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Why Toyota marks the start of the real political battle | Why Toyota marks the start of the real political battle |
(7 months later) | |
Australian politics is Seinfeld no more. The new battle-lines are real and deeply ideological. This is now, very definitely, a show about something. | |
The transformation from shouting to substance has come about through a crystallisation and hardening of position by both major parties. | |
Having quite deliberately left its industry policy hazy in the run up to the poll, when Tony Abbott was still wearing a hi-vis vest and wooing the blue collar vote with the claim that axing the carbon tax could fix everything, the coalition is now brutally clear. | |
There will be no more hand-outs to manufacturers and if that helps end Australian car-making or hastens the demise of a cannery that happens to be a region’s major employer - well that’s just how the market crumbles. If the economic settings are right, that investment will shift to other sectors and new jobs will be created. | |
That has, of course, always been economic theory. But it’s a rare government willing to put it into practice and weather the political cost from the very human consequences of lost jobs and shattered lives. | |
When Holden announced last year it would stop manufacturing in 2017 some thought the government would do more to try to prop up the last remaining carmaker, Toyota, who was otherwise facing almost inevitable demise. On Monday it was clear that idea was wrong. Prime minister Tony Abbott was resolute: in a modern economy you lose some jobs and then you gain some and he was all about getting the big economic picture right to maximise those gains. | |
The royal commission into unions that Abbott was announcing even as Toyota was trying to ring him Monday afternoon to tell him of its decision is part of that economic push but also designed to give the government political cover. | |
Labor might be able to call the royal commission a witch-hunt, but it will also have to explain why it is continuing to oppose the coalition’s proposed construction industry watch-dog even as the inquiry investigates the claims of building industry kick-backs and connections with organised crime. | |
For its part, Labor is also more explicitly and openly pro-intervention than it ever was in the Hawke and Keating years. Then car assistance was always at least dressed up as a temporary measure until the industry could stand alone at some future time. | |
As I wrote at the time, when Kevin Rudd, at his very first press conference as Labor leader, said he didn’t want to lead a country that didn’t make things any more, he was viewed with a mixture of hostility and cynicism even on his own side about what favours he might have owed the faction leaders who helped him get the job, because the whole idea of a government intervening to salvage the declining manufacturing industry was out of step with the times. | |
Now Labor is happy to say ongoing assistance is the price a country pays to be able to make cars, and that while not every factory can be saved, it is the government’s role to “protect” jobs. | |
Now Shorten is the hi-vis vest man, “fighting Aussie jobs” and demanding the coalition do the same. And Abbott is the prime minister trying to argue the merits of very difficult political decisions and positioning. | |
It is a real contest about the best path to national prosperity. And there’ll be some fascinating politics along the way. | It is a real contest about the best path to national prosperity. And there’ll be some fascinating politics along the way. |
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