Lindsay Tanner was just on AM and made an observation so obvious it was almost funny. He said people only complain about the consultation process when they don’t like the outcome.

Those were the days! Has the gang of four become the gang of two? Cartoon: Peter Nicholson

That might explain why people in the ALP are now complaining that Kevin Rudd and Wayne Swan came up with the Resources Super Profits Tax all on their own, without even consulting the other half of the so-called “kitchen cabinet”, Tanner, and Julia Gillard.

Tanner denied the claims, saying as Finance Minister he’s a key part of the Budget process, but he did stop short of asserting anyone else in Rudd’s increasingly invisible cabinet was brought into the loop. If Rudd and Swan were responsible for formulating the RSPT, their back bench is now holding them responsible for stopping the bleeding it’s caused.

[Would I be a total conspiracy theorist for speculating the person with the most to gain from this story about a split in the gang of four is the Deputy PM herself Julia Gillard? Say it isn’t so!]

MPs have descended on Canberra this morning for what could be the last sitting period before the next Federal Election.

WA Senator Labor Senator Mark Bishop told Michelle Grattan at The Age: “It [the RSPT] needs to be addressed urgently and resolved. Only then will the government be able to punch through.”

Rudd will face not just a cabinet meeting, but a caucus meeting too, where he’ll be hoping to rally the troops with news such as this piece in the SMH this morning, saying the Government is close to reaching agreement with some mining companies:

Mr Rudd, who needs a policy victory, has thrown himself in- to negotiations with the miners alongside his Resources Minister, Martin Ferguson. Mr Ferguson did not go to Perth last week with Mr Rudd and the rest of the cabinet for the visit that was dominated by the mining tax. He stayed behind to negotiate. It is understood he and Mr Rudd are close to an agreement on transitional arrangements, which will mollify some companies but not the big players such as BHP Billiton and Rio Tinto.

He might also point out that the Government’s $38 million advertising campaign has now kicked in on steroids, to finally counter the big miners’ well-funded efforts. I had to turn off the radio this weekend to avoid the tit-for-tat ads - best to call it a draw and retire.

The PM will be trying to ignore a piece in today’s The Australia by Peter van Onselen [Punch readers have provided this link, thank you guys] titled “Novices at the wheel of state.”

In it van Onselen compares the youngsters in Rudd’s office to the older, wiser heads who ran John Howard’s operation. [Those older, wiser heads did preside over WorkChoices though, which proves they didn’t always get the politics right.]

Anyway, Question Time today should be a cracker. We can expect the Opposition to go right to the heart of the leadership speculation you can catch up on in yesterday’s edition of Campaign Countdown.

Oh, and the mining tax might get a mention. Don’t forget we’ll be covering Question Time live on The Punch from 2pm.

Most commented

37 comments

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    • nosthow says:

      09:11am | 15/06/10

      Bearing in mind Tory that an election can be called as late as April 16th 2011 according to the Australian Electoral Commision website so all this election talk at present may well be premature ?

    • Nigel Catchlove says:

      10:06am | 15/06/10

      There are other factors in the timing nosthow.  The Victorian election is in late November where Labor are on the nose but will probably be returned courtesy of a questionable opposition, and the NSW election is in March where Labor is likely to be slaughtered, despite a questionable opposition.  Rudd will not want to campaigning anytime during those campaigns.

    • nosthow says:

      11:08am | 15/06/10

      @Nigel Catchlove -all correct there Nigel. Its up to Rudd to juggle his election date and maybe he can get those two states to go earlier if he wants to delay the Federal one. Glad its not me making those decisions Nigel !

    • Brad Price says:

      01:02pm | 15/06/10

      Maybe Rudd could sweet talk these premiers to go early. We all know his efforts and track record of doing deals with Statet Premiers. Well atleast Morris can’t forget.
      I think the State Premiers are tired of being ratf@cked by KRudd. To use a term he so fondly describes Chinese government officials by.

    • persephone says:

      02:52pm | 15/06/10

      As both NSW and Vic are on fixed terms, no, Brad, he can’t.

    • nosthow says:

      06:20pm | 15/06/10

      @persephone - quite correct indeed - i am from QLD so didnt realise that. However early 2011 maybe ? February ?

    • Flush them says:

      09:51am | 15/06/10

      People simply dont believe Gillard Rudd Tanner or Swan if and when they fix this mess they will want to be celebrated for digging themselves out of a hole,what a pack of morons

    • L. says:

      10:12am | 15/06/10

      “people only complain about the consultation process when they don’t like the outcome.”

      Another observation is that the Rudd Gov only listens to “consultations” when those being consultated agree with the Gov’s position…example: The Internet filter.

    • Eye4anEye says:

      01:09pm | 15/06/10

      Still waiting to hear about the R18+ rating on games as well - looks like the result wasn’t what they wanted to hear so the nearest rug got another lump.

      I love how they said one of the most sucesful public consultations in history with over 60,000 respondants was flawed by the input of interest groups(gamers) who did they expect to respond? people that don’t give a crap?

    • dovif says:

      01:46pm | 15/06/10

      another way to say it is that

      Politician only listen to economist, when they can be promised $12 billion

    • dovif says:

      01:46pm | 15/06/10

      another way to say it is that

      Politician only listen to economist, when they can be promised $12 billion

    • Wayne Fehlhaber says:

      04:44pm | 15/06/10

      Had to smile at a comment from persephone on this thread .......
      ” Good consultation alerts you to possible flaws you haven’t considered “
      Maybe if the gang of four had considered a consultative process with the mining industry in the first place , they would not be in the current mess of their own making.
      pers further stated that she doubted that any amount of consultation is going to make the miners happy.  No , i’m bloody sure it would not make them happy , but there was a process to be observed and in their arrogance , neither Rudd , Swan , Tanner or Gillard had the intellect or decency to observe a basic protocol.

    • Nicki says:

      10:20am | 15/06/10

      The Labor has our full support.I haven’t seen opposition yet,were is Hockey?

    • Troy Duncan says:

      10:55am | 15/06/10

      The PM has a genius for complicating matters but I wonder if even he would seriously consider holding out until 2011? Apart from the problems Nigel mentions, if Rudd waited until 2011 it would look like he was running scared. Just imagine it. Abbott would have a field day running a “bring it on” campaign.

    • Brad Coward says:

      11:35am | 15/06/10

      Troy, Mr Rudd could make taking the first pee of the day a complicated matter !  First…form a focus group !

    • nosthow says:

      01:25pm | 15/06/10

      @Brad Coaward - Brad you paint a ghastly word picture - mind if I dont look ?

    • Martha says:

      01:59pm | 15/06/10

      The problem Rudd has it that he learned to speak Chinese but he never learned English,and how to communicate with common people.
      He is uncomfortable and paralysed with fear of making mistake and that is the biggest mistake he is making,as he looks so unnatural and plastic.
      Don’t be so pedantic,let the hair and tie loose , maybe he needs a strong joint to smoke to make him relax.
      He is good politician and I know he wants the best for Australia, the problem is He doesn’t know how to let us know what is in his head.
      The language he use is for geeks not for every day person or people like me who’s English is secondary language.And there are millions of us who have no idea what the hell he talks about.
      I don’t think we need new Leader he is doing very good job ,just look what is happening in Europe and US.I have family there and they really are in sh…t. compare to us.We live in the lucky country.
      No person lost a home or job because of the GFC here,thanks to him there are more jobs and I think more people could pay their mortgage and buy new homes.The interest rates are so low that is ridicules,When I bought my house my interest rates were at 14,5%/
      As for broken promises I don’t care too much ,we have to be realistic and sometimes they have to be postponed ,changed or amended.
      Look at your own life at home ,how many times you plan something but the situation is changed due to illness,loss of job , divorce or other elements that would be crazy to fanatically follow your plan or dream.
      I am willing to give Labor one more chance if they don’t deliver then we well look into alternative.At the moment there is no alternative government to vote for .Tony Abbott scare us,maybe if Trumbull or Hockey were in charge we would be willing to listen to their policy and give them a go.
      At the moment there is no policy,we heard the scare campaign from Howard for many years and it is not going to work on us this time.
      My massage to Rudd is ,be natural and speak straight to people .
      And stop using “you know something” or “let me tell you something” and similar words over and over ,it is irritating and annoying   more than Abbott’s stupid ha ha ha.
      May the best team win!

    • Northern Steve says:

      11:44pm | 15/06/10

      Martha,
      Two things about Australia doing okay during the GFC
      1. A lot of the stimulus money hadn’t actually been spent when we managed to stay out of recession - it was still in the pipeline.  It is being spent now as the economy ramps up again; not good.
      2.  Plenty of other countries had big stimulus packages to ward off recession, and it didn’t work.  This means that there must be something else about Australia that saved us.  Two things helped, firstly our free labour market, which meant that people cut hours rather than losing jobs, which allowed us to get up a head of steam quickly when (secondly) China started buying coal and iron ore again.  It’s much easier to increase hours for existing employees than to hire new employees when the work is back.
      Now, our economic/work force structure didn’t really have much to do with Rudd, but the previous 20 yrs of Hawke/Keating & Howard reforms.

      Rudd didn’t really do much other than flush a big wad of cash down the toilet into overpriced school buildings and making houses less safe.

    • persephone says:

      10:47am | 15/06/10

      Another misunderstanding common in this discussion is that consultation doesn’t have to lead to all parties united in complete harmony, wandering hand in hand through fields of daisies.

      Good consultation alerts you to possible flaws you haven’t considered. This should lead to a bit of tweaking to avoid these, but it doesn’t necessarily mean accepting the other party’s agenda holus bolus.

      I highly doubt that any amount of consultation is going to make the miners happy, just as extensive consultation didn’t end up with happy petroleum companies when their resources tax was put in place.

      It might, however, mean some fine tuning of the subsequent legislation.

    • acker says:

      11:19am | 15/06/10

      persephone I generaly agree in principal to the mining tax, but think the profit margin it kicks in at 6% (near bond rates) is to low and is unfair, and any tax on regional areas (mines) that redistributes most of that tax to overpopulated cities is unjust
      Prior consultation with a broader sections of Rudd’s cabinet ministers might have highlited these issues before it was presented to the miners and the public.
      As it stands to most of us out the bush it looks like urban welfare.

    • Brad Price says:

      01:11pm | 15/06/10

      Persephone. Maybe you could explain your understanding of a consultative process to Kevin, Julia and the boys before question time today.
      You’ve missed the point by telling us how it works. You need Kevvy to get a handle on it if your going to have a job past August 28.

    • Elaine says:

      02:33pm | 15/06/10

      Persephone….My son-in-law is ataxation lawyer. The rights to all these minerals belong the the states.  The Commonwealth cannot raise a tax on them unless they have the constitution change which would mean every state would have to vote on it!  So we are looking down the barrel of a massive fight between the states & the federal government before one cent of tax can be raised by Rudd from the miners.  This will take years of arguments in courts all over the land. In the meantime Rudd is borrowing $110,000,000 A DAY from China. It’s your absolute right to defend him because we live in a democracy…......but for god sake girl will you clean your friggin’ rose coloured glasses!

    • persephone says:

      07:20pm | 15/06/10

      Elaine

      the states have the right to levy royalties, which they will continue to do.

      The Federal government has been taxing income - which is what they’re doing with this tax - since World War II.

      I’m sure if that was unconstitutional, it would have been pointed out by now.

      The reason the Feds have decided to simply refund the amount of royalties paid by the mining companies to the states rather than alter the constitution (or get agreement of the states) to abolish them, is to avoid the type of bunfight you describe.

      There’s nothing rose coloured about any of this; it is all factual.

    • Maladroit says:

      11:01am | 16/06/10

      Persephone, Hawke proposed to levy a PRRT on onshore petroleum and then hastily withdrew the idea because it was a state-owned resource (except for onshore Barrow Island where Burke agreed to it).  More fundamentally, Rudd’s mantra that justifies imposing higher income tax on miners is that the resources belong to all Australians. They don’t they belong to the States and miners pay royalties to the States in exchange for the right to mine.  The Federal Government does not represent the owners of the resource in any way.  It is imposing the tax because it needs the money and is backing itself to win a constitutional law challenge (which it might - all High Court judges are Federal Government appointees).

    • cityboy @ Sydney says:

      11:46am | 15/06/10

      I think a Federal election will be held just AFTER the summer school holidays. Thats me, but “watch this space”!

    • Winkle1 says:

      06:26pm | 15/06/10

      And I would say that we will be heading to the polls just after a visit from Barak Obama and family ... after the summer school holidays but one things for sure ... it’s going to be a bumpy ride ...!!! smile Yay Kevin !

    • death to me says:

      12:00pm | 15/06/10

      I think the longer the ALP wait to call an election, it gives the opposition more time to construct a Rudd downfall. I mean imagine 3-4 months from now if Rudd starts doing well in the polls and suddenly there is some legal action with regards to deaths associated with the insulation project. It might be a pointless and baseless legal intervention but it will bring up lots of negative issues. Also there will be more time to show that Rudd and his government continue to spend and not balance out the books as expected. More time gives more chances to dig up problems that they want buried.

    • darryl says:

      12:35pm | 15/06/10

      The problem for rudd is the to be released report on the BER. Although he picked those to do the enquiry the report will be damming. He wants to go to the polls before that report is released.  The other issue boat people. People will tire of the mining tax and another issue will come up to bite Kev and his crew. The leaks are now flowing from inside the party he is in big trouble. If I was Tony Abbott I would let rudd lose to destroy himself. Just raise old issues to keep the pressure up. Along with that continue to mention the leadership within the ALP. Kev is lost without the speaker to protect him so he is into his last week of immunity.

    • luke09 says:

      12:18pm | 15/06/10

      Reading Peter van Onselen’s piece in The Australian explains a lot of what why Rudd is leading his government to defeat at the next election.  Kevin Rudd is just as much an outsider to labor as he is to the coalition, and when you have the ACTU secretary Jeff Lawrence calling on Labor to unite behind Kevin Rudd, it becomes blatantly obvious how out of touch Rudd is.

    • Matt O'Reilly says:

      02:37pm | 15/06/10

      also, isn’t van onselen about only about 12 years old himself?

    • cityboy @ Sydney says:

      12:28pm | 15/06/10

      Kevin ‘10 doesn’t work; Kevin ‘11 does!

    • Luke says:

      12:53pm | 15/06/10

      I think every question time from here to the election will be on the darn mining tax…

    • AdamC says:

      02:47pm | 15/06/10

      I read the Van Onselen piece, it gives a very interesting perspective. What strikes me is that Kevin was obviously such a messianically popular figure in the ALP that nobody told him he was making mistakes, like hiring an inexperienced staff that wouldn’t tell him stuff he didn’t want to hear. Now that the situation is rapidly reversing, it is no surprise that Rudd is retreating back to his inner sanctum - which appears to comprise said useful sycophants and (gulp, shiver) Wayne Swan.

      The result: the mining tax which will probably cost Australia billions in future mining investment and may well cost Rudd his job. What they say about hubris is coming true again - but rather earlier in the tragedy than usual.

    • MH says:

      04:49pm | 15/06/10

      It is particularly unfortunate that the one position Kevin is for his own political survival forced to defend is the one which will do most harm to the long term prosperity of the country. 

      Another thing I find disturbing is that the discussion of the mining tax in caucus this morning apparently failed to actually debate the content of the policy in any meaningful way.  Instead, they debated failure of process and consultation and talked about messaging.  When a product is crap, the issue is not how to sell it but how to make a better product.

    • Fran says:

      10:36am | 16/06/10

      The issue is that the ALP are slipping in the polls and they will want to see a rise before they call another election. Also remember if they dont get the 40% tax from the miners they will raise GST. It either the miner pay or you do.

    • acai berry colon cleanse says:

      08:58pm | 04/12/10

      Think Lot,means assume base woman month tone base world beside threat cost sufficient thought machine government secretary physical bring meal programme reasonable blue condition fairly take introduce flat neck confidence form bright standard weight leg appoint nevertheless right move selection cover below ready welcome provided finger reality comparison dead less party target eventually tea method representation encourage heart effectively doubt look accompany article road expense woman series cash knee unless play road life trial loss remind send decision tradition breath cultural coffee want assembly establish incident possibly technique fall treaty what strike goal

 

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