Category: Julia Gillard

13 Sep

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Australia’s ‘Left’ in government. Part 1: The graveyard of progressive politics?

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The alliance partners in happier days. Er, two months ago, that is

The stench of death surrounds the Gillard Government.

It is impossible to exaggerate the historic depths to which the ALP has fallen in the polls, with last week’s 27 percent in Newspoll confirming that there would be no “bounce” once the carbon tax announcement was digested by the electorate. Even the temporary revival of sleaze allegations against Craig Thomson was more about the government’s crisis than the substance or seriousness of the “affair of the credit card”. The current race to the bottom on asylum seeker policy, with the High Court and even Tony Abbott managing to hold positions clearly to the Left of the ALP, will undoubtedly create even greater electoral problems for the party’s standing. Continue Reading

09 Jul

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Carbon pricing — even the Right admits it’s really all about neoliberalism

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This is what the climate movement, the Greens and sections of the Left have staked their futures on:

[I]n Australia, the push for carbon pricing originated from the Treasury as a pro-market economy-wide reform whose great advocates were Ken Henry, Martin Parkinson and Ross Garnaut with their ideas holding sway with John Howard, Rudd and Gillard as successive PMs. Indeed, among insiders the power of carbon pricing as the next stage in Australia’s pro-market reform process has been fundamental to its traction.

— Paul Kelly, from today’s Australian

Please recall how the last great ALP-led market reform process went in the 1980s and 90s: Real wage cuts, a massive shift of national income from labour to capital, a sharp rise in economic inequality, the collapse of trade union membership and the hollowing out of Labor’s historic electoral base. Big wins, indeed.

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27 Mar

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Rock-bottom redux: Last drinks rites for the Labor Party? Part One

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As a party able to offer itself as a viable government, Labor is not just under existential threat. It is finished. Unless, of course, it can engineer an extraordinary resurgence. Labor’s looming death as a stand-alone political entity is the biggest story in contemporary Australian politics.
—Peter Hartcher, Sydney Morning Herald, 19 March 2011
How the mighty have fallen.
Last October Left Flank wrote about the miserable state of the NSW Labor Party as it languished on a state Newspoll primary vote of just 23 percent, with even the Greens at 17 percent. At the time, cocky Victorian ALP ministers were publicly sledging the allegedly monolithic “NSW Right” for the disastrous federal election result, among other crimes against humanity. If only those not-so-faceless union bosses could have control of the party wrenched from their grip, peace would return to the land.

Since then, of course, the Victorians have suffered an ignominious defeat and the Gillard government has lurched from misstep to misstep, culminating in an all-time low primary of 30 percent for the ALP. In a remarkable article, the Sydney Morning Herald’s chief political writer Peter Hartcher has argued that the ALP is caught in an impossible bind: simultaneously leaking progressive, white-collar inner-city votes to the Greens on social and cultural issues on one side, and socially conservative “working class” votes to the Coalition on the other.
Most dramatically of all, yesterday the NSW opinion polls turned out to be mostly correct, but with an extra sting in the tail for the Left: The Keneally government was bundled out of power with a historic swing against it of over 16 percent, accompanied by a very small swing to the Greens and their possible failure to pick up a single lower house seat (Balmain remains too tight to call).
As results rolled in the Liberal spokesperson on the ABC News 24 coverage, Gladys Berejiklian, was shifting the party’s message from this being a vote against a rotten government to a vote giving Barry O’Farrell a clear endorsement (and therefore mandate). It was not long before the allegedly modest Tory leader was promising, “We’ll deliver the confident, limitless future we all [want] for ourselves and our children” and immediately invoking memories of John Howard’s mantra of governing “for all of us” when he said he would reject “sectional interests” to “govern for all people”. Already the Liberals are hinting they have supplanted the ALP as the party of the working class — in Sydney’s West and South-West as well as in industrial centres like Newcastle and the Illawarra.
Social conservatism and neoliberal politics
As I stood on a polling booth handing out for the Greens in Keneally’s seat of Heffron, the mood of voters sullen and indicative they were coming to treat the ALP to some “baseball bat” action. One of the Labor campaigners was a Keneally staffer. He told me that the notion the working class is “socially conservative” is hegemonic inside the party.
The mindset inside the ALP was on display from Gillard as she tried to define herself in a recent interview, describing her views on gay marriage, euthanasia and religion (recall she is an atheist) as “conservative”:
HOST: You sound a traditionalist. You sound very much a traditionalist, talking now. A cultural traditionalist.
PM: Well, I think in many ways that’s right, Paul. I had a pro-union, pro-Labor upbringing in a quite conservative family, in the sense of personal values. I mean, we believed in lots of things that are old-fashioned in the modern age. We believed in politeness and thrift and fortitude and doing duty and discipline. These are things that were part of my upbringing. They’re part of who I am today.
Earlier she had been challenged on her apparent capitulation to the Greens:
I know there’s some commentary to suggest I’ve only recently discovered a difference between the Labor Party and the Greens, what a load of old cobblers […]
To our right, we have the Liberal Party. In the modern age, climate change deniers and in denial about the power of markets.
To our left, we have the Greens, who do not have an economic philosophy about reform or about growth.
We drive mainstream change. That will play out in the climate change debate. Look at the CPRS. That didn’t go through the parliament because the Coalition under Tony Abbott didn’t care about climate change and because the Greens didn’t sufficiently care about jobs.
We were there in the mainstream. We’ll continue to drive the change this country needs for its future. That’s Labor heritage, Labor tradition.
The Left/Right definition here is carefully worded. The Right and Left are economic soulmates (both deny the “power of markets” the modern ALP worships); it’s just that Abbott is a climate denier and Bob Brown has contempt for ordinary people’s livelihoods.
At one level this could merely be a cover for the lack of a coherent program held by the ALP, and there is a large element of truth to this proposition. When you’re stuck for a way forward you simply claim you’re offering the safe middle ground. Yet as Left Flank has argued from the day we started, there has been a “flight from the centre” of politics that threatens any such centrist strategy. The polarisation of politics reflects a polarisation not so much along cultural lines demarcated by John Howard and largely accepted by a disoriented ALP (and the Greens), but along class lines produced by 30 years of neoliberalisation.
It is no wonder that the ALP finds itself in such a historically traumatic spot: It sees its version of looking after workers as more neoliberal economic reforms, ostensibly to protect and create jobs. Those very same reforms have delivered rising inequality, privatisation of public goods, cost of living pressures and the growing intrusion of market pressures into every sphere of life, starting from the workplace itself. These processes have hollowed out both Labor’s politics and social base. Yet even ALP and progressive commentators call for “reform”, and still more “reform” along these lines. It speaks to the absolute surrender of the mainstream Left to the neoliberal project that this could be seen as a solution to Labor’s woes.
Whatever happened to class?
Outside the elite echo chamber, things are somewhat more complicated (or perhaps less). In an important 2007 paper (pdf, starting page 401) of the effect of neoliberalism on public policy and popular opinion in Australia, “Neoliberalism, Inequality and Politics: The Changing Face of Australia”, Western et al concluded (among other things):
Alongside a major decline in union membership we see a decline in the view that unions have too much power, accompanied by an increase in the view that private business has too much power. The belief that redistribution of income and wealth should favour ordinary people and that surplus should be spent on social services rather than reducing taxation are two views that have increased in strength over the last two to three decades.
This chimes with the Australian Social Attitudes surveys carried out in the last decade, which also show that on “economic” (i.e. class) questions the public has moved substantially to the Left over the last 20 years, just as their political representatives have moved to the neoliberal Right. This Leftward shift includes questions of service delivery, where the opposition to user-pays, privatisation and cutbacks in health, education and transport runs very high.
It is not by coincidence that Barry O’Farrell ran a campaign that treated economic questions at a technocratic, anti-political level. He even sank the ALP’s power sell-off — despite considerable big business pressure to support it — on the basis that this would not be a “good deal” for NSW, not by ruling out support for privatisation in general. Iemma and Costa’s inability to ram through the sale was the beginning of the end for the government — precisely because the sale was a betrayal of any remaining core social democratic principles the party may have clung to. Into the vacuum O’Farrell could project the idea that his “moderate” politics could not possibly be worse than the ALP’s mess.
In this he was assisted by a mainstream media that depoliticised the class basis of Labor’s crisis, reducing it to issues of party “disunity”, or “Sussex Street games”, or a “toxic brand”, or “incompetence”, or more often a generalised moral critique of its decline as minister after minister exited in less than savoury circumstances. It was reminiscent of the last years of the UK Tory government in the 1990s, when the ruling class and its media machine turned on their favoured party by focusing on its scandals rather than the Thatcherite policies that really drove its electoral disintegration. It allowed Tony Blair to take office riding a wave of anti-Thatcherism only to simply continue her legacy.
Unable to seriously play the “class card” because of its continued obsession with securing some kind of electricity sale, the ALP was powerless to mount a challenge to such attacks on morals and “values”, and in fact Keneally mostly accepted them. Even the last minute attacks on O’Farrell’s hidden right-wing agenda had no teeth because the ALP had been implementing the same right-wing agenda for most of its 16 years in office, although the fear of the Liberals unleashed may have driven some potential Greens voters back to Labor.
This is the great contradiction at the heart of yesterday’s election. It was the Liberal Party that posed (falsely) as the progressive economic alternative to one of the most right-wing, pro-business state governments in living memory. To do this it had to tone down its deep commitment to neoliberal reform and its nasty social conservatism. Already some on the Left are bemoaning the lack of class consciousness among workers who seemingly voted against their material interests. But it was the way that class issues were depoliticised by the elite discourse that no major party (the Greens included) spoke directly to class interests — and even if Labor had wanted to, their record spoke louder than their words.
The voters of NSW have repudiated 16 years of economic rationalism. The problem is that there is no political party speaking for them.
Part 2 will look more closely at the Greens and whether Labor can recover

20 Feb

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Have the Australian Greens become Julia Gillard’s ‘useful idiots’?

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Since the dust from the August election settled, something strange has been going on in the Australian Greens camp. I think it’s probably a conscious “strategy,” but I’m not privy to the discussions in the party room, so I can’t be sure. But here is my stab at it, and why it worries me deeply.

Last week’s announcement on the flood levy is reflective of what is going on, so it’s worth quoting at length:
The Australian Greens will support the flood levy in the House of Representatives and the Senate after important gains from the Government on their proposed funding cuts, Greens Leader Bob Brown, Deputy Leader Christine Milne and MP Adam Bandt said in Canberra today.

“The Greens have taken our concerns directly to the government and have negotiated a good outcome that will release funding for flood recovery and protect key programs,” Senator Brown said.

The Greens have ensured that $100 million will be returned to the Solar Flagships program in the forward estimates and that a proper consultation process will be undertaken to develop long term policy for large-scale solar power. […]

The Australian Greens have also secured the restoration of the National Rental Affordability Scheme and commitments regarding funding for learning and teaching.
Their Senior Media Advisor, Marion Rae, managed to claim this as a victory on Twitter:
Details of the Greens’ win for flood recovery here, including full audio: http://bit.ly/gzrkfa Gillard just needs one more vote http://bit.ly/dKOabW
The levy in an ‘Age of Austerity’
It’s worth taking a step back and examining the meaning of the levy debate to see why this is such a problematic line of thinking. To do this I’ll look at the two measures being foregrounded by the government: the flood levy and the cuts to the budget.
The levy is set to raise a mere $1.8 billion, a tiny fraction of Australia’s annual GDP and only about a third of the $5.6 billion Gillard has estimated the floods will cost the federal government. According to one analyst, “It represents just 0.2 per cent of household disposable income or 0.3 per cent of total consumer spending,” and was driven by cries from financial markets (those great friends of working people) worried that reconstruction activities could “overheat” the economy and lead the RBA to raise interest rates. Their solution? Cut consumer spending. Much of the debate about whether such a one-off tax will “destroy the economy” or “drive people in to hardship” has thus been a smoke and mirrors exercise, with the Coalition playing a variation on its “great big new tax” trope.
But it is important to understand the politics (rather than economics) of why Gillard has focused on the levy. It has been to pose the entire debate in terms of how we pay for an apparently unexpected, “natural” disaster. This is Gillard’s own smoke and mirrors, using a set of moral arguments about helping flood victims to drive her much less openly declared austerity agenda, hatched long before the summer’s disasters and on which she and Abbott are in broad agreement.
Last September Left Flank reviewed the (redacted) Red Book, which set out Treasury bureaucrats’ wish list for the incoming Labor government:
Treasury’s Red Book message is crystal clear — that neoliberal reforms must remain central to the government’s actions. There are three main lines of argument in the document. First, that the Australian economy is doing so well that dangers of “wage inflation” need to be headed off at the pass. Second, that government deficit reduction must be prioritised. And third, that “market mechanisms” remain the best way to do… well, just about everything.
The second commitment is most important here, in line with Wayne Swan’s conversion from stimulus champion to sovereign debt crusader at last year’s G20 in Toronto. Faced with minority government and an inability to control the political agenda, Gillard has set out to prove herself a great (neoliberal) reformer.
But such reforms are not exactly popular with an electorate tired of decades of job insecurity, rising overtime (often unpaid), speed-ups at work, privatisations, running down of public services and the spectacle of bankers, financiers and corporate CEOs enriching themselves while everyone else is urged to show “restraint”. It’s especially hard to sell cuts when you’ve also spent the last few years telling people how successful you’ve been in (a) preventing recession and (b) minimising the budget deficit compared with just about every other rich nation.
Hence the obsession in having to reach a budget surplus by 2012-3 under any circumstances — it is a proxy for wanting to drive further cuts to public spending while still guaranteeing corporate tax cuts, maintaining the Howard-Rudd tax cuts for high income earners and delivering outlandish tax concessions — worth $25-30 billion and mainly going to the wealthy — for Australia’s scandalous superannuation system.
The levy debate is in reality a way of softening people up for austerity measures demanded by bosses and financial markets faced with increased competitive pressures driven by a world economy still mired in its worst downturn since the 1930s. And if governments like those of the UKor US states like Wisconsin — get away with wholesale attacks on public sector jobs and services, accelerate privatisation and user-pays measures and break remaining bastions of union organisation, the cries from the business class to ramp up such efforts here will only grow more shrill.
Gillard’s linking of the levy with cutbacks is not just an attempt to mollify Abbott but a cynical move to pressure crossbenchers into agreeing to cuts as part of a “compassionate” response to flood victims. It’s a classic Trojan Horse strategy, beloved on American legislators and their “omnibus” bills.
The Greens and the political system
The Greens have effectively surrendered to this approach in the same week that Gillard’s watering down of the mining tax has been exposed as robbing the government of a staggering $60 billion in revenue over 10 years. The Greens’ press release sheepishly admits they would’ve preferred the original RSPT rather than agreeing to the cuts they have backed, but they backed cuts anyhow.
They could have added to this the outrageous level of state subsidy of the corporate sector that continues unabated under Gillard even as she talks of tightening the screws on public services and welfare, as Greg Barns has summarised:
There is, for example, the Australian Competitiveness and Investment Scheme, a Howard government baby. That has grown from $142.6 million in 2002 to $233.8 million this year, before reducing to a still sizable $137 million next year. Alongside this are three programs designed to commercialise business ideas. Together they are costing taxpayers $67 million in this year alone.

And business is also doing very nicely on tax concessions. The Industry R & D Tax Concession is worth $1.5 billion this year and next year will be even higher. It is a program which has grown like topsy since its introduction by the Howard government almost a decade ago. In fact it has risen every year from 2002 where it cost $370 million. The 2010-2011 Portfolio Budget Statement for the Industry portfolio also lists what it terms “other R&D support” at $94.4 million this year.

And of course then there are the specific industry programs. The textile, clothing and footwear industry has benefited from a package of funding worth over $400 million in the past two years. But the granddaddy of industry mendicants, the auto sector, leaves the TCF sector in the shade. It has squeezed a cool $3.4 billion out of the Rudd and Gillard governments to retool their plants.

Now, I’m not claiming that Greens MPs, or party members, are wedded to neoliberal austerity and corporate subsidies. The opposite is usually true. Adam Bandt has publicly attacked neoliberalism on more than one occasion. And I spoke on a Politics in the Pub panel with NSW Greens MP John Kaye a fortnight ago where he railed against neoliberal policies. However, the party is internally confused and divided on what a progressive economic policy looks like, with aspects of neoclassical orthodoxy sitting alongside Keynesian ideas and more radical notions.
There are two further weaknesses in the Greens’ strategy which leaves them looking like Gillard’s useful idiots on the question of which class interests the political system serves. First is their focus on parliamentary compromise as the sole arena of political struggle. They like to dress this up as winning “progressive outcomes”, but when the general thrust of government policy is regressive then “victories” are at best a softening of right-wing attacks rather than any forward movement. “A good outcome” means slowing the rate of neoliberalisation rather than mobilising a real fight against it. It is a strategy that cements the passivity of ordinary people while politicians play games that directly affect their livelihoods.
Second is their desire to appear cooperative with Gillard on those issues where they feel they cannot win ground from the ALP. So on refugees and climate issues they will often drive a hard bargain (so they rightly rejected the CPRS) but where they feel on shakier ground — with economics the key example — they tend to want to appear pliant and reasonable. Hence Sarah Hanson-Young’s performance on Insiders this morning, promising to keep being constructive as Gillard brings more cuts to the table in the months ahead! This will do nothing other than legitimise the austerity agenda Gillard is implementing.
After 2007, internal polling was interpreted by party strategists as showing that voters preferred the Greens to “help” Kevin Rudd fulfil progressive promises rather than attack him. Yet the Greens’ big vote in 2010 rested in part on an effective denunciation of Gillard dragging the ALP sharply to the Right. There is no sign that Gillard intends to arrest that trajectory, yet the Greens MPs have been cuddling up to her — including sitting on a secretive carbon price committee that has seen them outmanoeuvred on non-market climate measures — far more than guarantees of supply and confidence would require of them. Bob Brown’s public attack on Andrew Bolt last year was specifically in defence of Gillard.
In this, there is desperation to be seen as effective mainstream operators, acceptable to political and business elites, and shedding their image as a party of protest. The risk is that they will be tainted by the stench of the same “broken” political system (what I have suggested is a kind of not-politics) that Australian voters rejected so resoundingly last August. It is a system that many on the Left hoped the Greens would be part of transforming. Instead the Greens MPs risk being assimilated into it, thereby sending the message that resistance is futile.

21 Nov

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Taken at face value, Labor is in a lot of trouble

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It was difficult to know how to approach Paul Howes’ Confessions Of A Faceless Man, his public “diary” of the 2010 election campaign. Was it to be a tell-all insider’s account delivering anecdotes that journalistic efforts would miss? Was it to be a re-evaluation of the problems the first-term federal government got itself into, a thoughtful introspection on how the ALP went from astronomical to disastrous poll ratings in very short order? Or was it to be a meditation on the long-term trajectory of a Labor Party that, as Howes is keen to tell us on his book tour, needs to have some serious debates about “big picture” ideas.

As it turns out, none of the above, and that perhaps explains some of the very critical commentary that has derided Howes for either being one of the vapid apparatchiks who caused this messfor providing little real “insider” insight, and for generally having a really bloody short memory.

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26 Sep

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Desperately seeking authority

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That new paradigm thingy didn’t last long, now, did it?

At least not the world of “kinder, gentler” politics that Tony Abbott was promising. Nor the ability of rural Independent MPs to rise above the fray of deal-making and remain untainted by “old-style” party politics. Nor, of course, the dream of politicians finding more “consensus” rather than squabbling along partisan lines.

Yet there is a paradigm — one of growing social and political polarisation — that is playing itself out in a new way because of the election result, now unable to be hidden behind a mask of apparent governmental stability.

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14 Sep

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Legitimacy, mandates and the media

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There has been much discussion in the left-leaning blogosphere about the stridency of the Murdoch media campaign against the “legitimacy” of the Gillard minority government. As Left Flank noted on the weekend, The Australian has editorialised that it is committed to having the Greens “destroyed at the ballot box”.

In the AFR on Friday (paywalled, but article in PDF form here) Laura Tingle, perhaps the nation’s best mainstream political correspondent, analysed the tensions that had developed between Kevin Rudd and The Australian during the life of the last government. She also reported that Bob Brown had broached the topic, attacking the Murdoch flagship for going beyond its traditional Fourth Estate role in trying to get its preferred result from the electoral impasse.

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22 Aug

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Welcome to another edition of Thunderdome?

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When we started this blog in July, we addressed the “democratic deficit” in Australian society. Yesterday’s result, of a likely hung parliament, is a reflection of the inability of the main parties to even create the illusion they have won a mandate to govern.

The election was a disaster for the ALP. Having killed the sense of progressive hope that gave him a landslide victory, Rudd was knifed by a party who ultimately did the same to remaining hope. This was Gillard’s function, to triangulate Abbott by simply appropriating his most noxious policy positions. In doing so she legitimated his right-wing agenda and gave him a veneer of respectability that many had thought impossible. Even in those late moments when the ALP tried to speak to its working class base, their campaign could offer only piecemeal reforms that didn’t fit into its neoliberal narrative. And while sympathetic commentators managed to get Gillard to recognise, “It’s the economy, stupid,” the stimulus tale of massive state intervention didn’t sit logically with the rest of the party’s fiscally conservative image, focused on how responsible their spending would be and how little they could give their base because of the pressing need to get back into surplus.

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03 Aug

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Welcome to the desert of the real: early requiem for our postmodern election

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If postmodernism represents the philosophical and aesthetic logic of late capitalism, then we have certainly scored ourselves the ultimate postmodern election. Fragmentary policy announcements, a lingusitic turn on the messaging front and, of course, such self-reflexive narratives that it’s hard to tell what is “real” anymore. Actually, hold that thought, because there is nothing real, just the bubble of the official discourse, however shifting and indeterminate that seems.

It has now reached the stage of madness, where the ALP’s recent addiction to focusing on the process of politics rather than politics itself (who would name their campaign Kevin07 if they wanted people to take politics seriously, after all?) has morphed into the bizarre spectacle of a dual prime ministerial assassination. I refer, of course, to that “first as tragedy, then as farce” double entendre; the sudden dumping of Prime Minister Kevin Rudd followed by the even more sudden dumping of Prime Minister Fake Julia Gillard*. Not only is Ms Gillard Mk II providing knowing metacommentary on how she has replaced her former self (in case we miss what has happened), but the murder of her own evil twin is itself a metacommentary on how she knifed Rudd.

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22 Jul

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Never mind the quality, feel the overcrowding

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In 2001 the ALP folded in the face of a populist Liberal Party campaign tying concerns over boat people with fear of terrorism. It was then that the term “dog-whistle politics” came into common usage, referring to a political message sent in coded language so that while it was not overtly xenophobic it would be heard and understood by voters susceptible to such divisive politics as speaking to their prejudices.

In 2010 it has been a Labor PM, Julia Gillard, who has most systematically utilised the dog whistle, first by retreading ground well-established by Howard (the “stifling” of debate by political correctness, “understanding” the anxieties of voters over insecure borders and the need to toughen the state’s assault on “people smugglers”). But now she has decided to broaden the debate to one of “sustainable population”.

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