GOVERNMENT BY 'DAMAGE CONTROL'

by David Thompson
The events surrounding the handing down of the Government's 1993 Budget continue a pattern of chaos stretching right back to the election. It seems clear that promises made during the election campaign were simple lies; either the A.L.P. would not have to fulfill them in Opposition, or, if elected, such rash promises could be fudged somehow. Issues like the republican argument have simply been exploited by the Prime Minister for whatever political advantage could be milked from them. Any resolution of the problem of the High Court's Mabo decision has been badly fumbled.

The Treasurer's answer to devastating financial problems seems to be a Budget cobbled together on a wing and a prayer. It comes as no surprise, then, that one of the Prime Minister's key advisers reveals that we are suffering government by 'damage control'. Dr. John Edwards is Prime Minister Keating's economic adviser, and has offered a devastating disclosure of how the Keating administration really works. In his Bulletin article (24/8/93) Laurie Oakes quotes Dr. Edwards's article in "Governing In The 1990s", published by the committee for the Economic Development of Australia.

Edwards refers to a process of continuous manipulation on every issue, "with one rationale for action giving way to another more sophisticated one as each was successively undermined by fact and experience Edwards elaborates: "Very often the personal success of politicians or the continued electoral success of the government depends on the ability of the cabinet members and their officials to persuade us to see the world as they wish us to see it and then, when reality intrudes, to persuade us to see it in a somewhat different way without noticing the change or being annoyed by the contradiction."

Over the next few months we can expect to see this process in action, as the Government Ministers stump the country attempting to "sell" the Budget, not as the clutch of broken promises that it is, but as an economic elixir for the next 12 months. Dr. Edwards' political indiscretion has caused something of a sensation, but it is unlikely that the Opposition can capitalise upon it, as they now seem to employ the same techniques!

FUEL TAX: WRONG PRINCIPLE, BAD POLITICS

The savage response to the Budget provision to raise taxes on leaded fuel by (eventually) l0c/ litre, has almost as much to do with the blatant dishonesty about the reason for the tax as the financial penalty itself. The fuel tax is to be "sold" as an environmental and a children's health measure. Motorists are to be "discouraged" from using leaded fuel. Such an assertion implies that the Government is responsible for the health of children. Parents are responsible for Children, not the State. Such a tax is also grossly unfair, since, although there is little evidence that country children suffer lead poisoning, their parents are more likely to be penalised with the fuel tax than anyone else!

Hardly a single taxpayer doubts that the purpose of the savagely unpopular fuel tax is to raise revenue. If the Government was serious about the environmental effect of leaded fuel, the Budget could have offered incentives for motorists to switch to alternatives like gas. The only honest assessment of the 1993 Budget is that it mainly consists of wishful thinking and optimistic forecasts. Dr. Edwards' remarks should be carefully studied, and remembered by all taxpayers, including his following comment: "We should always be wary of crediting politicians and their officials with the control over events which they wish to claim, and which the repeated error of their predictions silently denies."

THOSE FORMER COMMUNISTS

There are many examples of former Communists who have openly repudiated Communism. A few, like Mr. Geoff McDonald, author of the best selling work Red Over Black, subtitled "Behind the Aboriginal Land Rights", have tried to warn their fellow Australians about Marxist strategy and tactics. But a number of former members of the Communist Party have gone on to hold influential positions in society without repudiating what they formerly believed and practised. The case of Ms. Pat O'Shane, constantly referred to as the first Aboriginal Member of the Bar, is currently of interest. In fact, Pat O'Shane is of part Aboriginal and part Irish background.

Geoff McDonald provides the following information about Pat O'Shane in Red Over Black: "Miss O'Shane is the former wife of the Northern Queensland part Aboriginal activist, Mr. 'Mick" Miller, and has a long record of involvement in pro-Communist activities. She has been involved with the Soviet Front Organisation, The Congress for International Co-operation and Disarmament ... In 1977 Miss O'Shane's booklet, Law In Disorder Politics, was published by the Queensland State Committee of the Australian Communist Party.

In 1980 she attended the Labor and Communist Movement Conference. She has written for the Communist Tribune. Tribune reports that on October 5th, 1981, a delegation had met the Hon. Frank Walker of the Wran New South Wales Government, and nominated Miss O'Shane to become head of the new Department of Aboriginal Affairs. Miss O'Shane was subsequently appointed at $48,000 a year. This is another example of Australian taxpayers financing Marxists in Government positions to advance Marxist programmes.
Pat O'Shane is currently a member of the N.S.W. Bar, a member of the N.S.W. Metropolitan Water Sewerage and Drainage Board, the Coordinator of the N.S.W. Select Committee of the Legislative Assembly upon Aborigines, adviser to the Catholic Commission for Justice and Peace, and a consultant to the Australian Law Reform Commission on its reference on Aboriginal customary law.

In its issue of August 14th, News Weekly, in which Mr. B.A. Santamaria is a prominent contributor, reports that because it had stated in its issue of October 15th, 1980, that Pat O'Shane was a member of the Communist Party of Australia, it had received a lawyer's letter claiming that the statement "is highly damaging to her good name and can have serious repercussions on her reputation her livelihood and her ability to retain those positions". There was a demand that News Weekly apologise and pay damages and meet Pat O'Shane's legal costs. Unable to verify their statement, News Weekly met the demands.

THE TARGET OF THE MOMENT

BRIEF COMMENTS

Much has been said by Treasurer Dawkins and his colleagues concerning the lowest inflation rate for 30 years, which has come as a result of their economic programme. This lower rate has been achieved by their brutal policy of record bankruptcies, and record unemployment. But Treasurer Dawkins and his "experts" are not mentioning that inflation is rising again. We predict now that if the Dawkins Budget is implemented, this will inevitably ensue. Increased petrol prices, alone, will increase transport costs, which must then flow through into other parts of the economy.

Lurching From One Disaster to the Next
This is one occasion when we admit we could not improve on an Editorial in a Newspaper. This Editorial from Herald-Sun (Melbourne), August 23rd: "Heaven knows how many millions of dollars of investment were lost while the Prime Minister, Mr. Paul Keating, postured on Mabo. Now, after the damage has been done, he has capitulated to the realists in his own Cabinet. "In agreeing to validate all land titles back to 1788 the Prime Minister is at last doing what most Australians, including Premiers Wayne Goss and Jeff Kennett, have urged on him. In particular, he has at last removed most of the uncertainty, which threatened Comalco's $1.75 billion Queensland investment.
"We will never know for sure whether Mr. Keating's passionate determination to link the High Court's Mabo decision with reconciliation between white and black Australia was anything more than cynical opportunism designed to distract Australians from more pressing problems. But, whether his motive was altruism of expedience, he filibustered until he finally lost control of the debate.
"The Government action has left the mining industry in uncertainty, in particular over the status of future mining leases. "As for the Government, in leaving the way open for Aborigines to claim compensation it has created another problem. The Finance Minister, Mr. Ralph Willis, signaled yesterday that to finance this the Government might have to cut spending. This came only days after Mr. Keating, defending the Budget, thumped the despatch box to emphasise there would be no more spending cuts. "Thus the Keating Government lurches from one disaster to the next."

NO SECRET ABOUT CREATING MONEY

from The Australian, August 13th
A comparison between the total of deposits in any bank (or banks in toto) and the parallel advances and loans (including credit cards) would be immensely interesting. Banks are naturally coy about making such figures available, as the total advances would exceed the deposits by a ratio of as much as 10 to 1. "The modern practice of banking derives from discovery made by the goldsmiths of old. The origin is described by Garet Garett in his book, Anatomy of Credit.

Briefly, the goldsmiths received gold and deposit for which they issued receipts. The depositors soon realised it was more convenient to trade the receipts for goods than to redeem them for gold, the first paper money. The goldsmiths then had vaults full of gold for which few people called. The audacious idea developed that receipts could be issued in the form of loans without first receiving the gold, so long as some gold was held against the contingency that someone might wish to redeem. The goldsmiths found that for every 100 pounds worth of gold deposits they could safely lend 900 pounds at interest. This is exactly what banks do today, only they use the sophisticated technology of computers.

If, therefore, a bank pays 5% on its deposits and charges 10% on every dollar it lends, at a ratio of advances to deposits and charges 10% on every dollar it lends, at a ratio of advances to deposits of as little as 5 to 1, it is in fact returning 50% on its deposits, not 10%, thus a margin of 45% not 5%.

Many Royal Commissions have been conducted into the banking system in countries such as Australia (1937); Britain (1920); Canada (1939); and New Zealand (1955). In every case it was admitted, often under cross-examination, that banks create what they lend. For example - Mr. H.W. White, Chairman of the Associated Banks of N.Z.: 'There is no secret about banking, there is no secret about banks creating money.'
Mr. Graham Towers, Governor of the Central Bank of Canada: 'Each and every time a bank makes a loan…. new bank credit is created - new deposits - brand new money.'

It is not clear from Tim Blue's report, Banks Attacked Over Lending (4/8) whether he or Mr. Denis Jarrott subscribe to the time-worn cliché that banks are mere intermediaries, borrowing and lending the same money, or whether they have the background knowledge to challenge the banks on credit creation. If the former, the above facts should be brought to their notice." (Ron Fischer, Talbot, Vic.)

CLEAR CASE OF UNFAIRNESS OVER QUEEN

NOT STUPID BECAUSE WE DON'T TOE TURNBULL'S LINE

from The Australian, August 2nd
"Mr. Malcolm Turnbull's intemperate outburst, calling the Liberal Party an 'unintelligent party' because we do not agree with his misguided views on the republic, shows the extent of the people's arrogance and intellectually restricted tunnel vision. What Mr. Turnbull fails to tell us is that he is a candidate who failed to obtain Liberal Party pre-selection for Federal Parliament - maybe the Party is not so unintelligent after all!

I am an Australian of Italian extraction. I bear no special historical allegiance to the House of Windsor. I do believe, however, that our current Constitution has served us very well indeed. I do not believe that it should be changed, although I am willing to consider arguments as to why we need to change to a republic. I take strong objection to the Malcolm Turnbulls of this world telling me that, because I am not willing to jump on the latest politically correct Labor Party inspired, diversionary bandwagon, called republicanism, that I am un-intelligent, un-Australian and un-patriotic. (Tony Gentile, Kingsford, N.S.W.)