John Button Lecture 2010 - 09/11/2010

09 November 2010

Introduction

It is a privilege to be here to honour the great Labor Minister, John Button.
The chance to address an event like this is rare, but welcome.
It provides us with an occasion to step back from the noise of the everyday politics and look to the long term challenges and opportunities that face the Australian Labor Party, the Government and the country.
Moments of reflection like this are important for the Labor Party. Re-defining and re-invigorating the Labor vision is a central theme in our political heritage. And so it should be.
Because Labor, at its best, is the party of reform. A party that looks to the future. A party that both understands the times and anticipates the future, while being grounded in a shared understanding of our values.
These are not easy aspirations.
In many ways our opponents have the easier task. Theirs is a tradition characterised by resisting change. For the conservatives, the future is seen in the rear view mirror. Direction is found in familiar and well worn institutions and power structures. Change, when they have sought it, has invariably been to reinforce these structures rather than to reform them.
For Labor, renewal is central to our relevance and to our achievements.
Our successes come when we deliver reform and create opportunity for the future.
Self-evidently, the Labor movement is not defined by static references. The world changes. The times change, and the community changes.
So, by its very nature progressive politics demands continued renewal.
These are challenging times for our party. Such challenges are not new to us as any assessment of our electoral success since Federation will remind us. However, todays challenges loom large. A low primary vote is a problem.
A primary vote that is eroding from the left and the right is a more complex problem.
But amidst the doom and gloom from some quarters, and the triumphalism displayed by others, we should never forget: one of our partys great strengths is our willingness, our enthusiasm and our capacity to update our vision for the future.
To keep our eyes on the horizon.
Just as we have contributed to the present problems we face as a party, we too can generate the solutions.
This generation of Labor leaders, of Labor members, of Labor people have a responsibility to do so.
Tonight I offer some views about where those solutions might lie.
In doing so, there are some key reference points to contemporising the definition of the Labor project that I will touch on.
Our values. Our history. Our economic agenda. And Labors place in Australian politics.
Our values
If asked what Labor stands for, I would answer in short:
A fair go.
A just society.
A strong economy.
A fair go encompasses Labors tradition of fairness, of equality of opportunity, and the aspiration for equity in outcome or worth.
A just society references our social, legal and institutional frameworks, the principles that govern our community and the relationships within it. Our rights and shared responsibilities.
And a strong economy remains the foundation for prosperity and fairness.
These terms are both subjective and dynamic. A fair go in 1960 would look less so today. A just society today, I hope, would look more inclusive than one in 1960.
Whilst many would rally behind the values of prosperity and fairness, they are not cast in stone. They are contested and debated.
Some find imprecision in such concepts troubling, preferring certainty in defined boundaries rather than forging their own sense of direction.
I am not amongst them. Nor do I believe the Labor party is of this mindset.
The values that Ive set out as defining the Labor movement are inherently contestable.
Which is why forums like tonight are invaluable.
It provides us with an opportunity to discuss what a fair go means in 2010, the just society we want to be in 2020 and the economy we need by 2050.
And whatever the semantic limitations of these ideals, I will take them any day over stop the boats.
A unifying theme that underlies the values of a fair go, a just society and a strong economy is an understanding of the relationship between the characteristics of the community and the experience of the individual.
A community that marginalises is not strong.
Exclusion does not equate to unity.
Equality has little relevance if it does not manifest as opportunity.
And prosperity must be created to be shared.
Our history
Turning to our past, I want to consider some of the things we can draw from our proud and rich history. For tonight, its appropriate to focus on the man whose memory we have gathered to honour.
John Button is a Labor icon worthy of the utmost respect.
Buttons mark on this country remains profound. A true reformer, his parliamentary career spanned two Labor Governments Whitlams rise to power in 1972 and the Hawke/Keating Government from 1983. These two former Labor Governments, and Buttons role in them, provides the historical bookends for my remarks tonight.
Both these governments looked to the future, knowing that a prosperous and fair society for next generation would require tough decisions and leadership from their own.
Whitlam provided the intellectual and social justice framework that has guided Labor for nearly half a century, and the reforms of the Hawke Keating era underpinned decades of economic growth.
Whitlam social reform
The Whitlam government delivered on a social agenda, the likes of which had never before seen in Australia. The breadth of change was profound. Whitlams government re-shaped Australian society, changed how this nation viewed itself, raised the standard for social justice and participation and re-defined the role of government for generations to follow.
Whitlam championed universal access and equity of opportunity. His government delivered universal healthcare and put an end to tertiary education being a pursuit open only to the wealthy. It advanced the cause of equality for women, began the process of Aboriginal land reform, established enduring arts institutions and undertook legal reform including abolishing the death penalty and establishing Legal Aid. His government also opened Australias eyes to our region, and the world beyond our shores.
That these achievements remain, stands testament to their enduring nature, now embedded in the Australian community and psyche.
However the Whitlam era also provides a cautionary tale for progressives. A reminder that public confidence in a governments economic credentials is essential.
Hawke Keating economic reforms
The economic reforms delivered by the Hawke Government were the catalyst for a generation of growth and economic expansion. Where Whitlam opened our minds to the world outside Australia, the Hawke and Keating Government opened our economy to the region and the globe.
Floating the dollar, deregulating the banking sector and implementing tax reform all marked an aggressive reform agenda aimed at improving the openness and competitiveness of the Australian economy.
The results have been profound and enduring.
The reforms positioned Australia for decades of growth and economic expansion. They saw Australia become a modern, open and global economy.
Much of our current economic resilience is derived from the policies of this era. The Hawke and Keating economic reforms were significant contributors to Australia coming through the Global Financial Crisis in a position of strength.
The path to reform was not without pain for both governments, nor was it without detractors. However the return on investing in reforms can be profound.
John Button would have known this well.
Button was at the forefront of the Hawke/Keating governments economic reforms. He reduced trade tariffs and modernised Australian industry. He opened the borders and let the world in. This reform drove the improvement in the competitiveness and productivity of Australian industry.
In his biography Bob Hawke describes Buttons achievements as one of the early success stories of [his] Government. Not quick to action, [Button] consulted widely and obtained the confidence of his portfolio's constituencies; as a result he was able to bring about significant and necessary changes in Australia's industrial structure.
It is worth emphasising the opposition these reforms faced, including from within our own movement. Buttons achievements in getting both big business and unions to set aside a reliance on tariff protection and look to the long term remain an impressive example of sound reasoning and building consensus. His approach to long overdue reforms demonstrated both the courage to hold firm and the capacity to convince.
The manner in which those reforms were delivered is instructive for Labor today. The drive to reform is not easy, but the benefits of positioning the economy and the country for long term are pivotal.
Worthy reform is will always have critics, and is almost always resisted.
Our economic agenda
Inherent in the reforms led by John Button, and a lesson from these past Labor governments, is the centrality of the economy to progressive politics.
Economic reform and strong economic management are core to the Labor project. Without these we cannot govern. Without these we cannot deliver equity. Without these we cannot pursue progressive outcomes.
We should never accept a construct either from our left or our right that taking responsibility for building economic prosperity is inconsistent with the pursuit of social justice. It demands it.
This is a reminder of the uniqueness of both Labors position on the political field, and of our platform. Those that view themselves on our left do not see the economy as their responsibility. Those to our right do not see the economy as an enabler of opportunity.
The economic experience of the last few years provides a stark reminder of these matters.
Having just come through the Global Financial Crisis, Australians might be forgiven for believing that the trouble has passed. Unemployment is down, and growth is strong.
These positives a testament to the fact that the Government made the right decision to stimulate the economy during a time of unprecedented economic crisis have seen Australia avoid the destructive impacts that are still being felt elsewhere in advanced economies.
Indeed one of the most important elements of the Governments actions was its benefit to working Australians.
To Labor people.
Recessions hit hardest those least able to help themselves. They are both indiscriminate and highly discriminating. The Governments stimulus spending in social housing and construction, on building the school infrastructure for the next generation of students and the roads and rail for economic expansion employed painters, electricians, labourers and tradies all along the supply chain. The Governments stimulus payments to households stabilised the hospitality and retail sectors, and supported the jobs of the thousands of Australians they employ.
The stimulus kept people in jobs.
Having come through the crisis in a position of strength, we now need to lock in the drivers of economic growth. We need to continue to make the right economic choices. We need to prioritise those investments that build productivity, that bring prosperity to this and future generations of Australians.
Our Government has the economic agenda to deliver this to deliver prosperity for all Australians.
This includes bringing the Budget back to surplus by 2013 and putting the Budget on a sustainable footing. Todays release of the midyear fiscal and economic outlook reinforces the need for fiscal restraint. It also makes clear the importance of the Government adhering to its strict fiscal rules through to next years Budget and beyond.
We will have to negotiate on many things as a minority government, but bringing the Budget back to surplus is not something on which we can negotiate.
To do this we need to prioritise spending and we need to evaluate policies across the entire Government.
Delivering the largest and fastest return to surplus since the 1960s is part of the broader economic reform agenda being undertaken by this Government.
Introducing the Minerals Resource Rent Tax will see a fair share of our mineral resources returned to the Australian people, and strengthen the broader economy through cuts to the company tax rate.
Increasing the superannuation guarantee will deliver a higher standard of retirement for working Australians and increase the national domestic pool of savings.
The Government is also investing in the drivers of productivity; the nation building infrastructure and skills that are necessary for economic growth tomorrow. Overcoming capacity constraints and uplifting the skill base of the economy are vital to long term prosperity.
The construction of the National Broadband Network will also make a significant contribution to productivity growth in Australia. Connecting people and businesses across the country with high speed broadband will lower transaction costs and improve the competitiveness of Australian industry. It will nourish innovation and the free flow of ideas.
And whilst these productivity reforms will underpin economic growth for decades to come, they also deliver on core Labor values.
By investing in skills and education, and by rolling out the NBN, the Governments agenda delivers more opportunity and choice to Australians.
These reforms will require tough decisions to deliver. But the need cannot be more pronounced.
Without a strong Budget the Government cannot invest in once in a generation health care reforms. Without a strong fiscal position the Government cannot revolutionise the education system.
And without a strong balance sheet the Government would not be able to act to shield the country, its workers and families from economic downturns in the future.
Economic reform underpins the longer term position of the Budget. Without continuing to reform our economy we are passing on to the next generation the burdens of our own.
Consider this one fact the most recent intergenerational report projects Australian government spending on health to rise from 4% of GDP to 7% by 2049. Over the same period expenditure on those aged over 65 will increase 7 fold. As we begin the 2011 Budget process, it is important we keep this in mind. We need to navigate the political challenges of today. But we should chart the course for the long term.
The task is considerable. The task is made more difficult by a negative and destructive opposition. Previous Labor Governments have often had the benefit of bipartisan support in their pursuit of economic reform; the benefit of oppositions that recognised the value of reform and that there is a time to set aside petty political point scoring.
The stance taken by the current opposition since the election on the mining tax, on the reforms to superannuation, and the NBN all confirm a conservative party focussed on short term politics above all else. A party that would rather see the nation fail than the Government succeed.
But let me be clear.
We cannot all the Governments agenda to be put on hold. It does however mean that the reforms will be hard won.
Without economic reform and tough fiscal decisions we are unable to carry forward the Labor project.
And without a continued drive for reform prosperity wanes. Being idle on reform sees opportunities lost, and long term risks worsened. This is not the path Labor can take. It is not the path Labor will take.
Labors place in Australian politics
My final point of reference is the place Labor holds on the field of Australian politics. Labor is a progressive party, a reforming party. We are also a party of government.
The Labor project is to marry a mandate to govern with progressive values and economic responsibility.
No other party or movement replicates this in Australia.
This unique position brings with it two aspects of political character.
The first is that we seek to form government. We cannot simply appeal to those who already agree with us, nor dismiss any who do not.
To succeed, Labor must bring the weight of the community together behind us and our reform agenda.
We do not simply seek a senate quota, nor to target a particular seat. We seek to govern Australia for all Australians.
We never have the luxury of only playing to a narrow audience. We have to build agreement. We have to persuade.
This involves far more than compromise, although some would airily define it as such.
It demands both courage to hold firm, and the capacity to convince. It is not easy. At times we have failed, at others we have succeeded.
The second aspect that comes with being a party of government is this: Labor can not, and should not, avoid the hard policy and political questions. We understand that these questions are not answered with slogans.
We have to consider the evidence, design the policy, judge between competing views and weigh different advice.
This necessitates weighing decisions for today against decisions for tomorrow. Recognising the opportunity cost of decision making, it forces governments into uncomfortable positions of pursuing one policy at the expense of another equally worthy policy.
Budgets are about making choices.
And we have to make the budget balance.
Labor is at its best when it is reforming.
We are at our best when we are reforming the country to deliver on our values for all Australians. To deliver fairness and equality.
And our record stands proud.
But it has been our reforms to the economy, to industry, and our management of public finances that have allowed us to deliver these reforms.
A strong economy and strong budget position provide us with the means to deliver on our social policy outcomes, to build a world class education system, to deliver quality health care to all Australians and an abundance of employment opportunities.
It takes a hard head to deliver the equity of opportunity and the fairness of outcomes that warms the hearts of the progressive movement.
It is one thing to advocate for world class health care, it is another to negotiate with all the States and Territories to deliver historic reform to the health sector.
It is one thing to shout for action on climate change, it is another to face the tough policy challenge of implementing a carbon-price one of the worlds most carbon-intensive economies.
It is one thing to argue for improved employment, it is another to implement an economic reform agenda that sees workers benefit and family budgets increase.
It is one thing to call for increases to pensions, it is another to implement a once in a generation increase in the age pension.
It is one this to agitate for better retirements, it is another to implement an increase in the superannuation guarantee to ensure all workers have the chance of a dignified retirement.
It is one thing to preach industrial relations reform, it is another to introduce a legislated safety net that guarantees dignity and fairness in the workplace.
It is one thing to call for free public transport, it is another to prioritise infrastructure projects across the country.
Its one thing to call for paid parental leave, it is another to legislate it.
Its one thing to talk change it is another to deliver it.
Concluding remarks
Tonight Ive discussed the reforms that Labor Governments have delivered, and the lasting impact theyve had on Australia. We all live these reforms everyday. In education, in health, in a more inclusive society and in a strong economy. They should not be underestimated.
At a time when some commentators are questioning the purpose and the relevance of Labor, Id like to close by posing the counter factual.
Id ask those who criticise to contemplate an Australia without Labor Governments.
An Australia without a party committed to governing for progressive change.
An Australia without universal healthcare, where someones income, not injury determined the level of care they received.
An Australia not brave enough to recognise those whose land we inhabit, not big-hearted enough to apologise to those we have harmed.
An Australia where workers rights extend no further than the minimum wage, and the most basic of conditions.
An Australia where the opportunity embodied in tertiary education remained beyond the reach of those most in need.
An Australia where gender and race can overshadow ability.
An Australia where parochial interests drove economic decision making, where we failed to open our eyes to the region and the world beyond our shores.
It is because of Labor Governments that Australia is the country it is today.
It is because of Labor leaders.
It is because of the Labor movement.
And it is because of Labor members like yourselves gathered here tonight.
Id like to finish with a point made by John in his 2002 quarterly essay:
There is understandably much sentiment about True Believers. Theyre the link with history. But new believers are the key to the future
ENDS