Chris Ketter (Queensland, Australian Labor Party) Share this | Hansard source

Once again the chaos and dysfunction of this government are on display for all to see. It is quite clear that the moral authority of the Prime Minister and the Treasurer have been irrevocably damaged by the events of this year. Many of the decisions that the Prime Minister has made, described as captain's picks, have been found completely wanting. It is worth reflecting on the reasons behind this collapse in the authority of the Prime Minister. We have just marked the first two years of the Abbott government, and for the first time in over 20 years more than 800,000 Australians are out of work, with the unemployment rate increasing from 5.7 per cent to 6.3 per cent. We know that annual economic growth is now below trend in every quarter under this government. Families are suffering from cuts of over $6,000 a year, and cost of living pressures are increasing. Sick Australians are paying GP tax by stealth. Schools and hospitals have been cut by $80 billion, and students are facing the prospect of $100,000 university degrees. Australians are paying more tax than at any time since the Howard government, and under this scenario the Prime Minister is talking about jacking up the GST. The budget deficit has doubled. At every turn the Australian government has betrayed Australian jobs, from manufacturing to defence and renewable energy. Is it any wonder that the authority of the Prime Minister and the Treasurer has collapsed in this scenario and that that is leading to chaos and dysfunction within the government?

Senator O'Neill has made reference to a recent report concerning the coalition's caucus discussions. It appears that recently the Prime Minister sought to shut the door on the small business sector's hopes for an effects test to curb the misuse of market power by big business, only to find that a number of backbenchers, who have already been named by Senator O'Neill, sought to put pressure on the Prime Minister to adopt the position of the small business minister, Mr Billson, on the effects test. This is quite clearly an example of where we have a dysfunctional situation, where there is open defiance of the Prime Minister's position. The Prime Minister apparently told the joint party room that he was taking the Harper review recommendation seriously; however, he went on to say that the debate had become too 'theological'. That is a rather unusual position for the Prime Minister to take—having set out the position, it now appears that the party is continuing to grapple with this issue.

I want to take up Senator Smith's assertion that this issue has not been looked at before. The issue of an effects test has been considered in 12 reviews since 1976—10 have recommended against its introduction, and that includes the Dawson review in 2003. I understand that that review rejected the proposition of an effects test, and that was also endorsed by then Treasurer Costello and Minister Hockey. We are finding that this is a government which, in contrast to the opposition's very clear position on this issue, seems to be gripped by analysis paralysis. It is not able to make a decision, mainly because the Prime Minister himself is not respected within the Liberal and National parties. The Prime Minister appears to have let the small business minister off the leash to put out his case for these ill-thought out changes. Labor is not in favour of abuse of market power—of course we are not—but we have other mechanisms that we are prepared to pursue. In government we did address this issue by bringing together some of the major supermarket retailers and the National Farmers Federation in an attempt to come up with a code of conduct. There are sensible propositions, but this is a government that clearly is incapable of bringing those forward.