By the time most of you read this article, Julia Gillard will have pulled off an extraordinary political coup - her second in one week - and one which again puts Labor in the box seat to win a second term. At 8.30am the new Prime Minister is expected to stand up and announce that a deal has been struck on the mining tax, killing stone dead the one issue which more than any other was threatening to derail Labor’s campaign for re-election.

The Prime Minister outside the Cabinet Office in Canberra last night as she put the finishing touches to the mining deal. Photo: The Australian

If Kevin Rudd was the major personality flaw in Labor’s re-election equation, the Resources Super Profits Tax was its biggest policy failing. There were three key problems with the tax - many voters could not understand why Canberra was going after the one industry sector which had helped us weather the global financial crisis, Kevin Rudd was proving inept and ineffective at negotiating with the miners over its operation, and the proposed use of $38 million in public money to fund an advertising campaign extolling its virtues had offended the taxpayers deeply.

In just one week Julia Gillard has killed each of these three problems - she appears to have struck a deal which the miners are prepared to wear, she’s done so by sitting and down and negotiating in a manner which Kevin Rudd could only dream of, and she’s already killed off the prospect of a damaging and expensive advertising war on the eve of the election campaign. It’s a massive win for her so early in her prime ministership and a very serious blow to Tony Abbott who has been campaigning on little else for the past few months.

Tony Abbott has been a dogged prosecutor of the flaws of the RSPT. He may now find himself in a position where his chief criticism of the government is now a total non-event. If the miners go quietly and accept the revised terms of the tax, Mr Abbott has effectively spent two months campaigning against something which will no longer feature as an issue in the election campaign.

Julia Gillard would not have scheduled a press conference for 8.30am this morning to tell Australia that the talks have failed, or that the talks are continuing. She will tell the people of Australia that the talks have been a success and that a deal has been done. If the miners buy it, it’s a massive win for her, it makes an early election even more likely, and it also increases the likelihood of a Labor win.

Tony Abbott can argue on national interest grounds that he’s pleased the tax has been softened. He can rightly take credit for helping to force the government to modify its original plan. But politically, it’s his worst case scenario. The Coalition would have much preferred a debilitating national brawl between the Government and the miners than the consensus we are about to see today. It’s Julia’s second coup in a week and it will embolden her and the Government she now leads.

The mining tax is obviously dominating the news sites this morning but there’s one other funny little story we liked, by Michelle Grattan in The Age, where Kevin Rudd’s nephew, radical leftie artist Van Thanh Rudd, has done an interview about his uncle’s demise. ‘‘On a personal level I understand he’d be hurting a bit,” says Van Thanh, who also reveals that he’s running against new Prime Minister Julia Gillard in Lalor for the Revolutionary Socialist Party.

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133 comments

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    • dobbo says:

      06:18am | 02/07/10

      Big deal. This great big horrible nasty evil life-threatening stinky mining tax is the biggest hoax since Saddam’s weapons of mass destruction.

      In this case it has been nothing more than a weapon to take out Rudd and by extension the ALP. Seems to have backfired though which is delicious.

      So guess we’ll see a change in tactics now in those parts of the world that still want someone more pliable like good old Rubber Limbs the Marathon Runner in place.

      And so it is proving. Check out Bob Brown’s comments yesterday in a news article saying the Greens can amend (or maybe even help block?)  the RSPT in the Senate. The only way this cannot happen is if ALP get control of both houses, he also said.

      In other words the damn tax everyone is getting so wound up about doesn’t exist - the thing still has to get through the Senate.

      Now there’s an agreement between Gillard and mining companies, of course the reality of the tax vis a vis the Senate is allowed to emerge in relevant media outlets.

      And to think of all the debate, paranoia and endless ink wastage this whole hoax has generated…and that’s not to even mention poor old mining execs stifling in tiny cabinet rooms while they desperately debated a non existent tax!!!

      Ah yes. There’ll be more much more yet. Mark my words.

    • Tim says:

      07:53am | 02/07/10

      @ Dobbo

      So the government should pass everything as law, THEN have a debate? Real clever.

      It makes sense to get the kinks worked out of prospective legislation as early as possible. It saves a lot of trouble in the long run.

      You may notice that Conroy’s idiotic filter plan hasn’t gone through parilament yet either and thus (by your logic) doesn’t even exist yet. Do you think that it’s ridiculous that the public have been up in arms over it?

      This is how democracy works, and thank god it does. Without Labor’s ideas being scrutinised by the Opposition, the media and the public, who knows what stupid ideas would get through.

    • jack says:

      11:02am | 02/07/10

      jack says to Dobo
      Well its all done and dusted so all you people are talking with false tongues,  I will be hearing from you three years from now thats when you liberals can try again and I bet it wont be with Abbott, I still have plenty of boxes of tissues if you require them
                                                              JACK

    • Steve says:

      03:24pm | 04/07/10

      @ Tim Your right in relation to the joint houses process no one party should ever have total control of both houses that only leads to disaster in the end.. for the country. Heaven forbid look what happened with the last government Howard set up a guillotine factory at the far end of parliament house when they had control of both houses. The country was the looser again from his incompetence, our nation’s total debt soared from a mere $700 billion in 1997 up to $3.2 trillion by the close of their term. An increase of 387%. Interestingly Labor’s stimulus package comes in at about 1% of that total. Deregulation brought growth all right. But I hear a lot of folk did ok in that time too? nudge, nudge, wink, wink, if you know what I mean old chap!!!!

    • mags says:

      07:02am | 02/07/10

      What I like about all this is that not once did Gillard and Swann say they had made a mistake allowing the RSPT to be included in the Budget in the first place, without weighing the consequences. As the previous writer has said, it hasn’t been passed by the Senate yet and already it’s created havoc.

      As for Gillard taking the credit for any agreement, I didn’t see her talking to the mining groups. All face and no substance.

    • Gregg says:

      03:16pm | 02/07/10

      Spot on Mags as you do have to ask just how well is a country likely to be run when budgetting at the national level is developed with an unknown quantum as a key element.

      Poor old Kev with his communicative faults at least knew that if there was all this spending done and still occurring the only way to project a return to a balanced budget was going to be through a tax grab and no new spending.
      In that scenario, if consultation wasn’t on the table why would negotiation and then as to no new spending - Oh yeah!
      Now we have a treasurer/deputy PM spruiking in Toronto how good we are and how the RSPT negotiations would have no bottom line impact and yet back in Canberra he’s saying impact is yet to be fully assessed.
      National Budgetting on the run, what fun!

      Certainly little substance anywhere.

    • Richard says:

      07:06am | 02/07/10

      The hoax being played on the Australian Public is the notion that government taxation is in the national interest. No, its not: government is a parasite on the productive private sector, and its burden of taxation should be reduced in order to help the economy recover from the global downturn, not increased to fund more inefficient and wasteful government programs and pork barrelling.

    • T.Chong says:

      07:39am | 02/07/10

      Richard, in yur world of no taxes, who pays for police , hospitals ,and defence forces ?

    • Richard says:

      08:21am | 02/07/10

      There is a way to organise things efficiently you know~ its called the free market wink
      The only problem with that is that people usually end up making profits (shock horror {quick lets tax them}).
      Seriously though, in my opinion the government’s only mandate is: to ensure the rule of law within our borders, and to protect us from foreign aggression from outside our borders. Obviously to fulfil these duties the government needs to levy taxation on its citizens. But then we have to consider, what type of taxes are the best?
      As a general rule, taxation something tends to discourage whatever becomes its object eg. The recent smoking tax has led to a drop in smoking rates, the alcopop tax led to a reduction in pre-mixed alcohol consumption. This is obviously true because it is proved by its inverse~ negative gearing taxation offsets encourages housing investments, which we can clearly see have been booming since Keating’s government.

      So if we want to discourage mining companies from making much profits, by all means we should introduce the RSPT, but is it really in the national interest to have our most successful companies being less profitable?

    • Wayne Fehlhaber says:

      08:28am | 02/07/10

      Richard :  Right on the money Richard , the R.S.P.T. was Labor’s last desperate bid to refill the nation’s plundered coffers. Between the Roofing Insulation tragedy and the continuing BER school buildings rip-off , program bungles and the $900 cheques for the living and dead to buy popularity , this country has been sent virtually bankrupt.
      The backflip in the detail of the R.S.P.T. plan will leave Gillard short in the bottom line required on the 2010-2011 budget , and this shortfall will result in cuts to expenditure in other vital areas .
      To label the mining deal a ” coup ” for Gillard is rather premature , as the details of the deal are clearly differrent to what the govt. wanted.
      This latest backflip by the Union installed Labor leader is likely to haunt Gillard all the way to the election.

    • Seano says:

      10:12am | 02/07/10

      The same free market that brought us the GFC and the disaster in the golf of Mexico Richard?

    • Mavis says:

      11:19am | 02/07/10

      Seano, overzealous government caused the GFC. You are obviously too ignorant to have heard of the Democrats Community Re-investment Act or too. Perhaps you have been on another planet in the last six months but corrupt government and excessive welfare pork barrelling brought Greek economy to its knees.

      Still you blabber your stupid socialist mantras. .... sheesh.

      And to T.Chong, the word you fail to understand is “balance”. Richard never said “no taxes” so don’t put words in his mouth.

    • PaulB says:

      11:28am | 02/07/10

      “Richard, in yur world of no taxes, who pays for police , hospitals ,and defence forces ?”

      What a stupid thing to say.  These are the things we should be paying taxes for.  Its all the other stuff that gets added in by Governments buying votes and promoting personal irresponsibility that squeezes the tax available for the things we actually need.

    • Mhoram says:

      11:53am | 02/07/10

      Sorry Mavis, you’re talking out of the wrong end with those comments.
      The private (mainly financial) sector caused the GFC - no argument from anyone there; inept governments enforcing lax, corrupted regulations allowed it too get too far. Greedy consumers fed the beast, but they are also the ones who continue to suffer the most.

      Do you genuinely not realise just how little impact the GFC has had in Australia - do you ever wonder why? Is it because our financial institutions are so angelic and ethical that they pulled back and refused to make money out of other’s misery?? Yes, that must be it. That’s why our financial industry is the envy of the developed world, isn’t it?

      I am by no stretch (at any level) a Labor voter, but I’m highly frustrated that all these arguments (by the people) seem to go along party lines, rather than analysing the policy.

      To the point of the article, yes it is a coup. It is, however, a coup based on an artificially created issue, so the merits of this outcome need to be measured against that as well. This tax regime in this sector does need an overhaul, and I think this is a step in the right direction. What it is not is a vindication of how Labor are now suddenly “successful”, and La Gillard a miracle worker who is the best thing since sliced Gough.

    • Ben G says:

      01:36pm | 02/07/10

      Why the people on this thread think there are two options (Free-market utopia, or Socialist utopia) I’ll never know.
      Yes, free-market capitalism is very efficient, but only an idiot thinks it doesn’t open the door to a whole new world of corruption and abuse.
      Yes, socialism brings a supposed safety net but it’s also a proven failure in efficiency and again opens the door to a whole new world of corruption and abuse.
      Now, if you want to distill complex issues down to one side versus the other, make your way straight over to a sporting bulletin board where at least the idiotic dumbing down of complicated matters at least doesn’t endanger the necessary conversations on national policy.
      If Julia Gillard and a bunch of ex-union officials can figure out that business is necessary, hopefully even Kevin Rudd’s nephew will figure out it lately. Likewise, when even Tony Abbott brings out a $1.5B mental health policy, I’m sorry militant Libertarians, you’ve lost the conversation: Government is going to be more than a solitary guy in a suit who oversees a trillion dollar economy.
      Grow up and get on with the debate. Concede that you’ve lost these points and move on.

    • The Redman says:

      01:44pm | 02/07/10

      Ben, you make some good and interesting points regarding free market and socialism. One thing though is that the Liberals nor their supporters will ever accept that they have lost the points on this one. They can’t even accept the fact they lost the last election yet!! (That’s meant to be lighthearted, by the way).

    • John A Neve says:

      02:03pm | 02/07/10

      Ben G,
      I am not sure we have ever had “free-market capitalism”, if we have, it was many years ago. What we currently have is Public Supported Capitalism, the people via the government give business, tax concessions, we bail them out if they fail, we actually pay them to work!!!
      For goodness sake what sort of free enterprise is that?

      As to a “Socialist Utopia”, sadly in all recorded systems it has been defeated by greedy, power hungry people.

      Until the people take back their rights and responsibilities, little will change. I am of the opinion few people know what democracy really is.
      They like being told what to do and say, if things go wrong they can blame some one else.
      I love this Brave New World.

    • Gregg says:

      03:19pm | 02/07/10

      Spot on Mavis!
      No more needed to be said.

    • Gregg says:

      03:46pm | 02/07/10

      Mhoram, don’t be so much a moron.
      Have you heard of Freddy Mac and Fanny May everyone get finance for housing no matter how poor they are as promoted by the Democrats.
      And then you’ve had all the finance bound up in housing that people walked away from, the toxic assets that have been bundled up and sold on to be resold with events like the Icelandic government brought to bankruptcy because they invested.
      And yes, that’s where it was all snowballing along with the financial sectors about the globe but for any mess I agree it is often difficult for root causes to be established, especially when you have partying and greed built on incompetent generosity.
      Sort of rings a bell for here does it not!
      Re:
      ” Do you genuinely not realise just how little impact the GFC has had in Australia - do you ever wonder why? Is it because our financial institutions are so angelic and ethical that they pulled back and refused to make money out of other’s misery?? Yes, that must be it. That’s why our financial industry is the envy of the developed world, isn’t it? “

      I am left wondering at your answering your own question with another.
      But have you not heard of the Domino effect?
      Used to be phrased sometimes a few decades back ” If the US sneezes, we’ll catch a cold ” but fortunately for us they sent the flu in Europe’s direction tho there were still losses here - Queensland treasurer a year or so back for instance threw out a line ” we’ve had 400M invested ” and surprisingly the media has never followed up and then there has been the Storm Investment House crash.
      With China in the mix these days, the Dominoes have a different/longer route that goes something like US/Europe consume, China makes, and we are one of the providers.
      China in the middle have been stimulating their home market of late to make up for a lot less product demand and so how long to you reckon that’ll last for?
      And then what? , less demand for resources for one!
      Work on it!
      ” the envy of the developed world, isn’t it? “
      Come on now for what % of the globe’s market do you really reckon we represent?
      But when Freddy and Fanny do come a knocking, have a think about how healthy we are with average housing cost/annual wages ratios compared to the US.
      There’s already plenty of two/three income McMansions on the market and numbers might just grow with a cresendo of an almighty crashing around our ears.

      But a coup you call it!
      Only in the sense it is dressed up as such.
      But perhaps there was a grand plan to lay a coup for Kevin!

    • Mhoram says:

      04:55pm | 02/07/10

      Greg, that was a nice, long response. Pity it didn’t address what I actually argued, in fact, it seemed to agree with most of it (except the “moron” part, that wasn’t nice smile ).

      Freddy Mac and Fanny May are private companies that were chasing market share and profit. They did this without proper due diligence and without informing the market or their customers of the risks involved - risks which they were well aware of for a long time. They were then caught unawares by the low-income mortgagees simply walking away from their unaffordable liabilities - they just did not foresee this. To compound this, the artificial property bubble created in the USA by these loans meant the assets were worth only a fraction of the loans against them. Yes, the Democrats (here go the arguments along bl**dy party lines again!) pushed it as well, as it made them look good (“see, we’re letting poor people own their own homes, aren’t we so nice”). I made it pretty clear governments were implicit in the increased impact of the GFC.

      Everyone (people, companies, countries) had been investing more and more in these economies because they were both greedy and they weren’t told of the risks, or they weren’t smart enough to do the research. Plus, their own economies were just not performing as well, and did not provide the returns required to fund their social agendas. ‘Mea Culpa’ you say; ‘hard to disagree with you’, I respond.

      On to the Domino Effect. Nice little catch-all that doesn’t really work for you, but nice try. This effect is in constant flux, it never goes away. Smartly managed economies cater for it and understand it, although some extremes just cannot be absorbed. The private sector-led grab for profits just exceeded any possible way of coping with the fallout.

      Your arguments following this seem to align to mine, so I’m a little confused. The collapsing investments firms are, once again, private companies that got greedy and over-reached. In all these cases, especially in the USA, GOVERNMENTS stepped in and underwrote PRIVATE financial institutions!! They did this because they felt they had no choice, due to how critical these companies were to their economic stability. The only reason Australian banks did not also collapse is due to the regulations around how they operate in this country. Badly run Investment firms with no such regulations are falling quickly. I’m happy to put up with “over-zealous government” if that’s what it saves us from. What you are correct about is the almighty greed and disregard Australian consumers have displayed in their chase of material excess, McMansions and multiple invetsment properties funded by the taxpayer through bad negative gearing policies and the like. We are so over-geared as individuals that we are in danger of collapse at any moment. The strong economy (yes, underpinned by the Chinese hunger for our resources) is the only thing keeping our heads above water. Yes, there are rumblings around the Chinese economy slowing down, but the thirst for our resources will take a few years to dwindle yet. What we should be doing is making sure we don’t continue to be so dependent on this sector for our financial well-being as a country. There have been predictions for the last 20 years that the Australian property market would catastrophically collapse, it’s never happened. It was meant to fall by 40% a few years back, it didn’t. It softened for a while, but it didn’t last long. Now they’re saying it again. I think it will soften again, but not crash, mainly due to the fact that it just isn’t as artificially priced as analysts think. Add to that the demand for housing that is just going to continue to rise for many years to come, and our local economy has plenty of potential to stay strong.

      Nevertheless, we are currently able to keep our greedy heads above water mainly due to our the much-envied (and yes, it really is) way our financial sector is managed. And once again, if you actually read what I wrote, I called it a coup in a very limited sense, and I quote: “It is, however, a coup based on an artificially created issue, so the merits of this outcome need to be measured against that as well.”.

      As for using it to get rid of poor old Kev, I think it was just a nice by-product for the new (old) guard. Kev’s downfall came because he tried to run a socialist party as an autocracy. The previous power brokers, who were used to the respect and luxurious life afforded to them by their position in the ALP, just could not let that continue, so they manufactured a reason to topple him. They would quite happily hamstring their own party ot further their own personal agenda. Nothing’s changed there, on any side of politics.

    • hot tub political machine says:

      05:47pm | 02/07/10

      Pity how the Freemarket didn’t seem to get the idea of human nature though isn’t it? No officer we don’t need regulation - we are a good efficent well meaning private company - there is no oil pumping into the sea…..

    • Seano says:

      06:55pm | 02/07/10

      Fair enough lets not talk about the oil spill because that’s the just completely indefensible.

      As for the GFC, you know I don’t remember exactly defending the democrats or accusing the republicans. But you go ahead making up my arguments and then shooting them down, should give you someone to talk too.

      I support a free market but one with appropriate, common sense checks and balances, without such we get disasters like the oil spill and the GFC.

    • Graham says:

      10:56pm | 02/07/10

      T, I don’t think Richard has any problem with taxation to provide those services governments are historically responsible for and best positioned to administer. The trouble with a government that is wasteful and a political system that rewards parties by promising the easy road - it moves us closer to ending up a Greek economy - after each iteration. More and more taxation is required. In the end, what incentive is there for people to work harder, risk capital etc for the same return a nine to fiver gets (nothing wrong with the working man, I am one of them!). The diminishing returns from overtime - the more you work, the more tax you pay - what is the incentive?? So, you finally figure out that the one day extra work too much had you gaining $20 in real wage for your family. Why work harder?? Government should be lean, middle class welfare needs to be reduced and working hard should be rewarded.

    • Reg says:

      10:14am | 08/07/10

      Mavis seems to have failed to observe that the GFC was international. She’s thinking in her own little back yard again like all companies do. Government is a moderator on behalf of the people who own the resources you are granted the right to exploit. If you don’t like it, piss off and we’ll find someone else who does. No different to changing governments.

    • Sherlock says:

      07:13am | 02/07/10

      Hmmm! Giving in to people with the resources to mount an advertising campaign. Changing your policy the moment it becomes politically inconvenient (a major Labor trait. Think ETS)  Blowing the budget you delivered only eight short weeks ago completely out of the water. Having to renege on a number of previously announced policies. Having a Treasurer who has constantly denigrated mining executives by labelling them everything from liars to fat cats now having to eat his words and admit they were right in the first place and so on and so on and so on.

      It would seem that David Penberthy and I have a very different understanding of the word “coup”. I looked in the dictionary and couldn’t find the definition “a complete and humiliating backdown” anywhere.

    • Seano says:

      07:27am | 02/07/10

      Bitter much? Here’s some words for you to look up in your dictionary Sherlock: Negotiation and Reelected.

    • Sherlock says:

      08:05am | 02/07/10

      Well come on Seano. What happened to that RSPT you were championing only last week?

      We’re a little confused here. Have you now decided that the RSPT was a bad policy. That would mean that you agree Tony Abbot was right. Or is the new mining tax bad policy.

      What about all those things announced in the budget that will now be reneged on. Were they good policies? If so weren’t they worth fighting for? Or have you decided that they were bad policies now?

      What about the government advertising that last week you said was fair?. If it was as fair and right as you stated only a week ago than why was one of the first things Gillard did was stop it? Does that mean it wasn’t right?

      What about Swan? After this complete U-turn how can the electorate take anything he ever says again seriously. After stuffing this mining tax up so bad you’d expect a Treasurer to resign. However in this New Labor government he gets promoted. Go figure!

      It’s the same with the ETS? Is it now a good policy or a bad one? What about the other policies that will change form only a week ago? Are they now bad policies if so why didn’t you tell us this last week?

      It seems to me the left can change their whole belief system overnight the minute the current one becomes politically inconvenient. Doesn’t strike me as the basis for good government.

      Say what you want about the coalition government but they always stuck to their beliefs in a fight. Even when it became crystal clear that there was a big chance that Workchoices could cost them government they didn’t abandon it and run away. That’s the government I want.

      Or perhaps you think that re-election is all a government should be concerned with.

    • Rob r Charteris says:

      08:35am | 02/07/10

      Seano says:07:27am; Negotiation and Reelected you got that right!!!!! lololololol. Now what all the bitter and twisted snivelling liberals come out of the woodwork. Julia has delivered a big punch on the nose of the liberal party, and I thought Abbott was the ex boxer

    • notsurprised says:

      09:03am | 02/07/10

      Sean and Rob, the best thing about the possibility of an ALP re-election would be watching the faces of Joolia and Wayne as they try to pull a rabbit out of a hat. They’re going to need to get the money from somewhere and Swanny isn’t smart enough to do it.

    • Sherlock says:

      09:39am | 02/07/10

      Rob r Charteris says: Julia has delivered a big punch on the nose of the liberal party

      Oh that’s so funny. So let’s make sure I have this right.

      Backtracking on your own policy, destroying your eight week old budget and confirming that every single thing that Tony Abbott said about the RSPT as completely correct is “delivering a a big punch on the nose of the liberal party”

      That’s comedy gold. Tell me Rob

      What do you think about the Labor government spending 38 million dollars of taxpayers money promoting a policy that they threw out the window two weeks later? Are you truly happy with that. If so would you mind explaining to the rest of us why.

      What about the Henry report. They only adopted the four recommendations they thought would be popular and now they all look to be reneged on. So we now have a report that was supposed to be the basis for reform of Australia’s taxation system that not going to have a single recommendation implemented. So I ask you how much money was wasted on that and what you think of the Labor governments lack of ticker. Howard went to an election on the back of an unpopular tax reform. perhaps you can share with us which type of government you prefer. One that will go to an election backing it’s beliefs no matter how unpopular or one that drops policy and runs the second they become politically inconvenient.

      Oh and while we’re talking about money being wasted on reports. What about the Garnaut report. The chances of the Labor government addressing the greatest moral challenge of our time and introducing the recommendations in this report appear to be approximately nil. I certainly doesn’t appear that Julia Gillard is going to introduce anything in the foreseeable future despite repeating on a number of occasions less than 12 months ago that “delay is denial”.

      I remember an advertising campaign around this as well. Wasn’t it $60 million this time for yet another Labor policy chucked out the window the second it became politically inconvenient. So Rob, how much altogether did this government waste on it’s temporary climate change policy that they dumped and how do you feel about them wasting so much of our money?

      Or was the casual u-turn on climate just another “big punch on the nose of the liberal party”?

      How nice it must be for the left to change their political beliefs like they change their underwear. Some of us have the courage of our convictions.

    • Seano says:

      10:17am | 02/07/10

      Spin it how you want Sherls. The Australian tax payer get more value for our resources, the miners are happy, the government are happy and the heat has gone out of the issue. The only loser is Abbott who can no use this in his scare campaign in his election bid.

      Good government is about sensible compromise that benefits everyone. Not hard headed idealogy. Abbott is gone.

    • Roja says:

      10:50am | 02/07/10

      So Sherlock, you champion business yet when the government uses standard business bargaining practices - first offer is over the top, then it comes back to a happy middle ground compromise - you call that a backflip. 

      Do you really expect the general public to share that opinion come polling day?  I hardly think so.  That you went off on every other tangent other than the RSPT says it all mate, you are genuinely worried.

    • Rob r Charteris says:

      11:04am | 02/07/10

      Poor old Sherlock he’s hurting real bad, someone get him a cupa tea and a chair. A change in leadership does that for some. See I didn’t need 7 or 8 prargraphs plus a few lines to get my point across

    • TimB says:

      11:21am | 02/07/10

      @ Seano-

      That’s funny. Just over a week ago, we had you guys bleating that the mining tax in its original form was great, Kevin was right, and the miners were just being greedy.  Rudds’ refusal to back down was lauded by the party faithful.

      THAT is “hard-headed idealogy. And you all supported it. Now all of a sudden you are congratulating Julia on her masterful comprimise deal. What rubbish.

      The compromise was FORCED on the Government by pressure from the miners and the Liberals. Julia didn’t compromise because she wanted to get the best outcome for “everyone”, she did it because the issue was damaging Labor at the polls. 

      If Labor were really willing to compromise in good faith on this, they would have done so from the beginning. Doing so now is just damage control. For you to claim otherwise is disingenous, and you know it.

      Labor deserves no credit for this.

      (PS I have noticed a few other Tim’s around in the last couple of days so I’ll add my initial from now on so you don’t mistake attribute others comments to me or vice versa.)

    • Sherlock says:

      12:33pm | 02/07/10

      Rob r Charteris says: See I didn’t need 7 or 8 prargraphs plus a few lines to get my point across

      You have a point? Really? You mean apart from the one where you’ll support everything Labor does like a blind sheep? Even if it’s a complete ewe-turn over what it was a week ago? Are the all the left so politically weak or is it just you and Seano?

      If you do have a point perhaps you might like to share it with us as both you and Seano simply ignored every point I brought up and only answered with pithy comments.

      The RSPT backflip, no climate change policy, the mess they’ve made about the asylum seekers, the insulation and BER debacles, the do-nothing health policy crumbling before your eyes, it just gets worse and worse for Labor fans.

      It’s no wonder they duck any serious political discussion.

    • Roja says:

      01:10pm | 02/07/10

      My word Sherlock, you really are nervous aren’t you. 

      I’m just trying to get your point clear about ‘back flips’ as compared to ‘negotiated outcome’.  When Howard watered down work choices after it was implemented (something they planned to do from the beginning), was that a backflip as well?  If not, please explain the difference.  He implemented a cast iron law, then changed it when it was grossly unpopular.  How is this different?

      I will wait in keen anticipation for the explanation.

    • Sherlock says:

      02:27pm | 02/07/10

      Of course Workchoices was amended. Legislation and policies are amended all the time. However even after the amendments the basic tenets of Workchoices remained.

      I gather your not economically literate enough to understand the new tax. This isn’t the RSPT it’s a completely new tax once again drawn up on the back of an envelope to get the ALP out of trouble. Just like the NBN and the Health Plan.

      The RSPT is dead and buried. The Minerals Resource Rent Tax (yes it has a new name to distinguish it from the tax they just threw out the window) is levied on a completely different basis on different minerals and now payable by less companies but across a wider range of minerals.

      Now you might try to say it’s simply an amendment but you’re only fooling yourself. The RSPT has been completely thrown out of the window and the new MRRT introduced to save face. It’s a backdown and if you have a look across the various websites it’s rightly been judged as one.

      How much in advertising did it cost the miners to stare down the government. $7 million apparently. How little it costs today to make the Australian Government backpeddle. 

      The RSPT was supposed to bring in $12 billlion now Swan is saying that this new one is only going to bring in $1.5Bil less. If you think the Miners caved in for so little than you’re extremely naive. Of course the true figure won’t be known until after the election .

    • Darryl Price says:

      07:23am | 02/07/10

      I cannot believe that Persephone cannot come out in support of PM Gillard. In terms of positive news grabby outcomes (spin) to the debacle that was the RSPT the PM is streets ahead of Kevin Rudd (the worst PM Australia has ever had). There are two qualifications to this statement. (1) I think the RSPT is a product of the Labor run class war and is a bad idea. (2) I work in a coal mine on a non union collective agreement.

    • Louisa says:

      11:41am | 02/07/10

      By the way, where is Pers?  Perhaps was in need of a “rest”

    • John says:

      12:03pm | 02/07/10

      Pers was obviosly a Rudd staffer

    • Arnold says:

      12:17pm | 02/07/10

      Pers was obviously Julia Gillard.

    • Seano says:

      07:25am | 02/07/10

      Win for Australia! Win for Gillard! Lose for Abbott!

    • Peter says:

      07:48am | 02/07/10

      Nup, win for the miners! loss for Gillard and her weak Government!

    • Super D says:

      07:53am | 02/07/10

      I don’t really see how Abbott loses.  He didn’t support the RSPT and what will be unveiled today will not even barely resemble the RSPT as it was proposed.  The big loser here is Wayne Swan.  His credibility can be measured as a percentage of the $12 billion that will now actually be raised by the tax over the next 3 years.  I will be surprised if 3 billion is raised.  Swan has to go.  We cannot have an incompetent fool in charge of the nations finances.

    • Joan says:

      08:09am | 02/07/10

      Lose ? What race did Abbott lose?  A phoney PM Gillard is no win for Australia - a people`s PM Rudd ousted by a phoney Gillard is a big loss for Australia.

    • NickGC says:

      08:15am | 02/07/10

      Yes, it’s delusional Friday!

    • MarK says:

      08:24am | 02/07/10

      *Sniff*

      Yep that be the stench of desperation when they trumpet a backflip a win.

      Newsflash Abbott stopped the RSPT. It is dead. There is no RSPT.

      He won. Please try to keep up with current events.

    • Marie says:

      10:00am | 02/07/10

      And up went the “White Flag”.  Labor = Fail

    • Seano says:

      10:11am | 02/07/10

      I like the way the liberal ranters see a negotiated compromse that both sides are happy with as a backflip. They talk about desperation, but you can’t get much more desperate than that.

    • The Redman says:

      11:48am | 02/07/10

      Of course, Seano. The reason being you’d be very hard pressed to find any negotiated compromise during the Howard Government years.

    • Roja says:

      02:14pm | 02/07/10

      Yes labor lost, now the Australian people will only get $10.5 billion of the $12 billion they expected. 

      “you’d be very hard pressed to find any negotiated compromise during the Howard Government years. “

      Workchoices.  Implemented, then later compromised on.  Or apparently if you speak fluent liberal ranter - “backflipped”.  So that too msu be absolutely shoddy policy, I mean why didn’t Howard get it right the first time? 

      How about the GST.  They didn’t get it applied across the board, a raft of democrats exemptions were included for fresh fruit and text books when Howard apparently “backflipped”. 

      It’s like they poured water down the liberal party ant hole - they are running everywhere today.

    • The Redman says:

      02:50pm | 02/07/10

      Howard might have consulted about WorkChoices, but only with employers. He made no effort to consult with the respresentatives of the workers. There was absolutely no intent to reach a compromise with workers, and he paid the price. The ALP, on the other hand, has reached a compromise with their natural political enemies. That is the difference.

    • Seano says:

      02:53pm | 02/07/10

      However they spin it, it’s a huge win for Labor the Australian tax payer would have got nothing if it had been up to Abbott.

    • Luke4 says:

      07:28am | 02/07/10

      So the Government sack the Prime Minister so they can try and get away with another backflip on yet ANOTHER failed policy announcement and this is called a coup? What were Swan and Gillard saying 2 weeks ago about their new super profit tax policy? The bigggest tax reform since when?

    • Joan says:

      07:32am | 02/07/10

      Is this the same solution that Rudd had in hand when Gillard stuck the knife in Rudd`s back? Is this `speedy solution`  only made speedy by the fact that it was set ready to go by the people`s PM Rudd?  A Rudd solution snatched by the phoney PM Gillard as she claims her ``speedy solution as her own. Nice type - it must be real fun working with a back-stabber , idea snatcher. Smoke and mirror act as usual by Labor.

    • notsurprised says:

      08:38am | 02/07/10

      Too right. I wonder if we will ever find out just how far KR got with the negotiations before he was knifed. It would prove that his removal was not about his stance on the RSPT, as Gillard has stated, but about something else.

    • Rob r Charteris says:

      08:41am | 02/07/10

      Gee Joan, I’m sure you can make better dribble than that, you really are a giggle, have a cup of tea dear it will make you feel a little better, clears the head too

    • Nicole says:

      08:58am | 02/07/10

      Joan, I think it is. It was reported that Rudd, Swan and Ferguson had amended the tax, Gillard also knew of this, and that Rudd was supposed to put it to the mining companies last Thursday or Friday. Gillards version is really no different to Rudd’s, but the ruthless ranga can now take all the credit. This woman and her side kicks are treturous, and I just hope that karma comes and bites them all on the arse.

    • MarK says:

      08:59am | 02/07/10

      Hi Rob,

      Anytime you want to actually in a point of fact or even a totally biased opinion it would be super dooper.

      I know it hard to get past your anger, envy and hatred of all things to the right of Stalin but please for the sake of a discussion try to include something about the topic at hand in your posts.

      To do so start actually reading the articles as posted. You seem to skip that part most of the time. raspberry

    • Rob r Charteris says:

      09:07am | 02/07/10

      MarK says:08:59am; Your welcome to your little opinion, chuff chuff

    • Nicole says:

      09:12am | 02/07/10

      Absolutely agree MarK. Rob do you actually ever have anything constructive to add, or do you just prefer to pick shit out of everyone else’s opinion?

    • The Redman says:

      03:03pm | 02/07/10

      The mining company have said that they were close to an agreement with Rudd. The current leadership say they knew nothing about it. This, I believe, was Rudd’s achilles heal. As much as I thought of Rudd, it is clear he ran the Government as his personal possession. That is fatal for any leader in a democracy.

    • Press says:

      07:34am | 02/07/10

      “Canberra ... going after the one industry sector which had helped us weather the global financial crisis”

      Oh please. This furphy has been gutted, filletted and pan-fried more times than I’ve had hot breakfasts. It’s bull, plain and simple.

    • dale says:

      07:36am | 02/07/10

      Geez i can see all the haters are back out.

      If the mining companeys are happy to agree to the tax then why are people getting up in arms? If it brings the budget back into surpluss early then why call it :

      “This great big horrible nasty evil life-threatening stinky mining tax is the biggest hoax since Saddam’s weapons of mass destruction”

      If the mining companys are for it then you haters will have to find a new angle, are you Tony Abbet and pissy that the government pulled it off?

      And yes it is due to Julia because she ordered ministers to negotiate.

      Im still voting greens and every party before lib/lab, a vote for greens is only a vote for greens if you fill in every box

    • Helena says:

      07:46am | 02/07/10

      So Julia Gillard stabs the PM in the back, and backflips and caves into miners whcih she said her Government wouldn’t do and we’re all supposed to believe she is a hero. Please explain.

    • dale says:

      08:59am | 02/07/10

      How is this a backflip? There is still an increased tax on mining, wasnt that the whole point? is the tax still not in the same style?

    • Bitten says:

      10:01am | 02/07/10

      Um, dale, I don’t know what you expect from people in charge of government policy, but I would kind of like them to have a firm plan in place and stick to it. The Government has just withdrawn a previously announced policy and replaced it with a new one. Along similar lines, yes. But the fact is, they said one thing a couple of weeks ago and now they’re saying a different thing. And I hate to point out the obvious, but this is public policy dude: the devil IS in the detail. If the details are different, the policy IS different.

      These amateurs still haven’t learned to shut mouth, engage brain, think lots and lots, come up with policy, then open mouth and articulate policy. They’re terrified of silence - worried that if they don’t crap on about something and constantly ‘engage the public mind’ that they’ll lose their jobs. When in fact, we’d all probably respect them more if they just once did exactly what they said they would do. With this lot, they say one thing having not thought anything through, then witness the public response, then crap themselves, then scurry back to drawing room, scratch heads for a bit, then march triumphantly back to the podium to say “We’re know we said we were going to A, but now we really going to do B!!”

      Which means that the average citizen can’t trust a single thing they say, because all their behaviour to date indicates that things could change at any moment and whatever they say regarding policy has the lifespan of a dairy-product.

    • The Redman says:

      01:40pm | 02/07/10

      Bitten wrote “but I would kind of like them to have a firm plan in place and stick to it”

      Irrespective of whether the Government takes the people along with the idea? Are you suggesting that a Government in Australia should say “this is the idea, we’re doing it I we don’t care what you think”? Why is it a failure of governance for a Government to modify its position on an issue to achieve an outcome which is equitable and has perhaps a better policy that the one originally conceived? Surely this is the sign of a good democratic government.

      You’re suggesting that the electorate should have a say in government once and once only, every three years, and between time, we should blindly follow the Government’s every policy, whether it induces disaster or not. It’s an interesting political theory, but as to whether such a policy would be successful for the Government concerned? Well, I would rather think that WorkChoices shows what happens when a Government refuses to accept that they have introduced a policy that the people will simply not support.

    • The Redman says:

      02:21pm | 02/07/10

      And this is where conservatives let themselves down. On the one hand, they say the ALP is merely an instrument of the unions who refuse to listen to any other opinion or point of view, on the other, when the ALP does modify their policies after taking advice from different sources, it’s called a backflip.

    • Bitten says:

      02:24pm | 02/07/10

      The Redman, I may not have adequately communicated my perspective.  The Government should of course consider the people’s preferences in making policy, however public consultation should without question be undertake PRIOR to announcing policy. The Government’s behaviour in policy-making throughout the current term has been consistently reactive, not pro-active. They issue policy, THEN hear the public’s perspective, then bluster about changing their minds because they’re scared of losing an election.

      Now policy-making is not a static undertaking at all. However I think it is fair to say that the current Government has unfortunately earned a reputation as being wishy-washy or borderline incompetent due to numerous poorly thought-out policy implementations: too many knee-jerk reactions instead of carefully crafted long-term policy. 

      As an aside, I am not a party-aligned citizen, I don’t think politicians of any stripe do a really good job, largely because they’re all so anxious trying to keep their jobs, they forget to do their jobs. Election-induced myopia is the curse of modern democratic government.

      Your thoughts? (on the main bit, not my tangential last paragraph!)

    • The Redman says:

      02:55pm | 02/07/10

      Why should consultation take place before? If any Government were to announce a policy and say it has been developed through consultation, then doesn’t the electorate have the right to demand “what consultation? With whom did you consultate? When did this consulation take place? What was the give and take?”

      Surely, it is better for a Government to say “this is what we think the policy should be. There it is. What do you think?”. Surely that is better than your model.This way, the entire community can not only contribute, but follow the debate, know the parties who are discussing the issue, know, to a point at least, how and where these negotiations are going and how a compromise was reached.

      I say again. It is not a failure of governance to modify a publically announced policy to create concensus.

    • Bitten says:

      04:19pm | 02/07/10

      @The Redman:  You wrote

      Surely, it is better for a Government to say “this is what we think the policy should be. There it is. What do you think?”.

      I don’t think this is what the Government has done at any stage. It hasn’t said “Well, this is what we THINK the policy should be.” It has simply announced policy as a fait accompli (witness the bully-boy stance of the Government when miners first objected to the tax) and when the public registers widespread displeasure, only THEN does the Government adopt a different, more deferential stance of “er, um, well, see now, maybe we could have done that differently, well, um sure, ok then.”

      It may be semantic, but I find the approach to be symptomatic of a public administration that lacks conviction and is quite hypocritical (can be easily compromised for votes) and that worries me. It’s the idealist in me, but I would like a Government that thought policy through before dominating the airwaves.

      I would hold forth in greater detail, but I am off for the weekend! Have great weekends Punchers!

    • Andrew says:

      07:52am | 02/07/10

      I thought the Government said they would’t be bullied by the miners and wouldn’t budge?

    • MarK says:

      09:03am | 02/07/10

      Yes.

      I do recall words along those lines.

      Hmm I winder who the lapdog of the miners is now.

      One week in all credibility gone.

      ” Swan decries miners’ tax ‘rip-off’
      June 17, 2010

      Treasurer Wayne Swan has delivered a passionate defence of the government’s proposed resource super profits tax, saying he will not let windfall profits walk “out the door.

      The government was asking mining companies to pay their fair share of super profits to the Australia people.

      “We on this side of the house will not sit here and watch those windfall profits walk straight out the door,” Mr Swan told parliament today.
      Advertisement: Story continues below

      “We are not going to let that rip-off continue.”

      http://www.smh.com.au/business/swan-decries-miners-tax-ripoff-20100617-yj24.html

      Oops Wayne. By the way how is Ken these days? You know the treasurer. His elegant tax appears to have been a stinker lol.

    • Mike says:

      08:07am | 02/07/10

      Action taken by a rattled Government, scared of losing the election.

    • The Pragmatist says:

      01:32pm | 02/07/10

      True Mike, but they are no where near as scared of losing as they were 10 days ago. Looking a lot less rattled and a lot more in control.

    • 2291 says:

      08:13am | 02/07/10

      Come On Now David. It is the red Giraffes first BACKFLIP-ok? You and all the other journos seem to be smitten with her ,when she is a much better Spin Doctor than Kevin Rudd. I hear from her in “this is in the national interest.” excuse me in the the money sqaundering Labor Government.
      Remember a vote for her is a vote for paul howes of the AW Union and the Powerbrokers as this is a Union Controlled government, and David ,the Journos are only too happy to endorse her as the Messiah ,just like you all did with kevin rudd,sorry mate but you guys have gone down in my estimation. Coup my white A***E ! But I usually enjoy your column-  until today,come on David, you can do better than this bulldust, Have agood weekend anyway.

    • Ben says:

      08:19am | 02/07/10

      Back flip

    • MarK says:

      08:22am | 02/07/10

      Gillard really showed those nasty foreign companies.

      The symbolism of the foreigners literally ripping out pieces of Australia and then sending all the profits off shore was delicious. And Swan how he screamed against the inequity of it all, the greed of the billionaires the shame of it all.

      And now.

      A backflip to rival the ETS.

      The proposal so gutted they rename it. A capitulation. A joke.

      Whatever it takes comrades. Power for power sakes. Huge concessions. And I love it that this whole thing was industry wide. Now it is just aimed at specific minerals and resources. From 2500 companies caught in the tax grab to 300 odd.

      A big thank you to Tony Abbott for bringing sanity to the Labor party and the Treasurer Ken Henry ..... err Swan.

      A whole new tax from a government that loves a spendathon.

      Spend and tax. Who would have guessed Labor would do that?

      Awesome win for Abbott. Well done. Sowing up Gillard to be just as big a coward as Rudd. Another day another Labor backflip.

    • DJ says:

      08:26am | 02/07/10

      Hang on Penbo .... how is this a triumph ? I see it as just another stuff up. They go ahead and formulate a budget predicated on a tax not even discussed with the taxpayers (mining companies) nor even passed by the Senate. This a backflip from another ill concieved policy, pure and simple. Just add it to the list mate .... Insulation debacle, BER rip off, ETS stuff up, advertising backflip and now the leftie press apologists call this a coup. God help us.

    • Greg says:

      08:27am | 02/07/10

      Are you serious? Another Labor backflip is a coup???? How rediculous. It’s a deal with the three biggest mines in yet another attempt to save Labor from poorly thought out policy. Can anyone see a trend here? The media is in love with Joolia despite her involvement in all of the Rudd governments policy failures, rorts and backflips on election promises. Why? Now Labor’s budget is in ruins! Anyone bother to ask what other promises will not be delivered as a result? The incompetence of this government is astonishing yet people still get sucked in by the spin. When will this nonsense end and when will people judge this government on it’s actions?

    • Sean says:

      08:28am | 02/07/10

      Miners being able to value their current mines at market value will mean bugger all revenues for the gov’t (Gillard & Swan have been suckered).  Tony Abbott could say that the miners tax is a tax that results in bugger all revenue impacts for the big miners and putting Labor’s return to surplus in doubt.  Valuing mines at market value means no new revenues for the next 5 years at least as the old profitable mines (where the real money is) will be valued at the top of the market, which means any pull back in Iron Ore or Coal prices will result in no gov’t revenues at all.

      The new tax affects Iron Ore & Coal, which are the big WA & QLD commodities… it is the impact on new QLD coal mines in particular that will generate problems for Labor.

    • Michael says:

      08:43am | 02/07/10

      YAY! labor brings us yet another price rise for electricity - coal price rise = power price rise - and everything produced with electricity… At the same time kicking businesses (who will have the extra costs in bills too) with a smaller reduction in company tax and an increase in superannuation contributions. This is not only a cowardly backflip, it’s a compromise that will cost each and every one of us. You can only guess how many people will lose their jobs over the combined hit of super increases and company tax faf with increased utilty prices. Yay joools. You lot deserve another term! You’ve wasted all our money - and continue to waste it, leaving us needing this new tax and its flow-on effect into our economy.

    • Daryl says:

      09:05am | 02/07/10

      I agree Michael. This Labor government has no idea how to run the place. All it does is throw our money at the margins, promise the earth and then backflip on policy. As for their changes to super, in many peoples case this represents a 3% reduction in income since remuneration is more often than not, inclusive of super. To say it’s “getting business to contribute to people’s supperannuation” is a lie. A bit like the promise not to touch the private health rebate was a lie. And the promise of 200+ childcare facilities was a lie. And the promise of “more affordable housing” was a lie. And the promise of Grocery Choice was a lie. The ETS was also expected to result in massive increases to Power prices (electricity companies made this clear) and the potential voter backlash spooked Labor into dropping “the greatest moral challenge of our time”. But of course all of that was exclusively Kevies fault. Everything is just dandy now that we have a character from Kath and Kim running the country!

    • The Redman says:

      01:09pm | 02/07/10

      Please Daryl. I understand and accept your ideological opposition to the ALP, although of course I disagree completely, but 5.4% unemployment, 2.8 inflation and 4.5% interest rates when all three are sky rocketing through the roof in most other industrialised nation surely disavows your claim that the ALP has no idea.

    • Ripa says:

      08:45am | 02/07/10

      Sorry mate but hindsight deserves no credit.

    • Les says:

      08:52am | 02/07/10

      Local rates/water/electricity have just gone up here in Brisvegas. Now a $9 Billion shortfall in the Federal budget due to a 10% cut in the Miners tax, so look out for spending cuts to deepen your pockets. Now’s the time to go out and snap up Xmas presents for the kids now at the Toy sales (yet another cash grab due to poor sales now that the hand-outs have dried up) coz you may not be able to be so generous in 6 months time.

      P.S. Come the election, surely to be announced this weekend, will the faceless Labor backroom powerbrokers be listed on the “how to vote” cards at the booths…

    • The Redman says:

      12:38pm | 02/07/10

      Council rates, water rates and electricity rates have nothing whatsoever to do with the Federal Government, irrespective of whether it’s Labor or Coalition. If you believe that it is, then I can dig out all the rises of these three services which occurred between 1996 and 2007 and lay them fairly and squarely at the feet of the Howard Government. That’d be fair, wouldn’t it? Surely, you don’t claim that prices for these services didn’t rise in those years at all, are you?

    • notsurprised says:

      08:53am | 02/07/10

      What a con by a bunch of backslapping brown nosers. KR couldn’t be seen to negotiate a better deal because it would have been perceived as another backflip so he was knifed and given the boot. Joolia and Wayne, who were equally responsible for every stuff up in the Rudd cabinet, have taken all the credit for the backdown and push the blame onto their old boss while they consider themselves heros for reaching an agreement. Anyone who can’t see the underhanded and sleezy tactics through the public front and smarm deserves a government who will put more of it up against the wall.

    • Ken says:

      08:54am | 02/07/10

      Gillard says “A deal has been made”  The 3 big Miners have just released a statement saying “A deal has almost been made”.

    • Luke4 says:

      09:04am | 02/07/10

      Just proves this Government can not make a decision and stick with what they say the believe to be right. This is no way to run a country. You can’t keep making importanat announcements on policy and then change your mind later all the time. People are deluded if they think this Government knows what it is doing.

    • Dash says:

      09:08am | 02/07/10

      Sorry David, did you say coup? Don’t you mean on the cusp of another policy backflip?

    • Doh says:

      09:12am | 02/07/10

      Capitulation - another spineless move by the Labor we know.

      You could almost call it a win-win.  Labor can say they have reached a deal aided and abedded by journalists such as your good self Penbo and the mining companies now have several mechanisms to avoid paying any tax at all.

      All symbolism no substance, what Labor does best.

    • Charles says:

      09:13am | 02/07/10

      Interesting choice of words here Penbo, but I would describe this as an almost complete win for Tony Abbott and the mining industry.  In other news, a complete backdown/backflip for Julia Gillard and the ALP, and a complete repudiation of Ken Henry and Wayne Swan (they might as well resign as it is obvious they are now surplus to government requirements).

      In addition, some of those union leaders held some fairly strong views in support of this tax, they might be a bit off their morning porridge about this today.

      Otherwise, apart from being an entry in the Maxine McKew Memorial prize for Obseqious Fawning to the the Leader, it was a reasonable article

    • WKH says:

      09:13am | 02/07/10

      A coup…A coup???? Boy have you let your political beliefs show now David…..that is not how this will be reported. Major backflip and stuff up all round. What are you smokin?

    • dobbo says:

      09:21am | 02/07/10

      Tim ...take your point about need for debate of legislation in the public arena. And it’s certainly ironic and more than a little poetically just that Rudd’s rushed out PROPOSED mining tax should be among the reasons he was blasted out of the leadership.

      But can anyone recall a non existent tax dominating the media to this extent?
      (OK maybe the GST.)

      Nevertheless I still say it’s absurd to talk about a deal having been struck over a tax that may never become reality.

      And also expect the media to finally fess up about this reality to undermine any advantage Gillard may get over the deal.

      Brown’s article in the Australian is among the first cabs off the rank. http://www.theaustralian.com.au/politics/greens-will-vet-mining-tax-deal-in-senate-bob-brown/story-e6frgczf-1225886704840

      Expect much more in this vein (if you’ll pardon another mining pun).

      PS We haven’t even started to explore what “the deal” says about the big miners’ perceptions of how the coming election will pan out, have we?

    • Diamantina Dick says:

      09:26am | 02/07/10

      The price of a ALP Prime Ministership of Australia has now been established as 1.5 Bn. (if you can believe that figure, which I do not).

    • Midlands Man says:

      09:27am | 02/07/10

      How on earth a Government backflip to solve a crisis of their own manufacture can be construed a “victory” is mind-boggling.  It has already cost one Prime Minister their job, and given the magnitude of the concessions, doesn’t look like it will save another.  Take a step back and look again folks.

    • Andrew says:

      09:52am | 02/07/10

      Didn’t we have a coup last thursday night? Are we going to have them every week? That will be exciting!

      Week 1: get Rid of Rudd
      Week 2: get rid of RSPT
      Week 3: Get rid of Swan…please please please
      Week 4: get rid of Joools (please x alot)
      Week 5: get rid of Labor (oh! the joy)

    • Seano says:

      10:19am | 02/07/10

      Huge win for Labor today, huge loss for right wing ranters.

    • Mhoram says:

      12:41pm | 02/07/10

      Seano ...and thus a huge win for left wing ranters??? (by your definition, Liberal are all right wing, Labor are therefore all left wing, yes?)

      So which are you Seano, the pot or the kettle? This roundabout’s making me dizzy…

    • Seano says:

      06:03pm | 02/07/10

      “by your definition, Liberal are all right wing, Labor are therefore all left wing, yes?”

      That’s not my definition champ that’s the generally accept convention that Labor are on the left side of politics and the Liberals are on the right. Most people have a range of a views which sit a different points on the spectrum. For example my views on economic policy would be largely centre left, I’m a big believer in the free market and capitalism with appropriate checks and balances. Socially my views are more liberal (not to be confused with the Liberal party’s economic liberal ideals).

      Mhoram - Both sides have loonies, IMO either the right have more of them or they are more vocal. But only someone terminally stupid would see things entirely in terms of black or white. A right wing ranter is usually someone who thinks screaming “communist” is relevant and both wins and ends the debate.

      Today’s announcement was a huge loss for the right wing ranters who cannot see that a negotiated solution resulting in Australian tax payers get better value on their resources is a good result. They scream backflip, at which point they lose.

      “So which are you Seano, the pot or the kettle? This roundabout’s making me dizzy… “

      You were making sense for a while.

    • Seano says:

      08:19am | 03/07/10

      @Mhoram

      “by your definition, Liberal are all right wing, Labor are therefore all left wing,”

      That’s not my defintion, it’s a generally accepted convention for describing the political specture. Most sensible people have views that sit at different points on that spectrum. As a general rule I sit centre left economically and further left socially.

      Right wing ranters are far right, there is no spectrum for them. You can spot them easily, they rarely let reality intrude on their narrow world view, they usually speak with a hive mind, nothing the left do is ever good and nothing right do is ever wrong. They think that screaming “communist” is relevant and both wins and ends the debate. Whilst both sides of the spectrum have these sorts of loons, IMO the ones on the right are either more vocal or more common.

    • Mhoram says:

      09:23pm | 03/07/10

      Seano, fair enough,but your comments do tend to portray you as a fairly one-eyed labor man. Glad to hear you can see more than one side.

      I don’‘t think there are necessarily more loonies on the right than the left, they’re just by definition more frightening because they want to control people’s thoughts and actions, whereas loony lefties want to stop others controlling anything. This is why conservatives tend to be in power for longer and more often, but don’t change too much, whereas the major shifts in policy, whether it be social or financial, always seem to come when th left are in power.

      I’m glad to hear you’re not black & white, and I agree that it’s a moronic view. However, this mining tax result is most certainly not a huge blow for the right-wing ranters. Whether it’s a good step or not (I think it probably is), it was an artificially created situation that is being attempted to be turned into a victorious triumph, which it is not. Bad management from the start by this government made this into a crisis, so where is the triumph? The attention-seeking shock jocks in the press will make hay out of this as well, don’t you worry.

    • Eric says:

      08:57am | 04/07/10

      Pfft. Left wing loonies also want to control everyone’s thoughts and actions. You just see more “ranters” on the right because your own tendencies are leftist.

    • Seano says:

      03:05pm | 04/07/10

      I think it is a huge blow because the Liberals were clearly hoping to make it a major focus for the election. With Labor having staved off the disaster of the GFC and times generally good for most they really are going to be struggling for anything on the constructive side of the dialogue. And we’ve already seen the attack anti-Gillard ads air which demonstrate this point.

      For the record when not happy with Labor I would vote small L Liberal. I have been stuck into the government over a number of issues most particularly internet censorship. I despite the corrupt incompetence that is NSW state Labor and will be happy to see them gone at the next election. My only fear there is that we only be replacing them with another bunch of no hopers.

      I think what’s best for the country is a strong Labor AND a strong Liberal party (unlike many conservatives, I take your point about control) and I strongly support the free market and capitalism but with appropriate and common sense checks and balances.

      I though that Howard was a ville devisive little man who mostly wasted a golden opportunity in this country’s history and I think that Abbott embodies all of Howard’s worst qualities and none of the good ones. Bring back Turnbull or bring on Hockey.

    • Luke says:

      09:56am | 02/07/10

      The Government come out and make a policy announcement to introduce an RSPT on the mining sector because it is in the interest of all Australians.The Government then change their mind about that announcement give it a new name and change the policy after the fact. The Government go to the last election trumpeting Kevin07 as the best person for Prime Minister. Who goes on to win the election and then in his first term of Government then change their minds again and decide to sack him and try someone else. A double coup you call this for Gillard and her Government. I call it a Government who don’t have a clue how to Govern.

    • Chris Carter says:

      10:00am | 02/07/10

      Would love to see how this is a coup for the government, never thought that a terrible backflip could be a coup.

      This government has no backbone for anything and cannot be trusted with our national interest.

    • LifeofY says:

      10:39am | 02/07/10

      Let face it, for those who don’t hang out here at The Punch or aren’t political fanatics like us, there are a lot of what I call ‘headline voters’ out there. These are people (many Gen Y and Z)  who only look at the headlines, listen to the ‘top stories’ on the radio or catch the ‘news update’ on TV. As far as most of them are concerned, this morning Julia Gillard ‘fixed the mining tax’, the one problem they had been hearing about over and over again.
      Tony Abbott has a massive problem. What does he now hit the government over the head with? What can he throw at them and make stick before the election is called? To yell back-flip!, back-flip! at the public, will just look like sour grapes (which by the way it is).
      Yep, lots of swing voters just swung back to Labor this morning.
      Be afraid Tony, very afraid!

    • Krista says:

      10:53am | 02/07/10

      Many don’t even read the headlines!! I have talked to a few of late who did not even know who the PM is past or present!! Its astounding. Yes your right Abbott has big problems now, if he stalls this tax, hes going to look like dirt, depriving Australians of benefits..

    • Rob Weaver says:

      10:58am | 02/07/10

      “By the time most of you read this article, Julia Gillard will have pulled off an extraordinary political coup…”  You’re kidding, right?  The government has given in on at least two major fronts and now has to break some of its promises to make up the budget shortfall.  Sounds more like a backdown to me.

    • Stewart Henstock says:

      11:33am | 02/07/10

      Whoa!!!
      Another Labor Party back down…why doesn’t that surprise me….lol
      Swan and Gillard instigated the BIG NEW TAX…now they’ve chucked it to stay in power.
      Swan and Gillard also chucked the ETS….now the Libs are the only ones with a climate change policy.
      The CEO of the Minerals Council said negotiations are far from finished….so how far is she prepared to bend over?
      Gillard my have sold out to the major mining companies but the majority of the mining industry are still opposed to the BIG NEW RENT TAX as stated by Clive Palmer in Germany this morning.

    • HarlequinBeetle says:

      12:00pm | 02/07/10

      no, not compromise or capitualisation….twas negotiation.  It was not back down, it was not giving in to the miners, it was purely and simply a negotiated settlement.  Well done PM, Deputy PM and Minster Martin

    • Brad Coward says:

      12:07pm | 02/07/10

      The Julia “Sparkles” Gillard method of compromise…..complete backflip !  Anyone who believes that “Sparkles” has scored a coup is cook-coo !

    • SkepDad says:

      12:33pm | 02/07/10

      David, you seem to have bought into the political furphy that the end - specifically, re-election - justifies the means.  Shenanigans.  What is important is whatever is in the national interest. 

      For Gillard and Swan to backflip so quickly after being the co-architects of the RSPT, and to have to audacity to call this a coup, is laughable.

      It’s a stunt motivated purely by the desire to be re-elected for re-election’s sake, and there is nothing admirable or extraordinary about that.

    • Rosie says:

      01:20pm | 02/07/10

      Congratulaions to Gillard & Swann! What an achievement using taxpayers money for TV adverts and then caving in to those that are supposedly mining the minerals that belongs to the people.

      Please explain! If the minerals belongs to the people of this nation and all Australian’s should get their fair share of the profits as they say why did they bother with the mining TV adverts etc? Why not for the for the sake of the nation be bold and go ahead with the RSPT? A tax reform devised by Swann, Gillard & that Henry bloke that will benefit all Australians! Do the people of Australia have to go through all this uncertainty, anxiety and spending of taxpayer’s money on TV adverts before the Gillard Govt realizes that negiotating with the different chapters before announcing a tax reform will save taxpayer’s money and all the anxiety and uncertainty?

      Wow for Australia’s first red hair, unwed, childless, female PM for stabbing her male leader and now getting her way with the male mining typcoons! I think us women folk are wining here!

    • Davida says:

      01:43pm | 02/07/10

      Rosie,
      In regards to your third paragraph….......you KNOW you shouldn’t mix them with alcohol.

    • Rosie says:

      02:10pm | 02/07/10

      Sorry Davida, don’t drink alcohol and if I did don’t you think it is a bit early for it?

      I couldn’t help myself because that is what I think of Ms Gillard & Swann the goose. As far as I am cocerned Gillard & Swann are so predictable and don’t fool me one little bit!

      Enjoy the rest of your day!

    • Rosie says:

      01:44pm | 02/07/10

      Can someone please confirm?

      I believe Tony Abbott is sticking to his guns and is going into the elections saying that it is a big bad tax but if he wins will put it to the people to decide - a referendum! Who knows perhaps he too has been talking to the 3 big mining companies? Hmmmmm very interesting????????

    • The Redman says:

      02:24pm | 02/07/10

      Not from what I’ve heard today. Abbott says a Coalition Government will abolish the tax completely. In any case, if he were to put it to the people, it could not be in the form of a referendum, which is only used on issues relating to the Constitution. It would have to be a plebiscite, the result of which has no legal or Constitution obligation for the Government to honour. This might be political suicide, of course, but that’s what would happen if the tax is taken to the people as a single issue outside of an election.

    • Rosie says:

      03:22pm | 02/07/10

      Thank you Redman for the explanation! I heard “referendum” and not knowing what you know thought how I did.

      What Abbott meant is that the next election will be a referendum on the tax.

      Learnt something though and thanks again!

    • The Redman says:

      03:34pm | 02/07/10

      Not at all.

    • Zac says:

      01:56pm | 02/07/10

      Are you the same guy who celebrated Kevin as the Australian Obama (not that Ayers disciple is any better)?

    • No way Josie says:

      01:59pm | 02/07/10

      So to recap - The incumbent Labor kitchen cabinet introduced a great big new tax to try and claw back the great big 57 billion spending spree without consultation with anyone and when that fails to win approval, panic mode sets in and key player Kevin is eliminated.  Then the remaining 3 who, together with Kevin,  created the problem in the first place,  suddenly decide to negotiate, backpeddle, make adjustments, change the name because they had included the great big tax on everything in their budget forward estimates and had to come up with something.  And now you are suggesting we should give them another 3 years to come up with another set of alluring programmes that will be even better than Fuelwatch, Grocerywatch, BER, Insulation, ETS etc.  because we have the very clever commie union puppet girl in charge.  Gee let me sleep on it OK.

    • Max Power says:

      03:21pm | 02/07/10

      Rudd backs down, he is weak, and needs to be replaced.
      Gillard backs down, she is smart and pulled off a coup.
      The only coup here is that Unions have managed to hoodwink the Australian people and orchestrated a plan to remove Rudd from office and install Julia “the union puppet” Gillard in his place.
      New leader, same old tactics. Introduce a new policy/Tax/Levy without consultation or thought for the consequences and back down when it all turns to crap. Incompetence has a new face and name, Julia Gillard.

    • Chris says:

      03:40pm | 02/07/10

      Political terms averyone should know the meaning of before commenting:

      Communism
      Communist
      Socialism
      Socialist
      Backflip*

      Basic knowledge of these terms will dramatically improve the level of discourse. Learning and correctly applying these terms where appropriate will lower the chances that of you looking like a mouth-breathing sycophant, pounding your keyboard in impotent rage at forces you ill understand.

      This has been a public service announcement by ALSC (Australians for a Less Stupid Country)

      *Newly added as of June

    • iansand says:

      03:54pm | 02/07/10

      If you do a backflip you end up facing in the same direction. I think the Liberal Attack Bloggers really mean a somersault with twist..

    • Just Sayin' says:

      06:50pm | 02/07/10

      Yeh, that’s right iansand, the term ‘backflip’ in a policy context was totally invented by liberal commenters on the punch.

    • hot tub political machine says:

      05:41pm | 02/07/10

      I hereby award the highly prestigious (insert sarcasm mark) “hot tub political machine’s comment of the week” award to Chris @ 3:40pm.

    • Steve_of_Cornubia says:

      06:04pm | 02/07/10

      I think one of Labor’s media cheerleaders (a.k.a. Penbo), stating that Gillard has killed this issue “stone dead” is wishful thinking. Or perhaps it’s just more arrogance from the Left, where the common-or-garden Australian is treated with such contempt that a bit of spin and sleight of hand - “Oh noooooo, that was all that horrible Kevin Rudd’s fault. There, we’ve dealt with him. Now, vote for us!”

      Nah, plenty of folk know what’s going on here. Unfortunately though, Labor have built such a strong powerbase of union members, public servants, dole bludgers, grateful immigrants, wealthy property developers and builders (who’d have thought you could charge $800K for a school shed?) and welfare addicts (not to mention $250M in media bribes) that they will be elected nevertheless.

    • DD Ball says:

      10:26pm | 02/07/10

      The only extraordinary thing is how many are lining up to credit Gillard with something special over this half back flip. It is a useless tax which will limit industry for ideological reasons and to pay for some election promises .. so that the ALP can promise more than the Libs. The ALP have done that already by assuming numbers that simply won’t occur. Had Julia been independent and not a puppet, she would have dumped the tax. Instead she does the political maneuvering of having something so worthless the companies won’t have the energy to fight it and the opposition may be accused of despising a tax that industry (apparently) endorses. In fact, the Libs are right to oppose this useless tax, and Australia will be better off with ALP out of office.

    • MH says:

      06:58pm | 03/07/10

      Spot on.  I’m not sure that turning up with a shiny new mop and bucket to clean up your own spew qualifies for praise.  What we’ve ended up with here is a watered down version of a fatally flawed tax concept.  Watch over coming months as further problems of ‘detail’ emerge and the junior and mid-tier miners start clamouring for special treatment.  And if the MRRT ever actually comes in, wait and see just how much extra revenue it raises.  You really think the big 3 were going to fold for just a $1.5b concession?  Hardly.  Unlike the buffoons at Treasury, they are actually capable of realistically modelling the amount of tax they will pay.  I’d be willing to be a lot of money on the bottom line revenue gain being far less than the proud $9.5b headline.  It’s ok though, by that time the Libs will actually be sufficiently electable to return to power and shore up the budget by increasing the GST.

    • Steve Putnam says:

      05:38pm | 04/07/10

      This change in tactics by the government has really got you Liberal spin bloggers in a tizz! You couldn’t sing in tune if an election depended on it. Abbott is electoral poison you’re all just too fog bound inside Liberal Party ideology to know it. It will be sheer joy come election day to see this cynical sarcastic bully to get his come-uppance.

 

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