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Another Example of Getting Things Done Wrong

The Prime Minister often remarks, particularly in the parliament that her Labor Government are “getting things done” and the number of bills passed obviously does bear out this argument, although this does equal more regulation and “red tape” for business and the individual. It can also, by implication mean that policies and programs are being rushed and established processes not being followed correctly as has been alleged on a number of times over the period of both the Rudd and Gillard Government’s.

This argument is also borne out in the case of the Australia Network tender process which was deeply flawed, rushed, changed and awarded to the ABC in perpetuity despite recommendations to the contrary.

Today the Auditor-General released a report into the botched tender process which does not make for good reading for a government that is trying to gain a foothold to climb the gap that exists in the polls just under 18 months out from the next federal election.

The tender for the Australia Network was for a $223 million contract to broadcast news content overseas, an important form of what is termed “soft diplomacy”- in short, displaying through various media the Australian culture, values and policies which we think will make our nation an attractive place to continue to visit and conduct business with.

Initially, the process was under the purview of the Department of Foreign Affairs and Trade and its minister at the time, Kevin Rudd, with departmental recommendations saying the government could extend the ABC contract or put the contract out to tender, with the department arguing to keep the contract with the Australian Broadcasting Corporation.

The Minister for Foreign Affairs subsequently decided that the contract should be put to tender, with the winner of the contract granted a long contract to provide the news service.

The audit found that before the tender was awarded, that both the Prime Minister’s office and that of the Communications Minister, Senator Stephen Conroy were aware of which party would win the tender.

Then the weirdness escalated- the government began seeking advice as to whether the final nod of approval could be transferred to the Communications Minister from the DFAT Secretary Dennis Richardson and it was.

The tender then underwent significant changes and the leaks began in earnest. These leaks revealed that twice the tender board recommended Sky News be awarded the contract. They were not.

The Government walked away from the tender process after the leaks were reported in the press and then proceeded to award the contract permanently to the ABC which had previously been the broadcaster of the Australia Network.

This flawed process could legitimately be seen as both a symptom of a government in trouble politically and electorally, floundering in the polls and trying to rush to “get things done” and also as a result of a toxic relationship between Prime Minister Julia Gillard and former Minister for Foreign Affairs, Kevin Rudd, whose department should have had the final say on the award of the sizeable contract.

As a result, the government have had to pay compensation for a failure in managing a process and even managing internal relationships between MPs who should be seeking to achieve the same ends regardless of conflicts in personality. Not only that, but the ALP Government have added another failed process to the list of mistakes only adding to the poor perceptions of Prime Minister Gillard and her MP’s.

The Big Spill: All the Wash-up

This morning the ballot for the ALP leadership overwhelmingly confirmed that the ALP want Julia Gillard to continue to be the Prime Minister to take the Labor Party to the next election. This comes after a prolonged period of terrible polling dating back almost to the August 2010 federal election where the ALP Government swiftly lost its majority after Gillard wrested the Prime Ministership.

The Prime Minister won the leadership ballot today 71 votes to 31 for Kevin Rudd, a strong victory, though one that will continue to raise questions about the ongoing unity of the Gillard Labor Government nonetheless.

The lead-up to this big day was incredibly ugly, one of the most de-stabilising times for any party in my living memory (27 years).

The ugly, strong and vitriolic words started to accelerate a week or more before the Minister for Foreign Affairs decided, at a snap press conference at 1:30am in Washington DC to resign his posting, with Simon Crean coming out and declaring open warfare on Mr Rudd.

Those hurtful and damaging words and claims only intensified after that early morning press conference which signified the likelihood of a leadership challenge being brought to the Member for Griffith. This challenge came late last week with the Prime Minister calling for a spill with the former PM on his way home to announce his future, which was always going to be a tilt at the Prime Ministership.

Simon Crean continued his strong words against the former Prime Minister with notable contributions, for all the wrong reasons from Wayne Swan, Stephen Conroy, Nicola Roxon and others.

The Rudd camp could quickly count in its corner the likes of Kim Carr, Doug Cameron, Martin Ferguson and Robert McClelland, both of whom came out publicly and supported Mr Rudd. They were followed slowly by Chris Bowen and in an emotional weekend announcement, Leader of the House Anthony Albanese.

It was very clear, almost from the outset of the spill announcement, that the Rudd camp would struggle to get close to the numbers required to take back the leadership of the ALP Government. The Rudd camp thought that they would have around 40, but of course ended up on the comparatively low 31 votes.

So with the vote now dispensed with and the hostilities finally quelled, at least from the public view, what happens now for the Gillard Government, to borrow a phrase, in “moving forward”?

This afternoon one of the factional heavyweights, Mark Arbib resigned his post as Assistant Treasurer and Minister for Sport and as a Senator for NSW, citing the need to heal the party and also family reasons for his shock decision. This will lead to at least one new face in the Gillard ministry.

More importantly, the Government need to find a new Foreign Minister, with Craig Emerson, the Trade Minister acting in the portfolio until a replacement is announced. Dr Emerson was in the frame for the job in the wake of the Rudd resignation from the post, but you would think him acting in the portfolio means that someone else would be chosen to take on the role full-time.

I have maintained for over a week now that Simon Crean was behind the scenes angling for the job in the event of Rudd going to the back-bench or leaving the parliament altogether. I said this for dual reasons, one that Simon Crean was the first to come out strongly against Kevin Rudd for backgrounding and causing de-stabilisation and two, because Mr Crean has had a long history in parliament and was Trade Minister under Kevin Rudd in fact, a portfolio under the same department as the Minister for Foreign Affairs.

On the Foreign Affairs front still, the other option being put forward in the media is for Stephen Smith to go back to the role that he held under the leadership of Kevin Rudd, though this seems unlikely as he has much work left to do in defence.

The Prime Minister will also need to work out whether she will replace any of the ministers that spoke out against her leadership and who, if any Ms Gillard would replace them with.

On that front, one Rudd backer, the Infrastructure and Transport Minister and Leader of the House, Anthony Albanese in his teary, heartfelt speech offered his resignation from the front bench which was not accepted by the Prime Minister. This signals that the Gillard Government will try to portray a sense of unity within the Government.

Other Ministers, like Robert McClelland, Chris Bowen, Martin Ferguson  and Kim Carr, all Rudd backers, according to some commentators, may face demotion or replacement in a reshuffle in the wake of this damaging time in the ALP. The former and the latter both faced demotion in the last ministerial reshuffle which occurred last year.

It is arguable that for the sake of maintaining the last shred of a facade of unity within the ALP caucus that Gillard should keep all of the key Rudd backers there in their respective places.

This challenge today has also shown that there is a not insubstantial percentage of the Labor caucus that think the Prime Minister is doing a bad enough job to be replaced with the peoples choice, Kevin Rudd and consequently does not shut the door on Rudd or another candidate taking the job if poor polls continue in the election year.

The damage is far from over and the Liberal/National Party Coalition will certainly be out to capitalise on all the material provided to them over the last few weeks in particular and undoubtedly events back to the successful leadership spill in 2010 and the goverment are certainly pedalling up a very steep hill indeed.

The Sunday Sandwich (That’s a Wrap)

Another week in Australian politics and more sensational events which have overshadowed inter-party politics and policy for another seven day period. But this week has been different. A leadership challenge is now afoot

The week began with Kevin Rudd in Mexico G20 Foreign Minister talks followed by the now famous trip to the United States of America.

Little was said by Kevin Rudd about the G20 talks and the same went for his trip to the United States, though meetings he was there for were of a high-level nature, including meeting with US Defense Secretary Leon Panetta.

But then came that bombshell that changed the complexion of the rest of the week. Kevin Rudd called a late night press conference at the Willard Hotel in Washington DC with reporters over there covering the trip scrambling out of bed, rushing to get to what was sure to be a press conference of major significance, given the time and location. Kevin Rudd was resigning his post as Foreign Minister as the position had become untenable in recent weeks with colleagues openly and privately telling him to throw out his leadership ambitions and Rudd saying he did not have the support of his ministerial colleagues.

From the speech onward you knew that was far from the end of this epic story of a party in trouble not least because of leadership tensions in existence within the party- which usually do no de-stabilise this much. Kevin Rudd was to return to Australia on Friday where he would make a definitive statement on his future, which everyone knew, was almost certainly going to be a tilt for the leadership.

The Prime Minister then came out and announced that on Monday at 10am AEDT there would be a leadership spill and that she would be contesting that ballot. Senior Ministers then began filing out one by one in support of the Prime Minister even before Kevin Rudd confirmed he would contest the leadership vote.

That confirmation from Kevin Rudd came from the second press conference he held on Friday, after his return from overseas, where he outlined his vision for the future and canvassed some of the things he regretted from his past time in the Prime Ministership.

Prior to the official announcement by Kevin Rudd of his part in the ballot, ministers like Kim Carr and Robert McClelland gave their support to the former leader in the event he ran.

On another front, Chris Bowen, the Immigration Minister under Prime Minister Julia and Assistant Treasurer under Prime Minister Rudd indicated that he would encourage the former Prime Minister to run, all but indicating formally that he would support Mr Rudd in the ballot.

But it was Saturday that saw the Rudd camp attract its most high-profile Cabinet supporter, in one Anthony Albanese, the Minister for Infrastructure and Transport and the Leader of the House, a day which also saw Senator Mark Bishop, a Gillard backer in the last ballot, switching sides.

The battle looks set to be a win for Julia Gillard to continue her Prime Ministership, looking like polling about 2/3 of the caucus vote on Monday. Though how this could really be seen as a win for Gillard, 30 odd is still a significant number that just contributes to the already toxic image of the Labor Party and damage done to Labor that will just be made even worse when it comes to light during the parliamentary week ahead.

In other news the Gonski Report into education funding was released this week but obviously completely overshadowed by the leadership tensions especially because the Gillard Government has not yet even committed to anything recommended in the report.

The only thing the government has said is that independent schools will not lose a dollar of funding and this would certainly add to the budget woes of the government were it to take immediate action which they need to do at least in the area of disability and indigenous loading.

The week has been dramatic, certainly the most dramatic since the leadership coup in 2010 in my relatively short time observing and commenting on politics from Canberra. Even after tomorrow the story will be far from over with Rudd seemingly likely to continue his campaign to become Prime Minister. I can smell the Labor Party rot from here.

Who Might Get Portfolios Under Either Leader?

As speculation continues as to just how much support former Foreign and Prime Minister Kevin Rudd has in the Labor caucus, the thoughts of some turn to what major portfolios may be granted under either the Prime Ministership of Julia Gillard or perhaps Kevin Rudd.

It is increasingly likely that Kevin Rudd would not take back the Prime Ministership at the leadership spill which occurs on Monday. But it is still possible, were Rudd to pull around 40+ votes of the party room that a second later ballot could be successful a la Keating in the 1991.

Either way that will not stop me speculating just who might get some of the major portfolios vacated or made untenable in this ugly, toxic and likely terminal battle.

As already said, it seems very likely at this early stage, even before Kevin Rudd returns home to Australia that Julia Gillard will win the ALP leadership vote on Monday morning at 10am. That certainly leaves the vacated Foreign Affairs portfolio available to either a strong talent or a key factional backer or perhaps someone with experience in a similar area. Maybe all three.

I strongly believe, and have been stating on Twitter for days now, given his strong backing of the Prime Minister in the media in recent times, becoming the first to outwardly condemn the actions of Kevin Rudd, that Simon Crean will be the successful candidate for the position of Foreign Minister.

Not only do I base my views on that support, but Simon Crean is one of the most experienced members of the ALP party room, having even been one of the leaders of the party this millenium.

More importantly, the current Minister for Regional Australia, Regional Development and Local Government and Minister for the Arts was Minister for Trade, ironically under Kevin Rudd. Trade is a very closely related portfolio to Foreign Affairs and indeed shares the same departmental home, so it wouldn’t be an unnatural step to make.

It is far from certain, with the Prime Minister calling for unity after a vote where she is expected to win, that those Ministers who spoke outwardly in support of Kevin Rudd would be dumped from their portfolios. Indeed unity would probably dictate that they were kept in those positions. However, in the unlikely event they are forced out, that would leave spots for junior backers, including parliamentary secretaries, to take their spots.

Speculation then turns to what positions would be gained by Rudd backers in the event of a successful spill now or in the future. I am not so sure there would be pardons for some of the key Gillard backers in the ministry were Rudd to become PM again.

I think Wayne Swan may be an immediate casualty along with Gillard who would return to the backbench of her own volition, though action against the former may not be a politically smart move.

Of the already announced key backers, I would not mind betting that Chris Bowen would be a candidate for Deputy Prime Minister and add to that the Treasury portfolio, mirroring the situation at the moment where Wayne Swan has both responsibilities.

There might also be some blood from some of the other portfolios, with Gillard supporters like Crean and Conroy possibly losing their responsibilities or being demoted.

Either way, Gillard or Rudd,  it does not look like there would be wholesale changes as being so close to an election it would not give new ministers time to slot into roles properly in which they may not have had much background in their time in politics. Above all else, too much blood and collateral damage would not look like a party united.

It’s fun to speculate isn’t it?

Where to Next for the Member for Griffith?

Kevin Rudd has now resigned as Foreign Minister to become again the Member for Griffith but the story is far from a conclusion and his resignation speech left more questions than answers. Basically his speech left open two possibilities, a challenge from the back bench in the near future or his complete resignation from the parliament.

In his speech from Washington the outgoing Foreign Minister said that he would be consulting his family upon his return to Brisbane sometime on Friday. This statement leaves open the possibility that he may quit the parliament, forcing a by-election. As I said in a post earlier today, this could see Griffith go to the Liberal Party in a by election, making political life all the more tenuous for Labor, like it was just a few short months ago.

In that very same sentence in the speech from Kevin Rudd, he also indicated that he would consult his parliamentary colleagues in the coming days as to his future as well. This could mean one of two things: one that he is seeking to mount a challenge or challenges from the back bench where he will be even more free to cause discontent within the party or, as I just outlined, these consultations may lead to him deciding to quit the parliament. If he did decide to quit parliament, this would be extraordinary from someone whom many see as having an insurmountable amount of ego.

There was one final element of the speech pointing to a possible challenge, when Mr Rudd spoke about the party needing to decide who was best placed to defeat Tony Abbott at the next election. Tellingly, the person best placed to defeat Tony Abbott at the next election, according to polls for a long time, is one K Rudd.

The only sure thing is that this saga will continue until at least Monday or Tuesday, with Friday, Saturday and Sunday turning out to be must watch days in Australian politics. However, my money is on the fun not being over yet and I wouldn’t mind betting a Keating style tilt at the leadership being a possibility now. Only time will tell.

The Sunday Sandwich (That’s a Wrap)

It’s Sunday and that means that another hectic week in Australian politics has passed with all its highs and lows, its angry words and policy announcements and legislative discussions. The week was punctuated by two main events, the passage of the Private Health Insurance Rebate means testing, a legislative win at least for Labor and the ALP leadership tensions seemingly heading toward a booming crescendo. Parliament also sat for the week and also proved far from uneventful.

The Gillard Government and its Health Minister managed to negotiate enough votes for the passage of means testing for the Private Health Insurance Rebate. This issue has seemingly split sections of the community and the two major parties no less, with Tony Abbott pledging he would reinstate the rebate for all as soon as possible upon election of a Coalition Government.

Parliament sat for the second week in a row, the first sitting period of the year and has again proved to be a full on affair with some changes affecting the complexion of Question Time. Questions must now be 3o seconds and answers no more than 3 minutes, a helpful change that should be added to as parliament progresses under the new Speaker, Peter Slipper.

Regardless of the changes, the usual bad behaviour continued, with Ministers, including the Prime Minister repeatedly cautioned to be “directly relevant” to the question asked. There was also no let-up from interjections across the chamber and a number of Coalition MPs found themselves having a coffee break during Question Time. A few ALP MPs also faced the same early afternoon tea courtesy of the new lower tolerance for interjections from the new Speaker.

Questions over the Labor leadership also permeated the week and on Saturday reached fever pitch with allegations in the press that senior Ministers were actually testing the waters for a potential Rudd spill in the coming weeks. The longer the speculation goes, the more pain it will cause the ALP and the more terminal the government will become.

The week has undoubtedly been a dramatic one with both legislation and leadership tensions dominating the week in the parliament and outside of it. The leadership tensions are becoming all the more real and almost tangible and they will surely continue to play out over the coming week, even in the absence of the key player, Kevin Rudd who heads overseas again, though this could provide opportunity for supporters to do their work. The parliament has risen after two weeks, but there will be little cooling of the political discourse which has only really just begun for the year and don’t forget, the Gonski review into education funding will also be released this week, but likely overshadowed by terminal leadership tensions.

You get the feeling that the coming week will not be like an ordinary non-parliamentary sitting week and that doesn’t bode well for the Labor Government.

Question Time Ahead of Time

Day 3 of federal parliament is upon us and will bring with it another rambunctious hour and a half of Question Time from the House of Representatives. We know what the issues will be but not from what angle they will be approached by either side, but the lines are drawn and both sides firmly mired in their respective positions of attack.

The Opposition will again focus on the economy in their attacks of the Government, as they have in the two sessions previous, basing their interrogation around perceived impacts of the carbon tax and the Minerals Resource Rent Tax (MRRT), to not do so would work against much of the poll gains made.

It is also likely that events surrounding the Member for Dobell, Craig Thomson will be brought into question, again, as they have this week, not so much attacking the man, but attacking the glacial pace of the Fair Work Australia (FWA) investigation. It does so because FWA is the Prime Minister’s baby where under Kevin Rudd Prime Minister, workplace relations was in her portfolio, beginning the post WorkChoices era.

The Government will again focus on the economy from their viewpoint of comparative strength to other economies in relation to jobs, debt and deficit. The overwhelming percentage of Dorothy Dixer’s will focus on these areas from one angle or another.

The Government is also likely to take the opportunity through the Dorothy Dixer to talk about either the perceived benefits of the Minerals Resource Rent Tax and the NBN, perhaps even both as they try to establish credibility in delivery, albeit expensive action.

The new shorter questions, shorter answers, shorter Question Time has now been delivered thanks to Speaker Peter Slipper coming to the chair with his own thoughts on the way Question Time and the House of Representatives procedure more broadly should run. The much shorter questions and shorter answers are a good start but could be strengthened further as they have appeared to have little difference on the quality of Question Time, except to herd it into a slightly shorter package.

The final factor to keep an eye on for the final Question Time of the week will be the ever-present spectre of the censure motion being brought to bear by Opposition Leader Tony Abbott or perhaps Manager of Opposition Business, Christopher Pyne. With the almost routine manner  in which we have seen the motion appear it would be remiss of me to not include the eventuality, especially with the Gillard Government failing in so many areas.

Be listening or watching at 2pm AEDT to see what plays out in the theatre that is Question Time. Who will take the upper hand at the end of the first parliamentary sitting week, hoping to convert it into ongoing momentum for the political year?