The Labor Opposition will have to temper some of its criticism of the Government’s handling of the economy, particularly employment and the balance of payments. The Government has made it quite clear from the before the election campaign that it saw a return to Budget surplus and industrial relations reform as fundamental to repairing both employment and the balance of payments problem. However, as long as the Opposition joins the Democrats and the Greens in blocking industrial relations reform and obstructing cuts and revenue measures in the Senate its attack on the Government will be compromised and the Government will be entitled to use the argument that the Opposition is contributing to the continuation of policies that stultify employment and export growth.
It may well be that the Government is wrong and that these two factors are not as important as made out and that they could be implemented more gradually, but while the Opposition does not permit the Government to enact its clear mandate, it provides the Government with a ready-made legitimate excuse for future poor economic performance. It should do what Paul Keating promised to do before the 1993 election if there were a new government … to allow the GST through the Senate and let the new Government stand or fall on it.
In the meantime, we will not know how significant industrial relations and the deficit are in the economic fabric and while we wait other … perhaps more important reform, like tax … will be off the agenda.