People in Britain haven't seen a Labour government since 1979. Which means that those under 30 have had no direct adult experience of how Labour rule is no different from that of any other government. But workers in other countries have experienced Labour governments more recently, in Australia and in New Zealand. Here a Socialist from Australia sets out the pro-capitalist record of the various Labor Party governments which have been in power there since 1983. It will make edifying reading for those who entertain illusions about what a Labour government in Britain would, or could, do. Next month a Socialist from New Zealand writes about how the Labour Party there imposed austerity while in office.
December 1972 saw Gough Whitlam become the first Labor PM since 1949. His term was notable for his appointment of his “old mate”, High Court judge John Kerr, as Governor-General. Kerr had already demonstrated where his sympathies lay by clapping a prominent union official in jail for industrial action against the bosses. Kerr used this newly-acquired power and imperial boot to kick Whitlam out of office and invite Liberal Malcolm Fraser to form a government in his place.
The next seven years were marked by Fraser’s austere treatment of workers and his famous explanation that “life wasn’t meant to be easy”. These polices eventually resulted in economic turmoil as increasing unrest and industrial action by the unions, let by ACTU President Bob Hawke, threatened to create chaos for the business section. Drastic action was needed to somehow curb wages and yet pacify the workers during those times of rampant inflation. Only a Labor government with control over the unions could possibly achieve this.
ACTU President Hawke, a Rhodes Scholar and son of a religious minister, suddenly became an elected Labour MP while the media, on behalf of the business world, clamoured for a Labour victory at the next election.
Bill Hayden, Labor leader at this time, was all set to become PM. Unfortunately for him this was the era of charismatic leaders with stimulating TV media appeal. Bill Hayden had a sterile character compared to Hawke, so the latter was soon rapidly elevated and replaced Hayden as Labor leader with just five weeks to go to election day. This move clinched the election TV media battle against the positively morose Malcolm Fraser. The Hawke Labor government came to power 5 March 1983. Thus commenced the Hawke and Treasurer Keating Labor saga.
Bill Hayden was clearly bitter at having to resign in favour of Hawke. He had been a leading proponent breaking all ties with the UK and declaring Australia a republic. As a reward for his “sacrifice”, apart from his fat redundancy package, Hayden also accepted the appointment of Governor-General . . . the Queen’s Representative. To this day he still ponces around in top hat, tails and sashes, with a huge tax-free salary.
The 1980s saw Labor governments almost monopolise Australia. At one period all State governments, except Queensland and Tasmania, were Labor controlled.
The new PM Hawkc quickly organisd a meeting of capitalist employers and unions to thrash out an arrangement known as “The Accord”. His recent connections in the ACTU ensured that the unions were little more than a branch of die Labor Party. Frantic for Labor success, docile union representatives agreed to everything the Hawke government suggested. The result of “Accord” was a wage freeze and a trail of broken election promises. There was an about-face on the Timor occupation by Indonesia, uranium mining, wages and taxation. Later, promises on shorter hours, better conditions, the bomb, housing, big business tax evasion and reducing poverty were also postponed. “Indefinitely”. Had the Fraser Liberal government initiated such moves industrial actions would have brought the country' to a standstill. Union officials now spent most of their time hob-nobbing with bosses and politicians and pacifying rank-and-file complaints.
PM I Hawke explained his broken promises: "Circumstances have changed. It would be the height of irresponsibility for the government to fail to adapt to changed circumstances."
By November 1984 more workers were below the poverty line than in the previous two years, and pensions fell even further below the increasing cost of living. During one of his “publicity strolls” Bob Hawke was approached by a pensioner who attempted to discuss how Labor’s policies were hurting him. He was rebuffed in front of the TV cameras by the PM who, pushing him aside, said “You silly old bugger.”
The Federal Treasurer, Paul Keating, proudly told die House of Representatives that profits, as a proportion of national income, were at their highest since 1973.
The mid-1980s produced a balance-of-payments problem. Treasurer Keating explained that the strong economy meant money was being spent on imports which far outweighed exports. His “Labor” remedy was to copy exactly Conservative Thatcher in the UK, make money too expensive to borrow to spend on imports. Interest rates rose to record levels and mortgage-payers were punished to the point of destitution, while the Hawke government imported two airliners at $300 million each for Qantas and spent vast amounts on imported fighter aircraft to upgrade the RAAF. The West Australian newspaper reported:
"Mortgages plunge young families into poverty. In two years Apr. 84 to Apr. 86 interest rales increased from 11.5 to 15.5% Average earnings during the same period increased by 12.8% before tax, consumer prices rose 15%.Marriage break-ups and unemployment mean 81,000 children in W.A. are in families receiving some form of Govt assistance. Financial help in Australia is less than in other Western countries. The long term looks bleak. ”
With rising unemployment, the same newspaper later informed readers:
"Indexation rises in pensions for aged and invalids, dole for people over 21 and benefits for parents are planned to be curbed, saving the government S150 million p.a. and another $25 million if extended to war veterans pensions. ”
September 11 1986 and PM Hawke breaks yet another election promise. Australia will now sell uranium to France; “They can be trusted to use it only for peaceful purposes,” he said.
French nuclear testing at Mururoa in the Pacific had damaged the volcanic base of the atoll. Future French tests were now planned to take place on the Kerguelen Islands. Prevailing winds and sea currents would carry any radio-active leaks straight to Western Australia. Three leaks from other French nuclear plants were reported within the following year.
With most rank-and-file unions still being subservient and acting as a wing of the Labor Party, “restructuring” and “productivity agreements” were foisted upon workers. An exception was the Air Pilots Federation. A salary dispute led to strike action by airline pilots. The Hawke Labor government quickly intervened. RAAF pilots were used and $100 million of revenue was spent attracting foreign pilots while all the striking pilots were sacked and their Federation destroyed.
Worse off
The second half of the 1980s became “payoff time” for many Labor politicians. During these years many of them resigned from politics and took advantage of generous pay-outs and lucrative job offers from the contacts they had made during their tenure. Examples include Susan Ryan, after 12 years’ service, resigned with 60 percent of her salary for life plus a top job with Penguin Books. Mick Young was another, after many indiscreet “stuff-ups” he resigned after evading smuggling charges. On top of his ministerial lump-sum pay-out he was fixed up as a part-time consultant to Qantas with a salary of $150,000 p.a.
There were the years that the Hawke government interest in privatisation came to the fore, yet again following the path already taken by the UK Conservative “Iron Lady”. Clyde Cameron, former minister in the Whitlam government, accused Hawke of going back on all his principles from his ACTU days. Cameron called for Hawke’s expulsion from the Labor Party.
Foreign Minister Gareth Evans, in Indonesia for trade talks, was seen on TV sipping wine with his hosts while in Timor civilians were being massacred by occupying Indonesian troops.
Labor Senator Graeme Richardson, on a visit to the USA was heard on the radio delivering a speech to American capitalists. He proudly stated that the Hawke government had managed to reduce real wages by 16 percent and he invited American investment in Australia “to take advantage of the cheap labour that we have created. "
The West Australian, 25 February' 1987 reported:
“Young Australian couples are worse off than their parents were. Easy credit and women bringing in a second income have concealed the extent to which living standards have fallen. Even adjusting for inflation, a man must work harder and longer than his father did to house, feed, clothe and educate his children and pay for the necessities of family life.A woman whose husband is in a job comparable with that of her father, and who wishes to be a full-time home-maker and mother, is likely to face financial destitution. For the past too decades married women have been under increasing financial and social pressure to return to full-time work.Today’s young couple is likely to be a two-income family, not just until the first child, but for the greater part of their married life. The chances of their marriage failing is at least three times greater than their parents. The labour of two people today earns far less than twice what was acquired through the paid labour of one man a generation ago. ”
The recession hit the stock market. Fortunes were lost as the value of shares and property plummeted. Small investors lost most, or all, of their money while many of the individual “high-flying” corporate tycoons, suddenly now having debts more than the value of their total assets, declared themselves bankrupt, but still mysteriously managed to live in personal luxury.
Federal and State Labor governments now stated they could no longer afford to protect the environment. All charities stated poverty was increasing. Aboriginal poverty remained, as always, a growth industry managed by a multitude of government bureaucrats and civil servants. The Dept of Social Security now expanded rapidly to manage the poverty of the growing number of unemployed.
The 1980s ended with judges and politicians awarding themselves a 20 percent salary increase.
The Spring of 1990 saw the 75th anniversary of the Gallipoli landings in Turkey. PM Hawke and other Australian dignitaries journeyed to Anzac Cove where so many young Australians and New Zealanders had uselessly lost their lives in 1915. In an emotional speech, complete with choking voice and tears. Bob Hawke pledged that, “Never again will young Australians be sent to fight and die in wars abroad.” Within a year the Gulf crisis erupted and the Hawke government was the first to support American military' action by sending three warships to fight . . . before the UN had decided what action should be taken.
Back-slapping buddies
The year 1991 at Federal level witnessed the demise of that great I.abor “team” of bosom back-slapping buddies, Bob Hawke and Paul Keating. The facade of mutual admiration gave way as personal egos and ambition revealed their true relationship . . . complete with knives protruding from their backs.
Paul Keating made his first challenge for leadership in June, which resulted in failure. He stepped down as Treasurer and was forced to take his exceptional talents to the backbench were he concentrated on accumulating the numbers to support another overthrow attempt and await his opportunity.
The fall of the Labor State government in Western Australia created tremors in the Federal I.abor government. Something was needed to avert the defeat they, themselves, were heading for. A change of leadership was worth a gamble so in December Hawke received a Xmas present by being ousted and replaced by his bitter rival, Paul Keating.
A resentful Bob Hawke resigned and retreated to his millionaire’s mansion overlooking Sydney Harbour and proceeded to write a book of memoirs and criticism of all his colleagues.
While these political somersaults were being enacted, privatisation and restructuring were biting the workforce. Many jobs in the railways and other government departments were made redundant and private contracts were tendered. Cuts in funding for schools, hospitals and roads were made. The Royal Flying Doctor had to appeal to charities for a new aircraft. The Federal Labor government spent $5 billion on six new submarines and vast sums re-equipping the RAAF.
G. Ogglesworth
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