The battle lines for Australia’s next election were drawn last week.
By proposing alternative responses to the challenges facing Australians, Opposition leader Peter Dutton has set-up a contrast between the major parties at the next election.
Mr. Dutton ensured Australians would have a real choice at the election by doing two things in his Budget Reply.
First, he rejected Labor’s expensive big picture and economically questionable proposals, including the very costly “Made in Australia” policy.
The ‘Made in Australia’ Policy
The government has demonstrated well-known failures at “picking winners” when it comes to new business ventures, especially when the market has shown scepticism—worse, rejection—of a proposal.
The government’s proposal to support the weather-dependent energy industry is an example.
China’s massive production of solar panels, aided by cheap forced labour and state subsidies, has resulted in the Chinese Communist Party (CCP) controlling more than 90 percent of the global market.
The consequence has been the significant fall in prices and the glut in supply.
Equally, China’s massive investment in electric vehicles is also worrying European manufacturers, particularly German carmakers.
Naturally, the new rent-seekers in the energy industry are spruiking Labor’s policies, but they are hardly an objective source of economic advice. Economic self-interest is understandable, but is a poor foundation for good policy.
By contrast to Labor’s “big picture,” Mr. Dutton’s policies begin to address the economic woes facing Australians.
The immigration, housing, and cost-of-living matrix focuses on this problem.
At its most basic, housing availability and prices are a product of supply and demand. Hence the increase in the population and the supply of new dwellings are the two significant factors.
As Australia’s population growth is driven by immigration and the natural birth rate falls to historic lows, the record number of immigrants has a significant impact on demand.
Equally, the current housing shortage, which is not predicted to ameliorate on present policy settings, adds to the ongoing problem.
More Work Needed for Tough Election Ahead
Mr. Dutton’s Budget Reply speech began the process of addressing these issues.He will need to do more, spelling out in detail his housing policy.
He will also need to prosecute his case with greater alacrity. Time is of the essence, with the possibility of an election within the next six months.
Borrowing from former Prime Minister Tony Abbott, he should consider a simple slogan to help capture the public’s imagination, such as: “Slowing migration, building homes, and cutting cost-of-living.”
He should also continue to prosecute his energy policy with its nuclear option.
Despite its slump, Labor will still be difficult to defeat in the forthcoming election.
Australians traditionally have given governments a second term, and the Coalition is not sufficiently ahead in the polls.
As many commentators have observed, a hung parliament is a distinct possibility.
The opposition front bench team also needs to redouble its efforts. Some members of the shadow cabinet are hardly ever heard, and others, far too little.
By promoting policies that reinforce underlying conservative values and seek to address the real challenges facing Australians, Mr. Dutton has enjoined the battle for electoral support.
He has avoided the temptation to present a Labor-lite response favoured too often by Coalition leaders, both at a state and Commonwealth level.
Having laid the foundation of an election policy in his Budget Reply speech, the task of the opposition leader to build upon this foundation is now urgent.
