WIXLIB

In less than a v/eek, the Hawke Government celebrates itsfirst year in office. In that time, Australia has seen a Wranllke change In the Federal Labor Party, with a move into thepolitical centre-ground and an unprecedented reversal ofparty politics by Cabinet. Dr KENNETH WILTSHIRE, ofQld University's Government Department, outlines thepolitical year; Dr GEOFF KINGSTON, of the EconomicsFaculty, reviews the government's economic performance;and Mr BILL DeMARI A looks at the social effects. Compiledby JOHN HENZELL.ir!5 !!?B5ffR? !5!! !?S?5 !! !w!?!?ffl.fS1: The Pragmatic Negotiatorvy. v. The key word that University ofQueensland Government lecturer,Dr Ken Wiltshire, uses to describeHawke's first year as Prime Minister, is 'pragmatic'. "He has been able to convince the restof the Party that being pragmatic and remaining In office is, at times, )ust asimportant as sticking hard and fast toParty principle which is a major transformation for the Labor Party," DrWiltshire said."In the past the cabinet was there toimplement the Labor Party's decisions.Mr Hawke, unlike any other Laborleader in history, has managed to getthe Labor Party to accept that thecabinet has to have the ability to Interpret the Party's policies once it getsInto office."He argued that the cabinet must haveflexibility to some extent in the timing,and also In the nature in which the LaborParty's policies are implemented."Bob Hawke has achieved what noother Labor leader has ever done in thatrespect."Dr Wiltshire claimed that since Hawkehas been able to defeat the SocialistLeft wing of the Party, Labor has beenable to move into the political middleground, as the Wran govcrntment did in1977, and other State Labor governmentshave been doing since."Well, obviously he's trounced them.He's managed to change the opinion ofthe Party around to a point of view thatis close to the one he holds himself."The Labor Party in Australia Islooking a lot more like a Social Democrat party than you'll find in Europe.It's a different Labor Party and that hasa lot to do with Bob Hawke and hisstyle of politics," he said.One of the major claims by the mediaabout the Prime Minister has been hisstyle of leadership that has been seenas reasonably egotistical. Wiltshire claimed what was often mistaken for ego inBob Hawke was really his feeling forpolitics."He knows it's important to be seenat a number of sporting fields, he knowsit's important to go on a lot of tripsabroad. He is very much modellinghimself on the Menzies concept. Menzieswas that kind of person. Bob Hawke isprobably closer to the average Australianthan any other Prime Minister, exceptmaybe for Chifley."Beyond Hawke's image and his standing within the Party, Dr Wiltshire seesthat he has succeeded in being influential in reversing some of the Labor Party'smajor policies that could have becomepolitical liabilities."East Timor doesn't sit easily with theLabor Party," he said. "He has done aclear somersault on what their policy wasin opposition. 1 think it's another ca e,like uranium, of discovering the policyyou formulated in opposition isn't necessarily the policy that is going to work. It'sa clear case of policy reversal and ofpragmatism overriding principles."East Timor is indicative of Hawke'sapparent disregard for Labor Partyforeign policy. Another example isrelations with the United States, inparticular the Grenada invasion."That's the most amazing thing ofall. He has put the fears of Americansat rest. Once again he is Hawke the pragmatist. He understands the importanceof investment to Australian economy,he was, after all, on the board of theReserve Bank for years, so he understands economics thoroughly."Dr Wiltshire sees Consensus, one ofHawke's fundamental policies for economic recovery, as being extremely successful, due to Hawke's abilities as anegotiator."We had seven years of divisivenessin this country under Malcolm Eraser.Bob Hawke is one of the few people whocould ever have achieved it because youdon't often get a political leader who ison-side with the trade unions, who getson well with academics, who is close tobusiness."1 think it's very hard to fault him inconcensus. 1 can see very few areas wherehe hasn't actually practised what hepreached. Look at Queensland with Medicare. The Hawke Government couldn'thave bent over more to accomodateQueensland's interests than tliey havedone. If it liad been the Whitlam Government, they would'vc just slammed theQueensland Government - and rightlyso. But the Hawke Government has constantly played to Queensiand based onits consensus policy."On that note, Dr Wiltshire sees theFederal-State rel.itions to be one ofthe Government's best features."His handling of the South WestTasmanian dam issue is really a classicmodel of co-operative federalism. Itwent to the court when It had to be resolved and he issued instructions that theFederal Government was not to gloator to shout victory, 50 he's obviouslygot a sensitive feeling for Federal-Staterelations."The patience he's shown with BjelkePetersen and Robin Gray is absolutelyremarkable when we consider how muchmuck they're tipping on Bob Hawke andhis Federal Government. He's handledthose better than any other previousLabor Prime Minister."There were only a few features of theGovernment that Dr Wiltshire thoughtdeserved criticism or would present aproblem in the future,"I think they're moving too quicklyon Aboriginal matters. The Australiancommunity needs to be softened up a biton matters like that. The Ayers Rockdecision was maybe a little hasty andmaybe the Australian people should havebeen conditioned for it more than theywere."I don't think that the Governmenthas suffered one inch because of theCombe affair. That's not quite as trueof the Mick Young affair. I think theMick Young affair will return to hauntthe Hawke Government for quite sometime yet," he said.Dr Wiltshire saw that the Government's performance in the future waslikely to be as successful as their firstyear's."The Labor Party's major goal is to.have a second term in office. TJie historyof Australian politics is that the LaborParty has never had more than one termin office except for the freak doubledissolution in 1974."The classic problems that alwaysconfront Labor Parties is that they alwaysfall apart and they fall apart basicallybecause they're so democratic. Everyonein the Party has a decision and theyappear then to be fragmented."The coming Federal Election will bethe real test. I think Labor will do quitewell and will do well in the Senate. Ifthey keep going the way they're going,the economy is going to pick up, Hawke'spopularity is at an all time high, he has avery good calibre team on his front bench,probably the best team that Labor hasever had and the opposition is weak,divided. I think there's no question they're set for a second term in officeand possibly even a third term."I think that the time is right for theHawke Government. The Eraser Government had run out of steam and therewas divisiveness. A combination ofcircumstances and the right person atthe right time for the job contributedto the Labor victory. And don't forget,Hawke's a sagittarian, and all the starsigns definitely say that this is a year forsagittarians. And I think even his Chinese horoscope is favourable! At themoment, he's got absolutely everythinggoing in his favour."Dr Wiltshire's overall impression ofHawke's first year as Prime Minister wassimple: "I think he's the greatest LiberalPrime Minister since Menzies".(continuad)

COVER STORY(continued)2: Economical Balancing Act .As in the political field, the LaborGovernment's performance in economic terms owes more to the Liberalj than to any recent Laborgovernment.The Hawke Government is wellaware of the mishandling of the economy during the dlsatrous Whitlam years,and to date seems likely not to repeatthe same mistakes.According to Economics lecturers, DrGeoff Kingston, the Whitlam mistakeswere fourfold - too high' a public sectoroutlay, too great an annual moneygrowth rate, high taxes, and a laxity inwage restraint by the Arbitration Commission."If you look at the last Labor Government, money growth was very erratic.You had 26 percent money growth in1973, which is when inflation started,and then It was clamped right back to2.4 percent in 1974. That was partlyresponsible, along with the very highstandard of tax rates - 44c in the dollar- which lead to the awful recession of'75. The Hawke Government's steadinessis certainly new compared to the Whitlam Government," he said."Modern theory is that tax ratesshouldn't vary all that much from oneyear to the next, so he's done that. A44c tax rate would have killed the recovery pretty steadily. The current rateis 30c and that came out in the firstBudget."There's always a risk with a LaborGovernment that they might encouragethe Arbitration Commission to set realwages too high. That certainly happenedin the Whitlam Government and wasanother factor responsible in the terribleslump in '75,"Hawke's apparent good luck includedthe timing of his election at one of themost economically favourable eras."He's been very lucky with the timingof the world recovery, the breaking ofthe drought and, less important, butstill of some significance, is that hereaped some of the benefits of the wagepause of the previous government, sohe hasn't been severely tested yet."Still, we should be grateful that itwouldn't have been too difficult to messup the benefits of the world recoveryand I think he deserves some credit forthat," Dr, Kingston claimed.One of the first real economicalactions of the Labor Government was thenational summit in March last year, whichDr Kingston saw as realistically insignificant."There wasn't much in the way ofpractical action that came out of the summit, so I regard it as neither a plus nor aminus. One thing that did come out of Itwas a return to indexation which wouldhave come anyway, since the economy isin recovery, but I think that'll have to bewatched If the economy falters."After that came the August budget,which was incorrectly predicted to besevere, with increased indirect taxes.Also predicted for the budget was alarge increase in public sector outlay tofund the increased government servicesassociated with the ALP."I thought outlays were up a bitsteeply in the August budget - it was inthe order of four or five percent in realterms. But still, that could have beenworse, and the deficit was a bit on thehigh side. The public sector deficit forthe financial year 1982-83 was about 14billion and that's a bit high. Still, it'snot excessive, given the high inflationwhich makes interest rates high in nominal terms and given that the first halfof the financial year was In a recession.That's the fiscal story."I'd like to see the Government movetowards a steady reduction in the moneygrowth rate to get interest and inflationrates down. I think we should be aimingat four percent money growth by 1987,"he said. 3: The Massage Parlour FactorOne of the areas where the HawkeGovernment certainly doesn't enjoy73 percent popularity is in theirsocial policies.the massive income security system forredistributive purposes."A legacy of this was a new way oflooking at pensions, allowances and benefits. They are now seen as rights andtheir purpose is humanitarian," MrTraditionally, Labor governments haveDeMaria claimed.been responsive to the needs of lower In"Whltlam's' Government's philosophycome earners and followed a philosophyof using the income security system achof income security, the most extremeieved a semblance of power for theform of which was seen in the Whitlamalienated poor by improving their fiscalyears.conditions, was an aberration of socialLabor's move Into the political middlepolicy in Australia."ground meant that their social policiesWhile the Whitlam Government washad to be scaled down. For instance,seenvery favourably in a social issueswhile Hawke increased the dole andviewpoint,the Hawke Government haspension. It Is still far below what it wasperformed poorly by comparison. Thein the Whitlam days, In real terms.concession of Medicare was hardlyHawke's doing. As Dr Wiltshire said:Social Work lecturer, Mr Bill DeMaria,doesn't see Hawke's first year as especial- "If it didn't have a national healthscheme, it wouldn't be a Labor Party."ly admirable in his social policies.Mr DeMaria sees the trade-off of social"When one looks back on the first 12policies because of fiscal conservatism asmonths of Hawke rule through a socialpoor compared to the Whitlam incomework lens, one can be brought quickly tosecuritysystem.the view that the Hawke Government has"The Hawke Government has notdone for social welfare what massageapplied the income security system inparlours have done for physiotherapy.any serious way," he said. "Hawke, in"What I believe we are witnessing isan obvious act of political deja vu, isa discreditation of the Whitlamesquefollowing the Curtln/Chifley/Coombesstrategy of using the income security tostrategy of subjugating income securitybridge the chasm between the 14 percentpolicy to one of full employment. Withof Australians who live life on the darknodding assent to his part-Liberal counside of the poverty line and the majorityter parts, it continues to speak the languof us who steadily plod towards our capiage of a born-again Keyneslan.talist Utopia with the spectre of poverty"The plan goes something like this;lurking in our subconscious," he said.robust economy equals happy people.The Whitlam plan was to raise unFrom a right wing perspective this is allemployment benefits and pensions to agood stuff, a social policy underwrittenpoint where people could live realisticalby stockbrokers that ensures profit andly one them, if they couldn't find emefficiency. The left wing view differsployment, or were unable to work.somewhat. The applause suddenly sounded hollow and stilted (like the bullshit"Before being tossed out by a blokecall for national consensus). The poor andfamiliar to Melbourne Cup crowds, thedisadvantaged are still with us in taskWhitlam administration did make aforce strength, choking on the dustgenuine (if not amateurish) effort tocaused, by the present Government'srecover the lost dignity of the poqr andstampede towards the econpmics goal.disadvantaged in a way totally consistentI guess until the nature of capitalism'with the contradictory principle of socialbecomes a part, of.'genuine politicaljustice and capitalism; in that his'governdebate, things,won't be.any different."ment did try to modify the essentialdistinctiveness ofcapitalisim by harnessingi'The last move made by the HawkeGovernment was the floating of thedollar in December last year."The dollar float was a good move,because it gives us the potential toachieve lower money growth and thatwould bring down inflation .and interestrates. It can give downslide potentialas well - a Latin American situation inwhich you have money growth in theorder of 200 or 300 percent and inflation rates in the order of 200 or 300percent annually. The dollar float givesthe Government more freedoms andI hope it uses it well."While Dr Kingston saw the float asbeneficial, the economic side of theHawke Government has been temperedby the electoral pragmatism, like thedropping of the pensioners' assets test,to the possible future detriment of theeconomy."The Government made a very promising new direction initially, they weregoing to introduce an assets test for pensioners. That sounded promising, butthey're no longer going to have that.It's a bit discouraging given the aging ofthe population. There was a significantincrease in unemployment benefits in thelast budget and that is expensive andneeds to be watched."The warning here for the futureis outlays, expensive committments toservicing the national debt, pensions,unemployment benefits. Especially now,,when the public sector outlay is runningat 40 percent," he said.One of the boldest moves away fromALP policy is the recent decision aboutallowing foreign banks into Australia.For a party which attempted to nationalise banking in the 40's, it represents asbig a shift from economic policy as EastTimor is for foreign policy. Dr Kingstonsaw It as beneficial."The introduction of foreign banksis also bold move, given that the LaborParty has traditionally been opposed tocornpetltion in banking. The reason whyit is good is because currently, foreignexchange has had a very wide marginbetween buying and selling rates. Thefew banks which had a monopoly onforeign exchange dealings pocketed thedifference, so that hurts import and export business. The competition fromforeign banks would force down thedifference between the buying rateand the selling rate."When told that Hawke had beendescribed as the best Liberal PrimeMinister Australia's ever had, Dr Kingston replied: "In some ways that's true,but in other ways no. Take the bankingthing, the Liberals have been particularlyweak when it comes to taking on vestedinterests and the banks would have to bethe strongest interest in Australia. Hawke's taken that on. I don't know ifany Liberal minister would have the gutsto do that."One of the major factors in ALPeconomic reality — as opposed to policy- is the lessons learnt from the Whitlamexperiment."Obviously, they have learnt," DrKingston said, "They're cautious, theyhaven't encouraged the Arbitration Commission to very high pay Increases. Publicsector outlay hasn't increased as much asthe previous Labor Government, taxrates have been held steady. So far,they've kept closer to a Liberal ideaof running the economy."There are surprisingly little differences between reading Keating's view onthe economy between the lines and looking at Howard's view of the economy.They both have similar backgrounds Sydney small business. In Labor terms.It's somewhat on the right of the Party,so there's a possibility that he could getrolled if the going got tough, but thathasn't happened yet."He's certainly done a better jobthan Hayden did when he was TreasurerIn '75.".Like br Wiltshire, Dr Kingston,summed up Ha\yke's first year simply:Overall, I'd say he's done a cautious.mi( dle of)he road bal.ancing act.","

FEATUREA STUDENTS GUI DE TOMEDICARETo some people, trying to understand Medicare is like taking the Mensaapplication test. To help you understand the scheme, here are the ar swerst o the 40 most-asked questions about Medicare.15. Can a husband and wife who are?. What Is Medicare?both working have separate cards?Medicare is a Federal Governmentprogram which provides all AustraliansYes. They simply have to fill in towwith basic medical healtli insurance.separate enrolment forms.2. What does Medicare cover me for?16. Can our children have separate cards?It will cover you for 85 percentYes. Anyone over the age of 15 canof the schedule fees of doctors andenrol independently and get their ownconsultations with optometrists.card. If they are under 15 they must3. What cover do I get in a public hos- have their parents' or guardians' permispital?sion to hold a separate card.All treatment In a public hospital is17. What happens if I lose my Medicarecovered including intensive care, theatrecard?fees, pathology and obstetrics.Report it to a Medicare or Medibank4. What if I want my own doctor?Private office immediately and they willIf you wish to be treated by yourarrange for a new card to be sent to you.own doctor in a public hospital you will18. Who is eligible for cover under Medibe charged an 80 accommodation fee.care?The private health funds will provideAustralian residents, visitors planningcover for those who want their ownto be in Australia for more than sixdoctor in a public hospital or enter amonths and migrants are all entitled toprivate hospital.Medicare cover.5. Are outpatients covered under Medi- 19. Does Medicare cover me overseas?cate?It will cover you for medical benefitsAnyone visiting outpatients or casuaonly, but the benefit will only be equallty will be covered by Medicare.to 85 per cent of the schedule fee for the6. Will Medicare cover me for ambulance? equivalent item in Australia. The actualMedicare does not cover ambulancecost will not be taken into account.costs, except when it involves transHospital costs will not be covered at all.ferring a patient from one public hospital20. How do I make a claim?to another.Some doctors will direct bill for their7. What do I do If I haven't received a patients, which means they will bill MediMedicare card yet?care direct and accept just 85 per cent ofObtain a Medicare enrolment formthe schedule fee. If your doctor does notfrom any post office or Medicare office,direct bill you will have to pay the fullcomplete all details and send it in tofee then claim 85 per cent of the si-heduleMedicare.fee from a Medicare office. Alternatively,5. How do I pay tlie Medicare levy?you can take the doctor's account to oneOne per cent of your taxable incomeof the offices. A pay-doctor cheque willwill automatically be deducted from yourbe sent to the patient and the patientpay packet. If you are self-employedthen forwards the cheque with the balanceyou will have to pay to the end of eachto the surgery.financial year.21. Will doctors direct bill?9. Is there a limit on what you pay?It is expected doctors will direct billThe levy stops at a taxable income offor pensioners and low income earners.fee, but will it cover me for glasses or earners still be able to take advantage of 1346 a week or 70,000 a year forThe advantage for them is they arefree benefits?contactlenses?both singles and families. The highestassured of receiving payment, althoughNo.Onceagainyouwillhavetotakelevy paid by anyone is 13.46 a week.only 85 per cent of the schedule fee.Those now receiving benefits such asout private health Insurance for cover inJO. Who Is exempt from paying the levy? 22. Is there a limit on the amount I amfree medical treatment will still be eligthis area.Those who do not pay the levy arelikely to pay oat?ible under Medicare, but may need their28.Do I get any benefits from Medi- Medicare card to claim if thejr doctorsingle people without any dependentsYes. The maximum amount payablecare if I choose to go into a private hos- does not direct bill.earning less than 128.80 a week, couples, for any one service if the doctor chargespital?single parents or de factos earning a com35. What about workers' compensation?the schedule fee is 10. If the doctorMedicare will cover you for 85 perbined income of less than 214.25 a week. charges In excess of the schedule fee theIf treatment is likely to be covered bycent of the scheduled doctors' fees, whichThis amount increases by 21.15 for eachpatient must pay the difference betweenthird party insurance or workers compenincludes surgeons and specialists, butindependent child. Also exempt are vetethe benefit and the doctor's fee.sation, Medicare benefits are not payyou will have to pay for all accommorans, defence force personnel and warable.dation and extras such as theatre fees, 36. Will my Medicare records be conwindows who are entitled to free medical23. Can I ever receive 100 per centlabour ward fees, intensive care andtreatment and who have no dependents.rebate on the schedule fee?fidential?specialnursing. The health funds areThey pay half the levy If they have deYes. When the total gap you haveYes. No unauthorised person, even ifoffering cover here.pendents who are not entitled to freepaid between the Medicare benefit andthey work for Medicare, will be able totreatment. Holders of Pensioner Healthschedule fee reaches 150 in any one29. Will Medicare cover cosmetic surgery?see your records. Any breach of confiBenefit, Health Benefit or Health Carefinancial year, 100 percent of the scheSome cosmetic procedures do notdentiality will carry heavy penalties,cards will not pay the levy. If you earndule fee will be payable for the rest ofattract benefits, so it Is advisable to check 37. How much will a public hospitala taxable income and consider you shogidthe year.with your doctor.charge me If I want my own doctor?be exempt from the levy, make inquiries30. What do I do if I want to change the24. Can I claim under Medicare for aFor shared ward accommodation youthrough the Taxation Department.personal details on my card?consultation with any optometrist?will be charged 80 a day and for a single77. Should those exempt sti

business. "1 think it's very hard to fault him in concensus. 1 can see ver y few areas where he hasn't actually practised what he preached. Look at Queensland with Medi care. The Hawke Government couldn't have bent over more to accomodate Queensland's interest tlies hav thay e n done. If it liad been the Whitlam Govern