Paul Keating senses the political danger of the loans affair. For a start its mere name has a haunting resemblance to the 1975 loans affairs which brought down the Whitlam Government.
Unlike Whitlam, Keating has engaged in decisive early damage control. First, he has taken the wind out of Jeff Kennett’s sails by giving him what he wants: lots of extra loan-raising capacity.
The essence of the Federal Opposition’s complaint is that the Treasurer, John Dawkins, hid from the Loan Council and its members (the Premiers of the States) the fact that Victoria had borrowed well beyond Loan Council authority, and further that he hid this from the public and misled the Parliament about it.
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