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Stimulus secured: A Xenophon stunt — on a massive scale
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Today’s passage of the stimulus package is Nick Xenophon’s biggest stunt yet. The reason why he voted against the package yesterday, and voted for it today, lies in state-based environmental politics and his desire to outflank the Greens. And he’s pulled it off. First the others. The Greens negotiated a pretty useful deal with the Government using $400m saved by shaving the $950 bonus payments by $50. It might have been small beer in the context of the tens of billions being chucked about, but Bob Brown had reason to be pleased with what he’d extracted from Wayne Swan and Julia Gillard. He’d got the Government to reverse the Howard Government’s lowering of the liquid assets test threshold for unemployment benefits, $200m worth of grants to community groups and councils for local employment, which would have picked up some of Steve Fielding’s proposal for a local jobs package, the now-famous bike paths funding, and a number of others. There’s media commentary that the Government doesn’t know how to negotiate with minor parties. Well, both Labor and the Greens did a professional job yesterday. Steve Fielding supported the package without seeming to have extracted any concessions. He did so reluctantly — quite reluctantly — but on the basis that it was better than blocking it. Fielding attracts plenty of abuse — I should know, having written some of it — but he takes his role seriously, despite lacking the resources to do it properly, and gets stressed because of it. Yesterday he made a sensible call under a lot of pressure. Xenophon, however, has more important things on his mind than preventing Australia from going into recession. It’s only a few days since Glenn Milne was claiming Xenophon would baulk at the package because he agreed with the Coalition on tax cuts, but Glenn, unusually, seems to have been astray in his analysis, because Xenophon refused his support because of the Murray-Darling Basin. The Greens have owned the issue of the Murray-Darling for years. Western Australian Senator Rachel Siewert worked assiduously on water issues and the Murray-Darling, until last July, when South Australian Green Sarah Hanson-Young arrived in the Senate. Hanson-Young has championed the fate of the Lower Lakes and Coorong since then, churning out press releases and initiating inquiries. Yesterday, the Greens convinced the Government to provide funding for bioremediation of the Lower Murray, meaning revegetation and mulch are used to prevent soil acidification, rather than the preferred Rann-Wong option of letting in seawater. Xenophon, who was elected at the same time as Hanson-Young, has also been pushing the Murray-Darling issue. As a State parliamentarian, Xenophon had little to say about the issue, but began pushing it vigorously on his ascension — if it can be called that — to the Senate. Now he seems determined to show that anything the Greens can do, he can do better. Yesterday he wanted to bring forward $7b of the Government’s MDB package. The idea was utterly unworkable. It would have added a further $7b to the 2009-10 deficit, and spending that amount of money would have been impossible in a single year, unless Xenophon also wanted compulsory acquisitions on a truly vast scale. Xenophon’s rationale for not supporting the package — that the MDB was critical to it — was also nonsensical. The entire Australian agriculture sector is worth 2-3% of GDP, meaning the MDB is worth fractions of fractions of GDP. It would have added a further $7b to the 2009-10 deficit, and spending that amount of money would have been impossible in a single year, unless Xenophon also wanted compulsory acquisitions on a truly vast scale. Xenophon’s rationale for not supporting the package — that the MDB was critical to it — was also nonsensical. The entire Australian agriculture sector is worth 2-3% of GDP, meaning the MDB is worth fractions of fractions of GDP. But Xenophon’s real agenda is to extract a decent sum of money from the Government, and enjoy the kudos of being the saviour of the Murray-Darling. Xenophon tipped his hand yesterday afternoon when he backed the Government’s motion that the Senate adjourn until 9am this morning, to give him time to see how many zeroes he could get out of the Government for water buybacks and irrigation infrastructure. He’s ended up with $900m, which is more than twice what the Government was offering him yesterday. He’s now king of the Murray-Darling, the man who wrested nearly a billion dollars from the Government for his state and an ailing river system. It’s been another Xenophon stunt — on a massive scale. But at least it might put a bomb under Penny Wong, whose reluctance to take vigorous action on the Murray-Darling remains deeply concerning. And everyone will get their cheques. |
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31 Comments
I think that you are being very tough on Xenophon. He looked to me like a man under extreme pressure not one enjoying himself. He said at the outset of his Senate term that WATER was his priority and he has stuck to it. Good on him. The poor old Murray would not be in such a parlous state if the the Libs and Labs had not allowed it to be sucked dry.
Tom,
GST Revenue is approximately 40 billion a year….
http://www.budget.gov.au/2007-08/bp3/html/bp3_main-03.htm
For once I’m a bit confused about the criticism of my item. I wasn’t being particularly anti-X, more explaining his behaviour yesterday and today. I said last night in the Comments for one of yesterday’s items that he would work out a deal with the Government and claim credit for the MDB. That’s exactly what he’s done. I’ve also written at length - I’m sure some would say too great a length - on the problems of the MDB and the failure of the Federal and relevant state governments to deal seriously with its problems. The suggestion that somehow I’m dismissive of the crisis going on in the basis is wholly incorrect. However, that is a separate issue from how effective a stimulus package will be, and Xenophon clearly linked the stimulus package and its effectiveness with the need to pump money into the MDB - an unsustainable argument economically.
There also remain interesting issues about the extent to which the “bring-forward” of water buyback money will drive water prices up and mean the Commonwealth pays over the odds just to secure the vote of an independent.
Also, why was Bob Brown wearing a tie this week? Anyone?
“The entire Australian agricultural sector is worth 2-3% of GDP”… I suggest Bernard you try eating the other 97%…..”meaning the MDB is is worth fractions of a fraction of GDP”….yeah what hell, the MDB is only the largest river system on the driest inhabited continent …..maybe its time we had a hard look at how GDP is measured?…. Whatever the impact of the economic stimulus be it good, bad or indifferent at least some good will come out of the package….. Well done Nick Xenophon.
Community debate and discussion about the MDB,climate change and the environment can tend to focus on the abstract concepts without realising there are real people living and working in these regions. While these peoples views may be more conservative than their metropolitan cousins they do have a very high level of awareness and understanding of the issues.
However the one critical difference is their livelihoods are dependent on the ‘normal’ functioning of the MDB.
Without water either due to climatic or political reasons the business of the MDB can not function. Without water this region is having to confront the issue of having to take a massive write down in asset value and the consequeces of having to restructure their businesses,careers and the impact on families there upon..
What Nick is doing is forcing the Governments (State & Federal),Banks and the wider Australian Community to face this issue. It is real,it is painful,it is hard and it will not go away.
It may be unconventional economics but cash in the form of buy outs etc into these communities may be a positive way of confronting the ‘water’ crisis and at the same time the GFC.
Dave Liberts: Well at least she isn’t blaming Israel this time.
None of you know the river, you don’t know the people this embarrassing freak is supporting. Try the Chapmans for one, the rich irrigators for two.
The very people who have destroyed the river are the people this moron wants to get more water and rewards.
He doesn’t give a flying fuck about the actual river.
How many of you know that the lower lakes everyone is whining about evaporate 300% of Adelaide’s annual rainfall.
For a few lousy dairy farmers, grape growers and boaties.
Save the Murray? More like destroy it more.
Bernard: Perhaps I have misunderstood you. If I have you’ll be onto me like a duck-shooter potting a flayed duck. I fail to see the worth of reducing the MDB to fractions of the GDP. This thinking would be worthy of a member of the National- Country Party. A once great river reduced to percentages. And the wildlife it was home to?
I agree with Rosettamoon. If it takes a political stunt to put a bomb under the regrettable Penny Wong-come on someone accuse me of being a racist anti-feminist s-it- then go for it.
We, the readers of Crikey, should have known the lack of extent-of-care by Kevin Rudd for the environment when he gave this Canberra pen-pusher the sensitive environmental portfolio.
Luke, not sure where you’re coming from but the SA Government was among the first anywhere to legislate a reduction in pokies. Hard to see this happening in the absence of a No Pokies MP. There are issues about the effectiveness of this policy but it has been better than useless from an anti-pokies point of view. Xenophon also did good work when the sale of SA’s electricity assets was before the parliament in the late 90’s. Xenophon seems like a people-person to me, although I’ve heard he’s got some disgruntled ex-staff who felt overworked and underappreciated (the same is said of the Prime Minister). As a single independent, he simply can’t be all things to all people but his work ethic appears better than many elected representatives.
Its dificult fathom Bernard’s criticism of Xenophon…. Could it be because Xenophon wrong footed most of the commentariat, including Bernard, by emerging as the real fly in the oinment, while all attention was on Senator Fielding….. And to claim the MDB, the largest river system on the driest inhabited continent, “is worth fractions of a fraction of GDP” clearly demonstrates the need for a hard look at how GDP is measured.
Well done Nick Xenophon.
The Senate was originally set up as the States House and to look after State issues. He has with great timing and guts achieved what was needed to start the process that Penny Wong only procrastinated about.
The result is that there is now a future for the great bread basket of Australia.
The future of of Independent Senators is assured and they will grow in numbers due to his efforts. This is a great stimulus for our nation’s politics, policy and productiveness.
basis = basin
or summat
Sorry Bernard,
The answer to your QUESTION ‘Why was Bob Brown wearing a tie?’ is quite relevant and should be answered.
ANSWER: He was getting ready to hang himself, which he did quite well by acting like the buffoon and complete idiot he is by attempting to steal Nick X’s political thunder.
Bravo bravo!
If the stunt helps save the Murray then a stunt well spent.
Keeping in mind that BHP Billiton is silently pumping the great inland waters dry and about to dust more toxic radiation over the nation, maybe he can direct his next stunt toward the closure of the most insane mine in the worlds history - which is about to reach another level of insanity as the expansion progresses without EIS under the protection of the Rann Uranium government.
Step up to the Mark Nick, this issue is WATER and may prove far more deadly than the Murray Darling basin.
More on the Roxby silence:
http://news.rosettamoon.com/?p=228
Over in the US they’re stimulus ‘checks’ are being posted in what sounds like a mass mail-out of birth control devices.
I’m left with the feeling that it is a pretty good result all round and I think a sizable majority around the country will feel the same way. It allows the government to present itself as a national unity government even though, of course, the biggest non-government parties voted against.
Turnbull was busy yesterday sternly telling us that the governments economic policy is in “tatters” as a result of the no vote. Now there is a yes vote we should be able to look forward to him saying that it is not in tatters but is looking as bright and shiny as his suit. But, of course, ‘should’ is not the same as ‘will’ so I will say it for him: not only is the government looking fully clothed the opposition are looking like refugees from a carpet-bombed nudist colony.
Don’t be fooled folks, for those of you who actually believe that Nick Xenophon actually cares about the Murray are sorely mistaken.
I wouldn’t mind that Xenophon blocked the stimulus package, and I am happy that more money has gone towards the Murray; I only wish it had been done for the right reasons.
Sadly, this is just the latest of Xenophon’s stunts designed entirely to get his name in the papers. For those needing a history lesson, he ‘rose’ through SA state government while riding on the back of his “No Pokies” tag. Even today after he’s moved on to a federal role, you need only speak with one of the dozen or so publicans in metro Adelaide who still hold firm against pokies, and they will be more than happy to share their opions of the man - he never believed in that policy, and he couldn’t care less about this one.
Its no coincidence therefore, that when the Murray becomes such a hot topic, that Mr X should attach his name to that cause. He has built a career out of selling out real issues; issues that matter to real people, but issues which he cares little about. His only interest in this cause is his talent for never passing up an oportunity to hear his name in the Media. Sadly, we have seen him do little for his ‘causes’ over the years and its hardly ironic that we never hear his anti-pokies talk, now they have become ingrained in our society and are now too difficult to remove. I grew up on the Murray, however, and it’s when Nick Xenophon starts selling out my home that I begin to take offence.
Let us wait and watch if Nick Xenophon champions his latest ‘cause’ to the end, or if he abandons this too and moves on when he realises this one is also too difficult to pretend to care about any longer.
Nick Xenophon is without doubt one of the most consistent voices calling for reform of the pokies industry, and on his own, perhaps not enough can be achieved. But he has sparked support within the community because he is someone who has proven he can make a difference. Although the support of the stimulus package was given without a committment by the State Premiers and Rudd to legislate for smart cards on pokies to limit losses, now, with billions pouring into state infrastructure, the states should show the same good faith as Nick Xenophon did to vote for the package by legislating for smart cards on pokies to limit player losses. The drop in pokies tax would be small compared to the value of the infrastructure and the lower pokies losses would support other businesses rather than pokie barons. And the http://www.makepokiessafe.com site has the full text of Nick Xenophons address to the industry last year and non stop effort to reduce the harm to the community from the 8,000 to 10,000 million lost each year into pokies. Get behind Nick on the pokies issue and help the communities hurt so badly by 200,000 reverse ATMs strategically placed across our country.
Xenophon used his position to get something good done, which is sometimes as in this case an advantage of having independents holding the balance of power - and I think he should be commended for it.
I for one have enormously enjoyed Bernard Keane’s long-running series of articles on the lack of political action with respect to the Murray Darling. Sadly, he was rather a lone voice but much the most informative.
Xenophon has done as he should. Happily for him, it should ensure his re-election.
What is the controversy?
Luke: There is no way I could believe Xenophon gives a sh-t about anything. He’s a politician isn’t he?
It’s just a case of any tool in a typhoon. No more, no less.
Pity Xenophon couldn’t have crippled Brumby instead.
That would have done more for the Murray-Darling than anything else.
Penny Wong is reluctant to take action on anything. She is a case of permanently “watch this space”. Xenophon’s stunt will give her even more reasons to do nothing.
I always like your analysEs Bernard but…personal attacks on Senator X detract.
Is the package better for his stand? It seems to me it is. You don’t have to be so personal. It adds nothing.
HAGD.
Although Marilyn makes some good points too.
I have no problem withy extra money going to assist the Murray, I do have a problem with Xenophon grandstanding, acting like a spoilt child who cant get his way. All he had to do was stamp his feet in the Senate yesterday and the image would have been complete. However finally reason prevailed on both sides and the Murray gets more much needed help.
It is pleasing to see Fielding slink away with nothing, he deserved just that. He has a lot to learn. As for the Coalition, I said earlier they were on a hastened descent to obscurity, today proves even more so. Watch your back Mr Turnbull, they are an unforgiving lot your boys and girls, be interesting to see who gets in with the first thrust.
Bob Browns last days.
Well done Nick, for Bob Brown to cheaply try that ‘stunt’ of stealing your achievement and to see him the laughing stock in the Senate, spells the last days of Bob Brown.
We need action and sincerity in parliament and the Brown man has been short of both for many years.
I wonder if this $42 billion equate roughly to rollback of the revenue collected under the GST since 1999 or whenever it was?
Also it seems to me Rudd’s self interested economic strategy is highly dependant on the success of the biggest economy in the world - the USA - and the Obama administration. How can they crank start that beast, never mind Australia? They will have to do diplomatic deals all over the place to wind back the blood sucking military industrial complex.
Not a bad thing in my book, but then the diplomatic deals have to stick as well. It’s all a very big ask. Remember Nixon saying Israel was cheaper than a fifth fleet in the Mediteranean? He’s started winding back nuke weapons in consultation with the Russians. He wants serious talks with Iran’s current leader facing an election.
Heaven knows what else he can do. Especially as China has ramped up its military spending excessively. Maybe he can organise some cut backs in tandem with them too.
All the savings can be fed into the domestic pump prime. At least we know there’s a judicious thinker at the wheel not an intuitive frat.
Interesting that Bernard only views the Murray Darling Basin in terms of agriculture - and presumably irrigated agriculture. Even if he sees it purely in economic terms it has huge value in terms of tourism and other industries, let alone being a source of potable water for cities and towns. In some drought years, 90% of Adelaide’s water has come from the Murray. Brumby is even moving water from Murray tributaries to Melbourne - can you believe it!
Most people realise, however, that the Murray Darling Basin is the lifeblood of Australia’s east and south. If it dies much of Australia’s population in the basin and natural resources will disappear with it.
I didn’t agree with Xenophon’s grand-standing but am delighted with the result. Penny Wong really does need a bomb under her to get going on this issue.
Why “stunt”? Why not “strategy to try to save the environment”? Stunt sounds deceitful and conniving. Xenophon was very strategic in pushing the Murray Darling agenda. Bravo, even though it might be too late. Great stuff! What was Turnbull’s proposed strategy? ………….. uh huh …… sounds more like a cheap stunt to me. Very cunning, not at all stunning stunt, Turnbull.
I’m a rusted on Labor voter and I voted Labor in the Senate in 2007 - below the line. Xenophon got my first preference which didn’t go to an ALP candidate, and I’m happier than ever with my choices here. He’s neither a Labor nor Liberal stooge, but he’s doing a great job of being SA’s Brian Harradine only with better policy priorities. As a long time observer of SA politics I felt he was a good champion of the little guy (albeit unable to deal with the flood of expectations on him) and as a polling booth scrutineer at the time of the 2006 state election I was astonished that he out-polled the Libs by a huge margin at the booth I was on. He might irritate many, including the Labor people who won my first preferences, but as a South Australian I know he’s probably the most effective non-government representative ever to come out of my state. That said, I am also a fan of numerous Government MPs and Senators, including most notably Penny Wong, and I would not want this comment to be read as a criticism of them.