THE ABBOTT GOVERNMENT – A MID-TERM REPORT

With reaction to the Abbott Government’s second budget a great deal more favourable that that which greeted the budget for 2014, The Sydney Institute brought together four political commentators to assess how the government could be seen to be doing. Jennifer Hewitt, National Affairs columnist, for The Australian Financial Review, Chris Kenny, columnist with The Australian and Sky News presenter, Rebecca Huntley, social researcher and writer and Dimitri Burshtein from the financial services industry and former NSW Treasury official addressed The Sydney Institute on Monday 22 June 2015.

THE ABBOTT GOVERNMENT – A MID-TERM REPORT

REBECCA HUNTLEY

In order to give the Abbott Government a mid-term report, we need to go back to why they were elected. In simple terms, they were elected because they weren’t the Labor Party. And they were elected because voters hoped they would focus on the economy, in particular job creation.

The Abbott Government has done a good job of not being the Labor Party (the Liberal Party even seems to have handled a leadership challenge better than its predecessors). But the focus on jobs has been lacking. In addition, in order to evaluate how the government is faring post the recent budget, we need to look at how they handled last year’s budget and the aftermath.

There continues to be some confusion among voters about how serious Australia’s economic situation is, particularly in terms of public spending and debt. Last year, the government said the budget measures were necessary because public debt was at alarming, dangerous levels. This year’s budget seems to be a worrying retreat from that position. The “nothing to see here” rhetoric from the government leading up to this year’s budget seemed transparently political. Voters did want to see something, namely a long term vision for the economy and our society at large.

Budgets aside, there has been a common theme in discussions among voters for some time. Voters are constantly reflecting on the state of the economy, which they recognise is in a slow and uncertain phase of transition. There is fear and apprehension about our economic direction. What is happening to manufacturing and industry? Voters see signs of economic decline all around them; concerns about unemployment across the board persist. Where is the investment in the future?

The qualitative research I was involved in as a director at the research firm Ipsos showed that the most unpopular ideas in last year’s budget were those that voters perceived undermined our ability to invest in the future – higher education, helping young people into work and keeping older people in work and childcare. The Mind & Mood report released by Ipsos earlier this year showed continuing concerns were expressed about the health and trajectory of the economy.

There was widespread disappointment that almost 18 months after being elected the federal government had not successfully demonstrated that the plans they had would get things back on track. Job security remained a top concern. This was fuelled by voters’ personal experiences with redundancy, as well as the widespread belief that Australia’s corporate giants were on a mission to replace as much of their permanent workforce as possible with casual labour or send the jobs off shore.

There was also disbelief that the government was expanding the controversial 457 visa program in the face of rising unemployment.  Some argued that instead of making it easier for companies to import cheap labour, the government should be investing much more in the local workforce and providing young Australians with the knowledge and skills required to create a productive, sustainable economy.

Participants from regional towns and smaller cities were hyperaware of the shortage of permanent full time jobs and worried that they had developed an unhealthy dependency on tourism and events.  Even government employees weren’t seen as safe from mass redundancies and the outsourcing of work to contractors.

There was ongoing talk about housing affordability and the stress that exorbitant housing prices have placed on young people who were refusing to give up on the dream of owning their own home. While further cuts to interest rates were welcomed by existing home-owners, they only served to fuel anxiety amongst self-funded retirees and first time home buyers.  There were also complaints about stamp duty and real estate fees.

Deregulation in the higher education sector left many worried about the impact of the rising cost of education on both upcoming generations and on the economy overall.  With TAFE courses now costing upwards of $10,000, options for post-compulsory education have become increasingly limited.  How can Australia’s economy get back on track without a skilled local workforce, many ask.

In a more recent discussion I hosted among 40-something women in inner city Sydney, the budget came up as a talking point, namely for what wasn’t in it rather than what was. As one woman put it:

Why is nobody interested or talking about how to set up our economy so it can remain a first world economy? If we are a highly educated first world country, which we are, what are the other countries doing in this area other than tourism. Industry, innovation and entrepreneurship? What’s our intellectual capital worth? The politicians talk about this but where is the action, the funding? Where is the roadmap?

The mid-term report card for the government is not unlike my 7 year old’s mid-term report card. Lots of potential but could try better.