Tag: Kevin Rudd

Gillard: I’m my own man

Posted by Chief Blogger – 25 June, 2010

So Gillard first knifed Kim Beazely in 2007, then this week she knifed Kevin Rudd on the way to becoming PM. If you thought Rudd was a ego-centric maniac, get ready for the JGill show. 

Rejecting claims that she had been installed as a factional puppet, Australia’s first female PM said her job was to get the Government “back on track” after Kevin Rudd was ousted in a Labor leadership coup yesterday…

Keep on telling yourself that Jgill. At least you have admitted that Kevin Rudd was a disaster. What goes around comes around. It is pay back time for Mark Arbib, Bill Shorten, etc…

Mark Arbib, the NSW machine man, now has the scalps of three Labor leaders on his belt.

As general secretary of the NSW Labor Party, he made and unmade Morris Iemma as premier.

In 2008, Arbib, by then a senator, helped install Nathan Rees as premier, only to sanction, if not design, his political execution last December in favour of Kristina Keneally.

Now he has brought undone Kevin Rudd, having marshalled the reluctant support of the NSW Right behind him in late 2006.

So much for democracy. It’s the Mark Arbib political system now. These ALP people are ruthless and will trample over anyone or thing to get power. 

Former NSW Premier Morris Iemma savaged Senator Mark Arbib yesterday, saying he had wrecked the prime ministership of Kevin Rudd in the same manner he had wrecked the NSW Government.

“The architects of the wreckage in NSW have rolled out the wrecking ball in Canberra,” Mr Iemma said.

“The policy advice they gave to Rudd led him into trouble and then they bailed out on him. They didn’t have the courage to stick with him.

“Their poor advice and poor tactical decisions saw his reputation trashed to the point of no return.”

I seriously doubt Jgill will be able to hold these power brokers in check. Sooner or later when the honey moon ends she will go the same way as Rudd. Loyalty? Remember Mark Latham?

“she’ll be the next one for the knife … she needs to watch her back“….The dumping of Mr Rudd showed there was no party loyalty to leaders, and leadership was a marketing exercise instead.

Even ALP pollster agrees that Rudd would lose an election

Posted by Chief Blogger – 11 May, 2010

Essential Research – de facto ALP polling outfit – has rescued some of its thin credibility by claiming its latest poll on Federal 2PP is now 50/50 between the ALP and the Coalition. As early as last week it was still claiming 2PP 53/47 to the ALP, even though both Newspoll and Fairfax had both parties either locked up or the Coalition ahead. That’s were Essential Research’s credibility ends however. The same poll sample had a majority people favouring both an increase in mining company tax but also a cut in general company tax, but then reporting that most people thought the government was going in the wrong direction on tax. You figure it out.

Buried in the report was another poll that found that climate change is an even less important issue. Most people are concerned about the economy, health, job security and housing affordability. Hardly anyone cares about government placing sacrificial tax-payer funded lambs on the alter of Mother Gaia.

Total Market Melt Down!

Posted by Chief Blogger – 7 May, 2010

The markets have crashed NY time. Bloomberg is reporting it as the biggest intraday loss since 1987. The Dow fell 1000 points then pulled back. The Aberdeen Australia Equity Fund Inc, of which BHP stock constitutes nearly 13 per cent, crashed nearly 40 per cent in one day, though again has partially pulled back losses.  Given the massive loss of confidence in the markets – regardless of the reasons – where does that leave Rudd’s mining tax? By my calculations, BHP stock has fallen over 17 per cent since speculation began on the tax. With all the uncertainly around the world due to government fiscal recklessness, the impending collapse of the EU currency, market glitch, whatever, etc…. the case against taxing the strongest part of the Australian economy at 57 per cent just keeps on getting better. Get ready for another Rudd 10 metre back flip.

The New York Stock Exchange said they saw no technical problems with their trading system during the market’s brief 900-point plunge Thursday.

Although there continues to be some speculation around ‘errant’ trades. Don’t know how much I believe this:

According to multiple sources, a trader entered a “b” for billion instead of an “m” for million in a trade possibly involving Procter & Gamble….Sources tell CNBC the firm in question that handled the erroneous trade is Citigroup. The bank said it has no evidence of a bad trade but is investigating the situation…

ASX 200 down: thanks Rudd!

Posted by Chief Blogger – 7 May, 2010

The entire mining industry up in arms, international and local investors bewildered, foreign competitor governments delighted, billions in value destroyed on the stock market and in superannuation accounts, billions in projects either delayed or cancelled, threats of further electricity rises and job losses, all from Kevin Rudd’s 57 per cent tax on the mining sector’s ‘super-profits’:

GAS producer Santos has joined the revolt by big mining against the Rudd government’s resources super-profits tax, deferring for up to six months a decision on whether to build a $15 billion LNG export terminal in Gladstone.

…Mining giant Rio Tinto yesterday confirmed that it was reviewing all its Australian projects, including an $11bn Pilbara expansion plan, while it assessed the potential impact of the government’s resources super-profits tax.

I wonder how the state ALP governments are going to react? Will they join WA in the long list of dissatisfied parties? Rudd is essentially destroying the value of private property, Hugo Chavez style. Sinclair Davidson, professor in the School of Economics, Finance and Marketing at RMIT:

This week, however, the Rudd government moved into serious sovereign risk territory. The Henry Report defines sovereign risk as the risk that future government policy will reduce the value of investments. People are going to start noticing that property rights are under attack.

One of the more bemusing aspects of the Henry Review occurred when it acknowledged that changes in government policy create perceptions of sovereign risk but then claimed that the mining tax would lower that risk. That’s not what market participants seemed to think. It isn’t really appropriate that some Canberra bureaucrat lecture investors on the incidence of sovereign risk.

Well when you have a couple of confused individuals like Ken Henry and Heather Ridout running the review what do you expect? How about levying a super profit tax on the job-network sector that made Rudd’s wife so wealthy?

This is what it boils down to for Rudd and Ken Henry

Posted by Chief Blogger – 6 May, 2010

Rudd’s whole case for taxing the mining industry at 57 per cent relies - you guessed it:

“It is important to pay emphasis on the independent modelling of Treasury who’s put all the factors together and projects this industry will grow by 6.5 per cent over five to 10 years,” he said.  “As a result of these measures we will see a better and more dynamic mining industry in the future.”

Does anyone seriously believe Treasury modelling after the ETS and budget debacle?  The case for the mining tax just keeps on getting thinner. Treasury is a now a compromised department. Its head Ken Henry worships at the alter of Mother Gaia – a secular religion where people come second. I won’t say that Henry is in bed with the ALP, more like the Greens.

And can anyone name a single industry that has benefited from having a tax rate at 57 per cent? For Rudd to claim that the industry will be alright seems to be defy logic. Rudd has never worked in the private sector so his experience and expertise on these matters is a little weak. His whole life has been protected by government thanks to tax-payers. He and Ken Henry do not understand market issues.

Rudd destroys $27bn in wealth in two weeks

Posted by Chief Blogger – 5 May, 2010

That’s the amount wiped off the value of mining stocks in Australia. Great work Rudd. Some how I don’t think those $500 super bribes are going to make up for it.

The huge losses will also be felt by superannuation funds, which are heavily invested in top mining shares, meaning this year’s recovery in returns is likely to come to an end this month.

Rudd and the ALP have an ideological dislike of the mining industry. Firstly they are successful and secondly they offend Mother Gaia. A wicked combination for the left. Poverty and mediocrity is Rudd’s only answer.

West Australian iron ore explorer Cape Lambert Resources yesterday announced it would halt its search for minerals in Australia due to the new tax, while Resources Minister Martin Ferguson said he expected companies to put some projects on hold while they examined the implications of the tax.

Ferguson should stand up to this madness:

Mr Rudd this week attacked BHP and Rio as part-foreign-owned companies exploiting Australian resources. But he also struggled to explain the mechanism for taxing mining profits.

Before last night’s meeting, mining industry executives had sought briefings from Treasury to clarify the details of the tax plan amid fears it would impose an effective tax rate of up to 80 per cent on some mining companies. Executives have told Treasury the exclusion of financing charges as a deductible cost before the new super-profits tax applies will threaten their operations.

Interesting how Rudd did not go after Chinese communist government owned Chinalco, when it was attempting to hood wink Rio Tinto investors and take control of mines in Australia last year. Double standard. Rudd can’t back away from this now though. It would make him look absolutely hopeless – more so than he already is.

Rudd: punnish success reward mediocrity on mining tax

Posted by Chief Blogger – 1 May, 2010

This essentially amounts to Rudd’s tax grab on the mining sector. And not everyone in the ALP is in agreement with Rudd and his socialist mate Treasury head Ken Henry:

Service Economy Minister Craig Emerson told business leaders in Perth on Thursday night: “Slowing down the development of Australia’s mining and energy resource industries would be a scandalous wasted opportunity to lock in future prosperity and achieve social and environmental goals.”

Then there are the mining magnates:

Mr Forrest said he had been planning a $10bn expansion of his iron ore properties in northwest Australia, which would be financed out of cashflow.

This would be impossible if the government skimmed off the cash profits.

And what about WA?

Western Australia has already refused to hand over control of its GST revenue for health, and the state’s Mining Minister, Norman Moore, is not planning on helping the Commonwealth out in this endeavour either…..

“There’s a very, very strong view in Western Australia, not just in the Government but right across the community, that this intrusion by the Commonwealth into what we do in Western Australia is not welcome.

“And indeed those rumblings of secession - everywhere you go these days, people are now talking about it.”

Given the government’s incompetence and willingness to back down on so many programmes and policies, Rudd is going to have a hard time selling this. He can pretty much kiss good by to WA voters potentially putting some ALP seats their in play for the upcoming election. Especially the seat of Hasluck where the margin is only 2.52% to the ALP

Think of the millions….

Posted by Chief Blogger – 24 April, 2010

….of Australians that have a vested interest in ensuring that mining companies retain as much profits for dividends and future investments as possible. Virtually anyone with a superannuation account, anyone that owns shares, a local mutual fund, ETF or corporate bonds; the thousands employed directly or indirectly in the mining industry, many in regional areas; state governments dependent upon the profitability of mining operations for GST and royalty revenue. Well if reports are correct, Rudd wants to do to the mining industry what he has already done to insulation, coal-electricity, solar and child care industries. Ruin them:

Mining company executives, who have been expecting a new tax, told The Weekend Australian yesterday the federal resources rent tax on top of state royalties was the “worst-case scenario” and a “thermo-nuclear option” that could stop projects going ahead or limit expansion.

The federal resources tax is one of the main recommendations of the tax review conducted by Treasury secretary Ken Henry aimed at offsetting the rising cost of public health.

The review is believed to recommend the rate be set at 40 per cent of mining industry profits and replace state royalties, which vary around the country depending on the industry and project.

….Financial market analysts estimate it would cost BHP Billiton and Rio Tinto – the nation’s two biggest miners – $5bn.

It is the sort of ill-conceived hair-brain idea that socialist Ken Henry would propose and that Kevin Rudd in his distinctively un-analytical way would likely follow. It would be a total disaster for the free-market and Australian economy. It would lead to job losses, a loss of current and future investment across the country, the decline of the country’s standard of living and general wealth and would make more and more parts of the economy slaves to Rudd’s spend-debt-tax spiral of failure and future mediocrity, aka the UK.

Captain Rudd Chaos

Posted by Chief Blogger – 22 April, 2010

Arthur Sinodinos sees incompetence:

As Captain Rudd said to First Mate Arbib, full steam ahead and damn the torpedoes.

The public service must be laughing up its sleeve. No doubt exhausted by the 24/7 routine in Canberra, many of them would be enjoying the sight of a government not in control of events. Evidence-based policy-making has been replaced by poll-driven policy on the run. Are these the ingredients of a long-term successful government?

Too many reviews, too many hostages to fortune too close to the election.

Take Rudd’s recent health deal, from the founder of Medicare:

…..what kind of health reforms might follow?

Not much, really, because the program is almost entirely about process; a rash promise made in 2007; political outcomes; perceptions; the control of money and power.

Charming. Rudd’s priorities: power and money.

….the Australian Medical Association questioning who was in charge of the hospitals, and states and territories refusing to co-operate on the proposed local health networks. Mr Rudd is also yet to seal a deal with Western Australia.

It seems that the ALP state leaders took away a very different interpretation of the health deal than what Rudd is spinning to the media. It is pretty clear that Rudd is desperate for success, some where, so will say anything to make it look like he has brought home the health bacon.

The hold out hero

Posted by Chief Blogger – 21 April, 2010

Does anyone really know how Rudd’s health proposal will actually improve public health? The creator of Medicare can’t figure it out so don’t expect me as a humble blogger to provide any insightful details.

It seems though that Rudd has thrown over $20 billion at the states to get them to sign up to his proposal. It will be interesting to see where Wayne Swan thinks that money is coming from as part of the May budget. The per capita spending on public health must absolutely swamp the per capita spending on the equivalent private health care services. Did anyone say value for money?

WA Premier Barnett is holding out. And with good cause. His state only gets 60 per cent of their GST back as it is. Handing another 30 per cent over to the Commonwealth so their hospitals can be run from Canberra isn’t going to go down well with WA voters.

“In other words, the outcome would be exactly the same, but we would not agree to the Commonwealth taking in a pre-empt way one third of the GST.”

Mr Barnett said Western Australia was prepared to pay an equivalent amount of money into a state controlled fund.

I always considered that eventually the ALP state leaders would come round to make Rudd look like the short-term big hero. But I am prepared to bet a large sum of money that in ten years time we will be back where we started – noting that the agreement does not really kick in for another 4 years.