THE PRESS WEDNESDAY, JULY 16, 1986. Mr Hawke gets his way

Press, 16 July 1986, Page 16

THE PRESS WEDNESDAY, JULY 16, 1986. Mr Hawke gets his way

The annual conference of the Australian Labour Party in Hobart last week demonstrated the continued ascendancy of the Prime Minister, Mr Hawke, the Treasurer, Mr Keating, and the Right of the party over the Left. The conference endorsed the tough monetary policy being pursued by the A.L.P. Government The Left put forward proposals for a Budget to stimulate the economy and for action to reduce interest rates. Even so, the unionists generally backed the Government; delegates who were more to the Left were put in the position of wanting to be seen to be taking up the cause of the lower paid workers and the traditional Labour supporter. They found that the leaders of the groups whose cause the Left was embracing were aligned with the Government

The A.L.P. is making a bid to be regarded as the natural party of Government in Australia. The Hawke Government has eschewed every appearance of the Whitlam Government of 1972 to 1975, which was generally known as a Government of big spenders. The Hawke Government is intent on cutting the Government deficit decreasing the number of public servants, and reducing wage increases. Under the wages accord in Australia, wages have been indexed to the rate of inflation. This accord has produced considerable industrial harmony. What is being suggested is that the wage increases will not be by the full amount which would have been expected under the indexation formula. Wages would be — the phrase has lost popularity in Australia — discounted. The reason why Mr Hawke and Mr Keating can get away with this is the economic crisis in Australia. The trade deficit for the last year was $14.3 billion and it is still running at the rate of $1 billion a month.

Mr Keating tried to shock Australians with the gravity of the situation by saying that Australia could become a “banana republic.” At the very least he caught the attention of his own Prime Minister, who rebuked him for that description. Nevertheless, the two presented a united and formidable front in Hobart The Australian dollar’s value has been declining rapidly against the United States dollar. Although this is good for exporters, it is bad for public confidence; and the Government fears that wage increases will erode the benefits that exporters are getting from the devaluation.

The A.L.P. conference, which has traditionally had more power than the conference of the New Zealand Labour Party, appeared ready to accept some loss of that power in Hobart. Its role has become much more that of being adviser to the Government than being the chief policy-making body of the party.

New Zealand rated a mention in Hobart. A resolution was passed calling for visas for New Zealanders living in Australia. The call had its origins in the shearing dispute in which some Australian unions allege that New Zealand shearers have been working under conditions which are less than those laid down by Australian union awards.

The Australian Government has shown no sign of changing the travel arrangements between New Zealand and Australia. The introduction of an identity card in Australia may make it more difficult for some New Zealanders to claim benefits to which they are not entitled. A conference motion to stop the introduction of an identity card failed. The one defeat for Mr Hawke was that his proposal on working for the dole was rejected. After such a demonstration of power on all other fronts, he will be able to brush this defeat off lightly.