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AUSTRALIAN POLITICAL DIGEST
POLITICS

PLAN TO REDUCE MIGRATION INTAKE

Prime Minister Scott Morrison has signalled the Government’s intention to reduce immigration in response to concerns of overpopulation in major cities. Mr Morrison suggested the annual migrant cap of 190,000 people — which is not currently being reached — could be reduced by around 30,000. He argued this would ease pressure on major cities like Sydney and Melbourne as they attempt to meet the housing and infrastructure demands of growing urban populations. Mr Morrison also noted the economic imperative for steady migration to meet workforce shortages, but he dismissed demands for mandatory resettlement of migrants in regional areas. He also confirmed his refusal to sign on to the United Nations’ global compact for migration, saying it would undermine Australia’s border protection system. Further measures to manage population issues will be discussed between federal and state governments at the next Council of Australian Governments (COAG) meeting in December.

Prime Minister Scott Morrison confirming his decision to exclude Australia from the United Nations’ global compact for migration. Source

MORRISON DOWNPLAYS APEC DIVISIONS

Mr Morrison has responded optimistically to developments at the Asia-Pacific Economic Cooperation (APEC) Summit, saying the US and China are steadily approaching a resolution to their escalating trade war. The APEC Summit in Papua New Guinea (PNG) last weekend was the first in the forum’s history to end without a joint communiqué, as the US and Chinese delegations failed to agree on language regarding the World Trade Organisation (WTO). Mr Morrison downplayed the lack of an official statement, saying divisions needed to be acknowledged publicly while constructive engagement occurred in the background. Australia used its presence at the summit to strengthen engagement with Pacific countries, with Mr Morrison hosting a barbeque with Pacific island leaders and agreeing to jointly fund an infrastructure project in PNG alongside the US, Japan and New Zealand. The Summit comes during a period of heightened international activity for Australia, following the Association of Southeast Asian Nations (ASEAN) Summit and preceding the G20 Summit next week.

“…if the major powers here are not going to agree, we shouldn’t be pretending that they do, and we shouldn’t be trying to smooth that over for the sake of a communique, and we should call it out.”
Prime Minister Scott Morrison on the divisions evident at the APEC 2018 Summit.

OTHER POLITICAL NEWS


Analysis of latest poll results
This month’s Fairfax/Ipsos poll found the Government improving on its performance last month but remaining behind the Opposition. In the two-party preferred vote, the Opposition’s lead dropped to 52 per cent, from its strong lead of 55 per cent in October. This would constitute a two per cent swing in favour of the Opposition from the last Federal Election. 12 Government seats are currently held by less than two per cent so if an election were held now and the swing was uniform, the Opposition would claim 81 seats, four more than the 77 seats which will be required to hold an absolute majority after the next election.

Opposition announces energy policy
Leader of the Opposition Bill Shorten has outlined his party’s energy policy agenda, which involves subsidising renewable power, improving energy efficiency and creating a transition plan for coal workers. Among other measures, the Opposition plans to provide a rebate to households for solar storage batteries and double the funding for the Clean Energy Finance Corporation which invests in renewable, efficient and low-carbon emission solutions. Mr Shorten also signalled support for the Turnbull Government’s National Energy Guarantee (NEG) with a higher carbon reduction target. The Government abandoned the NEG in August as it shifted away from carbon emissions to focussing on reducing energy prices. Mr Shorten’s focus on renewable energy over combatting climate change indicates the Opposition’s intention to distance itself from the carbon price initiatives of previous Labor governments. Energy policy is a consistently divisive issue in Australian politics and will be a significant feature in the federal election campaign, but Mr Shorten’s decision to adopt an energy focus and embrace the NEG provides an approach which may have greater bipartisan appeal.

Government signals further legislative changes focused on national security
Prime Minister Morrison and Minister for Home Affairs Peter Dutton have indicated the Government’s intention to pursue a series of national security measures in the final weeks that Parliament will sit in 2018. The Government will attempt to broaden laws removing Australian citizenship from any dual-citizens convicted on terrorism charges, rather than only those with sentences over six-years. It will also attempt to extend the ban preventing foreign fighters from entering Australia to two years. Mr Morrison and Mr Dutton have also urged the Parliamentary Joint Committee on Intelligence and Security to finalise its inquiry into proposed anti-encryption measures early so the laws can be passed before the end of the year.

Indian President visits Australia
Indian President Ram Nath Kovind made his first visit to Australia this week, focusing on bilateral cooperation in the mining and education sectors. The visit was largely symbolic, noting the President is a predominately ceremonial head of state, but attempted to expand the economic relationship which is generally considered to be under-performing. In the next 12 months, Australia and India are expected to sign a Memorandum of Understanding to encourage greater bilateral trade. While these agreements may have some success, conflicts like the WTO action Australia is pursuing against India for sugar subsidies will continue to restrain cooperation. Regular attempts to invigorate the bilateral relationship over past decades have failed to achieve a significant expansion of engagement between India and Australia.

Government to improve economic security for survivors of domestic abuse

Minister for Women Kelly O’Dwyer has announced a series of initiatives to improve the financial situation of women fleeing domestic and family abuse. The measures include early access to superannuation, no-interest loans and family law court changes to expedite property cases. These proposals constitute the Government’s first Women’s Economic Security Statement, designed to improve female workforce participation, earning potential and financial independence. The Government is actively looking to engage female voters through this and other policies that address issues disproportionately impacting Australian women. It hopes this approach will overcome negative perceptions resulting from the significant gender imbalance within the federal Liberal and National parties. The Opposition has an advantage in this area with relatively high female representation in Parliament and provided a Women’s Budget Statement following the 2018/19 Federal Budget.

ECONOMICS

TREASURY SECRETARY WARNING ON DEBT LEVELS

Secretary to the Treasury Philip Gaetjens has urged both major parties to focus on using the imminent federal budget surplus to reduce Australia’s debt to prepare for a future economic crisis. Mr Gaetjens acknowledged Australia’s relatively positive performance during and after the 2008 Global Financial Crisis, but noted the strong position of the budget prior to the global downturn. Both parties intend to reach a budget surplus in the next financial year, but their ability to restrain spending may be overruled by the need to announce popular spending measures ahead of the next election. Mr Gaetjens’ appointment as Secretary earlier this year was criticised by the Opposition due to his career as Chief of Staff to two Government Treasurers.

OTHER ECONOMIC NEWS

Financial services Royal Commission enters next stage

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry recommenced this week, with executives from two major banks facing questioning. The current round of inquiries will build on the interim report released in September to analyse the cause of misconduct and possible responses. Round seven will close at the end of November, then the Commission will begin compiling its final report, to be delivered on 1 February.