Australia and Harper

Giving a Throne Speech in prime time was a first for any government. The Conservatives, I am told, got the idea from the Australian conservative party which, as it turns out, is called The Liberal Party of Australia. The Canadian Conservatives have long adopted some of the tactics that has helped Australian PM John Howard win four elections.

The Aussies also held a Throne Speech in prime time — and found it an effective way to bypass media commentators and reach a wider audiece of voters. Howard also did his last budget speech in prime time and Flaherty's office has already been asked what it thinks of doing that event in prime time.

Meanwhile, in Australia, Howard is campaigning for re-election. Polls there show him far behind his Labor rival.

Because of other established connections between the Aussie Liberals and the Canadian Conservatives, many here in Ottawa are watching Australian politics with unusual interest.

So here’s something that some in Ottawa took notice of: On the first day on the campaign trail Howard announced a whopper of a tax cut. My bet is the boys in Harper's PMO are watching this very closely. (Australia, like Canada, by the way, has a surplus of about $14-billion.) Here’s an article in the Australian press on that tax cut announcement.

Team Howard in $34bn income tax cut splurge

October 16, 2007

THE Coalition has seized the initiative on the first full day of election campaigning, unveiling a $34 billion tax package and putting Labor on the spot.

Under the plan announced jointly by Prime Minister John Howard and Treasurer Peter Costello, all taxpayers would get a tax cut — about $20 a week for those currently on average weekly earnings from July, rising to about $35 in 2010.

The announcement caught Labor off guard. Opposition Leader Kevin Rudd said tax cuts were needed but they had to be made in a financially responsible fashion, while shadow treasurer Wayne Swan said Labor would not be rushed in its response.

Last night ALP economic spokesmen were discussing the party's next step.
Business immediately backed the Coalition tax plan, but the union movement was scathing.
The five-year plan is in two parts. The $34 billion cuts are a solid promise, to be delivered over three years. Further “goals” for the following two years include reducing the top marginal tax rate to 40 per cent.

Revised economic figures also released by Mr Costello show Australia's economic growth rate this financial year is now expected to be 4.25 per cent, up from the budget's forecast of 3.75 per cent. The forecast for employment has also been revised upwards.

After allowing for the new tax plan…[read the rest of the story]

 

Leave a Reply

Your email address will not be published. Required fields are marked *