Darron CharlesworthLabor in Political Strife on Super Profits Tax
May 20th 2010 21:15
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The Resource Super Profits Tax (RSPT) proposed by Labor is set to become their make or break policy. The party has backed themselves into a corner on this with no way out which will be profitable to their re-election potential.
In the first instance the tax is being decried by the mining industry. While this is clearly hyperbole the industry is being effective in scaremongering. Liberal Party representatives are predictably defending the industry and state Labor governments are joining the Libs in questioning the policy. Liberal Western Australia has opposed the policy from the first announcement.
The mining industry has been able to use the threat of shelving projects, lost jobs and reduced investment to drive fear in the electorate. This has the potential to swing votes in key marginal seats particularly where mining is prominent. That the Union movement is not fully supportive of the tax does not bode well for Labor.
From polls conducted in the mainstream media Labor have little to celebrate. There is no clear electoral support for the RSPT which is somewhat surprising. What this shows is that the mining industry has been so effective in its scaremongering and lobbying that it has the public, shareholders, workers, Unions and investors worried enough to question the policy. Given the industry’s strong position it is able to hold off investment long enough to complete the bluff and protect its obscene profiteering.
For Labor this is a disaster. After months of policy problems the last thing the party needs coming up to an election is another back-down or complete failure to deliver. Labor’s list of failure includes:
• The failure of the Insulation Scheme;
• Serious questions surrounding the effectiveness, value, contractor conduct and mismanagement in the Building Education Revolution (BER);
• The withdrawal of Emissions Trading from the political agenda;
• Questions about Ministerial misconduct;
• No decisive action on Water policy in the Murray-Darling and;
• A weak compromise on the promised Health takeover
These have all raised the question of Labor’s ability to deliver and, more importantly, Kevin Rudd’s political conviction.
With Labor unable to deliver on any of its major policies and the proposed RSPT set to generate negativity the party would be starting to worry. With the latest opinion polls showing support for the Liberals increasing on a Two-Party preferred basis Labor’s re-election prospects are set to take yet another big hit. The question is: will Tony Abbott be able to raise enough support to topple King Kevin?
In the first instance the tax is being decried by the mining industry. While this is clearly hyperbole the industry is being effective in scaremongering. Liberal Party representatives are predictably defending the industry and state Labor governments are joining the Libs in questioning the policy. Liberal Western Australia has opposed the policy from the first announcement.
From polls conducted in the mainstream media Labor have little to celebrate. There is no clear electoral support for the RSPT which is somewhat surprising. What this shows is that the mining industry has been so effective in its scaremongering and lobbying that it has the public, shareholders, workers, Unions and investors worried enough to question the policy. Given the industry’s strong position it is able to hold off investment long enough to complete the bluff and protect its obscene profiteering.
For Labor this is a disaster. After months of policy problems the last thing the party needs coming up to an election is another back-down or complete failure to deliver. Labor’s list of failure includes:
• The failure of the Insulation Scheme;
• Serious questions surrounding the effectiveness, value, contractor conduct and mismanagement in the Building Education Revolution (BER);
• Questions about Ministerial misconduct;
• No decisive action on Water policy in the Murray-Darling and;
• A weak compromise on the promised Health takeover
These have all raised the question of Labor’s ability to deliver and, more importantly, Kevin Rudd’s political conviction.
With Labor unable to deliver on any of its major policies and the proposed RSPT set to generate negativity the party would be starting to worry. With the latest opinion polls showing support for the Liberals increasing on a Two-Party preferred basis Labor’s re-election prospects are set to take yet another big hit. The question is: will Tony Abbott be able to raise enough support to topple King Kevin?
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