Wednesday, 13th February 2013


It is clearly the fate of the Gillard prime ministership to be judged on, and never escape from, the actions taken in its initial moments.

Along with the overthrow of Rudd and the promise not to introduce a carbon tax, we can now add the re-design of the mining tax to the burdens of Julia Gillard, prime minister.

Paul Kelly sums it up this morning: "The first major decision Gillard made as Prime Minister was to authorise a new mining tax and nearly three years later she is trapped ... The entire world knows the minerals resource rent tax is flawed."

"The irony is that Labor has now won the political debate about the principle of a mining tax but has a mining tax that does not work."

Kevin Rudd on Sky News yesterday ensured that none will forget the link between the mining tax and his overthrow, and reminded us once more of the great ALP trauma.

Gillard has signalled that Labor wants to look at the relationship between state royalties and the new tax, and this may (if she succeeds) plug some revenue holes, but it will have little impact on the political resonances of the initial climb-down.

Nick Feik
Politicoz Editor

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Deep Hole Of Her Own Making

“The first mining tax was far too antagonistic to the industry and became pivotal in the destruction of Kevin Rudd's leadership while the second tax is far too ineffectual and undermines Julia Gillard's economic credentials ... Gillard is doomed by the defects in her hastily devised tax yet doomed by the politics that make any substantial revision a high-risk proposition.”
Also: Ready, Aim, Fire At Your Own Side – Mike Seccombe (The Global Mail)

Carbon Tax Budget Hole

“Modelling for the federal government’s key climate change adviser acknowledges carbon prices could slump in 2015-16, probably creating a $4 billion revenue hole in the already stretched federal budget. The government’s carbon pricing scheme was based on forecasts that the market-based carbon price would continue to rise steadily after a $25.40 a tonne fixed price in 2015 converts to a floating price.”

Indigenous People A Step Closer To The Constitution

The Act of Recognition to be backed by Julia Gillard and Tony Abbott confers a positive acknowledgment of the unique place of the country's first peoples, their culture and their languages - and is the forerunner to a referendum to enshrine this recognition in the constitution. In the spirit of reconciliation, the Prime Minister will acknowledge the courage of Kevin Rudd in delivering the apology to the stolen generations.”

Senators Trade Barbs At NBN Hearing

A slanging match erupted last night in the Senate's environment and communications committee ... Senator Conroy (then) suggested that Senator Birmingham was ''too lazy'' to look for the detail himself on the NBNCo website. Senator Heffernan made the comment ''full of s---'' before the Communications Minister replied: ''You've obviously been drinking. Go somewhere else and annoy somebody else.''.”

Also: NBN Senate Hearing Descends Into Chaos (Audio) – AM with Tony Eastley (ABC)

Not-So-Phony Tony

“There’s been a lot of think pieces since 2010 about the treatment of Prime Minister Gillard, some for good reason, but whenever an academic or journalist or blogger has some critical, scandalous, slanderous, negative thing to say about Tony Abbott, very few question it… Yet the strangest aspect of the anti-Abbott culture is how personal it is. Moreover, it doesn’t seem to have occurred to many of them that most of what is said about Abbott, not to put too finer point on it, is bullshit.”