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Not So Taxing Times

The Minerals Resource Rent Tax has commenced and it’s causing problems for the Gillard Government, including in particular, the Treasurer. What most people would not have expected is the way in which it is causing trouble for Wayne Swan. Instead of having to defend a huge tax grab, the Treasurer today was forced to respond to reports in newspaper The Australian that the MRRT failed to raise any revenue in it’s first quarter of operation. This is a circumstance few would have seen coming, though tumbling commodity prices should have provided somewhat of a warning to the pundits.

You see, the Minerals Resource Rent Tax, the renegotiated version of Kevin Rudd’s Resource Super Profits Tax was designed in an interesting way. Even though the name was changed, the new iteration was still a tax on profits. Therefore, when profits were high, the tax would be paid and when they were low, it would not.

Budget papers, released earlier this week in the Mid-Year Economic and Fiscal Outlook showed that the government believed the tax would still raise $2 billion this financial year.

A failure to clearly sell the way the tax works is the main reason that the response today was as it was. Too little time was spent saying that the tax would not raise revenue in bad times, but would in good times.

It is also a failure of design. If the ALP wanted to be sure of revenue then pegging the new tax to profits as they did was not the way to achieve a certain stream of revenue, especially one so easily impacted by poor commodity prices. To make matters worse, the new mining tax is not to prop up revenues with proceeds put away for future benefits. No, the tax revenue raised was to pay for promises made by Labor.

Clearly the turn of events this week, including the broader revenue shortfalls announced as part of MYEFO, make the prospects of returning to surplus extremely unlikely. Commodity prices for one would have to not just get back to where they were, but likely higher to make up for the time when the price was below expectations. Those prices could yet stay low for some time.

But the tough week, more accurately the tough day today did not end there for Mr Swan.

Speaking to reporters in Brisbane today, Treasurer Wayne Swan twice made a mistake when saying how much revenue the Minerals Resource Rent Tax would provide to the budget bottom line. Twice the Treasurer said that the tax would make $9 billion this financial year.

Actually, the resource rent tax is set to make $9 billion, not over the first year, but over the forward estimates, the next four financial years. It was a case of third time lucky for Mr Swan.

Ordinarily a simple gaffe like that does not mean much. It happens to politicians from time to time. However,for a Treasurer battling for a surplus and not having the numbers add up, it adds to a perception of confusion and uncertainty on the part of Wayne Swan and the Gillard Government.

The Opposition of course were crowing, enjoying a day where again, the Treasurer has been squirming over economic issues. But the celebration should also have been a tad on the difficult side for them too. The tax raised no revenue, so it was not doing the damage to the economy and businesses that the Coalition had warned about.

Federal Labor are seeing any remaining hope they had of returning the budget to surplus, which was delusional in the first place, evaporating before their very eyes.

But it is not the surplus the ALP should be most worried about the most. It is a worry, but the least of them. What they should be worried about the most is how much they might have to borrow to pay for the spending promises associated with this new tax of theirs.

Channelling ‘The Boss’, But Still Bashing the Bosses, Well Some of Them

The rich person bashing seems to be coming in waves. First we had the phase of talking down the likes of Clive Palmer, Andrew ‘Twiggy’ Forrest and Gina Rinehart. This first particular episode of the politics of envy came from the moment Wayne Swan’s article in The Monthly made its way into the public eye.  The second wave, which we’ve been pre-emptively warned about will commence this evening with renewed attacks highlighted by the Treasurer as coming our way when he gives the annual John Button Lecture in Melbourne tonight.

Let’s be honest, it’s not about all billionaires and other extremely rich people, if it was Mr Swan would have targeted the likes of Frank Lowy, Kerry Packer, Harry Triguboff and others. He hasn’t, it’s all about the mining billionaires, the ones who’ve spoken out against the Minerals Resource Rent Tax. The others don’t even rate a mention. Does Swanny think that they pay enough tax? He clearly does, there’s no additional profit tax being proposed for them.

While we’re being honest, who wouldn’t complain about having to pay extra tax? Let’s face it, we’re all self-interested individuals, well most of us at least. I’m pretty sure that just about anyone, from the richest among us to the poorest among us would be uncomfortable having to pay extra tax. This is especially the case when the services provided with the money people already pay in tax aren’t exactly all glowing examples of efficiency and the smart use of money.

Is it really smart for the Treasurer of our nation to be publicly knocking someone for having an opinion? Why not knock the countless individuals that don’t want to pay more tax and in many cases want to pay less tax? We all know that happens too.

Let’s get serious again for a minute. Clive Palmer employs an estimated 3000 plus people across his businesses. Andrew ‘Twiggy’ Forrest through his company Fortescue Metals Group (FMG) employs over 2000 people. Not only that, but Mr Forrest, through his Australian Employment Covenant has reached his target of finding 50,000 jobs for indigenous people a massive and very worthwhile initiative. Gina Rinehart, for her part employs and will seek to employ in the future a not insignificant number of people either.

Do we really want to bash Australians that create so many jobs? Do we really want to attack those at the head of companies which are involved in an industry which has played a major part in saving us from recession? Those who own companies in an industry that is currently still saving us from very poor economic results? I don’t think so.

Is Wayne Swan’s claim that these particular individuals are having too much of an influence on democracy actually true? Well actually no it isn’t. Pretty sure the Deputy Prime Minister has actually gone ahead with both the carbon tax and the mining tax despite the protestations which spawned the spending of millions of dollars on advertising campaigns against the two taxes.

The reality is they’re still going to pay them. That is, they’re still going to pay them until a Liberal Government takes power which you’d say is a dead certainty on the back of continued poor poll figures for the Labor Government. Yes, Clive Palmer is involved within the LNP in Queensland but at the same time I’m pretty sure a central tenet of liberalism is lower taxes and well isn’t that the result? Wouldn’t that play a part in making it easier to do business?

All this lunacy from a man that takes his inspiration from Bruce ‘The Boss’ Springsteen. Springsteen is a guy who’s made millions of dollars from a music career in which some of his song bash the rich, all in the name of making himself feel better about his own substantial wealth, estimated at about $200 million. But hey, his music is brilliant.

Why Amend Civil Unions At All?

Today the Queensland Government announced something that Queenslanders and those interested in politics and gay rights were probably not expecting. The Premier, Campbell Newman was widely expected and feared to be about to say that there would be a full repeal of the civil unions laws instituted by former Treasurer and Deputy Premier, Andrew Fraser. This didn’t happen, though pretty much everything but a full repeal of the laws, a step toward marriage equality that the state finally took just months ago was announced today by the Queensland Premier.

It was identified before the March election that an incoming LNP government would look at repealing the laws introduced to the Queensland parliament by the former MLA for the electorate of Mt Coot-tha and it was, as said, pretty much viewed as a fait accompli by advocates, indeed just about everyone in Queensland you would expect.

Then today, we got a bit of a shock, less than a half shock, but a shock nonetheless. A full repeal is not going to happen, but the announcement has been a hollow victory for supporters of same-sex marriage and equal rights for same-sex couples with the announcement pointing toward taking a pretty big step back from heading toward marriage equality, a step which the commonwealth will inevitably have to take with marriage being within the federal jurisdiction.

What will happen now is that the Civil Partnerships Act will be amended by the LNP Government to remove the provisions that “mimic” same-sex marriage. Couples will still be able to register their relationships by signing documentation papers which will provide acknowledgement that their relationship exists but they will not be able to have a state sanctioned ceremony that was allowed under the provisions brought into law by the Fraser legislation.

Unfortunately, the Christian lobby saw it as an affront to have a special ceremony legislated for by the state which they saw as being akin to gay marriage even though people in these relationships surely have not seen it as such. Further, the ceremony itself was a voluntary act and out of the 609 civil partnerships registered in Queensland since the legislative change, a massive 21 (sarcasm fully freaking intended) opted to have that voluntary ceremony.

Did churches have to involve themselves in these ceremonies at all? No. Were those celebrants out there who hold religious views compelled to preside over same-sex marriage ceremonies? No.

So why does the Christian lobby fear something that isn’t marriage and isn’t foisted upon them by the state? The answer is likely just that, fear. A type of fear of love between a man and another man or a woman and another woman, not a scary concept at all, though perhaps it is to an institution that has continued to struggle for relevancy with declining levels of adherence.

The reality too is that same-sex marriage, though a while away yet is inevitable and that too is likely to not call upon churches to hold actual marriage ceremonies within their hallowed halls.

The government really shouldn’t have bowed to the church lobby when they were not being impacted on at all, but the outcome isn’t altogether awful and is at least a half-relief for people in these equally special relationships where their love is no different to your love for your wife, husband, boyfriend or girlfriend.

Question Time Ahead of Time

It’s Thursday folks and that means, for those who get their political fix from watching the nightly news bulletins that it’s the last day of the week that you have to endure shouty and often silly grabs. It’s been a rather subdued week of Question Time from Canberra with the House of Representatives not seeing a single motion to suspending Standing Orders in the three days that have elapsed in this sitting week and that doesn’t look set to change today. It has however been a week full of one-off vitriolic comments and that is an immense shame. It has been a very predictable week in Australian politics again and that will almost certainly continue today to round out the week.

The Coalition have spent the first 3 days of Question Time this week focusing on the Roy Hill Enterprise Migration Agreement (EMA) and the reported consultation gaps (read complete lack thereof) between the Prime Minister and her Minister for Immigration. Aside from the nearing carbon price commencement on July 1st this issue has completely dominated political debate in the parliament since the decision was announced by the Immigration Minister last Friday at the National Press Club.

Things could change slightly today in Question Time in the wake of comments from the Prime Minister to a group of miners overnight which could precipitate a return to questions around the Minerals Resource Rent Tax.

Of course, the other focus of the Coalition as it has been since the broken promise just after the 2010 election will be on the carbon tax which will be commencing in just over a month. It is entirely possible that this could become the main focus of tomorrow ahead of, or in place of the EMA debate which only has so much to give.

The Gillard Government will undoubtedly pursue the same two-pronged post-budget, pre-carbon price commencement Question Time strategy that has been used almost continuously since the budget was delivered on the 8th of May. This will mean most attention is drawn to selling the family and low income earner assistance that was delivered as part of the supposed surplus-returning fiscal statement delivered by Treasurer Wayne Swan only three and a bit weeks ago. The questions as they have relentlessly, will focus around the education payments and the increased family tax benefits.

The other focus which has been essential for the Gillard Government in an attempt to claw back ground on the issue after losing it just after the election has been to highlight the overcompensation that many will receive after the carbon price commences in July. This means many questions about how the Household Assistance Package will help the electorates of those asking Dorothy Dixer’s to the Prime Minister, the Minister for Climate Change, the Minister for Family Services, Communities and Indigenous Affairs, Treasurer and perhaps other ministers.

Further, although minor in focus during Questions Without Notice and not guaranteed, the ALP Government backbenchers have asked their ministers about environmental issues and education, although the latter has largely been tied to the payments tied in with the budget.

So that’s likely to be Question Time for Thursday with only minor exceptions likely or the level of focus of each topic varying a little bit. After today we’re set for two weeks respite from the Canberrra theatre before two more weeks of parliament and then the long winter recess saves the day for those of us not too keen on the theatrical side of politics, especially when it ain’t no Shakespeare and isn’t funny enough to match the likes of Gilbert and Sullivan.

Question Time Ahead of Time

Another parliamentary week is upon us after a one week break post budget week and it promises to provide fireworks from the very start with a statement from Craig Thomson, the embattled MP for the electorate of Dobell who stands accused in a report by Fair Work Australia of a list of alleged civil law breaches. Question Time as always will be a regular and theatrical feature which this week promises to be more of a saga than a short film, but still with plenty of comedy interspersed with the drama and political warring.

The Coalition will undoubtedly focus its week in Question Time on Craig Thomson, starting just a short time after his speech to the House of Representatives today which is set to provide his explanation for events that have landed him in hot water.

The Opposition will almost certainly seek a motion to suspend standing orders in relation to this matter today as they have done so previously and on such a day would be unlikely not to engage in the same political tactic.

For today at least, it seems that most, if not all questions from the Coalition to the Gillard Government will be about Craig Thomson and it seems very unlikely that the Opposition will seek to ask many, if any questions on the budget which was two weeks ago tomorrow.

If there are to be any questions on matters other than Craig Thomson and the HSU then it is likely it will be the carbon price through the prism of advertisements which have just started showing which promote the Household Assistance Package, read compensation for the carbon tax, which mention nothing about what the payment is for.

The ALP Government on the other hand are likely to focus on just that, the budget. 

In particular, the government will focus on the education and other payments announced or amended in the fiscal statement by Treasurer Wayne Swan and quite possibly the NDIS which has been the focus of some uncertainty in the last two weeks.

Returning to surplus will also be a broader focus in Question Time from Dorothy Dixer’s particularly with the Treasurer stepping up to the despatch box as Acting Prime Minister while Julia Gillard is overseas talking all things Afghanistan.

It too is entirely likely that the carbon price will get a look-in from the government as payments of compensation start to flow ahead of the starting date of the scheme.

Deputy Speaker Anna Burke is back in the chair as acting Speaker for the second week and the Coalition will want to be on their best behaviour or they will find themselves in the tense environment today with depleted numbers when they will be wanting to make moves which require all the votes they can muster and then some.

The statement from Craig Thomson commences at about midday and shortly after that at 2pm we will have Question Time which promises to be even more amped up than we have experienced in recent times and that says a lot.

Budget 2012-13: The Purported State of Affairs

Finally that one night of the year where the government of the day outlines the broad priorities (and not so much priorities) to be focused on in the coming fiscal year has come and gone. It has been an extraordinary period leading up to and including the budget with leaks and announcements far outstripping those of previous years, probably down to the fact that the government, so badly suffering in the polls needs as much clear air and momentum as they can get, if only to simply keep treading water.

So what is the state of play with some of the projections on the state of the budget for 2012-13 and beyond?

Well, the Gillard Government, through Treasurer Wayne Swan announced this that after year after year of deficits the fiscal year ahead would see a surplus achieved of $1.5 billion according to their word anyway. Not only that, but according to projections, the next 3 budgets after that would also be in surplus, with the leftover funds growing year by year over that period.

The budget papers announced that over $33 billion would be cut from the budget to make way for the very slim $1.5 billion dollar surplus with defence spending a massive loser, being cut by approximately $5.5 billion

For all the fuss over the cuts and deferrals of spending announced in the fiscal statement, there was also a number of new announcements outlined in the papers, not least of which includes a $3.2 billion package for aged care and $1 billion over four years for the establishment of the National Disability Insurance Scheme, the  latter a much talked about but until now lacking in detail initiative.

But alas the exercise tonight for the Gillard Government was more about political ends and achieving a budget surplus in an attempt to regain at least some political favour. Journalists tonight by and large certainly seemed more than willing to assist the Labor Party in their quest to be widely celebrated for the budget, with many consistently referring to the budget, which won’t see its final results until mid next year at the earliest, constantly referring to the budget actually being back in surplus when that is so far from certain.

Indeed, with a wafer thin surplus of only $1.5 billion and with still uncertain global conditions and the possibility of future domestic shocks, not to mention new and necessary spending requirements, the idea that the budget would even be in surplus when the time comes is at best incredibly iffy.

The budget has been and will be viewed as a win for many low and middle income earners, with the odd exception mixed in and a loss and letdown for business who had hoped for and expected much more from the government given the rhetoric.

The big sell begins now. The Government have certainly tried to buy back some votes, but it seems incredibly unlikely that the budget will be a game-changer when the players are not even listening anymore and have stopped participating in some cases.

Question Time Ahead of Time: Budget Day Special

It’s that special day that comes around but once a year. It’s that day when the Treasurer strides to the despatch to spend a good amount of time outlining the budget priorities for the fiscal year ahead, what will be key priorities and what will be the focus of cuts. Undoubtedly too, in times like these deferrals also form a part of the budget.

Question Time and the House of Representative sitting itself today will be the first one out of the chair for Peter Slipper since taking the role while investigations continue into claims of misuse of Cabcharge and sexual harassment are investigated. This puts ALP MP for Chisholm and Deputy Speaker Anna Burke in the chair for Question Time and the all important budget address and could see fiery exchanges if the last time Ms Burke was in the chair for a brief period in Question Time is anything to go by.

The Coalition will quite likely not be focusing entirely on the budget in this sitting of Question Time, commencing just five and a half hours before the budget is delivered from the House of Representatives at 7:30pm. Aside from the budget and the new spending, cuts and budget tricks, the Coalition will still likely ask questions on the carbon tax, maybe the Minerals Resource Rent Tax and perhaps even Craig Thomson and Peter Slipper investigations, the latter of which reached a head yesterday with a Fair Work Australia report yesterday naming him hundreds of times in relation to alleged wrongdoing of a civil nature.

The Gillard Government will likely focus all of their efforts in Question Time through the Dorothy Dixer on key aspects of the budget that they believe will be items which have electoral benefits for them. To this end, questions from their own side will likely focus on the National Disability Insurance Scheme, the aged care reforms  and the cash handouts for education.The government will also likely focus on the fact that they are trying to return the budget to surplus for financial year 2012-13.

Question Time as always begins from 2pm and can be caught on your television, radio or computer.

Costings for Many Projects But Not the NDIS Until Tomorrow

Last week, to the excitement of many people with a disability and their parents and carers, the Prime Minister announced that in the budget to be delivered by Treasurer Wayne Swan tomorrow evening, the government would be allocating funds for a total of four “launch sites” to begin to deliver the Productivity Commission recommendation of a National Disability Insurance Scheme. In making this announcement, the Prime Minister Gillard has hastened delivery of the policy to a full year earlier than outlined by the Productivity Commission in its recommendations on the matter.

In announcing the intention to deliver this funding allocation in the budget, the Prime Minister told the Sydney rally that they and other Australians with a stake in the policy would have to wait until budget night for further details, including the most important part of the package, the funding itself required to deliver the promise to reach 10,000 Australians with a disability beginning in July next year.

This, in light of the other budget announcements made by the government should be raising eyebrows in query of why one particular group has to wait until the budget is delivered to find out just how much it might cost when other announcements made have had costs attributed to them.

There are various projects that the government has announced, both new spending and cuts where practically full detail has been outlined, compared with the NDIS which has been teasingly announced, but lacks in detail on both cost and locations.

What we do know is that the ALP Government have, for some weeks and months now been holding the NDIS up high as very important and often placing it, if by words only at this stage, at the centre of their policy agenda and political communication with the electorate.

This could have much to do with the fact that the initiative is set to help over 400,000 Australians and their families to deal with the astronomical costs associated with having a disability including equipment and often regular rehabilitation. That’s a lot of votes that a government so on the nose with the public could do well to attract even though it would appear to be just in order to “save the furniture”.

So perhaps announcing the exact details of costs for the project on budget night would be in order to create great fanfare? Put a positive spin on a budget which is supposed to be tough and replete with cuts and budget tricks?

The in-principle support of the states is not without question and that could have something to do with the lack of detail released which would include negotiating where to commence the scheme and whether the states would be stumping up funds for the trials beginning next year.

Whatever it is, people with a disability have waited long enough for policy that will assist them when they cannot help themselves and will allow many to be able to fully participate in the basic daily activities that most in our society take for granted.

In any case there is not much over 24 hours until the detail is announced and interested stakeholders will certainly be watching closely to see whether they might get to test the new framework in just over a years time.

Budget Announcements and Half Announcements are Outdoing Possible Leaks

It is a regular feature of Australian politics that in the days and weeks leading up to the delivery of the budget by the Treasurer of the day budget leaks and rumour generally abound from the Australian political centre that is Canberra. This year however, announcements of budget items seem to have outdone the whisperings about possible spending allocations and cuts that followers of politics are used to leading up to that Tuesday in May when the Treasurer steps up to the despatch box to inform the country of their governments fiscal priorities.

There has been, for some days now a rumour abounding in Canberra and fuelled by the heightened interest of politicians in ensuring it does not occur, that the Gillard Government is set to announce cuts to the foreign aid budget.

This follows a promise by Labor, under former Prime Minister, now humble backbencher, Kevin Rudd that the Labor Government he once led, would increase foreign aid spending to a total of 0.5% of Gross National Income (GNI) by financial year 2015-16.

The belief around Canberra and the aid sector seems to be that the government are set to scrap their commitment to head toward spending on foreign aid of 0.5% of GNI.

The rumour mill surrounding this has almost exploded from being overworked and it would appear, with the strength of the political backlash to the simple report of this possible move that there has to be a real element of truth in it, without any real details having been leaked on the matter. So this item, almost alone in specific and credible rumours will be one to keep an ear out for confirmation of or otherwise from 7:30pm next Tuesday, May 8th.

But for this one real virulent rumour there have been more confirmations of and half announcements of both cuts and new spending to be allocated in what the Labor Government hopes will be a budget that returns to surplus in 2012-13.

Aged care is set to be overhauled in the 2012-13 budget to be delivered by Treasurer Wayne Swan on Tuesday. Back in April it was announced that the government would commence, on the 1st of July 2012 a ten year plan costing $3.7 billion to transform the way aged care is delivered, allowing more people to seek care in their own homes and making the cost of aged care homes easier to bear for the most financially vulnerable.

The Australian Government, via Prime Minister Julia Gillard on Monday at the NDIS rally in Sydney half announced that there would be an allocation of funds toward starting the National Disability Insurance Scheme a year earlier, commencing at 4 different launch sites from July next year.

But it was only a partial announcement from the PM, albeit a very welcome development for Australian’s with a serious and permanent disability and their families and carers. Prime Minister Gillard announced that next year these 4 launch sites would assist an initial 10,000 Australians with a disability and double the next year to provide help to another 10,000 people.

What this announcement lacked was detail, including most importantly, the estimated cost of the program rollout, but also what parts of Australia would be given the opportunity to be covered by the Medicare-like framework. The PM said we must wait until the budget for the details, a real tease, if not a hope building one in this important area of government policy.

In a budget where the expectations were for savage spending cuts, a new spending initiative is a very interesting element in the budgetary discussion which is ramping up five days from its announcement.

Today too, the government have announced $214 million toward the planning of 12 new submarines to replace the Collins Class fleet which had their troubles, particularly in the initial stages of development and operation.

Again though, for these not insignificant spending allocations, the Labor Party have also flagged ahead of May 8, areas where they will seek to slash or defer public spending.

The government today also announced in the area of defence spending that there will be both cuts and the deferral of spending in the area of purchasing defence materiel.

It was announced today that the planned requisition of self-propelled artillery will be scrapped altogether and this alone would save the budget bottom line a total of $250 million dollars.

The trouble-plagued delivery of the F35 Joint Strike Fighter (JSF) will be delayed two years from the previously expected date of receipt, moving our acquisition of this defence capability into line with that of the US. In doing this $1.6 billion will be saved from the budget from this measure by itself.

In announcing the cuts to defence spending, both the Prime Minister and the Minister for Defence, Stephen Smith assured Australia that defence cuts would not impinge on or include cuts to spending related to our operations in Afghanistan and elsewhere overseas.

The leaks and rumour mill have been almost non-existent over the budget-planning period and look set to remain minimal with only three full working days left before the final announcement of spending priorities occurs in Canberra. This could be put down to the poll woes that have faced the government for a prolonged period of time, trying to get some messages out early to cloud what is supposed to be a difficult budget, according to the warnings repeatedly given, no matter how unbelievable.

Nevertheless it has been an interesting exercise to observe the seemingly comparative lack of rumours as we hurtle toward the 2012-13 budget.

The Palmer Intervention

Today, to the amazement, but apparently to many on social media not shock, the billionaire mining magnate Clive Palmer announced at a press conference this morning that he would be seeking preselection for the seat currently held by the Gillard Government Treasurer, Wayne Swan. Many are treating it as gospel that Mr Palmer will be the one to take on Mr Swan in the Queensland electorate of Lilley, despite the fact that he has just self-nominated for the preselection race.

Those in the commentariat who have already conceded that any other LNP member who is standing, or will put themselves up for the party nomination would do well to remember a recent precedent that was set in recent history within the party.

Prior to the 2010 federal election the senior federal MP Peter Dutton, now Shadow Minister for Health and Ageing stood for preselection in the safe LNP electorate of McPherson after the retirement of Margaret May, doing so after his electorate of Dickson saw redistribution turn his seat won from Cheryl Kernot of the ALP, into a notional Labor division.

Despite his standing within the party, including his position and the support of the Liberal Party leader at the time and former Prime Minister John Howard as well as that of the retiring representative of McPherson, the senior Liberal lost the campaign to local businesswoman Karen Andrews.

Clive Palmer too, is considered a prominent LNP member and voice, albeit for different reasons to Mr Dutton. The mining billionaire Clive Palmer is the biggest single donor to the LNP, having given more then $3 million to the LNP. That sum has, rightly or wrongly led to complaints of Palmer “buying the party” and/or “buying influence” within the party.

Today, despite that supposed influence, the response from within the party at the federal level to the announcement has at best been lukewarm, with Liberal Party MPs probably cautious after the recent comments from Mr Palmer about the Greens and a supposed CIA link.

Like the McPherson example, the LNP in Lilley may well and probably should go for a grassroots, local candidate for the electorate, as opposed to a non-local. Yes, the margin is slim, sitting at only 3.18%, well within reach of a Liberal Party Opposition that seems all but poised to take government at the next election, whether it be in 2013 or sooner. It has been held by the Liberal Party before, as recently as 1996-1998.

The LNP, especially in an electoral division like Lilley, with a mix of middle and working class voters, would do best to have a candidate not just from the area but that whose background best fits the needs and aspirations of the voters in the electorate north of the Brisbane River.

But alas, again a warning. This is just an announcement of candidacy for preselection, it is far from a fait accompli that the colourful character Clive Palmer will be the candidate  for Lilley at the next federal ballot. Precedent stands in the way of a certain Palmer candidacy and there are still processes that need to be gone through before anyone can say, “I told you so” or  otherwise.

 

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