Labor joins with Liberals to push through attacks

Labor has compromised with the federal coalition government to secure passage of the $6.3 billion Budget Savings (Omnibus) Bill, which contains cuts to family payments, carer allowances and the federal renewable energy agency, and contains further attacks on students, pensioners, migrants and the unemployed.

The Australia Institute, a think tank, estimates that more than 60 percent of the savings come “at the expense of lower income people, with the rest coming mainly from higher education and innovation”.

On top of that, the major parties passed $4.6 billion in tobacco excise increases – a sin tax that overwhelmingly will slug the working class.

The mid-September “watershed moment” (in the words of one Financial Review journalist) is a huge shot in the arm for the struggling federal government, and an absolute disgrace on the ALP.

Treasurer Scott Morrison – the man at the frontline of the Liberal push to undermine and dismantle the public pension, health and education systems – was effusive toward the so-called opposition: “I commend [ALP shadow treasurer] Mr Bowen this week, I commend Chris on the work he did … I think it is clear that there are people in Labor, as Chris has demonstrated, we can work with to come to arrangements like this”.

Independent MP Andrew Wilkie, who is far from being a raging Bolshevik, described the compromise as “blackhearted” and called Labor a “pack of quislings” for supporting the bill, which will save about $30 billion over the coming decade, according to the treasurer.

Labor figures say that the compromise shows that the party can be serious about “budget repair” while making sure, through securing amendments to ameliorate the worst of the attacks, the poorest don’t suffer its burden.

How about, for once, we just have no attacks on workers and the income poor? All we ever seem to get from Labor in opposition are pronouncements that, because of the heroism of its well-paid parliamentarians, the rest of us can look forward to a slap in the face instead of a kick in the guts. That’s “Labor values” for you.

Coming in the week of Malcolm Turnbull’s first anniversary as prime minister, the deal transformed the political narrative. From being weak, ineffectual and compromised, the PM was lauded in the financial pages for getting things back on track, at least temporarily. Former critics are hopeful that the government can, with the help of the ALP, start delivering for big business as promised.

The pressure of policy gridlock had been building incessantly over the last six months, creating turmoil in the Liberal Party and destabilising the government. This was a tremendously good thing – it meant that the ruling class agenda remained but a dream while federal ministers and MPs were distracted and engaged in backbiting and bickering.

With this legislative victory, Turnbull and Morrison can calm the ranks and hold former PM Tony Abbott at bay. Treasurer Morrison and finance minister Mathias Cormann can now focus on other aspects of their regressive economic agenda, such as company tax cuts (paid for by working class smokers). They probably won’t get through the full suite, but Labor has signalled that it will again compromise.

This isn’t some tactical error. The parliamentary leaders, coming out of the close election loss in July, want to prove to the bosses that they can be counted on to rule for the rich. They may well block some of the Liberal wish list of big attacks – and shout about it to the rafters as they do.

But we should expect that companies with revenues of less than $10 million will get a few gifts in the coming year, and that the ALP will quietly go about collaborating in the parliament to enable more attacks on workers and the poor.

They’ll tell us that only because of them have we avoided a good kicking. But get ready for a few more slaps.