Tag Archives: Liberal Party

‘The time has come to say something of the forgotten class’: how Menzies transformed Australian political debate



Trove/National Library of Australia

James C. Murphy, Swinburne University of Technology

The Conversation is running a series of explainers on key figures in Australian political history, examining how they changed the country and political debate. You can read the rest of the series here.


As Australia’s longest serving prime minister, the career of Robert Menzies remains a model of political success in this country.

Despite this, much of Menzies’s legacy has failed to live long past his time in office, let alone into the 21st century. He was, for instance, firmly in favour of White Australia, obsessed with Australia’s British roots and idolised the monarchy. He also believed the Communist Party ought to be outlawed, and oversaw a highly protected, regulated economy. In many ways, Menzies was the last bastion of an old Australia we would hardly recognise today.

However, there are two notable exceptions – ways in which Menzies did manage to transform Australian political debate in a lasting way: firstly, through his construction of a middle-class political constituency he called “the forgotten people”; secondly, as the founder of the Liberal Party and Coalition.

Menzies was a staunch supporter of the British Commonwealth, holding the monarchy in high regard.
Wikimedia Commons

Rising through the ranks

Born in Jeparit, Victoria, in 1894, Menzies rapidly made his way into the elite of Melbourne society. After working as a barrister and later a youthful minister in two Victorian state governments, he was elected to the federal parliament with the United Australia Party in 1934.

Attorney-General Menzies then became prime minister after Joseph Lyons died in office in 1939, just as the second world war broke out.

His factional enemies in the UAP were not impressed by his wartime leadership and, after his closest allies were killed in a plane crash, Menzies was forced out of the leadership in 1941.

Within a year, Labor was in government, and the UAP was collapsing.

This was not the end of Menzies, though. In 1944, he led efforts to reunite various right-of-centre groups to form a new anti-Labor party — the Liberal Party of Australia. He then headed the party’s campaigns against the Labor government’s alleged “socialist” excesses, such as bank nationalisation and petrol rationing.

In 1949, he led the Liberals to a sweeping election victory. Though he had some electoral near misses, and part of his longevity was owed to a fortuitous split in the Labor party, Menzies remained Liberal leader and prime minister until his retirement in 1966.

‘The forgotten people’

In 1942, as he sought to resurrect his political career, Menzies gave one of Australia’s most famous political speeches, which envisaged a constituency he called “the forgotten people”:

But if we are to talk of classes, then the time has come to say something of the forgotten class – the middle class – those people who are constantly in danger of being ground between the upper and the nether millstones of the false class war; the middle class who, properly regarded, represent the backbone of this country.

These were middle-class, god-fearing citizens, neither rich enough to fend for themselves, nor poor enough to seek trade union representation, and thus lacking power. They would become Menzies’ core constituency, with the party tailoring its policies to helping them meet their modest aspirations for themselves and their families.

Where the UAP had been seen as tied to the upper class and big business, Menzies would seek to attach his party to this ignored middle class, a group more Australians could imagine themselves to be part of, even if they had never thought of themselves in those terms before.

This construct has remained at the centre of Liberal Party rhetoric, reincarnated as John Howard’s “battlers” and Scott Morrison’s “quiet Australians”.

Even Labor has, at times, sought to defer to this supposed “backbone of the nation”. In his first speech to the Press Club as Labor Leader, Anthony Albanese suggested the ALP had lost the 2019 federal election because, to many voters, it failed to be the party of aspiration; essentially, that they neglected Menzies’s forgotten people.

Of course, this is not to say there really is a quiet, unassuming, aspirational majority lurking out in the suburbs. Rather, Menzies’s forgotten people are a rhetorical construct that has grown a life of its own. Politicians believe in this constituency and defer to it, even if it is not, actually, a meaningful voting bloc.

A Liberal-National Coalition

Menzies was also the driving force in creating and holding together the Liberal Party — and indeed the long-term Liberal-National Coalition, an alliance that has historically shifted the focus of political debate.




Read more:
Australian politics explainer: Robert Menzies and the birth of the Liberal-National coalition


Keeping liberals, conservatives and rural interests in one bloc has meant the battle for leadership in Australia became a contest between the Coalition and Labor. This was no easy feat. Indeed, until 1944, there had been numerous minor parties campaigning on the right of the political spectrum. Some were reluctant to join Menzies’s new party, given that it would be a “liberal”, rather than “conservative” party.

Free-traders and economic moderates frequently fell out over welfare and tarrifs; hard-line conservatives and social liberals had serious disagreements over censorship, multiculturalism and other social issues. However, Menzies managed to unite them under what Howard would later call the Liberal Party’s “broad church” by focusing on Labor’s “socialism” and the international threat of communism. This appeal similarly kept the Nationals as Coalition partners. Menzies said:

In 1949 we were swept into power at what was then an almost record level of majority. Now all that happened because we had something to believe in, not just something to oppose, something to believe in.

Consequently, the issues, problems and demands that divided the Coalition have not been fully discussed in the public arena, but rather suppressed within party room debates and compromises. This has, to an extent, enabled non-Labor alliances to dominate politics. More recently, the two-party system has begun to break down, with more and more voters availing themselves of minor parties and independents in order to place previously ignored issues on the political agenda.




Read more:
Can the Liberal Party hold its ‘broad church’ of liberals and conservatives together?


Menzies’s legacy

Menzies’s legacy, then, is not so much his particular beliefs or policies, nor in the model of leadership he provides as Australia’s longest serving prime minister. Rather, his lasting contributions were the rhetorical and organisational structures he built. While the former have faded into obscurity, the notion of “the forgotten people” and the Liberal-National Coalition remain as important now as they were when Menzies retired from office in 1966.

Had he retired from public life at his low ebb in 1942, Australian politics might look very different today.The Conversation

James C. Murphy, PhD, Lecturer and Tutor, Politics and History, Swinburne University of Technology

This article is republished from The Conversation under a Creative Commons license. Read the original article.


Issues that swung elections: the dramatic and inglorious fall of Joh Bjelke-Petersen



Joh Bjelke-Petersen with his wife, Flo, on their wedding day in 1952. Bjelke-Petersen made an ill-fated bid for PM in 1987 that ripped the Coalition apart.
Queensland Newspapers Pty Ltd/Wikimedia Commons

Shirleene Robinson, Macquarie University

With taxes, health care and climate change emerging as key issues in the upcoming federal election, we’re running a series this week looking at the main issues that swung elections in the past, from agricultural workers’ wages to the Vietnam War. Read other stories in the series here.


Johannes (Joh) Bjelke-Petersen’s reign as Queensland’s premier began in 1968 and came to a dramatic and inglorious end 19 years later with the Fitzgerald Inquiry into police corruption. He is still Queensland’s longest-serving premier, but he leaves a complicated legacy. For many, he is remembered most for his rigid control of over all areas of government and his anti-democratic stance on public protests.

Bjelke-Petersen governed the state as leader of the Country Party (which later became the National Party) until his downfall in 1987.

In May that year, the ABC television programme Four Corners aired the first public allegations of organised crime and police corruption in Queensland. Bjelke-Petersen would hang on to office for only a few more months before being forced to step down.

The Fitzgerald Inquiry, launched in the aftermath of the Four Corners programme, continued for another two years, uncovering a deep and systematic web of corruption that implicated many at the highest levels of Queensland government and the Queensland Police Force.




Read more:
The man who would be commissioner: Bjelke-Petersen’s crooked pick


For Bjelke-Petersen, not only was his career as a state premier over, but so, too, were his national ambitions. In early 1987, Bjelke-Petersen had launched an ill-fated “Joh for PM” campaign in a brazen attempt to challenge then-Liberal Party leader John Howard as head of the Coalition, then run against Prime Minister Bob Hawke in that year’s federal election.

His bid for power split the federal Coalition. Capitalising on the internal dissent of the Opposition, Hawke easily won the 1987 election, holding onto the prime-ministership for another four years.

Bjelke-Petersen ends interview prematurely after questions about Fitzgerald Inquiry.

An ill-fated run for federal office

Hawke’s win in the 1987 election had been far from inevitable. The Coalition had actually been ahead in the polls for much of Hawke’s 1984-1987 term. However, internal divisions, typified by the rivalry between Howard and Andrew Peacock over the Liberal leadership, put pressure on the party. Tensions were further stoked when Bjelke-Petersen announced his intention to enter the federal arena.

In January 1987, when Bjelke-Petersen announced that he intended to run for parliament, he assumed that his success in Queensland could be duplicated at the federal level. Fresh from a win in the state election the previous year, he and his backers did not acknowledge the distinctive set of circumstances in Queensland that had given rise to his long time in office.

His bid for PM did make a brief splash in the national media, drawing further attention to the deep ideological rifts within the federal Coalition. Howard, leader of the Liberals, and Ian Sinclair, leader of the Nationals, struggled to contain the division caused by Bjelke-Petersen’s ambitions. The discord reached a breaking point at the end of February 1987, when the Queensland National Party decided to withdraw its 12 federal MPs from the Coalition in support of Bjelke-Petersen’s efforts. The Coalition formally split soon after.

Hawke seized on the Coalition’s infighting and quickly called an election on May 27. Bjelke-Petersen was not even in the country at the time, having gone to the United States. Outplayed and dealing with increased coverage of corruption and dissent in Queensland, Bjelke-Petersen swiftly abandoned his plan to run for prime minister.




Read more:
The larrikin as leader: how Bob Hawke came to be one of the best (and luckiest) prime ministers


By the end of the year, Howard’s Coalition was fatally divided. Labor was returned to government and increased its majority in the House with 86 seats to 43 for the Liberals and 19 for the National Party.

The win allowed Hawke to take his place in history as the party’s longest-serving prime minister.

Bjelke-Petersen meets with fellow Queensland politician Russell Hinze. Both figures left office amid allegations of corruption.
Wikimedia Commons/John Oxley Library, State Library of Queensland/ Queensland Newspapers Pty. Ltd.

A tarnished legacy in Queensland

The failings of the Bjelke-Petersen government in Queensland extended far beyond the arrogance that saw him attempt an ill-conceived move into federal politics.

Under his leadership, Queensland was not democratic. His government exploited the state’s electoral gerrymander, which over-represented rural electorates at the expense of urban ones. The state’s unicameral parliament meant the checks and balances a second house would have provided were absent.

Bjelke-Petersen also relied on a police force rife with corruption to prop up his government. Dissenters faced brutalisation at the hands of police when they took to the streets. A repressive set of laws that banned protests meant taking to the streets could result in time in prison. For too long, the media were silent about the corruption taking place in the state.




Read more:
Jacks and Jokers: Bjelke-Petersen and Queensland’s ‘police state’


Journalist Evan Whitton called Bjelke-Petersen “the hillbilly dictator” in reference to his carefully cultivated parochial style of leadership. Yet, Bjelke-Petersen was guided by a shrewd political awareness. He styled himself as a defender of a unique Queensland sensibility and scorned the more progressive southern states. He was not opposed to using fear and prejudice for electoral gain.

His treatment of LGBTIQ issues provides one strong example. During the 1980s, the Bjelke-Petersen government made efforts to prevent gay and lesbian teachers from being employed and gay students from forming support groups. When the AIDS epidemic reached Australia, his government demonised LGBTIQ individuals. As most other Australian states decriminalised sex acts between men, Bjelke-Petersen’s government attempted to introduce anti-gay licensing laws and criminalise lesbianism. In 1986, the Sturgess Inquiry into Sexual Offences Involving Children and Related Matters was used by the government to further ostracise gays and lesbians and turn the public against them.

The Bjelke-Petersen era provides a cautionary tale. It is difficult to imagine any other premier maintaining his or her position for this long again. His ill-fated bid for federal politics also reveals the impact that egomaniacal and divisive figures can have on political parties.

Bjelke-Petersen may not have been the only factor behind Hawke’s 1987 win, but his intervention certainly did Howard no favours – and deepened a rift in the Coalition that took years to mend.The Conversation

Shirleene Robinson, Associate Professor and Vice Chancellor’s Innovation Fellow, Macquarie University

This article is republished from The Conversation under a Creative Commons license. Read the original article.


Issues that swung elections: rural voters get a voice and topple a government in 1913



Prime Minister Andrew Fisher meets farmers in Murgon, Queensland, in 1913.
Queensland State Archives, Digital Image ID 3057

Peter Woodley, Australian National University

With taxes, health care and climate change emerging as key issues in the upcoming federal election, we’re running a series this week looking at the main issues that swung elections in the past, from agricultural workers’ wages to the Vietnam War. Read other stories in the series here.


One of the forthcoming federal election’s many questions is how rural Australians will vote. On issues such as climate change, coal seam gas extraction, water management and basic decency in politics, voters in regional Australia are disillusioned. The old certainties of rural politics seem to be breaking down, and there is a heightened sense that the long-established structures amplifying country voices are no longer working.

More than a century ago, rural Australia was in a similar state of flux over how farmers should engage with state and federal politics. The 1913 federal election was a pivotal moment in the contest of ideas about what sort of polity and society rural Australians wanted. The alliances that emerged from the election led to the formation of the Country Party, the precursor to today’s National Party.

The 1913 election was called by the Labor prime minister, Andrew Fisher, a former coal miner and avid trade unionist. Fisher first served as PM in 1908-09, leading a minority government. When he attained a comfortable majority in both houses of the parliament at the 1910 election, he initiated an ambitious reform program that included liberalising disability and old age pensions, introducing maternity allowances and workers’ compensation, and enacting a progressive land tax on the unimproved value of the largest rural properties.

It was a considerable record on which to seek another term of government, but also contained elements that would galvanise resistance in rural Australia.

Prime Minister Andrew Fisher ran into considerable opposition to his reform agenda prior to the 1913 federal election.
State Library of South Australia (PRG 280/1/3/289)

Developments in rural Australia

At the time, the New South Wales Farmers and Settlers Association (FSA) was emerging as a powerful and effective voice, claiming to represent farmers, both large and small. By 1914, it would boast 430 branches across the state.

The FSA executive opposed any form of land tax, even on the largest landholders, on suspicion that a Labor government would one day impose it on all farmers. However, farmers still struggling to acquire a “living area” were sympathetic to the Labor Party’s agenda, as many were once shearers or rural labourers.

When a resolution was proposed at the FSA conference in 1907 that would bar members of the Labor Party from joining the organisation, a Jerilderie delegate objected that such a motion would “cause disastrous splits in families the members of which included supporters of both organisations”. During that same period, senior members of the FSA executive resigned rather than renounce Labor sympathies.




Read more:
Issues that swung elections: the ‘credit squeeze’ that nearly swept Menzies from power in 1961


By 1913, another issue had intensified the FSA executive’s antagonism towards Labor: the increasingly active Rural Workers Union (RWU).

The conservative government of George Reid, which held power in Australia from August 1904 to July 1905, had excluded large numbers of rural labourers from the federal Conciliation and Arbitration Act of 1904, arguing that the seasonal and unstructured nature of agricultural work made formal schedules of pay and conditions impractical.

The Labor Party contested this view, and in 1910, Fisher’s government amended the act to include rural workers. The RWU then sought registration with the Court of Conciliation and Arbitration as a first step towards achieving an industrial award mandating minimum wages and conditions of employment.

Then, in early 1913, the RWU began negotiating with the powerful Australian Workers Union, which represented shearers and shearing shed hands, with the aim of amalgamating into one big rural union.

This provoked significant disquiet in FSA branches. The FSA executive, led by the articulate and politically astute farmer Robert Patten, redoubled its efforts to energise and expand its membership among small-scale farmers and their families, encouraging them to align themselves firmly on the side of capital.

The 1913 election

In the midst of these developments, Fisher called an election for the middle of 1913. He was opposed by Joseph Cook who, like Fisher, was a British migrant with a coal mining background.

Cook entered the new federal parliament in 1901, and by 1909, had become deputy leader in Alfred Deakin’s Commonwealth Liberal Party – a new, anti-Labor coalition, or “fusion,” of members formerly associated with Free Trade and Protectonist alliances. (It was also a predecessor of the modern Liberal Party.) Cook then became leader of the opposition when Deakin resigned in January 1913.




Read more:
Cultivating a nation: why the mythos of the Australian farmer is problematic


Fisher presented six referendum questions to the electorate to coincide with the 1913 election. Each was designed to extend Commonwealth powers in light of the High Court’s unsympathetic rulings on aspects of his reform agenda. All six proposals were rejected by a slim margin – a sign the electorate was perhaps wary of the pace and breadth of Fisher’s reform agenda.

In the election itself, the country vote would prove to be crucial.

Like the referendums, the House of Representatives election was tight. The main parties were separated by only 9,000 of the 1.85 million total votes cast.

Labor entered the election holding nine more seats than the opposition, picking up seats in the big cities and Victorian regional centres of Bendigo and Ballarat. But in rural areas, the Liberal Party prevailed, picking up four Labor seats alone in Victoria.

In New South Wales, the FSA endorsed supporters of its platform running as opposition candidates in seven seats. Four of them deposed sitting Labor Party members, including Patten, who defeated the pro-Labor independent William Lyne in Hume. It was the last seat declared, and Cook won government with a majority of one.

But Cook’s victory was short-lived. By the time he had selected a speaker, his majority had disappeared, and Australians would be back at the polls by mid-1914, just as war broke out in Europe.

The election would have a longer-lasting legacy with the organisation of rural voters into a sizeable – and powerful – voting bloc with a dedicated, conservative presence in federal politics. The Country Party emerged as an independent and distinctly rural voice during the war and held the federal balance of power by 1922.

Australia’s population was already drifting to the cities when the Country Party formed, but that has not prevented the rural vote from continuing to exert a strong, often disproportionate, influence on Australian politics.

As in 1913, the 2019 election could prove to be a decisive moment in shifting rural political alliances, with broader consequences.The Conversation

Peter Woodley, PhD candidate, School of History, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.


Issues that swung elections: Labor’s anti-war message falls flat in landslide loss in 1966



Anti-Vietnam War protesters march from the US Consulate to Hyde Park in Sydney in 1966.
State Library of New South Wales/Wikimedia Commons

Jon Piccini, Australian Catholic University

With taxes, health care and climate change emerging as key issues in the upcoming federal election, we’re running a series this week looking at the main issues that swung elections in the past, from agricultural workers’ wages to the Vietnam War. Read other stories in the series here.


As far as 1960s policy issues go, none were bigger than the Vietnam War. Images of helicopter gunships and long-haired protesters overlaid with rock music are the era’s stock footage. But, was it ever a major election issue in Australia?

In November 1966, an Australian Labor Party that had been in opposition for 17 years finally saw victory within its grasp. And the party’s ageing leader, Arthur Calwell, focused on the war as Labor’s main point of difference with a seemingly divided, aimless government.

Organisations like the Australian Peace Council, Save our Sons and the Youth Campaign Against Conscription pushed hard for a Labor victory. But, in the end, Prime Minister Harold Holt not only won the contest, his Liberal-Country Coalition actually gained 10 seats, leaving Labor to lick its wounds.




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Student protests won’t be the last, and they certainly weren’t the first


Australia’s involvement in the war

An Iroquois helicopter picks up member of the 7th Battalion Royal Australian Regiment during the Vietnam War.
Department of Defence/ AAP

Australia’s involvement in Vietnam began in 1962. What started as a 30-person training deployment quickly grew to a battalion after then-Prime Minister Robert Menzies announced – inaccurately at the time – that South Vietnam had requested further assistance in its defence against the North Vietnamese-backed communist insurgents in April 1965.

This was a strategy of “forward defence” that marked Menzies’ policy towards Asia, which was widely supported by the Australian electorate as a way to stop the spread of communism across Southeast Asia. This strategy mirrored fears of a “domino theory” that would bring communism to Australia’s shores.

Public reactions to Australia’s involvement in the Vietnam War were positive at the start.

However, conscription was not as popular as the war among Australians. Polling in October 1966 showed that the public opposed conscription for overseas service by about 60%. Calwell, who had been the Labor leader since 1960, knew this and made it the most important issue in the next election.

Menzies’ retirement in January gave Labor confidence going into the 1966 election. Holt was a relative unknown who barely differed from Menzies on policy. At the same time, Labor was modernising its platforms by doing away with things like support for the “White Australia” policy.

Also, an October 1966 visit from US President Lyndon B. Johnson, which Holt hoped would buoy his chances, was marred by anti-war protests that were broadcast around the world.

Labor’s failed conscription tactic

Prime Minister Harold Holt (left) shares a drink with Lyndon B. Johnson during the American president’s visit to Australia before the 1966 federal election.
Wikimedia Commons

Yet, if anything, the focus on conscription showed not Labor’s revival but its continued stagnation. During the first world war, Calwell had been involved in the defeat of conscription in two national referendums in 1916 and 1917. Fifty years later, Labor hoped to use the timing of the anniversary of those defeats to its political advantage.

Speaking in April 1966, Calwell cautioned that conscription was a “sinister word” for Australians that would “split the nation and leave the same bitter memories as did the referendum campaigns of 50 years ago”. Then, in a campaign speech only days before the vote, Calwell condemned those who wished to plunge their “arthritic hands wrist deep in the blood of Australian youth”.

While not particularly innovative politically, Holt’s relative youth and seeming vigour – demonstrated by somewhat salacious photographs he took on the beach with his young daughters-in-law – seemed a breath of fresh air.

But this was just one of the reasons Calwell’s rhetoric fell flat. The audience for his messaging was also unclear. Australia was an increasingly youthful nation, but the voting age of 21 meant the “baby boom” generation had little electoral weight.

And while growing numbers of young people were protesting the war, they did so without reference to the first world war, but with theatrical protest tactics from overseas.

Legacies of the 1966 election

A 2012 ceremony involving Australian and New Zealand troops to commemorate the battle of Long Tan during the Vietnam War in 1969.
Australian War Memorial/ AAP

Holt’s unexpected landslide victory – winning twice as many seats as his opponent –proved politically explosive. While receiving little credit for the win, which most put down to Calwell’s ineptitude, Holt used his remaining year in parliament to cement an independent reputation through such initiatives as the May 1967 referendum on Indigenous rights.

His disappearance off Cheviot Beach in December of that year left an unfinished legacy.




Read more:
The photographer’s war: Vietnam through a lens


As for the antiwar movement, Labor’s election failure led to disenchantment and reorientation. Increasing numbers of young agitators saw the result as a sign of deep public apathy with the movement. This led to more provocative and controversial protests, such as the daubing of soldiers with fake blood during parades, raising money for the Viet Cong and rioting outside the US Consulate in Melbourne.

Labor largely went quiet on Vietnam after its defeat, only returning to the barricades in time for the Moratorium marches of May 1970, by which time public opinion had finally turned against the war. It has been said that the 1966 election’s most significant legacy was as

the last stand of a distinctive Labor style – impassioned, traditionalist [and] Irish-Catholic.

Calwell’s post-election position proved untenable and he was replaced by the deputy leader, Gough Whitlam, who would spend the next five years modernising a party many considered stuck in the past. In the end, Calwell’s overzealous commitment to wielding the past as a political weapon only fast tracked this process.The Conversation

Jon Piccini, Lecturer, Australian Catholic University

This article is republished from The Conversation under a Creative Commons license. Read the original article.


1996-1997 cabinet papers show how Howard and Costello faced a budget black hole


File 20181220 45385 17exejd.jpg?ixlib=rb 1.1
The newly sworn-in Howard ministry in March 1996.
National Archives of Australia

Frank Bongiorno, Australian National University

On the morning of Monday, March 4 1996, the young treasurer in the Howard government, Peter Costello, and his press secretary, Tony Smith – now the speaker of the House of Representatives – took an Ansett flight from Melbourne to Sydney for their first departmental briefing. The treasury secretary, Ted Evans, who had initially asked to see Costello privately, offered his resignation in light of the change of government. Costello assured Evans he wanted him to stay on.

Once the meeting began, Evans had some startling news for his new boss. The budget had an underlying deficit of about A$9 billion. “Costello appeared genuinely shocked”, his biographer, Shaun Carney, has reported. The size of the deficit probably did take him by surprise, even if the existence of a deficit of some kind did not. John Howard recalls that he had wind of it before his March 2 election victory.

A submission released today by the National Archives of Australia in its 1996-1997 cabinet records sets out the nature and scale of the problem that the new government saw as its most serious during its first term. But problem would become opportunity. In his autobiography, Lazarus Rising, Howard would call the 1996 budget “the most important of all budgets” delivered during his almost 12 years in government, as well as “the best and bravest in 25 years”.




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Howard is hardly a disinterested party. Nonetheless, there is a persuasive strand of opinion among commentators that the fiscal decisions taken in 1996, while creating political pain for the government and economic pain for voters, were foundational for Howard and Costello.

Some have credited this early decision-making for Australia’s economic resilience in the face of turbulent global winds: the Asian financial crisis, the bursting of the dot-com bubble, even the global financial crisis.

The cabinet submission of March 18 1996 predicted economic growth of 3.75% for 1995-96 and 1996-97, on the back of improved performance from the farm sector as the drought ended. Weak demand was likely cyclical, a “temporary slowdown of the type which often occurs at this stage of the business cycle and that growth should strengthen in subsequent quarters”, as business investment again took off.

Howard’s quip from opposition in 1995 – that the recovering economy was “five minutes of economic sunlight” – was effective politics. But it was not supported by the new government’s own records, which referred to a “generally favourable outlook”.

Compared with the skyrocketing interest rates and then the recession the Hawke and Keating governments faced in the early 1990s (or the recession the Hawke government inherited in 1983), these were happy days.

However, unemployment remained high at well over 8% and was projected to stay there in the following year.

The government was also concerned about the drag on economic performance of continuing budget deficits and rising government debt. This was running down national savings, undermining investment and worsening Australia’s current account deficit – the difference between the value of imports and exports of goods, services and capital.

Costello committed the government to reducing the underlying deficit of 3.5% of gross domestic product to 0.5% over three years, thereby reducing public sector lending, relieving pressure on the current account deficit, and returning the budget to a structural surplus. The government rejected the idea of a single massive cut of A$8 billion in the 1996 budget as running the risk “of knocking the economy off course”. It therefore committed to cuts of A$4 billion in each of the budgets of 1996 and 1997, with an eye to less pain in the 1998 budget leading up to an election.

With defence spending quarantined from the cuts, the August 1996 budget was indeed a tough one. The usual suspects – health, welfare, the public service and tertiary education – bore much of the load. Nonetheless, the government’s own polling suggested most voters thought its measures “tough but fair”, dispensing necessary if bitter medicine.

Howard remarked at the December launch of the latest cabinet records release that the government applied to the budget a “fair go” test, although he would ultimately bear pain for his too-clever distinction between “core” and “non-core” election promises.

Tony Abbott was a young parliamentary secretary in 1996, on his way up but still some way from the real levers of power. By 2013, however, he had his own government and with his treasurer, Joe Hockey, faced the problem of framing his first budget.

The 1996 effort would have provided a strong clue for Tony Abbott and Joe Hockey to frame their first budget after their 2013 election win.
AAP/Lukas Coch

The 1996 effort would have been a powerful precedent for a new Coalition government in 2013 and, at a superficial level, the Abbott government did many similar things. As Howard and Costello had done, it established a National Commission of Audit.

Costello had complained of the “Beazley black hole” – the deficit bequeathed by Labor’s finance minister, Kim Beazley. Conveniently for the government, he was also the new opposition leader. The phrase lived on as a way of reminding electors of the Labor Party’s weaknesses in economic management and the Coalition’s achievements and strengths.

In 2014, Abbott and Hockey spoke of a “budget emergency”. But whereas the public seems to have bought the “black hole” image – although described recently by economist Warwick McKibbin as more like a temporary “pothole” – voters appear to have regarded the Abbott government’s “budget emergency” as invented.

One reason for this failure ironically lies in legislative changes that Costello announced at the very time he drew public attention to the black hole. This was the Charter of Budget Honesty, which mandated more rigorous reporting on the national finances, including the alphabet soup of MYEFO (Mid-Year Economic and Fiscal Outlook) and PEEFO (Pre-Election Economic and Fiscal Outlook), as well as five-yearly intergenerational reports.

These initiatives, which a Costello cabinet submission of August 2 1996 said were intended to promote “responsible fiscal management”, made it well nigh impossible to spring the surprise of a large deficit on an unsuspecting public and successor.

Unlike Hawke and Keating in 1983, and Howard and Costello in 1996, Abbott and Hockey could not stoke panic to implement unpopular measures and back out of difficult election commitments. The Charter of Budget Honesty meant they could not claim to have been blind-sided by an unanticipated budget deficit.

Howard and Costello also faced a much more helpful set of parliamentary numbers than their Coalition successor. With a massive 94 seats in a House of 148, they had political capital to burn. While few imagined the government would last almost 12 years, equally few considered it could be defeated after one term.

But it is in the Senate that the differences between 1996 and 2014 become clearer. There, the Howard government held 37 seats in a chamber of 76. After the defection of disgruntled Labor senator Mal Colston in August 1996, the government could get its legislation passed without the support of the Australian Democrats if it had Colston and the other independent senator, Brian Harradine, on side.

By way of contrast, the Abbott government faced a Senate cross bench of considerable complexity and diversity. And, as Howard has remarked, dealing with the Australian Democrats was notably easier for a Coalition government than getting Greens support.




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In 1996, Howard and Costello got the politics right. They still paid a political price, but it did not prove fatal. McKibbin argues that the introduction of a GST in 2000 was made easier by the reduction of government outlays and the elimination of the budget deficit in the government’s first term.

By dealing with spending in 1996, the government was able to turn its attention to revenue and taxation in a more favourable fiscal environment for politically difficult reform.

The image remains: as they contemplated their own horror budget, Joe Hockey and Mathias Cormann relaxed with cigars. Trivial in itself, this clumsiness epitomised the Abbott government’s muddled budget politics.

In 2014, after decades of strong economic performance, few believed that the drastic measures the Abbott government proposed in 2014 were either necessary or fair. Hockey declared the “age of entitlement” over, but voters suspected this did not extend to politicians or their friends.

The contentious measures in the 2014 budget – such as the Medicare co-payment and the winding back of unemployment benefits – did not pass Howard’s “fair go” test.

But the tough spending cuts Costello announced in 1996, while hardly provoking an outbreak of national joy, were an early taste of the professionalism and toughness that he and Howard brought to their long years at the helm.The Conversation

Frank Bongiorno, Professor of History, ANU College of Arts and Social Sciences, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.


What Malcolm Turnbull might have learned from Alfred Deakin


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In jettisoning Alfred Deakin, the Liberals made a great mistake and showed the thinness of their historical memory.
National Library of Australia

Judith Brett, La Trobe University

Australia’s federal Liberal Party began not with Robert Menzies in 1945, but with Alfred Deakin’s Commonwealth Liberal Party in 1909, and before that with his Liberal Protectionists.

As a leadership party, the Liberals have always needed heroes. But in the 1980s, as Liberals embraced deregulation, they turned against Deakin and the policies he championed.

In his brilliantly succinct description of Australian settlement, Paul Kelly identified the core policies of the early Commonwealth with Deakin, and compulsory arbitration and the basic wage with his Liberal colleague, Henry Bournes Higgins.

Deakin’s support for protection and for state paternalism were his key sins in the eyes of the Liberal Party as it rehabilitated the free-trade legacy of New South Wales Liberal premier George Reid. Reid is not a well-known figure, so this left the Liberals with only Robert Menzies for their hero, although he has now been joined by John Howard.

In jettisoning Deakin, the Liberals made a great mistake and showed the thinness of their historical memory. The party and its traditions did not begin with Menzies, but stretched back to the nation-building of the new Commonwealth, and into the optimism and democratic energies of the 19th-century settlers.

Indeed, Deakin was one of Menzies’ heroes. The Menzies family came from Ballarat, where Deakin was the local member, and his Cornish miner grandfather was a great fan.

Accepting his papers at the Australian National Library just before his retirement, Menzies described Deakin as “a remarkable man” who laid Australia’s foundational policies. It must be remembered that in 1965, Menzies supported all these policies the Liberals were later to discard.

When it came to choosing a name for the new non-labour party being formed from the wreckage of the United Australia Party, it was to the name of Deakin’s party that Menzies turned, so that the party would be identified as “a progressive party, willing to make experiments, in no sense reactionary”.

Alfred Deakin In England, 1907.
National Library of Australia

This is a direct invocation of Deakin and his rejection of those he called “the obstructionists”, the conservatives and nay-sayers, who put their energies into blocking progressive policies rather than pursuing positive initiatives of their own.

In June this year, Turnbull quoted these words of Menzies, in his struggle with the conservatives of the party. Clearly Turnbull wants to be a strong leader of a progressive party, rather than the front man for a shambolic do-nothing government. He does have some superficial resemblances to Deakin: he is super-smart, urbane, charming and a smooth talker who looks like a leader. But as we all now know, he lacks substance.

When I first began thinking about this piece I was going to call it “What Malcolm Turnbull could learn from Alfred Deakin”. But I fear it may now too late for him to save his government, and might be more accurately called “What Malcolm Turnbull might have learned from Alfred Deakin”.

First, he could learn the courage of his convictions.

Deakin too was sometimes accused of lacking substance. He was not only a stirring platform orator, but he was quick with words in debate, and could shift positions seamlessly when the need arose. But he had core political commitments from which he never wavered. The need for a tariff to protect Australia’s manufacturers and so provide employment and living wages for Australian workers was one.

One may now disagree with this policy, but there was never any doubt that Deakin would fight for it.

Federation was another. In the early 1890s, after the collapse of the land boom and the bank crashes of the early 1890s, Deakin thought of leaving politics altogether. What kept him there was the cause of federation, and he did everything he could to bring it about.

He addressed hundreds of meetings and persuading Victoria’s majoritarian democrats that all would be wrecked if they did not compromise with the smaller states over the composition of the Senate.

Deakin had a dramatic sense of history. He knew that historical opportunities were fleeting, that the moment could pass and history move on, as it did for Australian republicans when they were outwitted by Howard in 1999.

In March 1898, the prospects for federation were not good. The politicians had finalised the Constitution that was to be put to a referendum of the people later in the year, but the prospects were not good. There was strong opposition in NSW and its premier, George Reid, was ambivalent.

Alfred Deakin at Point Lonsdale front beach, 1910.
Brookes family and Deakin University library

In Victoria, David Syme and The Age were hostile and threatening to campaign for a “No” vote. If the referendum were lost in NSW and Victoria, federation would not be achieved.

Knowing this, Deakin made a passionate appeal to the men of the Australian Natives Association, who were holding their annual conference in Bendigo. Delivered without notes, this was the supreme oratorical feat of Deakin’s life and it turned the tide in Victoria. Although there were still hurdles to cross, Deakin’s speech saved the federation.

The second lesson Turnbull could have learnt is to have put the interests of the nation ahead of the interests of the party and the management of its internal differences.

Deakin always put his conception of the national interest before considerations of party politics or personal advantage. And he fiercely protected his independence.

He too was faced with the challenges of minority government, but it is inconceivable that he would have made a secret deal with a coalition partner to win office. Or that he would have abandoned core beliefs, such as the need for action on climate change, just to hold on to power.

As the Commonwealth’s first attorney-general, and three times prime minister, Deakin had a clear set of goals: from the legislation to establish the machinery of the new government, or the fight to persuade a parsimonious parliament to establish the High Court, to laying the foundations for independent defence, and, within the confines of imperial foreign policy, establishing the outlines of Australia’s international personality.

Party discipline and party identification were looser in the early 20th century than they were to become as Labor’s superior organisation and electoral strength forced itself on its opponents.

But as the contemporary major parties fray at the edges, and their core identities hollow out, Australians are crying out for leaders with Deakin’s clear policy commitments, and his skills in compromise and negotiation.

Had Turnbull had the courage to crash through or crash on the differences within his party on the causes we know he believes in, he too might have become a great leader and an Australian hero.


The ConversationJudith Brett’s new book The Enigmatic Mr Deakin is published by Text.

Judith Brett, Emeritus Professor of Politics, La Trobe University

This article was originally published on The Conversation. Read the original article.


Australian politics explainer: Robert Menzies and the birth of the Liberal-National coalition



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Robert Menzies knew the Liberal Party would never be able to govern in its own right.
Wikimedia Commons, CC BY-SA

Gregory Melleuish, University of Wollongong

The Conversation is running a series of explainers on key moments in Australian political history, looking at what happened, its impact then, and its relevance to politics today. The Conversation


It has become an established fact of Australian politics that when the non-Labor side of politics is in power, the government will be a coalition of the Liberal Party and the National Party. This has been the case for almost 100 years, since the formation of the Country Party in 1920.

Even on those occasions when the Liberals have won a House of Representatives majority in their own right, the Coalition has held.

What happened?

It is also true that when the then Nationalist Party and the then Country Party came together in coalition in 1922, the Country Party had much more clout than it has today. In the 1922 federal election, the Nationalists won 35% of the vote and 26 seats in a 75-seat House of Representatives. The Country Party won 12.5% of the vote and 14 seats, including seats in Tasmania.

The price Country Party leader Earle Page demanded for coalition was the political execution of Prime Minister Billy Hughes, and the treasurer’s job. He got both, creating the Bruce-Page government.

Former National Party leader Stanley Bruce, who became prime minister in 1923 in a Coalition government.
Government of Australia, CC BY

When Robert Menzies became leader of the United Australia Party in 1939 following the death of Joe Lyons, Page attempted the same trick again. He made a savage personal attack on Menzies and refused to serve under him – only this time the Country Party refused to follow suit, and replaced Page as leader.

The political reality was that to form an effective political relationship, any non-Labor prime minister needed to have a good working relationship with the Country Party. Menzies understood this.

When Menzies put together the bits and pieces of the non-Labor political forces following the collapse of the United Australia Party and formed the Liberal Party in 1944, he knew the Liberal Party would not be able to govern in its own right.

What was its impact?

At the 1949 election, which swept Menzies to power, the Liberal Party won 55 seats in a 121-seat House of Representatives. The Country Party won 19 seats.

Country Party leader Arthur Fadden became treasurer and remained so until 1958, when new leader John McEwen chose not to move to Treasury. McEwen’s influence in non-Labor governments, especially in relation to tariff matters, was considerable until his retirement in 1971. His antipathy to William McMahon effectively forced him out of the contest to elect a successor to Harold Holt in early 1968.

During this period, the Country Party could use its influence to shape Coalition policy. It did so because it had strong electoral support, which kept its numbers in the House of Representatives hovering around 20.

Liberals seemed to be quite happy to acquiesce in that influence, especially as Menzies and his immediate successors – with the possible exception of McMahon – were not opposed to government regulation of the economy.

Over time, Australia’s demography worked against the Country Party. The number of people living in urban areas has always been high in Australia, but the numbers have swung even more against rural areas. The size of the House of Representatives increased in the 1980s to 148 but the number of Country Party members remained static.

In 1982, it officially became National Party policy to indicate it was not merely a sectional party. This was followed in the 1980s by an attempt by Queensland Premier Joh Bjelke-Petersen to create an urban base for the Nationals in Brisbane. This had some initial success, but ultimately failed.

Joseph Lyons makes an election speech in Sydney in the 1930s.
State Library of NSW, CC BY

What are its contemporary implications?

The Nationals remain a country-based party in an Australia in which urban areas experience the greatest growth in population. Since the 2016 election, the Nationals have held 16 seats in a 150-seat House of Representatives.

What this means is that National Party policy will not disappear in the medium term, unless the party agrees to a union with the Liberals. The Liberals will have to take account of the wishes of the Nationals, up to a point.

However, it is clear that current Nationals leader Barnaby Joyce does not have the power to veto particular individuals from the leadership of the Liberal Party.

It is also clear that a Nationals leader will not be able to influence policy in the way McEwen did. Joyce may be a sort of agrarian populist, but times have changed – and the Liberal Party is no longer the party it was in the 1950s and 1960s.

It all comes down to numbers. The Nationals have relatively fewer seats in parliament than did the old Country Party 50 years ago. So, their capacity to influence what the government does has diminished.

Nevertheless, the Liberals need the Nationals if they are to form stable governments. They need each other. But, ultimately, the Liberal Party can only become the more powerful part of the relationship.

Gregory Melleuish, Professor, School of Humanities and Social Inquiry, University of Wollongong

This article was originally published on The Conversation. Read the original article.


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