"The Answer Is Liberal": Australia After Hawke
- Thread starter TheBrunswickian
- Start date
26 October 1990
Asked by Nine’s Laurie Oakes if there was any division in the government over the failed budget measures proposed by Treasurer John Hewson, Deputy Prime Minister Charles Blunt denied that there was. “We are committed and united behind the Prime Minister and the agenda that he has for solving the problems Labor got us into”. But Laurie Oakes wasn’t convinced and pushed back.
“So, you’re saying that there is no one in the government that has dissatisfaction with the way that Andrew Peacock is leading the government.”
“Not that I am aware of,” replied Blunt.
Andrew Peacock’s media team were not happy with Blunt’s performance. “It gives the impression that the DPM is locked out of big decisions. Its fucking hopeless.” They decided they needed a big media coup to win the next news cycles, because the headlines were dominated with the government’s internal problems. “We need to remind the public they elected this government to power, and that we are going to get on with the issues facing this country.”
“What about a trip to the Middle East?” suggested one staffer, “we’ve already dispatched some ships to the Gulf to deal with Saddam Hussein, what if the PM went over to visit some of the troops?”
However, Defence Minister Alexander Downer was not impressed with the idea. “We have very few assets in the region, it would not be worth the trip. We have four frigates operating in the area. Unless you intend to deploy planes to the Kingdom.”
The Foreign Minister, Senator Robert Hill agreed with Downer’s position. “There’s not much point in visiting the Mideast as it stands. For the moment, our forces are just blockading the Gulf to cripple Iraq’s access to trade,” he said.
However, Peacock had become determined to visit the front lines. It was decided that Peacock was visit the American and British forces in Saudi Arabia, and then travel to Bahrain where the Australian frigates were operating out of.
1 November 1990
Standing alongside Transport Minister John Sharp, the Treasurer announced that the domestic aviation market had been fully deregulated. In order to increase competitiveness in the market, Hewson argued, the market needed to be free of government regulation. Ansett and its new rival, Compass, welcomed the move. Sharp also announced that interest in the purchase of Australian Airlines and QANTAS had been successful, and a conglomerate of buyers had been secured. However, they would be announced once the final contracts had been signed.
Paul Keating went hard against the announcement. Telling Michelle Grattan, he said that “the government is being totally reckless in this sale. Totally reckless. This is being conducted in complete secrecy, and there is very little scrutiny of this deal. We’ve heard that Alan Bond and Kerry Packer have expressed interest. Imagine if they are the final buyers? I mean, god help this country if Packer is flying planes!”
12 November 1990
Andrew Peacock, flanked by Robert Hill and Alexander Downer, announced his trip to the Persian Gulf to a rather confused press corps. It didn’t make a lot of sense to make this trip, did it? Peacock explained that it was highly important for the security of the world that the actions taken by the coalition against Saddam Hussein and his invasion of Kuwait did not go unchallenged.
“I have been in constant communication with President George H. W. Bush and Prime Minister Margaret Thatcher about what Australia can do to assist the coalition’s efforts to challenge Saddam Hussein and his brutal and illegal invasion of Kuwait. And it as such that Minister Downer and I have resolved to deploy further assets to the Persian Gulf, including 4 F-111s, 3 missile cruisers and a squadron of 500 ground troops.”
14 November 1990
“In accordance with standing order 64, the time for Member’s Statements has expired. We now go to Questions Without Notice. I call the Member for Bonython.”
“Thank you very much Mr Speaker. My question is to the Minister for Defence. What compelled the Minister to deploy more assets to the Persian Gulf? Was it a need to defend the Kuwaitis, or to defend the Prime Minister from his poor polling numbers?”
There was clear pain on the Speaker’s face, but the question was in order.
“I would thank the member for his question, but as the Shadow Defence Minister would surely know, the matter of the Iraqi invasion of Kuwait is a very serious matter of national security and for that matter, international security. To impugn the motives of this government, and its commitments to global security speaks the true character of the Labor Party,” Alexander Downer raged over the dispatch box. A Dorothy Dixer from the government gave Andrew Peacock to further room to breathe on Iraq.
“I call the Leader of the Opposition,” the Speaker breathed heavily into the microphone.
“Thank you very much Mr Speaker,” Keating begun. “I was wondering in the Prime Minister could tell us who he is planning on selling QANTAS and Australian Airlines to? Because it wouldn’t shock me if he was selling it to Kerry Packer, especially after the Member for Bennelong had lunch with him last Tuesday. Is the Prime Minister worried about the motives of the Member?”
Laughs from the Labor benches drowned out the Speaker’s rage at Keating, as the Leader of the Opposition sat back down, smiling from ear to ear.
Asked by Nine’s Laurie Oakes if there was any division in the government over the failed budget measures proposed by Treasurer John Hewson, Deputy Prime Minister Charles Blunt denied that there was. “We are committed and united behind the Prime Minister and the agenda that he has for solving the problems Labor got us into”. But Laurie Oakes wasn’t convinced and pushed back.
“So, you’re saying that there is no one in the government that has dissatisfaction with the way that Andrew Peacock is leading the government.”
“Not that I am aware of,” replied Blunt.
Andrew Peacock’s media team were not happy with Blunt’s performance. “It gives the impression that the DPM is locked out of big decisions. Its fucking hopeless.” They decided they needed a big media coup to win the next news cycles, because the headlines were dominated with the government’s internal problems. “We need to remind the public they elected this government to power, and that we are going to get on with the issues facing this country.”
“What about a trip to the Middle East?” suggested one staffer, “we’ve already dispatched some ships to the Gulf to deal with Saddam Hussein, what if the PM went over to visit some of the troops?”
However, Defence Minister Alexander Downer was not impressed with the idea. “We have very few assets in the region, it would not be worth the trip. We have four frigates operating in the area. Unless you intend to deploy planes to the Kingdom.”
The Foreign Minister, Senator Robert Hill agreed with Downer’s position. “There’s not much point in visiting the Mideast as it stands. For the moment, our forces are just blockading the Gulf to cripple Iraq’s access to trade,” he said.
However, Peacock had become determined to visit the front lines. It was decided that Peacock was visit the American and British forces in Saudi Arabia, and then travel to Bahrain where the Australian frigates were operating out of.
***
1 November 1990
Standing alongside Transport Minister John Sharp, the Treasurer announced that the domestic aviation market had been fully deregulated. In order to increase competitiveness in the market, Hewson argued, the market needed to be free of government regulation. Ansett and its new rival, Compass, welcomed the move. Sharp also announced that interest in the purchase of Australian Airlines and QANTAS had been successful, and a conglomerate of buyers had been secured. However, they would be announced once the final contracts had been signed.
Paul Keating went hard against the announcement. Telling Michelle Grattan, he said that “the government is being totally reckless in this sale. Totally reckless. This is being conducted in complete secrecy, and there is very little scrutiny of this deal. We’ve heard that Alan Bond and Kerry Packer have expressed interest. Imagine if they are the final buyers? I mean, god help this country if Packer is flying planes!”
***
12 November 1990
Andrew Peacock, flanked by Robert Hill and Alexander Downer, announced his trip to the Persian Gulf to a rather confused press corps. It didn’t make a lot of sense to make this trip, did it? Peacock explained that it was highly important for the security of the world that the actions taken by the coalition against Saddam Hussein and his invasion of Kuwait did not go unchallenged.
“I have been in constant communication with President George H. W. Bush and Prime Minister Margaret Thatcher about what Australia can do to assist the coalition’s efforts to challenge Saddam Hussein and his brutal and illegal invasion of Kuwait. And it as such that Minister Downer and I have resolved to deploy further assets to the Persian Gulf, including 4 F-111s, 3 missile cruisers and a squadron of 500 ground troops.”
***
14 November 1990
“In accordance with standing order 64, the time for Member’s Statements has expired. We now go to Questions Without Notice. I call the Member for Bonython.”
“Thank you very much Mr Speaker. My question is to the Minister for Defence. What compelled the Minister to deploy more assets to the Persian Gulf? Was it a need to defend the Kuwaitis, or to defend the Prime Minister from his poor polling numbers?”
There was clear pain on the Speaker’s face, but the question was in order.
“I would thank the member for his question, but as the Shadow Defence Minister would surely know, the matter of the Iraqi invasion of Kuwait is a very serious matter of national security and for that matter, international security. To impugn the motives of this government, and its commitments to global security speaks the true character of the Labor Party,” Alexander Downer raged over the dispatch box. A Dorothy Dixer from the government gave Andrew Peacock to further room to breathe on Iraq.
“I call the Leader of the Opposition,” the Speaker breathed heavily into the microphone.
“Thank you very much Mr Speaker,” Keating begun. “I was wondering in the Prime Minister could tell us who he is planning on selling QANTAS and Australian Airlines to? Because it wouldn’t shock me if he was selling it to Kerry Packer, especially after the Member for Bennelong had lunch with him last Tuesday. Is the Prime Minister worried about the motives of the Member?”
Laughs from the Labor benches drowned out the Speaker’s rage at Keating, as the Leader of the Opposition sat back down, smiling from ear to ear.
Neal Blewett, he was Health Minister and Trade Minister under Hawke, then became Social Security Minister under Keating
20 November 1990
Newspoll numbers brought just a little good news for Andrew Peacock. The Coalition had gained some ground back from Labor two-party preferred, at 53-47. Peacock’s approval ratings had a significant shift, from -46 to -32, while Keating’s had slipped from -4 to -10. Peacock took this as a sign he was gaining back some ground from the Opposition Leader. However, the Preferred Prime Minister numbers remained unchanged. When it came to preferred Liberal leader, John Howard’s support had slipped from 70 to 56, while Peacock had gained some ground up to 27. Alexander Downer was now being ranked at 22, with John Hewson still low at 7. For Peacock, it was a relief, and he hoped that his trip to the Middle East would further boost his numbers against Howard.
11 December 1990
“Fairfax Holdings and its relevant media interests, including Fairfax Media have been put into receivership,” announced Communications Minister, Senator Richard Alston. Having accrued debts worth $1.8 billion, the media giant was at risk of collapse. Warwick Fairfax had controversially borrowed heavily before the stock market crash to buy out his family’s holdings in Fairfax Media in 1987. However, now the money he had borrowed was coming back to haunt him. The government had announced it would not seek to support Fairfax, and many speculated that Kerry Packer’s Australian Consolidated Press and Rupert Murdoch’s News Limited were now seeking to take over Fairfax’s media holdings.
Opposition Leader Paul Keating made it known he thought the government should be ensuring a diverse media landscape in Australia. “However, we all know that won’t happen,” he told the ABC’s Kerry O’Brien. “We all know Little John Howard and Kerry Packer are good mates. And I’m sure Peacock and Murdoch are old buddies, so it’s within the interests of the government to allow Fairfax to be eaten up”.
13 December 1990
Bob Hawke, who had still been sitting as a backbencher for some time, quietly filed the relevant papers and gave notice to the Speaker that he was resigning from the Parliament, effective immediately. Despite having wished to stand down some time ago, he decided to allow more room for Paul Keating to take on the government’s incompetence, which Hawke thought he had done quite well. With Fairfax being placed into receivership, and the Christmas period coming up, Hawke felt his resignation would slip quietly through the news cycle.
He phoned Keating from the living room of his Melbourne home. Hawke reasoned that Keating would probably still be at the office when he dialled. “Paul, its Bob here.”
“Ah Bob, how are you?”
“Look I’m good mate. I just wanted to inform you that I have notified the Speaker of my immediate resignation. I hope you continue to do Labor well, Paul. I know we haven’t always seen eye to eye, and we’ve certainly not had the healthiest of relationships. But I do want to thank you. For everything. You stuck by me through my stubbornness because you knew it was best for the party and the country.”
“I cannot say I was expecting this level of frankness from you Bob,” Keating replied.
“I know, and in any other circumstance I probably wouldn’t say these things. But losing the Prime Ministership and watching you as Leader these past few months have shown me that I should have faith in you. I certainly should have had more faith in you during our time in government. I’ve had the time to reflect.”
“Bob, this sounds like you're saying goodbye!”
“Well I guess in a way I am. I loved the job, and I’m no doubt that one day you will too. And while I will not be around in parliament anymore, you will always have my full confidence.”
“Thank you, Bob. It really does mean a lot to me.”
“Well anyway, I should let you get back to it. I’m sure you’ll have a lot to say about the Fairfax receivership.”
“Oh, don’t you worry about that mate. Peacock won’t know what hit him!” The pair chuckled before ending the call. There was a tear in Hawke’s eye as he hung up the phone. Keating would be the next Prime Minister, and he’d do a bloody good job of it.
Newspoll numbers brought just a little good news for Andrew Peacock. The Coalition had gained some ground back from Labor two-party preferred, at 53-47. Peacock’s approval ratings had a significant shift, from -46 to -32, while Keating’s had slipped from -4 to -10. Peacock took this as a sign he was gaining back some ground from the Opposition Leader. However, the Preferred Prime Minister numbers remained unchanged. When it came to preferred Liberal leader, John Howard’s support had slipped from 70 to 56, while Peacock had gained some ground up to 27. Alexander Downer was now being ranked at 22, with John Hewson still low at 7. For Peacock, it was a relief, and he hoped that his trip to the Middle East would further boost his numbers against Howard.
***
11 December 1990
“Fairfax Holdings and its relevant media interests, including Fairfax Media have been put into receivership,” announced Communications Minister, Senator Richard Alston. Having accrued debts worth $1.8 billion, the media giant was at risk of collapse. Warwick Fairfax had controversially borrowed heavily before the stock market crash to buy out his family’s holdings in Fairfax Media in 1987. However, now the money he had borrowed was coming back to haunt him. The government had announced it would not seek to support Fairfax, and many speculated that Kerry Packer’s Australian Consolidated Press and Rupert Murdoch’s News Limited were now seeking to take over Fairfax’s media holdings.
Opposition Leader Paul Keating made it known he thought the government should be ensuring a diverse media landscape in Australia. “However, we all know that won’t happen,” he told the ABC’s Kerry O’Brien. “We all know Little John Howard and Kerry Packer are good mates. And I’m sure Peacock and Murdoch are old buddies, so it’s within the interests of the government to allow Fairfax to be eaten up”.
***
13 December 1990
Bob Hawke, who had still been sitting as a backbencher for some time, quietly filed the relevant papers and gave notice to the Speaker that he was resigning from the Parliament, effective immediately. Despite having wished to stand down some time ago, he decided to allow more room for Paul Keating to take on the government’s incompetence, which Hawke thought he had done quite well. With Fairfax being placed into receivership, and the Christmas period coming up, Hawke felt his resignation would slip quietly through the news cycle.
He phoned Keating from the living room of his Melbourne home. Hawke reasoned that Keating would probably still be at the office when he dialled. “Paul, its Bob here.”
“Ah Bob, how are you?”
“Look I’m good mate. I just wanted to inform you that I have notified the Speaker of my immediate resignation. I hope you continue to do Labor well, Paul. I know we haven’t always seen eye to eye, and we’ve certainly not had the healthiest of relationships. But I do want to thank you. For everything. You stuck by me through my stubbornness because you knew it was best for the party and the country.”
“I cannot say I was expecting this level of frankness from you Bob,” Keating replied.
“I know, and in any other circumstance I probably wouldn’t say these things. But losing the Prime Ministership and watching you as Leader these past few months have shown me that I should have faith in you. I certainly should have had more faith in you during our time in government. I’ve had the time to reflect.”
“Bob, this sounds like you're saying goodbye!”
“Well I guess in a way I am. I loved the job, and I’m no doubt that one day you will too. And while I will not be around in parliament anymore, you will always have my full confidence.”
“Thank you, Bob. It really does mean a lot to me.”
“Well anyway, I should let you get back to it. I’m sure you’ll have a lot to say about the Fairfax receivership.”
“Oh, don’t you worry about that mate. Peacock won’t know what hit him!” The pair chuckled before ending the call. There was a tear in Hawke’s eye as he hung up the phone. Keating would be the next Prime Minister, and he’d do a bloody good job of it.
Last edited:
7 January 1991
Andrew Peacock stepped off his plane in the Saudi Arabian capital city of Riyadh. He was on a public relations mission, to look like the stately, wartime leader that Australia needed. He was arriving ahead of the first deployment of Australian troops to the Gulf, responding to the invasion of Kuwait by Iraq’s dictator Saddam Hussein. As he took the stairs down, he was greeted by the Saudi Foreign Minister, Saud bin Faisal Al Saud.
“Thank you very much for coming Prime Minister,” the Prince said as they shook hands.
“It’s a pleasure to be here,” replied Peacock. “It’s very important for Australia to stand with her allies in this time.”
Back in Australia, Alexander Downer, the Defence Minister, watched the pictures that were being run on the nightly news. “It looks good for us,” he said. “The Prime Minister looks like a man of action and purpose.”
“It’s just a shame that he hasn’t achieved anything of substance yet,” Peter Reith responded. The pair had been counting the numbers in the party. It looked like John Howard had some support for a leadership bid, but in general the party was supporting the current leadership team. There was growing discontent in the Peacock loyalists that John Hewson was going rouge. Despite being the Prime Minister’s protégé, Peter Reith was worried that he was going to defect over to the Howard camp.
“He thinks I’m gunning for his job,” Reith said to Downer.
“And are you?”
“Not really. Costello is though.”
14 January 1991
Wayne Goss, the Labor Premier of Queensland, announced that he was going to declare a state of emergency in the Rockhampton area. Flooding had begun just over a week ago, some of the worst in 36 years. Queensland needed support from the federal government desperately. “The state of Queensland needs support immediately,” Goss said at his press conference. “I am asking the federal government to help us, we need resources and funding immediately to help people begin the clean-up operations, as well as continue to house those who have been displaced by these floods.”
Defence Minister Downer immediately dispatched ADF personnel to the flood-hit regions to begin assisting in the clean-up, however, Treasurer Hewson responded differently. “As much as I would like to assist the Queensland people during these floods, I would ask Premier Goss exactly where he thinks I’m going to find that in my budget?” he said in a walk-and-talk with Nine’s Laurie Oakes.
Peter Costello, the Minister for Human Services, retorted the Treasurer’s comments later that evening to the ABC’s Kerry O’Brien. “I don’t think that the fact that we have been tightening our budget of late is a legitimate reason not to find emergency relief packages for the flood-hit areas of Queensland. I expect that areas under my portfolio will be effected by this natural disaster, and I think we should be doing all we can to help the people of Queensland.”
17 January 1991
“Early this morning, Australian fighters took part in the opening moves of Operation Desert Storm, alongside our American and British allies,” announced Andrew Peacock, flanked by Alexander Downer and Foreign Minister Robert Hill. “War has broken out in the Persian Gulf. We shall hold the government of Iraq to account, and let all those who would seek to undermine international order – you are being watched and you will be held to account.”
Andrew Peacock stepped off his plane in the Saudi Arabian capital city of Riyadh. He was on a public relations mission, to look like the stately, wartime leader that Australia needed. He was arriving ahead of the first deployment of Australian troops to the Gulf, responding to the invasion of Kuwait by Iraq’s dictator Saddam Hussein. As he took the stairs down, he was greeted by the Saudi Foreign Minister, Saud bin Faisal Al Saud.
“Thank you very much for coming Prime Minister,” the Prince said as they shook hands.
“It’s a pleasure to be here,” replied Peacock. “It’s very important for Australia to stand with her allies in this time.”
Back in Australia, Alexander Downer, the Defence Minister, watched the pictures that were being run on the nightly news. “It looks good for us,” he said. “The Prime Minister looks like a man of action and purpose.”
“It’s just a shame that he hasn’t achieved anything of substance yet,” Peter Reith responded. The pair had been counting the numbers in the party. It looked like John Howard had some support for a leadership bid, but in general the party was supporting the current leadership team. There was growing discontent in the Peacock loyalists that John Hewson was going rouge. Despite being the Prime Minister’s protégé, Peter Reith was worried that he was going to defect over to the Howard camp.
“He thinks I’m gunning for his job,” Reith said to Downer.
“And are you?”
“Not really. Costello is though.”
***
14 January 1991
Wayne Goss, the Labor Premier of Queensland, announced that he was going to declare a state of emergency in the Rockhampton area. Flooding had begun just over a week ago, some of the worst in 36 years. Queensland needed support from the federal government desperately. “The state of Queensland needs support immediately,” Goss said at his press conference. “I am asking the federal government to help us, we need resources and funding immediately to help people begin the clean-up operations, as well as continue to house those who have been displaced by these floods.”
Defence Minister Downer immediately dispatched ADF personnel to the flood-hit regions to begin assisting in the clean-up, however, Treasurer Hewson responded differently. “As much as I would like to assist the Queensland people during these floods, I would ask Premier Goss exactly where he thinks I’m going to find that in my budget?” he said in a walk-and-talk with Nine’s Laurie Oakes.
Peter Costello, the Minister for Human Services, retorted the Treasurer’s comments later that evening to the ABC’s Kerry O’Brien. “I don’t think that the fact that we have been tightening our budget of late is a legitimate reason not to find emergency relief packages for the flood-hit areas of Queensland. I expect that areas under my portfolio will be effected by this natural disaster, and I think we should be doing all we can to help the people of Queensland.”
***
17 January 1991
“Early this morning, Australian fighters took part in the opening moves of Operation Desert Storm, alongside our American and British allies,” announced Andrew Peacock, flanked by Alexander Downer and Foreign Minister Robert Hill. “War has broken out in the Persian Gulf. We shall hold the government of Iraq to account, and let all those who would seek to undermine international order – you are being watched and you will be held to account.”
19 January 1991
Treasurer John Hewson and Transport Minister John Sharp announced to the awaiting press gallery that buyers had been found for the country’s two state-owned airlines. QANTAS, the airline operating international services was to be sold to a joint-bid of American airline Delta Air Lines, businessman Frank Lowy, with a quarter of the remaining shares to be made available to the Australian public. Australian Airlines was to be sold to relative new-comer to the aviation market in Australia, Compass Airlines, a budget airline. With the intention of expanding their operations and become a market competitor to Ansett.
Opposition Leader Paul Keating derided the sales as “garbage”, claiming to ABC Radio that “Compass cannot afford the support this purchase, and it’s likely going to need to be bailed out if it’s going to survive as a competitor to Ansett. Delta might be able to turn QANTAS into a legitimate airline, but they won’t be able to be a strong competitor to Ansett in the market for some years. Hewson and Sharp haven’t thought this through at all. Its hopeless.”
23 January 1991
The Victorian Liberals were in crisis, once more. The death of Jeff Kennett a few months earlier left a gaping hole in the party’s opposition to the shambles of a Labor government. Alan Brown was trying his best to take down Premier Steve Crabb, but was unable to make any serious dents in his poll numbers. Rumours were swirling that Brown’s job was on the line. “Do you still have the confidence of the party room?” he was asked by Channel Seven’s David Johnston. Brown refused to respond.
Roger Pescott, Brown’s deputy, was long seen as a potential replacement, especially after the duo ousted Jeff Kennett in 1989. Then Premier John Cain Jr had said as much after they came to office. But now Pescott watched as Brown’s leadership floundered and decided that he had to act, otherwise Labor could be re-elected to a dangerous fourth term in office. Pescott phoned the lead of the Liberals’ traditional coalition partner, Pat McNamara, the Nationals leader.
“Pat, I just wanted to give you notice that I will challenging Alan for the leadership. It’s the right thing to do if we want to bring down Crabb,” Pescott said.
“I won’t support your leadership bid Roger, but I’ll back you in if you win,” came McNamara’s steely reply.
“I understand, we have the Coalition agreement to think of.”
Pescott called a press conference, and on the steps of the Victorian Parliament building, declared his intentions. “Today, I am going to request that Alan Brown call for a special party room meeting to determine the future leadership of the Liberal Party. I do not believe that Alan will be able to defeat the Labor government at the next election, which the state of Victoria so desperately needs. I will be standing in the leadership ballot, and I call on my colleagues to back a new way forward for the Liberals and for Victoria”.
Alan Brown swore at the television as the bulletin that Pescott was going to challenge him came through. “That backstabbing bastard,” he yelled. He had no choice, he had to call the special party room meeting. That evening, Brown and Pescott advocated their case to the party room, putting forward their dreams for the future of the Liberals and what they would do in government for Victoria. The members went to vote. Exiting the room, Roger Pescott was victorious, and promised to lead the party forward to the next election, and to victory. Geoff Leigh, the Shadow Minister for Consumer Affairs and Member for Malvern was elected as Pescott’s deputy, unopposed.
Treasurer John Hewson and Transport Minister John Sharp announced to the awaiting press gallery that buyers had been found for the country’s two state-owned airlines. QANTAS, the airline operating international services was to be sold to a joint-bid of American airline Delta Air Lines, businessman Frank Lowy, with a quarter of the remaining shares to be made available to the Australian public. Australian Airlines was to be sold to relative new-comer to the aviation market in Australia, Compass Airlines, a budget airline. With the intention of expanding their operations and become a market competitor to Ansett.
Opposition Leader Paul Keating derided the sales as “garbage”, claiming to ABC Radio that “Compass cannot afford the support this purchase, and it’s likely going to need to be bailed out if it’s going to survive as a competitor to Ansett. Delta might be able to turn QANTAS into a legitimate airline, but they won’t be able to be a strong competitor to Ansett in the market for some years. Hewson and Sharp haven’t thought this through at all. Its hopeless.”
***
23 January 1991
The Victorian Liberals were in crisis, once more. The death of Jeff Kennett a few months earlier left a gaping hole in the party’s opposition to the shambles of a Labor government. Alan Brown was trying his best to take down Premier Steve Crabb, but was unable to make any serious dents in his poll numbers. Rumours were swirling that Brown’s job was on the line. “Do you still have the confidence of the party room?” he was asked by Channel Seven’s David Johnston. Brown refused to respond.
Roger Pescott, Brown’s deputy, was long seen as a potential replacement, especially after the duo ousted Jeff Kennett in 1989. Then Premier John Cain Jr had said as much after they came to office. But now Pescott watched as Brown’s leadership floundered and decided that he had to act, otherwise Labor could be re-elected to a dangerous fourth term in office. Pescott phoned the lead of the Liberals’ traditional coalition partner, Pat McNamara, the Nationals leader.
“Pat, I just wanted to give you notice that I will challenging Alan for the leadership. It’s the right thing to do if we want to bring down Crabb,” Pescott said.
“I won’t support your leadership bid Roger, but I’ll back you in if you win,” came McNamara’s steely reply.
“I understand, we have the Coalition agreement to think of.”
Pescott called a press conference, and on the steps of the Victorian Parliament building, declared his intentions. “Today, I am going to request that Alan Brown call for a special party room meeting to determine the future leadership of the Liberal Party. I do not believe that Alan will be able to defeat the Labor government at the next election, which the state of Victoria so desperately needs. I will be standing in the leadership ballot, and I call on my colleagues to back a new way forward for the Liberals and for Victoria”.
Alan Brown swore at the television as the bulletin that Pescott was going to challenge him came through. “That backstabbing bastard,” he yelled. He had no choice, he had to call the special party room meeting. That evening, Brown and Pescott advocated their case to the party room, putting forward their dreams for the future of the Liberals and what they would do in government for Victoria. The members went to vote. Exiting the room, Roger Pescott was victorious, and promised to lead the party forward to the next election, and to victory. Geoff Leigh, the Shadow Minister for Consumer Affairs and Member for Malvern was elected as Pescott’s deputy, unopposed.
Attachments
A great storyline and looking forward to it progressing, but I've one nitpick to make. You've deployed 4 frigates and just committed a further 3 cruisers. Australia hasn't had cruisers since the end of WW2, perhaps your thinking of the Perth class guided missile destroyers, of which we only have 3 at this time. The RAN at this time was not capable of deploying so many assets, 7, to the Gulf. In OTL 6 ships were committed, but rotated with only 2 warships and a supply ship there at any one time. Unless in this TL the RAN has been greatly expanded.
8 February 1991
It wasn’t just the Victorian Liberals that were in crisis. In Tasmania, former Premier Robin Gray was beleaguered. His Deputy Ray Groom had resigned earlier that morning, citing an irreconcilable difference of opinions with Gray. Having lost the 1989 election to an alliance of Labor and the Greens, Gray had refused to resign and attempted to get the Governor of Tasmania, Phillip Bennett to call a fresh election – but was rebuffed. It wasn’t often that Governors refuse the advice of the Premier, but Bennett believed that Gray had lost the confidence of the House. When the Labor/Green alliance forced a new Speaker, it had become apparent to Gray that he would be unable to survive a no-confidence vote, and resigned. A Royal Commission had found that Edmund Rouse, a prominent Launceston businessman had attempted to bribe a backbench Labor MP to cross the floor to support Gray’s Premiership.
Questions were rapidly circulating about how much Gray knew about Rouse’s efforts to buy him back into office. He denied all knowledge of the actions conducted in his name, but it rapidly becoming obvious that people were not buying his excuses. The resignation of Ray Groom only depended the crisis. The new Labor Premier, Michael Field – having harshly criticised the actions of his own backbencher – was calling on Gray to answer questions about what he knew and when. Gray refused to resign and said that the leadership of the Tasmanian Liberals was not in question. Groom’s resignation only further damaged his standing.
“Should I resign?” he asked his steely chief of staff. “I can’t see how I can salvage this situation.”
“Absolutely not, we just need to ride out this storm,” was his advice. But Gray wasn’t so sure. He instead consulted his wife. What was he to do? Her advice was simple: resign.
“Cauterize the wound,” she told him. “If you step down you look principled and you’re taking a bullet for the party. If you refuse to resign and stay on, bringing more chaos to the party then no one will remember you well.”
He figured she was right. If he stood down now then it would be too quick for Groom to prepare to mount a leadership campaign, and that much he could support. That evening he convened a press conference and announced that he would resigning as Leader, effective immediately. In a special partyroom meeting convened that same night, Peter Hodgman was elected as the new leader, with John Cleary elected deputy.
12 February 1991
South Australian Labor Premier John Bannon had only just announced a $1 billion bailout for the State Bank of South Australia, and was now under pressure to establish a Royal Commission to investigate. The state-owned bank had collapsed under its own pressure, in a similar nature to the State Bank of Victoria. However, Bannon hadn’t been able to secure a federal deal to save the bank.
“It is obvious that Treasurer Hewson only agreed to the Tricontinental sale from the Victorian state bank to Macquarie for two reasons: it made his friends a lot of money and Victoria is more important to Australia, it seems,” Bannon had declared. But the Premier did relent on the issue of the Royal Commission, appointing Justice Sam Jacobs to head up the commission.
11 April 1991
Former Prime Minister Bob Hawke was suddenly thrust back into the headlines, after he agreed to give evidence to the Kennedy Royal Commission – better known as the WA Inc inquiry. Announced by Premier Carmen Lawrence at the end of 1990, the Royal Commission was to investigate the dealings between the state government under former Premier Brian Burke and prominent business people like Alan Bond, Robert Holmes a Court, Laurie Connell and Kevin Parry. Hawke had spent the week denying to journalists that in 1987, at a lunch with Laurie Connell and Alan Bond, he had assured them that there would not be a tax on gold, which was contrary to the evidence Connell had given to the Commission.
Seizing on Hawke’s beleaguerment, Prime Minister Andrew Peacock decided to turn the knife into Labor. “Mr Speaker, on indulgence,” he said that afternoon before Question Time, “I would like to inform the House that today I instructed the Foreign Minister, Senator Robert Hill, to immediately recall the Ambassador to Ireland, Mr Brian Burke so that he can testify before the Kennedy Royal Commission. Mr Speaker, the former Premier of Western Australia and the former Prime Minister, Mr Hawke, have very serious questions to ask about their relations and dealings with very prominent businessmen.”
Opposition Leader Paul Keating was quick to leap to the defence of Hawke and Burke. Speaking to Nine’s Laurie Oakes he said that “the Kennedy Royal Commission is being turned into a witch hunt. It’s an absolute farce. The government shouldn’t be calling back Mr Burke so he can testify to the Commission. If the Commission wants to call the former Premier to testify, they are very capable of doing it themselves.”
“Look, this is really good for us,” Peacock told Peter Reith. “It means we can appoint Howard as the ambassador to replace Burke and we get to fuck with Labor’s numbers.”
“But for how long? And Howard certainly isn’t going to take up an ambassadorship, not while his numbers are strong as preferred leader.”
Peacock wasn’t the only one scheming. Opposition Leader Paul Keating was seeking was to swing the situation they had found themselves in. His trusted Deputy, Kim Beazley discussed the potential approaches with him. “It’s obvious that Labor are totally fucked at the next election. Carmen won’t be able to salvage this,” Beazley said.
“So, what do you want to do? Parachute her to federal parliament?”
“It’s not a horrible idea. If she resigns as Premier citing family reasons six months before the next election, then we can parachute her in to Fremantle. Replace John Dawkins.”
“You would have me force out my own Shadow Treasurer?”
“Dawkins isn’t going to stick around much longer Paul, what we do is ask him to retire at the ’93 election. Carmen moves in and we give her ministry when we win the election.”
“If you can set it up, we might as well do it. Carmen’s good talent, we can’t afford to lose her.”
30 April 1991
“Will you guarantee that I will hold my position after the election or not?” demanded John Dowd, the Attorney-General of New South Wales. Nick Greiner, the Liberal Premier, had been making very vague statements about who might be cut from Cabinet after the impending election. Just four weeks out, Greiner was promising there would be a reshuffle following the vote that could make or break his government.
“Look John, I am not making guarantees to anyone about whether or not they’ll be staying in Cabinet after the election. I don’t want to make a promise I will be unable to keep,” replied the Premier. Dowd was not impressed. He wanted assurances that he was going to be in government, as a Minister. He had a plan for himself, he wanted the leadership one day. Standing opposite the Premier he calculated a plan in his head – resign from Cabinet, then blast Greiner’s leadership so that the appearance of disunity and infighting would damage the Liberals enough to lose them the election, and deliver Bob Carr and Labor the premiership in a fragile minority government. That would then put Dowd in a place to put his hat in the ring for the post-election leadership battle.
“Then consider this my resignation,” he told the Premier. With that he strode out of the Premier’s office and convened a press conference. “Today I sought assurances from the Premier that there would be no changes to the composition of Cabinet following the election, which he refused to give. I have informed the Premier that I am resigning as Attorney-General effective immediately in protest. It is a key aspect of leadership that the people you lead are aware of your intentions at all times. Despite my attempts to be assured of his intentions, the Premier failed to show that crucial aspect of leadership.”
_____________________________
And now that my exams are over, I'm going to be updating this a lot more regularly.
It wasn’t just the Victorian Liberals that were in crisis. In Tasmania, former Premier Robin Gray was beleaguered. His Deputy Ray Groom had resigned earlier that morning, citing an irreconcilable difference of opinions with Gray. Having lost the 1989 election to an alliance of Labor and the Greens, Gray had refused to resign and attempted to get the Governor of Tasmania, Phillip Bennett to call a fresh election – but was rebuffed. It wasn’t often that Governors refuse the advice of the Premier, but Bennett believed that Gray had lost the confidence of the House. When the Labor/Green alliance forced a new Speaker, it had become apparent to Gray that he would be unable to survive a no-confidence vote, and resigned. A Royal Commission had found that Edmund Rouse, a prominent Launceston businessman had attempted to bribe a backbench Labor MP to cross the floor to support Gray’s Premiership.
Questions were rapidly circulating about how much Gray knew about Rouse’s efforts to buy him back into office. He denied all knowledge of the actions conducted in his name, but it rapidly becoming obvious that people were not buying his excuses. The resignation of Ray Groom only depended the crisis. The new Labor Premier, Michael Field – having harshly criticised the actions of his own backbencher – was calling on Gray to answer questions about what he knew and when. Gray refused to resign and said that the leadership of the Tasmanian Liberals was not in question. Groom’s resignation only further damaged his standing.
“Should I resign?” he asked his steely chief of staff. “I can’t see how I can salvage this situation.”
“Absolutely not, we just need to ride out this storm,” was his advice. But Gray wasn’t so sure. He instead consulted his wife. What was he to do? Her advice was simple: resign.
“Cauterize the wound,” she told him. “If you step down you look principled and you’re taking a bullet for the party. If you refuse to resign and stay on, bringing more chaos to the party then no one will remember you well.”
He figured she was right. If he stood down now then it would be too quick for Groom to prepare to mount a leadership campaign, and that much he could support. That evening he convened a press conference and announced that he would resigning as Leader, effective immediately. In a special partyroom meeting convened that same night, Peter Hodgman was elected as the new leader, with John Cleary elected deputy.
***
12 February 1991
South Australian Labor Premier John Bannon had only just announced a $1 billion bailout for the State Bank of South Australia, and was now under pressure to establish a Royal Commission to investigate. The state-owned bank had collapsed under its own pressure, in a similar nature to the State Bank of Victoria. However, Bannon hadn’t been able to secure a federal deal to save the bank.
“It is obvious that Treasurer Hewson only agreed to the Tricontinental sale from the Victorian state bank to Macquarie for two reasons: it made his friends a lot of money and Victoria is more important to Australia, it seems,” Bannon had declared. But the Premier did relent on the issue of the Royal Commission, appointing Justice Sam Jacobs to head up the commission.
***
11 April 1991
Former Prime Minister Bob Hawke was suddenly thrust back into the headlines, after he agreed to give evidence to the Kennedy Royal Commission – better known as the WA Inc inquiry. Announced by Premier Carmen Lawrence at the end of 1990, the Royal Commission was to investigate the dealings between the state government under former Premier Brian Burke and prominent business people like Alan Bond, Robert Holmes a Court, Laurie Connell and Kevin Parry. Hawke had spent the week denying to journalists that in 1987, at a lunch with Laurie Connell and Alan Bond, he had assured them that there would not be a tax on gold, which was contrary to the evidence Connell had given to the Commission.
Seizing on Hawke’s beleaguerment, Prime Minister Andrew Peacock decided to turn the knife into Labor. “Mr Speaker, on indulgence,” he said that afternoon before Question Time, “I would like to inform the House that today I instructed the Foreign Minister, Senator Robert Hill, to immediately recall the Ambassador to Ireland, Mr Brian Burke so that he can testify before the Kennedy Royal Commission. Mr Speaker, the former Premier of Western Australia and the former Prime Minister, Mr Hawke, have very serious questions to ask about their relations and dealings with very prominent businessmen.”
Opposition Leader Paul Keating was quick to leap to the defence of Hawke and Burke. Speaking to Nine’s Laurie Oakes he said that “the Kennedy Royal Commission is being turned into a witch hunt. It’s an absolute farce. The government shouldn’t be calling back Mr Burke so he can testify to the Commission. If the Commission wants to call the former Premier to testify, they are very capable of doing it themselves.”
“Look, this is really good for us,” Peacock told Peter Reith. “It means we can appoint Howard as the ambassador to replace Burke and we get to fuck with Labor’s numbers.”
“But for how long? And Howard certainly isn’t going to take up an ambassadorship, not while his numbers are strong as preferred leader.”
Peacock wasn’t the only one scheming. Opposition Leader Paul Keating was seeking was to swing the situation they had found themselves in. His trusted Deputy, Kim Beazley discussed the potential approaches with him. “It’s obvious that Labor are totally fucked at the next election. Carmen won’t be able to salvage this,” Beazley said.
“So, what do you want to do? Parachute her to federal parliament?”
“It’s not a horrible idea. If she resigns as Premier citing family reasons six months before the next election, then we can parachute her in to Fremantle. Replace John Dawkins.”
“You would have me force out my own Shadow Treasurer?”
“Dawkins isn’t going to stick around much longer Paul, what we do is ask him to retire at the ’93 election. Carmen moves in and we give her ministry when we win the election.”
“If you can set it up, we might as well do it. Carmen’s good talent, we can’t afford to lose her.”
***
30 April 1991
“Will you guarantee that I will hold my position after the election or not?” demanded John Dowd, the Attorney-General of New South Wales. Nick Greiner, the Liberal Premier, had been making very vague statements about who might be cut from Cabinet after the impending election. Just four weeks out, Greiner was promising there would be a reshuffle following the vote that could make or break his government.
“Look John, I am not making guarantees to anyone about whether or not they’ll be staying in Cabinet after the election. I don’t want to make a promise I will be unable to keep,” replied the Premier. Dowd was not impressed. He wanted assurances that he was going to be in government, as a Minister. He had a plan for himself, he wanted the leadership one day. Standing opposite the Premier he calculated a plan in his head – resign from Cabinet, then blast Greiner’s leadership so that the appearance of disunity and infighting would damage the Liberals enough to lose them the election, and deliver Bob Carr and Labor the premiership in a fragile minority government. That would then put Dowd in a place to put his hat in the ring for the post-election leadership battle.
“Then consider this my resignation,” he told the Premier. With that he strode out of the Premier’s office and convened a press conference. “Today I sought assurances from the Premier that there would be no changes to the composition of Cabinet following the election, which he refused to give. I have informed the Premier that I am resigning as Attorney-General effective immediately in protest. It is a key aspect of leadership that the people you lead are aware of your intentions at all times. Despite my attempts to be assured of his intentions, the Premier failed to show that crucial aspect of leadership.”
_____________________________
And now that my exams are over, I'm going to be updating this a lot more regularly.
Last edited:
Interesting TL - I'll be watching. I've always found Keating one of the more interesting figures of modern parliamentary politics, even though I think he went too far with his embrace of neoliberalism, and I've occasionally wondered how he might have performed as Opposition Leader.
And I love some of the songs from Keating: The Musical, especially the "rap battle" with Hewson and "The Light on the Hill."
And I love some of the songs from Keating: The Musical, especially the "rap battle" with Hewson and "The Light on the Hill."
11 May 1991
Newspoll data is released the same night as the by-election for the seat of Menzies in Victoria. Labor decided not to field a candidate in the seat that had been vacated by former Deputy Liberal Leader Neil Brown. Kevin Andrews, the Liberal candidate, faced a strong challenge from the Democrats, but was able to comfortably win with 57% of the primary vote, and a two-party-preferred of 65%. The Newspoll numbers remained gloomy for Andrew Peacock, with the Coalition’s two-party-preferred against Labor sitting at 53-47 in favour of the opposition. Peacock’s approvals fell to -40, and Paul Keating’s numbers slipped to -14. Keating by far remained preferred Prime Minister, holding a 10-point lead over Peacock. The polls brought further dismay for the embattled Prime Minister, with the preferred Liberal leader numbers showing Peacock coming in third behind John Howard on 50, Alexander Downer on 28, with Peacock on 20.
25 May 1991
After a string of bad headlines questioning his leadership, NSW Premier Nick Greiner was sure that he would be able to take his government to victory at the election. John Dowd’s blistering attack had opened him up to questions about his leadership, with Fairfax’s Michelle Grattan writing “Dowd’s resignation has opened up a maelstrom of trouble for the Premier in the run up to this crucial election. This election, more than any, is a referendum on the Premier’s personal leadership”. The morning of the election, Greiner was confident that he had won. As the night went on, his confidence weaned.
It was looking as though Dowd’s attacks were having the desired effect. Greiner knew that it was always going to be difficult, since he had slashed the number of seats in the parliament and he was expecting to be returned by a narrow margin, if not as a minority government. However, the numbers as they rolled in were becoming worse and worse for the first term government. Confidence in his government was rocked by the resignation of Dowd. The Coalition lost a total of 12 seats, while Labor took a net gain of 5 seats. New South Wales faced a hung parliament, with Labor only marginally ahead of the Coalition for seats. This was a disaster. Despite the redistribution making the seat of Bligh notionally Liberal, they were unable to take the seat off the independent Clover Moore. The Liberals also lost Manly to Peter Macdonald and the Nationals lost Tamworth to Tony Windsor. This left Labor with 48 seats, with the Coalition on 47 with four independents holding the balance the power.
4 June 1991
Bob Carr exited the parliamentary building, confident in himself. Having come out on top from the state election, he was in the position to take the Premiership. He only needed the support of two of the independents to take government, and he had already clenched support from Clover Moore, the member for Bligh. After intense negotiations and giving several concessions away, Carr had locked in the support of fresh independent Peter Macdonald. Addressing the media he was confident and astute, stating strongly that Labor would set NSW back on the right track. “The Coalition has horribly damaged the state and now we can fix this mess and ensure that we have a state that works for families”.
Nick Greiner was on the way out, and announced he would resign as leader. When asked if was supporting any particular candidate for the leadership, he refused to endorse anyone. “I’m not going to comment on any of that, and I won’t get involved in the future leadership of the party. I do expect though the race will come down to Bruce Baird and John Fahey however,” he told the ABC’s AM program.
Newspoll data is released the same night as the by-election for the seat of Menzies in Victoria. Labor decided not to field a candidate in the seat that had been vacated by former Deputy Liberal Leader Neil Brown. Kevin Andrews, the Liberal candidate, faced a strong challenge from the Democrats, but was able to comfortably win with 57% of the primary vote, and a two-party-preferred of 65%. The Newspoll numbers remained gloomy for Andrew Peacock, with the Coalition’s two-party-preferred against Labor sitting at 53-47 in favour of the opposition. Peacock’s approvals fell to -40, and Paul Keating’s numbers slipped to -14. Keating by far remained preferred Prime Minister, holding a 10-point lead over Peacock. The polls brought further dismay for the embattled Prime Minister, with the preferred Liberal leader numbers showing Peacock coming in third behind John Howard on 50, Alexander Downer on 28, with Peacock on 20.
***
25 May 1991
After a string of bad headlines questioning his leadership, NSW Premier Nick Greiner was sure that he would be able to take his government to victory at the election. John Dowd’s blistering attack had opened him up to questions about his leadership, with Fairfax’s Michelle Grattan writing “Dowd’s resignation has opened up a maelstrom of trouble for the Premier in the run up to this crucial election. This election, more than any, is a referendum on the Premier’s personal leadership”. The morning of the election, Greiner was confident that he had won. As the night went on, his confidence weaned.
It was looking as though Dowd’s attacks were having the desired effect. Greiner knew that it was always going to be difficult, since he had slashed the number of seats in the parliament and he was expecting to be returned by a narrow margin, if not as a minority government. However, the numbers as they rolled in were becoming worse and worse for the first term government. Confidence in his government was rocked by the resignation of Dowd. The Coalition lost a total of 12 seats, while Labor took a net gain of 5 seats. New South Wales faced a hung parliament, with Labor only marginally ahead of the Coalition for seats. This was a disaster. Despite the redistribution making the seat of Bligh notionally Liberal, they were unable to take the seat off the independent Clover Moore. The Liberals also lost Manly to Peter Macdonald and the Nationals lost Tamworth to Tony Windsor. This left Labor with 48 seats, with the Coalition on 47 with four independents holding the balance the power.
***
4 June 1991
Bob Carr exited the parliamentary building, confident in himself. Having come out on top from the state election, he was in the position to take the Premiership. He only needed the support of two of the independents to take government, and he had already clenched support from Clover Moore, the member for Bligh. After intense negotiations and giving several concessions away, Carr had locked in the support of fresh independent Peter Macdonald. Addressing the media he was confident and astute, stating strongly that Labor would set NSW back on the right track. “The Coalition has horribly damaged the state and now we can fix this mess and ensure that we have a state that works for families”.
Nick Greiner was on the way out, and announced he would resign as leader. When asked if was supporting any particular candidate for the leadership, he refused to endorse anyone. “I’m not going to comment on any of that, and I won’t get involved in the future leadership of the party. I do expect though the race will come down to Bruce Baird and John Fahey however,” he told the ABC’s AM program.
Attachments
Probably, but its certainly not unheard of. OTL Carr won the 95 election in majority despite losing by 2.5%.
6 June 1991
It was a bad day for the Australian Capital Territory’s Chief Minister Trevor Kaine. The Liberal Chief Minister had come to power on the back of a no-confidence motion against Labor’s Rosemary Follet, but was now facing the same himself. His government had been formed in 1989 as an alliance between the Canberra Liberals and the Residents Rally group, calling themselves the Alliance Government. In the previous May, the Residents Rally had voted to dissolve the Alliance with the Liberals following a split within their group. His government was now lurching towards its end. While two members of the Residents Rally group decided to remain aligned with the Kaine government, the other two declared themselves opposed. With only four seats in the 17 seat Legislative Assembly, Kaine’s administration needed to find 5 votes in order to remain in power. He knew he count on the two members of Residents Rally that had agreed to remain aligned with his government, but he would need the votes of the four anti-self-government parties. Dennis Stevenson of the Abolish Self-Government Coalition and the three members of the No Self-Government Party would be critical to Kaine.
“Who can we count on?” Kaine asked his trusted colleague, Robyn Nolan. “We have to have some support surely?”
“We’ll have Stevenson’s vote, simply because he hates Follett. We won’t be able to count on the NSG votes though. They won’t vote for Labor, but they won’t vote with us either. Which means–”
“Which means we’ll have what?”
“We have our 4, the two Residents Rally already pledged to us, and Stevenson, which is 7.”
“And Labor can only count on 7? Their five and the two Resident defectors?”
“Well no, because the Presiding Officer is Labor and can’t vote. They can only command six. We’ll survive this.”
However, when it came down to the vote, the Kaine government faced a bigger problem than it realised. Rosemary Follett had bought off the votes of the NSG Party, meaning that Labor commanded 9 votes against the Liberal’s 7. Rather than face the vote, Kaine went to resign the Chief Ministership, but it was ruled out of order by the chamber’s presiding officer. Instead, Follett rose and moved that there be no confidence in the government.
“I move that this Assembly no longer has confidence in the Chief Minister of the ACT and the minority Liberal Government and has confidence in the ability of Labor and myself to form a government.”
The motion passed, 9 votes to the 7 commanded by Kaine. Rosemary Follett was subsequently invited by the Commonwealth Governor-General to form a new government in the ACT, which she accepted, returning to the position.
17 June 1991
It was not a good day for John Hewson. The Treasurer was facing an economy in ruins and budget measures he was wholly unable to get passed. The budget deficit was looking to blow out to more than 2 billion dollars, and unemployment figures were rapidly on the way up. The Democrats were vowing to block major spending cuts in the Senate, and Janet Powell called on Hewson to instead raise taxes on corporations and high-income earners. Hewson resisted these calls, but did bring forward a new addition to the tax code. He proposed introducing a consumption tax – styled the Goods and Services Tax – to boost federal and state government revenues. But it didn’t all go down well inside the government party room. Deputy Prime Minister, the Nationals’ Tim Fischer expressed his concerns over the policy and its saleability to the electorate.
Regardless, Hewson pushed on, with support from the Prime Minister, the reluctant support of Finance Minister Peter Reith. Oddly enough – at least to Andrew Peacock – John Howard threw his weight behind the GST plan, which shocked a great many in the party room. Alexander Downer and Reith had seen it coming. They exchanged a knowing glance across the party room as Howard spoke glowingly in favour of the proposal.
“That was a total power play,” Downer groaned in the privacy of Reith’s office some time later.
“Absolutely. Hewson is playing a game with Howard.”
“Driven by what? His paranoia that he’s going to get dumped from the Cabinet? Or his anxiety you’ll take his job in a reshuffle?”
“Both probably. Hewson has Andrew’s total backing and confidence, he doesn’t realise that.”
Paul Keating slammed the tax plan on Radio National, calling it shallow and lacking in substance. “It’s just a characteristic of this government isn’t it? It promised all these things it wanted to do and then it royally buggered it up, and was completely unable to do anything. Andrew Peacock, John Hewson, all of them – they have no depth and no substance. They’re all tip and no iceberg, and this tax plan is the same.”
It was a bad day for the Australian Capital Territory’s Chief Minister Trevor Kaine. The Liberal Chief Minister had come to power on the back of a no-confidence motion against Labor’s Rosemary Follet, but was now facing the same himself. His government had been formed in 1989 as an alliance between the Canberra Liberals and the Residents Rally group, calling themselves the Alliance Government. In the previous May, the Residents Rally had voted to dissolve the Alliance with the Liberals following a split within their group. His government was now lurching towards its end. While two members of the Residents Rally group decided to remain aligned with the Kaine government, the other two declared themselves opposed. With only four seats in the 17 seat Legislative Assembly, Kaine’s administration needed to find 5 votes in order to remain in power. He knew he count on the two members of Residents Rally that had agreed to remain aligned with his government, but he would need the votes of the four anti-self-government parties. Dennis Stevenson of the Abolish Self-Government Coalition and the three members of the No Self-Government Party would be critical to Kaine.
“Who can we count on?” Kaine asked his trusted colleague, Robyn Nolan. “We have to have some support surely?”
“We’ll have Stevenson’s vote, simply because he hates Follett. We won’t be able to count on the NSG votes though. They won’t vote for Labor, but they won’t vote with us either. Which means–”
“Which means we’ll have what?”
“We have our 4, the two Residents Rally already pledged to us, and Stevenson, which is 7.”
“And Labor can only count on 7? Their five and the two Resident defectors?”
“Well no, because the Presiding Officer is Labor and can’t vote. They can only command six. We’ll survive this.”
However, when it came down to the vote, the Kaine government faced a bigger problem than it realised. Rosemary Follett had bought off the votes of the NSG Party, meaning that Labor commanded 9 votes against the Liberal’s 7. Rather than face the vote, Kaine went to resign the Chief Ministership, but it was ruled out of order by the chamber’s presiding officer. Instead, Follett rose and moved that there be no confidence in the government.
“I move that this Assembly no longer has confidence in the Chief Minister of the ACT and the minority Liberal Government and has confidence in the ability of Labor and myself to form a government.”
The motion passed, 9 votes to the 7 commanded by Kaine. Rosemary Follett was subsequently invited by the Commonwealth Governor-General to form a new government in the ACT, which she accepted, returning to the position.
***
17 June 1991
It was not a good day for John Hewson. The Treasurer was facing an economy in ruins and budget measures he was wholly unable to get passed. The budget deficit was looking to blow out to more than 2 billion dollars, and unemployment figures were rapidly on the way up. The Democrats were vowing to block major spending cuts in the Senate, and Janet Powell called on Hewson to instead raise taxes on corporations and high-income earners. Hewson resisted these calls, but did bring forward a new addition to the tax code. He proposed introducing a consumption tax – styled the Goods and Services Tax – to boost federal and state government revenues. But it didn’t all go down well inside the government party room. Deputy Prime Minister, the Nationals’ Tim Fischer expressed his concerns over the policy and its saleability to the electorate.
Regardless, Hewson pushed on, with support from the Prime Minister, the reluctant support of Finance Minister Peter Reith. Oddly enough – at least to Andrew Peacock – John Howard threw his weight behind the GST plan, which shocked a great many in the party room. Alexander Downer and Reith had seen it coming. They exchanged a knowing glance across the party room as Howard spoke glowingly in favour of the proposal.
“That was a total power play,” Downer groaned in the privacy of Reith’s office some time later.
“Absolutely. Hewson is playing a game with Howard.”
“Driven by what? His paranoia that he’s going to get dumped from the Cabinet? Or his anxiety you’ll take his job in a reshuffle?”
“Both probably. Hewson has Andrew’s total backing and confidence, he doesn’t realise that.”
Paul Keating slammed the tax plan on Radio National, calling it shallow and lacking in substance. “It’s just a characteristic of this government isn’t it? It promised all these things it wanted to do and then it royally buggered it up, and was completely unable to do anything. Andrew Peacock, John Hewson, all of them – they have no depth and no substance. They’re all tip and no iceberg, and this tax plan is the same.”
Interesting. Guessing that the next Federal Election will be like the 1998 Election except with different personalities. That is assuming the idea gets pass the Coalition Party Room, of course.
Interesting dynamic with Fischer asking questions about the GST because he's in government in this OTL rather in opposition.
Interesting dynamic with Fischer asking questions about the GST because he's in government in this OTL rather in opposition.