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Vol. 77/No. 38      October 28, 2013

 
Australia Labor Party loses
elections as capitalist crisis sets in
 
BY RON POULSEN  
SYDNEY — The Sept. 7 federal elections in Australia reflect the political impact of an increasing economic and social crisis in a country that until recently had appeared to be one of the few untouched by the worldwide slowdown of capitalist production and trade.

In its worst result in decades, the incumbent Labor Party lost heavily to a coalition of conservative parties, which took seats in a number of predominantly working-class electorates. The vote follows a similar pattern in previously social democratic governments from the U.K. to Portugal and Sweden.

The results showed a loss of support for the social democratic party as the crisis began to affect the lives of millions. And it also signaled plans by the bosses and their parliamentary representatives to deepen the assault on the living standards and rights of working people.

With close links to the union officialdom, Labor has presided over the government since 2007. In recent years, both Labor and the unions have had steadily declining memberships.

Labor has also lost its luster among the section of the propertied rulers who had supported it as the best choice for maintaining capitalist social stability.

Reflecting a broad consensus among the rulers, the Australian Financial Review editorial Sept. 6 backed the conservatives to “restore normality after more than three years of directionless minority government and leadership upheavals.”

Less than three months before the elections, Labor leaders had tried to stem the loss of working-class support by replacing Prime Minister Julia Gillard with Kevin Rudd, who was identified with the defeat in 2007 of the previous conservative government after the introduction of anti-working-class laws dubbed “WorkChoices.”

“This political instability has undermined the business confidence that … is critical as the mining boom recedes,” the Australian Financial Review said.

The mineral export boom, focused on coal and iron ore to China, is fading with a slowdown of production across Asia. More than 10,000 coal miners have been laid off in recent months. And a manufacturing downturn here has led to a string of layoffs and factory closures. General Motors Holden is cutting hundreds of jobs and Ford has flagged the complete closure of its carmaking in Australia.

Official unemployment, which has been climbing since last November, hit 5.8 per cent in August. Youth unemployment has risen to 17.3 percent, its highest level in three years.

Anthony Abbott, leader of the conservative Liberal Party, repeated his campaign theme to cut the “waste,” end the carbon and mining taxes and “stop the boats,” as he took office Sept. 18. The “waste” refers to plans to cut government expenses, with services workers have come to depend on as primary targets. The unpopular new carbon and mining taxes introduced by the de facto coalition Labor/Greens government are seen by many as contributing to rising household energy bills and declining production. And the “boats” remark refers to the rulers’ campaign to scapegoat immigrants, many of whom arrive by boat seeking asylum, for the problems workers face.

There was little enthusiasm for the elections here, where voting is compulsory and voters number their priorities among candidates. One in five voters did not vote directly for any of the main bourgeois parties. Labor received only a third of direct votes, the worst showing since the 1930s Great Depression. Several state Labor governments were also heavily defeated in recent elections. Almost 6 percent cast spoiled ballots.

A new development was the Palmer United Party, whose anti-establishment populist appeal claimed 5.5 percent of the vote. PUP is the creation of mining magnate Clive Palmer.

During the campaign, the Liberals kept a low profile on their plans to deepen the assault on working people. But the big-business press has been calling on the Liberal government to be more “ambitious” in enacting “far-reaching economic reform” to “lift productivity.”

The Sept. 7 Age reported that business groups would “renew their push to reduce penalty rates for workers on Sundays and public holidays — particularly in retail, tourism and hospitality — if Tony Abbott becomes prime minister.”

Ron Poulsen was the Communist League candidate for Senate from New South Wales in the federal elections.  
 
 
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