The Keneally Solution Emerges

Last night former New South Wales Premier and current NSW Opposition backbencher provided some interesting advice to the ailing federal Labor Government headed by Prime Minister Julia Gillard. That advice, given on a political program on Sky News last night by the once Premier of the state of New South Wales was for the federal parliamentary party to completely revoke, or at least water down the controversial carbon tax which is set to come into force from the 1st of July this year after passing both houses of parliament.

The intervention and advice in this is as surprising as it is late, coming well after the passage of the carbon tax bills through the parliament and just months before the legislation takes effect and well after the political damage has been done.

In the first instance, the political damage inflicted by the instigation of the carbon tax has already been achieved with the broken promise after the August 2010 election which delivered a minority government that has been a source of much political drama.

Secondly, the political woes of the Gillard Government certainly started and are based in a significant way on the carbon price legislation sprung on unwary Australians thanks to the minority government situation in Canberra. However, since that time, the woes of the ALP Government have extended well beyond just the broken promise on the carbon tax package.

They now include other scandals involving the ALP including the Health Services Union scandal that has  enveloped the Member for Dobell under a cloud of allegations, as well as the recent allegations against the new Speaker of the House of Representatives, Peter Slipper, the former Liberal Party MP and Labor choice to replace Speaker Harry Jenkins.

The Prime Minister has over the weekend made moves to distance the government from Mr Thomson and Mr Slipper, with the former agreeing to being suspended from the ALP, to sit on the crossbenches until the allegations have been resolved and the latter agreeing to stand aside longer, until allegations have been dealt with fully.

But these alas are just paper fixes. They will make very little difference to the functioning of the tiny government majority, with it reduced by 1 but still with Mr Thomson admitting that he will vote with Labor on the floor of the parliament.

But back to the calls from Kristina Keneally.

Were the Gillard Government to remove the carbon tax fully they would willingly open themselves up to further attacks from the Opposition similar to attacks being made now over the legislative package,

By moving to not implement the Clean Energy Future package in full, the Prime Minister would in effect be arguing that the Opposition attacks were all correct, that the costs are too extreme and damaging to Australia.

The second option offered up by Ms Keneally would likely cause the same arguments from the Opposition. That is, by offering more compensation and making the tax less severe in other aspects, the government would again be acknowledging that there is much pain within the policy a matter of weeks away from fruition.

The Greens in this whole affair, were it to take place would be in a very difficult position. They wouldn’t support it being watered down, let alone removed altogether before it even started but at the same time, they certainly wouldn’t be getting anything remotely like the current package under the Coalition if they were to become government.

In all this, the government has come out and said that they will not be pursuing the pathway that the NSW politician Kristina Keneally has suggested would help. They are wedded to it.

Changes to the package or its non-start may save some big scalps from humiliation next election night, but alone would not prove enough to reverse the electoral fortune that continues to be told month after month.

In all this, the simple fact remains that the Gillard Government would have to perform an amazing feat on top of removing the carbon tax to get close to winning government, including reversing history which might just prove quite difficult for the ALP to achieve.

About Tom Bridge

A perennial student of politics, providing commentary for money and for free. Email me at tbridgey@gmail.com or contact me on 0435 035 095 for engagements.

Posted on May 2, 2012, in Federal Politics and tagged , , , , , , , , , , , , , , , . Bookmark the permalink. 1 Comment.

  1. Sadly, whatever Labor does, it just seems to dig the hole they are in wider and deeper. It would be nice to see some intestinal fortitude introduced into the members of parliament and to see them unified and aggressive instead of all running about like headless chooks and blubbering to the media. Unfortunately I think that they have reached to panicked ‘Oh my god, I’m going to lose my seat — what can I do, what can I do — who can I blame?

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