On the eve of the Federal election, Mark Beyer spoke to senior Labor MP Stephen Smith and Liberal Senator Ian Campbell about their policies for business in Western Australia.
On the eve of the Federal election, Mark Beyer spoke to senior Labor MP Stephen Smith and Liberal Senator Ian Campbell about their policies for business in Western Australia.
“We believe in a market economy and we believe in competition. We are committed to budget surpluses, we support the resources industry.”
Does that quote sound like a Labor politician or a Liberal politician?
For the record, it was Labor MP Stephen Smith, doing his best to reassure the business community they have nothing to fear from a Latham Labor government.
Selling Labor to the business community is a big ask, particularly in light of the widespread concern over Labor’s industrial relations policies.
It’s a simpler task for Senator Ian Campbell, the current Minister for the Environment and Heritage.
He emphasises that the Howard Government will continue its existing policy agenda for the business sector.
“Keeping interest rates down, keeping economic management right on foot, running a very tight fiscal discipline, our success there is now on the record, and not imposing measures on the [business] community that will slow growth,” Senator Campbell said.
The economic credentials of both major parties have been sorely tested by their massive spending promises during the election campaign.
Senator Campbell insists the Government has kept a “very tight rein” on spending and argues that Labor will not be able to deliver the offsetting savings it has proposed.
“They have got a whole series of savings that we know they will never achieve,” he said.
Mr Smith, who is due to become a senior minister should Labor win power, responds to that charge with a sarcastic riposte.
“They wouldn’t know because they don’t have any savings,” he said. “There is only one side that is in danger of running into deficit and putting upward pressure on interest rates.”
The Australian Financial Review’s Spendometer, which tracks spending promises by both sides, puts the rhetoric into perspective.
The Coalition’s spending promises add up to $15 billion – after deducting identified savings, its total net spend is $13.4 billion.
On the Labor side, spending promises are much higher, at $42 billion, but so too are the savings. Its total net spend is $14.2 billion, a little above the Coalition figure
Apart from fiscal prudence – or the lack of it – industrial relations is a clear point of difference between the two major parties.
Senator Campbell argues that Labor’s plan to abolish individual workplace agreements (Australian Workplace Agreements) is one of many risks posed by Labor.
Drawing on examples from his ministerial portfolio, Senator Campbell said other risks include Labor’s plan to increase the mandatory renewable energy target.
“That’s going to massively increase the cost of power.”
He also argues that Labor’s plans for a national emissions trading scheme and its pledge to sign the Kyoto protocol would “massively disadvantage” our gas and energy sector.
Mr Smith says critics attach too much weight to the planned abolition of AWAs.
“We don’t regard that as being in any way fundamental. We’re not closing the common law option, we’re just closing the legislative option,” he told WA Business News.
Mr Smith also emphasises that Labor first introduced enterprise bargaining and will retain it as the central focus of wage setting.
Critics such as the Chamber of Commerce and Industry say common law contracts would be unsatisfactory because they do not override industrial awards, and want the current range of options to be retained.
Labor’s industrial relations policies reflect a philosophy of trying to more carefully balance equity and efficiency goals.
This is reflected in the title of Labor’s industrial relations policy document: Flexibility with fairness for Australia’s workplaces.
Mr Smith emphasises this point, saying the current arrangements leave people with uneven bargaining power open to exploitation.
The philosophy of rebalancing efficiency and fairness is also reflected in Labor’s response to the skills shortage.
Like the Coalition, Labor has promised a big increase in spending on training.
Mr Smith also believes the Howard Government has failed to properly police the use of foreign workers, a claim that echoes concerns raised by union leaders including Australian Manufacturing Workers’ Union State secretary Jock Ferguson.
“I don’t object to people bringing workers into Australia in a fair and open and above board way,” Mr Smith said.
“I have a grave objection to people bringing them in illegally.”
He said the biggest issue was the estimated 60,000 people in Australia who had overstayed their travel visas, some of whom were working in industries such as construction without appropriate training.
“We can’t turn a blind eye to the problem.”
Looking ahead, one of the key issues for both major parties is their desire to embrace continued economic reform.
Senator Campbell cites corporate law reform, the push for more bilateral free trade agreements, the reforms flowing from the Cole Royal Commission into the building industry and continued industrial relations reforms to support the contention that the government has not lost its reform zeal.
Ironically, the Coalition’s industrial relations policy has been cited by business groups to argue the opposite.
Chamber of Commerce and Industry of WA director Bruce Williams said the Coalition’s industrial relations policy includes some welcome new elements and is currently the better option.
“Missing from the policy is the promise of a fundamental review of the role of the Australian Industrial Relations Commission,” Mr Williams said.
Mr Smith, like his enigmatic leader Mark Latham, focused on two very different areas to illustrate Labor’s reform agenda.
One of these is responding to long-term demographic trends such as the ageing of the Australian population and increasing urbanisation.
Mr Smith believes this will have a big impact on immigration.
“The big challenge in the migration area is to look at long-term population policy, not just the annual migration intake.”
Mr Smith has also highlighted Labor’s pledge to create an infrastructure fund that would pour up to $75 million per year into infrastructure to support resource projects in Western Australia.
The funding, to come from royalties from the giant Gorgon gas project, contrasts with the constant sniping between the Gallop Government and the Howard Government over infrastructure funding.
The election this weekend will determine whether Labor’s policies need to be factored into future business plans.
