For some time, the key question about the character of the Rudd Government has been whether there is any substance behind the symbolism and spin — brilliant as it is.
The evidence so far suggests the Prime Minister is unwilling to make potentially unpopular decisions — or even leave an impression that he would consider them. Ruling out cutting, or even restructuring payments to carers suggested an unwillingness to offend in the name of more rational policy.
And now Rudd, despite signalling a willingness to pursue a “root and branch” review of the taxation system, has pre-emptively ruled out reconsidering the GST rate. Not to be pedantic, but it won’t exactly be “root and branch” when one of the key components of the tax system is off-limits.
The Prime Minister still appears to be operating within the mindset of Opposition. His method as Opposition Leader was to minimise differences with the Government and thereby maximise his support. Hard policy decisions, ones that were likely to create losers in the name of greater community benefit, were avoided or delayed.
Now that he’s in office, he’s doing the same thing. When would there ever be a better time to review all aspects of the taxation system, including the GST, and capital gains tax, and superannuation, than at the start of his term, when the Government is tens of points clear of the Opposition in the opinion polls and riding the wave of Rudd’s immense personal popularity?
Instead, Rudd won’t even let a putative review, one supported across the political spectrum, consider the GST. It’s not as if he’s being asked to endorse the review’s outcomes in advance. But the Prime Minister is reacting like an opposition leader worried he might offend key voting demographics.
We’ve already got a Leader of the Opposition. He’s not particularly effective, but that’s no reason for Rudd to be doing his job for him.
Political capital must be spent. It can’t be hoarded. Eventually it dissipates if unused. The Budget now looms not merely as a key test for Brendan Nelson, but for the Prime Minister as well. A failure to take some seriously hard decisions, decisions that hurt, and generate criticism and discomfort for the government, will confirm that Rudd is all about spin. You can’t govern successfully and effectively without p-ssing some people off and copping some bad headlines. Rudd needs to make maximum use of his own and his government’s popularity to take unpopular decisions, and sell them as necessary.
Trying to preserve his popularity by not offending anyone won’t work, not for the country and not for his own government.
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