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Lindsay Tanner’s performance on last night’s Q&A surpassed the collective ability of the rest of the Labor frontbench as far as communicating the intricacies of the new mining tax. Not only did he clarify a few of the niggling queries surrounding the tax, but he also conveyed a strong sense of confidence and understanding. Rudd, by comparison, has only sporadically shown true strength on the issue and appears to continuously resort to pre-prepared clichés in defence of the RSPT (like everything else).
It should also be recognised that Joe Hockey’s performance on Q&A was nothing short of dismal. Aside from a load of waffle about the new resource tax being akin to hanging chains around the necks of the big mining barons, his complete and utter lack of economic understanding was apparent.
The most interesting exchange took place in response to a rather clever audience question, querying the definition of super-profits as being anything above 6%, – which the market deems risk-free return. Tanner compared the new tax to one introduced in the 1980s on offshore drilling, and while he recognised that the other tax considered super-profits as being risk-free return plus 5% (11% in other words), he importantly communicated that the new resource tax would allow mining companies to write off 40% of their losses in loss-making years, allowing them to claim it back later. Hockey’s follow-up response to the same question was catastrophic, raising questions over his capability to serve as treasurer:
JOE HOCKEY: This is a key point. The long-term bond rate of around 6 per cent is deemed by markets to be a risk-free return. Government guaranteed. So the government is now saying anything above six per cent or six per cent is actually risk-free. Well, they’re dead wrong and it’s not a super profit.
LINDSAY TANNER: You’ve just garbled…
This, as Tanner interjected, is indeed a load of drivel and makes no sense whatsoever. Hockey continued down this line to oblivion, somehow arguing that Labor’s plan would see the government paying money out to mining companies in loss-making years, conveniently forgetting his earlier scaremongering that these mining companies would all up and leave for sunnier shores in Brazil and elsewhere.
Clearly, by putting Tanner on the stand at Q&A and not Swan, Labor has indicated it recognises his strength as communicator of economic policy. Recent articles exploring the possible ascendancy of Gillard to the top job have only briefly touched on the potential for Tanner to bolster Labor’s leadership strength. In my view, the best team Labor could possibly present heading into this year’s election would be Gillard as PM and Tanner as Treasurer.
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Well said, yes he seems to do his homework and sounds like he knows the subject in manner. Lucky Swanny was busy , but even Swan would win with Joe.The Fiberals are just after the dumb vote.The angry chewing gum girl ? How Green are they though? or as Brown as Rudd ?
Are you asking how Green Tanner is? He’s from Labor Left, so I’d think him to be more of an environmentalist than Rudd. Indeed, I’d expect a Gillard/Tanner combo to actually make a real effort to get something through on climate change. Also, don’t forget that Rudd did try rather hard at Copenhagen – we’ll probably see a new bill should Labor be returned and the Senate be a little more friendly.
Tanner is the most impressive of Rudd’s team, on his feet in parliament – very good communicator
If Rudd fell under the proverbial bus, a new leadership team of Gillard & Tanner would do the trick(although the NSW Right would be dead against this).
Great post!
Jokin’ Joe’s the dog’s nuts isn’t he. Do you think he had any clue at all what he as saying about project funding and the long term bond rate? I mean any clue, any clue at all…..? And he’s the shadow treasurer in that shambles.
He’s my local member and quite frankly at times he is a “total member”; and I swear he must be using the double handed reciprocating method because no one could be that silly using the straight technique.
It’s like panto, “look out behind you!” we all shout and Jokin’ Joe turns round to take the pie full in the face again. Even so I don’t have the heart to dislike him. He’s a good stick really but sooooooo not up to the task.