Friday 15 December 2017

"Inequality is neither a personal choice nor a national tragedy. It is a choice governments make"


Chief executive of the St Vincent de Paul Society national council Dr John Falzon, writing in The Guardian on 13 December 2017:

In 1952 a Catholic newspaper in Ireland proclaimed: “The welfare state is diluted socialism and socialism is disguised communism.”

Extreme? Yes. Dated? No. When you listen to the dying declarations of the spear-carriers for neoliberalism, it’s hard not to hear the same alarmist codswallop.

The logic goes like this: being unemployed and poor is bad because people choose to be unemployed or poor. If you receive income support, it is because you are unemployed and poor. Therefore, receiving income support is bad. Therefore, removing income support is good. Coincidentally, this means more money for the rich and less for the poor.

Social services minister Christian Porter’s recent National Press Club address was replete with denunciations of the “politics of envy” associated with redistributionist policies, as well as the “morally unacceptable” nature of social expenditure because it means placing a debt burden on the children of today to pay off as the adults of tomorrow.

These are old tropes. Joe Hockey used them regularly when he was treasurer. The intergenerational framework is always going to be a useful means of distracting from the uncomfortable reality of class inequality in the current generation.

A false divide is constructed between those who have a job (and pay taxes) and those who don’t.

It is time that we did away with this fictitious divide. It was always false. It implied that the low-paid cleaner had more in common with the mining magnate than with the person who is locked out of the labour market.

But now, especially as we try to understand the future of work and the massive changes to the structure of the labour market, it is time we consigned this nonsense to the rubbish bin of ideological history.

People who are low paid, casually employed, underemployed, unemployed, informally employed, on dodgy contracts, women who work as unpaid or low-paid carers, students who take whatever work they can get and remain silent about the indefinite training wages, sole parents, people with a disability, aged pensioners, veterans; all have more in common with each other and with other members of the working class than we dare admit.

By recognising this commonality, we can begin to reframe the way in which so-called welfare dependency and the “injustice” and “immorality” of social expenditure is presented. This is crucial at a time when the government has ruled out increasing the woefully inadequate Newstart payment, which has not seen an increase in real terms since 1994 .

The discussion needs some perspective. We have a minimum wage that sits at around 40% of the average weekly earnings and a Newstart payment that sits at around 40% of the minimum wage. The minimum wage is not a living wage and the unemployment benefit is not even a pale shadow of a living wage. And we see the consequences at the St Vincent de Paul Society every day, where topping up from charitable assistance has become the norm for many people simply to survive.

We need a solid jobs plan, and full employment should be a policy priority. Instead we keep getting served up a putting-the-boot-into-the-unemployed-plan and a slashing-social-expenditure-plan. Behavioural approaches won’t fix structural problems. The government can blame people all they like but this won’t address the inequality many are burdened with, as wages are suppressed and profits soar, buttressed by tax cuts, wage cuts and social expenditure cuts….

Our social security system was built in very different structural circumstances. The labour market is different. Work is different. We should be embarking on a serious reframing of how we can, collectively and with common resources, achieve social and economic security for everyone. We need, for example, to explore how government might play a leading role in achieving full employment instead of harassing the people who have been structurally excluded from jobs.

There is nothing innovative about marginalising people who are already made to feel that they have been stigmatised through drug-testing and cashless welfare cards.

There is nothing smart about a program like Path that uses young people for six months as cheap labour and then discards them.

We need to build a way forward that ensures that no one misses out on the essentials of life: a place to live, a place to work (or income adequacy for those who cannot engage in paid work), a place to learn (from early childhood through to university and TAFE), and a place to heal.

This means not just leaving these essentials to the whims of the market but actively ensuring that no one is excluded. This is an economic as well as a social imperative.

Inequality is buttressed and boosted by unfair rules that must be changed. We need to imagine a future predicated not on the perpetuation of inequality but the provision of social and economic security.

Inequality is neither a personal choice nor a national tragedy. It is a choice governments make.

Read the full article here.

Thursday 14 December 2017

Effect of proposed company tax cuts according to Australian Prime Minister Malcom Bligh Turnbull - "All boats will rise"



As households across the country began the count down to the holiday season, Australian Prime Minister Malcolm Bligh Turnbull smugly informed an ABC interviewer that as a result of a proposed cut in the company tax rate* everyone’s income will increase – “All boats will rise”.

This is another way of referring to that now legendary faux economic theory popular with right-wing politicians – the Trickle Down Effect.

This assertion is tested in an Australian Treasury working paper ANALYSIS OF THE LONG TERM EFFECTS OF A COMPANY TAX CUT (May 2016) which modelled a tax cut reducing company tax from 30 per cent to 25 per cent – presumably implemented over the 10 years to 2026-27 proposed by government.

Yes, this working paper estimates that for “a static representative household” “calibrated to match the expenditure, income patterns, and taxes faced by aggregate Australian households” real wages will rise if all other factors in the economy remain unchanged.

So it seems that Turnbull's claim is genuine - or is it?

What Turnbull fails to say is that this “real” wage rise will probably be a paltry est. 1.0-1.1% in total, will take at least 20 years to achieve and will only come about if the average individual also works longer hours.

Based on ABS May 2017 All Employees Average Weekly Total Earnings and an optimistically estimated average annual wages growth of 1.9 per cent; at the end of those 20 years an average worker will have received a total wage increase of est. $851 to $929. Spread out over those 20 years that works out to between 81-89 cents a week extra in his/her pay packet as a direct result of the Turnbull Government’s company tax cut.

Because in real life these company tax cuts are staged and, each stage would have a lag time, no-one is going to see 81-89 cents in their pay packets anytime soon. Indeed a great many people will probably never see this meagre increase at all as the real wages of many low-skilled workers haven't increased alongside higher-skilled workers for the last seven years and there is no indication as to if or when this trend will end.

Over this same twenty-year time period any increase in company income as a result of a 5 per cent cut in the company tax rate would result in millions to one billion plus being added to the bottom lines of a significant number of medium to large corporations. With such savings being just as likely to be diverted into bonuses paid to senior management or paid as dividends to shareholders as they are to being reinvested in a business.

Once more proving that tax cuts for industry, business and those individuals wealthy enough to incorporate their landholdings/investments, have what is essentially a neutral outcome for rest of the population.

Company tax cuts will hardly stir the water beneath those metaphorical boats belonging to ordinary workers.

Therefore this classic illustrative meme still stands under the Turnbull Coalition Government:


Something to remember when it comes time to vote in the next federal election.


Australian Society 2017: age-old privilege remains strongly entrenched


“The Turnbull Government is doing what all Coalition governments have done in the past 40 years - deliver special funding deals for private schools, especially for Independent schools in this case, to ensure their resource advantage and privileged position in the schools market place. As Tony Abbott said of the Liberal Party’s long history of supporting Catholic and Independent schools: “it’s in our DNA”.” [Trevor Cobbold, New Figures Confirm More Private Schools Will be Over-Funded Under Gonski 2.0, December 2017]

The Sydney Morning Herald, 10 December 2017:

Catholic and independent private schools are set to get more than 100 per cent of their needs from governments under the  new "Gonski 2.0" plan, official documents released under Freedom of Information show.

Obtained by the Australian Education Union and processed by the convenor of the Save Our Schools campaign, Trevor Cobbold, the Education Department documents spell out the amount of government funding expected for each school sector in each state in 2018.

In NSW, 110 private schools are expected to receive more than 100 per cent of the so-called schools resourcing standard from governments, up from 65 schools in 2017. By 2027, when the Gonski arrangements are fully implemented, 212 private schools will receive more than their total needs from governments.

In Victoria, 38 private schools will receive more than the resourcing standard from governments, up from 33 in 2017. When Gonski 2.0 is fully implemented, 74 will receive more than all their needs from governments.

The Turnbull government's Gonski 2.0 package will eventually give each private school 80 per cent of the resourcing standard in Commonwealth grants. It will give public schools 20 per cent of the standard…..

The Gonski 2.0 formula will result in a loss of income for some very well-funded private schools, but will increase the number of overfunded private schools. In most states, public schools are funded at less than 80 per cent of the resources standard by the governments that operate them, meaning that although Gonski 2.0 lifts Commonwealth funding to 20 per cent, they will continue to get less than 100 per cent of the standard. NSW public schools would get 91 per cent of the standard, Victorian schools would get 86 per cent.

The private sector would get 107 per cent of the standard in NSW and about 100 per cent in Victoria, according to Mr Cobbold's calculations.

"Gonski 2.0 is the best special deal that private schools have ever had," Mr Cobbold said.

 "The overfunding will cost taxpayers many millions of dollars over the next decade and will divert funds from where they are most needed.

"No funding model that increases the number of overfunded private schools while failing to adequately support public schools can be considered fair. Public schools enrol the bulk of disadvantaged students."….


Wednesday 13 December 2017

Five Australian Prime Ministers & Nine Immigration Ministers Named In Communique To The International Criminal Court in 2016


“Perpetrators – Individual responsibility
40. On the basis of the brief factual outline provided above, there are a number of persons who have, or would have had whilst elected, knowledge of the relevant facts outlined in the elements detailed below, and played a considerable role in the implementation and enforcement of the Immigration Policies. Further, these people have, or would have had whilst elected, the requisite intent to cause a particular consequence or were aware that the consequence would occur in the ordinary course of events (for example, that the implementation and enforcement of the Immigration Policies would result in Immigration Detention, or deportation and Immigration Detention, of boat people).” [In The Matter Of A Prosecution Of The Australian Government In Relation To Indefinite Detention And Forcible Removal Of Asylum Seekers (2016), p.]

In a communique to the International Criminal Court, Malcolm Turnbull, Tony Abbott, Kevin Rudd, Julia Gillard, John Howard, Peter Dutton, Scott Morrison, Tony Burke, Brendan O’Connor, Chris Bowen, Chris Evans, Kevin Andrews, Amanda Vanstone, Phillip Ruddock, Baron Waqa and Rimbink Pato were all named as administrating authorities in relation to the offence of unlawful confinement.

Tony Windsor on fighting the Santos pipeline


They were there in an attempt to survey a pipeline to convey coal seam gas from gas giant Santos’s proposed Narrabri gas field. As one landholder, David Chadwick, said: the pipeline was the “head of the snake” and if allowed to proceed would provide the infrastructure to convey the gas to Sydney or internationally and provide the political pressure to develop about 850 gas wells near Narrabri, with a view to hundreds more across the Liverpool Plains and associated areas.” [Tony Windsor, former  independent member for the federal seat of New England]

The Saturday Paper, 9-15 December 2017:

Last week I was working with my son Andrew on our farm 25 kilometres north of Coonamble when he received a message that there were trespassers on the neighbouring farm. A digital alert system had been put in place for such an event.

Within minutes, farm vehicles from all the neighbours converged on the scene. Others moved in on the trespassers from the eastern side and in a pincer movement the trespassers became trapped and unable to gain access to their vehicles.

By this time, about 100 agitated and concerned farmers, their employees and families were there to express their disgust at what had just occurred. The police had also arrived.
It was ascertained that these trespassers were not your everyday illegal pig hunters or bushwalkers. But they were no less illegal and in breach of the law.

These trespassers were eventually allowed to leave after the police took their details. They proceeded to another small town called Warren, more than 100 kilometres away, where they were observed acting strangely.

The next day, they were followed on the ground by vehicle and in the air by aircraft and again they invaded private lands without appropriate authority and were hunted off. They returned to Coonamble to complain to police about being harassed, and then they left the district.

The trespassers were dressed in new clothes, trying to look like ecological scientists but without any identification. They had a security officer with them.

The question is why? Why would these people climb over a gate to gain access to the property when on that gate was a sign warning about biosecurity, with the farmer’s mobile phone number on the sign? Why wasn’t contact made? Why were they behaving like this?

It has often been said there will be wars over water. In its own way, the scene I was watching was a skirmish in what has the potential to become a war and rewrite the politics of water, land use and energy in this country. It was also an insight into how threatened the farm community felt and demonstrated how it would be difficult to fight these farmers’ guerilla tactics. It was a warning they were serious players.

It also occurred to me that most people in our major cities would not necessarily understand why a small community would mobilise itself so quickly at an apparent breach of their rights.

This article is an attempt to explain some of the detail and policy clashes that will evolve over the coming year, on the Liverpool Plains, on the plain country west of the Pilliga, and around the Adani coalmine in Queensland.

Read the full article here.

Tuesday 12 December 2017

Turnbull was out and about in an orgy of self-praise in the days following Australian Parliament vote for same-sex marriage


“I've personally delivered the marriage bill to the Governor-General. Same sex marriage will be the law of the land at midnight!” [Australian Prime Minister Malcolm Turnbull, Twitter, 8 December 2017]

Coffs Coast Advocate, 8 December 2017:

AUSTRALIAN Prime Minister Malcolm Turnbull has hailed the passage of same-sex marriage legislation in Canberra as a "huge success" in a "day of joy".

"What a day. What a day. What a day in history. What a day for love," the Prime Minister said on The Project.

"What a day to put our arms around same-sex couples and say we love you, we respect you, you have all the rights that everyone else has had for so long - now we're all at one."

While he acknowledged the postal survey had a "few critics", Turnbull said it allowed the country to have their say and he was "so proud" to be the country's leader "when we have made this big decision."

When shown comments from same-sex marriage advocate Magda Szubanski accusing him of "gloating and taking credit" for what has been a painful and divisive few months for many, the PM was unrepentant.

"We have delivered this. But we've delivered this in a way that is respected all Australians and it's now the law of the land," he said.

Speaking to Leigh Sales on 7.30, Mr Turnbull expressed similar sentiments.

"I am so proud this has occurred while I'm prime minister, while the Liberal and National parties are in government," he said.

"Surely you would also like to acknowledge that the Labor Party has played a role in getting this legislation through," Ms Sales shot back.

"Well, look Leigh, this is not the time to do the usual tit-for-tat. I mean, Labor certainly supported it, and that's good. They had six years in office and did nothing about it. That's not so good.
And of course they did everything they could to stop every Australian from having their say."

That is not exactly how I remember it, Mr. Turnbull……….

On 3 December 2011, Australian Labor Party’s policy platform was amended to include support for same-sex marriage, with Labor parliamentarians allowed a conscience vote on the issue.

Then on 19 September 2012  Marriage Amendment Bill 2012, A Bill for an Act to amend the Marriage Act 1961 to establish marriage equality for same-sex couples, and for related purposes, introduced by Labor MP for Throsby Stephen Jones on 13 February 2012, voted down in Division on 19 September, Aye votes included – Shorten, WR, Noe votes included - Turnbull, MB.

It took until 8 August 2016 before the Australian Marriage Law Postal Survey was announced and, as a voluntary, national non-binding postal survey on the question of same-sex marriage it did not require a vote in the Australian Parliament in order for this survey to be conducted.

By 10 August 2017 Leader of the Opposition Bill Shorten had delivered the Matter of Public Importance – Marriage speech in the House of Representatives supporting same-sex marriage survey:

But we cannot let illegitimate tactics deter us; we cannot sit on the sidelines. I can understand LGBTI Australians' sense of frustration and of betrayal by the parliament. But the most powerful act of resistance is to vote yes for equality. Maintain your hope, maintain your enthusiasm and vote yes. And make sure your friends, relatives, colleague, classmates and teammates vote yes too. Get your name on the electoral roll today; make your voice heard. Voting yes is not about endorsing this illegitimate process, it's about refusing to walk past our fellow Australians when they need us. This is my message for business leaders, sporting clubs, the union movement and community groups: it's time to get involved; it's time to organise and fight for equality……I will be voting yes. I will be campaigning for a yes vote. I will do my bit, and I encourage people to join the movement for marriage equality, because no true leader is ever too busy to fight for the fair go in this country.  

Australian Marriage Law Survey forms began to be posted out to eligible voters on 12 September 2017.

However, the only person stopping the tabling of a new bill amending the C'wealth Marriage Act 1961 between August 2015 and September 2017 was you, Prime Minister Turnbull and your personal fear of the far-right in your own government.

"What alternate universe does the Australian Treasurer inhabit?


According to AMP chief economist Shane Oliver “consumer spending is being dragged down by low wages growth, slowing wealth accumulation, poor sentiment, high debt levels and rising energy costs."

In the 2017 September quarter households were spending less on clothing, footware, health, furnishings, household equipment, entertainment, dining out and alcohol - as the pressure on disposable income bites.

Yet this is the Australian Treasurer in December 2017……………
The Sydney Morning Herald, 6 December 2017