One of Malcolm Turnbull’s most principled decisions was his opposition to the Australian Business Investment Partnership Bill 2009 (aka Ruddbank). Arguably this was Malcolm’s finest moment – at a stroke he saved more taxpayers’ money ($25 billion or so) than at any other point in his life. His second reading speech was a clear clarion call warning of the risks of such an organisation (which Rudd had selected Ahmed Fahour to be the chief executive). The Bills Digest provides a good summary of that Bill.
Starting with the Property Council, and including rent-seekers such as Frank Lowy, intense lobbying took place to attack Turnbull and the Coalition’s stand against Ruddbank. The sky was going to fall in, we were told, if the Coalition did not support the creation of Ruddbank.
Wayne Swan said in his second reading speech:
The Australian Business Investment Partnership Bill 2009 and the Australian Business Investment Partnership (Consequential Amendment) Bill 2009 are very much a necessary part of the government’s response to the current unprecedented global economic conditions. …
I want to say this again; I want to underline it and I want to stress this: the Rudd government is not willing to stand idly by and do nothing while commercial property prices tumble and jobs are wiped out by events in global financial markets. That is what is driving the government with this measure. The opposition say that no commercial property project or jobs are at risk. I do not know how much more out of touch the opposition could be to make that statement in this parliament. In this environment, there is no guarantee that foreign banks will maintain their commitment to the Australian commercial property sector. Indeed, there has been press in recent days of foreign banks withdrawing—precisely the circumstances that the government wants to address. …
The Australian people expect more from the opposition and it is not too late for them to see sense. If they do not support this legislation and projects fail and jobs are lost, it will be entirely on their heads. If they do not support this bill and if, in the weeks ahead, jobs are lost as a result of their opposition, that will be entirely on their heads. ABIP is an important part of the government’s response to cushioning Australia from the effects of the global economic crisis. The government is acting responsibly in supporting Australia’s commercial property sector. We are doing it because it is important and because it is a measure that is required by the circumstances of the day. We are acting prudently, with a range of safeguards in place, to help protect the interests of Australian taxpayers.
I was reminded of Ruddbank in the discussion about Doug Cameron. One of the references included Cameron’s attack on Henry Ergas who had dared oppose Ruddbank. The rhetoric at the time was over-the-top.
History delivered its verdict. The Australian Business Investment Bill 2009 was defeated in the Senate on 16 June 2009 and the Government never tried to reintroduce it. The Australian property sector did not collapse. The Government has never admitted it was wrong. (Which reminds me that the Government also did not proceed with its commitment to “enhance” the independence of the Reserve Bank).
We dodged a bullet at that time; if Ruddbank had been created it would have been sucking wealth from the Australian economy into a cesspit of rent seeking.
Unfortunately the Government uses a machine gun for its bad policies. We might have dodged the Ruddbank bullet, and even the Carbon Pollution Reduction Scheme bullet, but plenty of other bullets (such as the Carbon Tax bullet and pink bat bullet) have struck their target and weaken the Australian economy and body politic.
Senator Cameron owes Malcolm Turnbull and Henry Ergas an apology. I suspect Cameron will go to his grave without issuing that apology.
UPDATE
Here is what a funny Scot says should apply to Doug Cameron
http://youtu.be/BBMsPNI6EZE
Commercial property prices have held up for now…but in office there is plenty of empty space emerging in cities (ex Perth)…can paper over for a period – but if Australia continues to have highest interest rates in western world and artificially high exchange rate then the bloodbath is in front of us for property. How is it possible that retailers are feeling extreme pressures while retail property trusts trade at relative highs ?
Malcolm was also very sound in calling for tax cuts rather than handouts to tackle the GFC. His “I’m with Jefferson” attack on the media inquiry was both principled and correct too. It’s a pity he’s such a moody bastard and only does these displays every now and then.
may I urge Mr Cameron to forthwith remove all suspicion
Turnbull’s trouble is that having sat on the ideological barbed wire fence for so long he has no balls left.
There is probably no higher praise for the underlying economic rationale of an argument than for its proponent be attacked by Doug Cameron. Except possibly Stephen Conroy.
I’m sure Henry Ergas won’t be losing any sleep over it.
Doug Cameron:
Qualifications and occupation before entering Federal Parliament
City and Guilds qualified fitter and machinist.
Maintenance fitter, steel, ship repair, vehicle and power industries.
Organiser, Assistant State Secretary, Assistant National Secretary and National Secretary, Australian Manufacturing Workers’ Union.
Vice-President, Australian Council of Trade Unions 1999-2007.
Member, Australian Best Practice Committee.
Trustee, Superannuation Trust of Australia.
Director, Australian Super Pty Ltd 2006-07.
And therefore, Cameron, an eminent Professor of Economics, has every right to castigate Professor Ergas.
Cameron writes like a petulant teenage.
Emotional blatherings about “country”. All emotion, absolutley no reason or logic. And not one skerrick of intelluatuacl thought.
Heavens, Ergas was negative about the grubbyment! “Off with his head”", cries the rabid Cameron. How dare he?!!!!!!!!”
Seriously. Just how feeble-minded, corrupt and insecure is a government that pouts, screams, abuses and threatens people who say “negative” things about the government?
Whenever I’m feeling sad; and who wouldn’t from time to time with this absolute shambolic Government, I select just a couple of Billy Connolly’s rants from u.tube and I simple laugh myself sane again.
Good on ya Billy! Would that that arsehole Cameron had just one wit of humour.
Gab…
“Just how feeble-minded, corrupt and insecure is a government that pouts, screams, abuses and threatens people.”
So true,so true, and Bill Shorten has just reinforced your observation in ranting at Mrs Wong in the pie shop.
At least, I hope he has just destroyed any ambition he everhad at being the next Liebor Leader. He’ll never now be able to say he “supports small business” or “thinks the immigrants are the backbone of society” or the other trite nonsense these Soshlists spout
What Marlene Nguyen said. Come on Malcolm, put in for the team more often!
I feel in a bit of a mood. So my comment is so what he only stopped 16.85% of the stupid stimulas.
So it follows that the majority of the articles were NOT negative about the government?
Mr Cameron appears a ‘glass half empty’ kind of fellow, even when the glass is full!
Alas, Malcolm’s heroism is limited to some Statist bank scams but not others.
The CO2 ETS, when compulsory world wide a couple of decades hence, will generate a massive brand new profit centre for the mega bank Institutions. Their trading commissions on straight up credits are small beer compared to the last great buffalo shoot of packaged CO2 derivatives…..the swaps market alone can be the third in value after forex and interest rates.
Goldman has generously offered to be any sort of options market maker the Aust. Govt requires……
Yeah, of course, the Money Centre banks are not CAGW hysterics……..much……not at all….really.
Alas, Malcolm’s heroism is limited to some Statist bank scams but not others.
The CO2 ETS, when compulsory world wide a couple of decades hence, will generate a massive brand new profit centre for the mega bank Institutions. Their trading commissions on straight up credits are small beer compared to the last great buffalo shoot of packaged CO2 derivatives…..the swaps market alone can be the third in value after forex and interest rates.
Goldman has generously offered to be any sort of options market maker the Aust. Govt requires……
Yeah, of course, the Money Centre banks are not CAGW hysterics……..much……not at all….really.
Err…no human moderation Sinc….interesting.
Alfonso – easier to approve real comments stuck in the spaminator rather than delete them – that causes downstream problems for the commenter and therefore me.
I’m amazed you let me post.