On a trip to Australia, I discover that a day is a very long time in politics Down Under

Douglas Alexander's Notebook.

I arrive Down Under as a guest of the Australian government, but my breakfast appointment on the first morning happens to be with none other than Alastair Campbell. He’s in Sydney simultaneously to support the British and Irish Lions and to talk about his diaries.

At a table overlooking the Sydney Opera House, we discuss the picture on the front page of every newspaper – showing Prime Minister Julia Gillard knitting a woollen kangaroo for the royal baby. John McTernan, also previously of Downing Street, now her communications director, is quoted in the coverage as saying the idea “was a no-brainer”.

Cool prime time

The previous day Alastair had been ushered in to see the prime minister in Canberra by John and he echoes the judgement of others, saying she seemed very calm under fire. Given the papers’ comments about her royal roo pose, it’s a quality she’ll need today. My next meeting is with a former Labor prime minister, Paul Keating. Now retired, he remains fascinating and stimulating company.

The sound of power

No sooner have we discussed the role of Kondratieff waves in advanced capitalist economies than Keating is explaining – as a lover of antique clocks – that he used to read the Christie’s catalogue during cabinet meetings. When I ask him what he believes the prime political virtues are, he replies without hesitation: “Imagination and courage.” He then explains that he drew his inspiration and got his best ideas in government by listening to music – “the highest form of art” – and to Shostakovich in particular.

Next it’s down to Canberra, amid growing speculation of a challenge that afternoon by Kevin Rudd to Julia Gillard’s leadership. Parliament is in its last week before a long break, so it’s his last chance to challenge her ahead of the election scheduled for September. The Gillard/Rudd rivalry over recent years makes the periodic outbreak of the TB/GBs during our 13 years in office look like a picnic.

Events, dear boys, events

Until a few weeks ago the idea of a comeback for Rudd, the former prime minister deposed by Gillard three years ago, seemed remote. Yet with poor polls suggesting a wipeout in the election just months away, the speculation is at fever pitch as I arrive at Parliament House.

In the course of the morning I meet Foreign Minister Bob Carr, Defence Minister Stephen Smith, Climate Minister Greg Combet and Education and Employment Minister Bill Shorten. Within 24 hours two of these ministers will have announced not only that they’re quitting government but that they’re leaving parliament, too.

Rudd’s supporters make their move that afternoon as word spreads that a petition is being circulated among Labor MPs demanding a leadership vote, or “spill”, as I soon discover it’s called. Making a fateful decision, Gillard responds by announcing a vote that very afternoon, on condition that whoever loses gives up politics altogether.

With half an hour to go, Shorten appears before the cameras to announce that he’s switching his support from Gillard to Rudd. At the subsequent caucus meeting Rudd defeats Gillard by 57 votes to 45.

Labor’s difficulties seem more electoral than economic, and are more to do with personnel than policy: the Australian economy is growing for the 22nd consecutive year, and despite a legislative record that includes major educational reform and the introduction of a landmark disability insurance scheme.

Sheila, take a bow

Gillard’s concession speech was a model of graciousness. After congratulating her rival on his victory she spoke of the “honour” of serving as the country’s first female PM. In part because of her “misogyny speech” that became a huge YouTube hit even in the UK, there was much discussion of how being a woman had affected the way she was treated in the media. Here, too, Gillard had the last – and best – word when she said this about her gender: “It doesn’t explain everything, it doesn’t explain nothing, it explains some things . . . What I am absolutely confident of is it will be easier for the next woman and the woman after that and the woman after that. And I’m proud of that.”

Oz reorientation

One woman who doesn’t seem too bothered by Labor’s leadership change is Julie Bishop, the Liberal opposition’s foreign affairs spokesperson. The next day when I meet her it’s very clear that this suburban Perth MP is still preparing for government. She is well briefed on the issues, and our conversation reinforces how deep and enduring are the ties between the UK and Australia. Yet it is also clear that Australians are already embracing the opportunities of what their government’s recent white paper called “the Asian Century”. Perhaps that explains why in none of my meetings did anyone suggest the UK leaving the EU would be a good thing for Australia. Indeed, in discussion after discussion, the possibility was greeted with a mixture of incredulity and anxiety.

Rugger relief

With 30,000 travelling Lions fans in the country it should be a busy time for Britain’s man in Canberra, High Commissioner Paul Madden, but he tells me with relief and pride that, so far, there has not been a single arrest.

Alas for me, the only meeting that didn’t happen was the one scheduled with a backbench Labor MP at 3.30pm on Thursday afternoon. At least he had a good excuse. That day, the now erstwhile backbencher (Kevin Rudd) instead met Governor General Quentin Bryce to be sworn in as the 28th prime minister of Australia.

As I left Australia the polls were already tightening. Yet Rudd still faces a huge task to defeat the Liberal opposition leader, Tony Abbott. Then again, as I learned from my time in Canberra, a day – never mind a week or a few months – is a very long time indeed in Australian politics.

Douglas Alexander is the shadow foreign secretary

Sydney Opera House. Photograph: Getty Images

Douglas Alexander is the shadow foreign secretary and Labour MP for Paisley and Renfrewshire South.

This article first appeared in the 08 July 2013 issue of the New Statesman, The world takes sides

Photo: Getty Images
Show Hide image

Autumn Statement 2015: whatever you hear, don't forget - there is an alternative

The goverment's programme of cuts is a choice, not a certainty, says Jolyon Maugham.

Later today you will hear George Osborne say there is no alternative to his plan to slash a further £20bn from lean public services by 2020-21. He will also say that there is no alternative to £9bn cuts to tax credits, cuts that will hit the poorest hardest, cuts of thousands of pounds per annum to the incomes of millions of households.

But there is.

As I outlined here the Conservatives plan future tax cuts which benefit, disproportionately or exclusively, the wealthy. Suspending those future tax cuts for the wealthy would say, by 2020-21, £9.3bn per annum.

I also explained here that a mere 50 of our 1,156 tax reliefs cost us over £100bn per annum. We don't know how much the other 1,106 reliefs cost us - because Government doesn't monitor them. And we don't know what public benefit they deliver - because Government doesn't check.

What we do know, as I explained here, is that they disproportionately and regressively benefit the wealthy: an average of £190,400 per annum for the wealthiest.

And we know, too, that they include (amongst the more than 1,000 uncosted reliefs) the £1bn plus “Rights for Shares Scheme” - badged by the Chancellor as for workers but identified by a leading law firm as designed for the wealthiest.

Simply by asking a question that the Chancellor chooses to ignore - do these 1,156 reliefs deliver value for money - it is entirely possible that £10bn or more extra in taxes could be collected without any loss of  public benefit

To this £19bn, we might add the indiscriminate provision - both direct and indirect - of public money to wealthy pensioners.

Those above basic state pension age enjoy a tax subsidy of up to 12% on earned income.

Moreover, this Office for National Statistics data (see Table 18) reveals that the 10% of wealthiest retired households - some 714,000 households - have gross pre-tax and pre-benefit private income of on average £43,983. Yet still they enjoy average cash benefits from government of £11,500 per annum.

Means testing benefits to exclude that top 10 per cent of retired households would save £8.2bn per annum. And why, you might wonder aloud, should means testing be thought by the government appropriate for the working age population, yet a heresy for retired households?

Add in abolition of that unprincipled tax subsidy and you'll save even more. 

So there are alternatives. Clear alternatives. Good alternatives. Alternatives that enable those with the broadest shoulders to bear some share of the pain. Don't allow yourself to be persuaded otherwise.

Jolyon Maugham is a barrister who advised Ed Miliband on tax policy. He blogs at Waiting for Tax, and writes for the NS on tax and legal issues.