never cared for.
- Fair Work Australia and other regulators have failed to protect mainly young people, particularly working holidaymakers and students who have been exploited by labour-hire companies. The Seven/Eleven chain has become a symbol of failed regulation in the labour field.
- Live sheep exporters brazenly defy regulations to protect animals.
- Land clearance regulations to protect vegetation are widely ignored.
- Regulations to ensure that miners repair degraded land are seldom effective.
- And then there are the banks at the top of the list with their lying to clients, their deceit and greed. Donation to major partied encouraged ministers and regulators to look the other way. The banks knew that the regulators would not seriously challenge them. They felt invulnerable
- The Coalition has shown us how politics rather than policy determines its approach to regulation. It proposed Soviet style intervention to force investment in high cost and polluting coal fired electricity generation. And Angus Taylor still keeps his job!
- Most recently in Sydney we have seen shonky developers and builders in Mascot Towers and Opal Towers cutting loose at the expense of owners. Where were the regulations and the regulators?
Why has corporate regulation failed?
- A major cause of failure amongst ministers and regulators is the prevailing ideological view expressed by the Coalition and big business that only business can deliver prosperity and jobs for Australians. Business, therefore, deserves favourable treatment. The Liberal Party platform expressly states that ‘only businesses and individuals are the creators of wealth and employment’. In ingratiating her way into a new business career Julie Bishop now also tells us that ‘I’ve long believed the private sector is the key to lifting living standards and economic development’ . With this view it is not surprising that they believe that if businesses are to perform their role effectively, government and regulators must get out of the way. Timid regulators who want to please read these signs. Yet the evidence is clear that in our mixed economy there are key roles for both business and government,
- Unlike the ACCC which has been a tough cop on the beat, ASIC and APRA, even with their considerable powers, have failed as effective regulators. Far from being tough watchdogs, APRA and ASIC became compliant puppy dogs who were anxious to please. ASIC has power to launch criminal and civil prosecutions against corporations. But for 15 years it chose not to. Instead of prosecuting, offenders were obliged to sign ‘enforceable undertakings’ for serious breaches of regulations. No one went to goal.The regulators imposed fines that would not cause any big company to even blink. The CBA admitted to ‘unconscionable conduct’ in rigging the bank bill swap rate in 2012. The penalty was a derisory $25 million. Only lengthy gaol sentences will deter many of our greedy and dishonest corporate cowboys . These are the people who kept telling us time and time again that it was the fault of a few ‘bad apples’ and in any even,t the problems had been fixed. But the problems continued and they continued to pick up outrageous salaries.
- Any problems were invariably found to be attributable to the lower ranks and seldom the Board or CEO. The multi-million dollar bonuses, handshakes and golden-parachutes continued.
- There were comfortable relationships between regulators and the regulated. Some of the key bank regulators on retirement from Treasury and the RBA moved across to well paid jobs with the banks. It was all a cosy bankers club.
- Too much faith was placed in efficient markets, so light or even self-regulation was preferred. After all the regulators obviously felt that they were all members of the same trustworthy family.
- The fundamental problem is timid regulators who want to please their ministers with their conservative political ideologies and the big end of town.
The ‘system ‘is loaded in favour of powerful vested interests.
So called ‘red tape’ is essential to protect the public and particularly the most vulnerable. ‘Green tape’ is vital to protect our planet and our environment
But now Scott Morrison in league with the powerful wants to give banks and other business mates such as the Property Council more space to act in anti social ways. We learned that they could not be trusted.
Tony Abbott’s and Joe Hockey’s attacks on unions and rolling back ‘red tape at the behest of the big end of town served Australia very badly. Scott Morrison wants to try it all again and give the greedy inside running once more. Will he ever learn?
John Menadue is the Founder and Editor in Chief of Pearls and Irritations. He was formerly Secretary of the Department of Prime Minister and Cabinet under Gough Whitlam and Malcolm Fraser, Ambassador to Japan, Secretary of the Department of Immigration and CEO of Qantas.
Comments
5 responses to “JOHN MENADUE. Here we go again- attacking unions and ‘red tape’.”
A well written article filled with emotional triggers. It fell apart with the concluding rhetoric question. Scott Morrison has spent his entire life learning well where his bread is buttered. He has soared for a rather unable performer simply by pandering to his spectrum of vested interests. John Wright correctly states the regulator’s mantra – “follow the money, honey”.
Most of your readers and writers are more familiar with political nuance rather than regulatory affairs and compliance strategies. Accordingly, most can raise issues of malfeasance yet are mostly silent on solutions. Effective regulation requires appropriate legislation. That minimum requirement is practically impossible with the conflict of laws issues inherent in the history of State, Federal and other jurisdictions. For example, concerned narcissists in the Aged Care debate will correctly idea egregious shortcomings. However, a close reading of the precursors to legislation will identify the true intention was to encourage private sector investment to alleviate the shortage of aged care beds. Clearly, effective regulatory protections for modestly capable recipients was not on the menu. I submit that there is no point in bleating to the progressive thought bubble that egregious theft of public and private resources exists. Those vested interests are well supported by Scott Morrison and many layers of his cronies.
The trauma of Labour’s election loss continues to be played out. However, John W joining the Greens is a very poor protest. Opportunistic concern for a daily dose of neo-liberal malfeasance does the not mask the main game. I suspect that LGBTQ issues may surpass the environment.
RED TAPE: Intending visitors to immigration ‘detention centres’ in Australia must complete a very detailed on-line application form – a 20-minute exercise. Thus the party in charge, Australian Border Force (which is part of Home Affairs), has an electronic record of the details entered. Yet, to gain approval for a subsequent visit, the intending visitor must re-complete the entire form; and again the next time, ad nauseum. Further, if intending visitors wish to see, e.g., three detainees, they must fill in the whole form three times, once per detainee. See for yourself: https://www.abf.gov.au/about-us/what-we-do/border-protection/immigration-detention/visit-detention/apply-to-visit
Thank you John for this informative and depressing summary.
It is a timely reminder of how concepts such as ‘good economic management’ and
greed have become inseparable. If I ever needed reminding of a possible point of
origin, all I had to do was have look at that priceless photo of Messrs Hockey and Cormann having a pre-budget smoke outside Treasury – two putative masters of
the universe, surrounded by cigar smoke and smugness.
WA Premier Mark McGowan made a good response to the familiar belly-aching about red tape. He said he would like to hear specific examples.
Well written John. Couldn’t said it better. When people want to engage me in a “political” and/or “ideological” debate, I always say, “It’s simple … just follow the money”. We as a species are most concerned about our own well-being. That being said, when we have a good enough government in power, i.e. one who keeps both Unions and CORPORATIONS well regulated and isn’t afraid to confront the rich and powerful; a government who looks out for the downtrodden, poor, sick and broken, then a country prospers for all, ideally.
However, when both sides of politics cave in to the press and mining oligarchs then what hope is there for the fulfilment of these ideals? None, in fact. Unemployed people who barely able to live on the handouts of Newstart are denied a long overdue increase so that Labor and LNP can further line the pockets of the already well-off.
This is SHOCKING is it not? I mean REALLY shocking. We expect this from the LNP who are merely extensions of the ruling elite but to have “the people’s party” support this disgusting handout is beyond the pale.
Please, if you can provide insight into some element of this collapse of Labor that I’m missing, do so! Is it a clever trick to lull the LNP into a false sense of security maybe? Is Albo going to suddenly rise up like an avenging angel and take on these wicked LNP demons?
Public Schools, Hospitals, Mental health services, to name but a few public services, are shockingly underfunded; no doubt more cuts will be applied to the ABC, now that Ita (who is quite possibly a Trojan horse appointed by Morrison to oversee the eventual sell-off of Auntie), is at the helm.
That’s enough from me. I’m about to join the current opposition party; the Greens.