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AUSTRALIA

When it comes to work and welfare, market rules Labor's roost

  • 27 May 2013

If I was a long-term unemployed person on Newstart, how would I answer the question, 'What has the ALP done for me?' Probably along the lines of, 'Lots, and not very much.'

I might recall my excitement when the suburbs swung to Kevin Rudd on a fairness, equity and change platform in 2007. Rudd said he was no socialist, but spoke of the importance of social justice and reducing homelessness.

He axed work-for-the dole and funded specific programs for job seekers in local communities. His government also created the somewhat improved Job Services Australia, while 'mutual obligation' and its often devastating 'non-compliance' penalties were significantly softened.

In short, Rudd ushered in a revamped, though not revolutionary way of thinking about the welfare state — the Howard Government's approach was watered-down rather than turned on its head.

Rudd also ushered in important symbolic and rhetorical change; 'dole bludgers' and 'job snobs' have now moved to the fringe of the lexicon. Symbolism can only go so far though, and it was a great shame that most of the unemployed missed out on stimulus payments equivalent to a whole month's salary.

Julia Gillard came to power and provided a more specific message, telling the Sydney Institute that Labor was the 'party of work, not welfare'. Over time it dawned on me that Gillard, unlike her predecessor, has made no critique on neo-liberalism, the importance of social justice, poverty or homelessness. Now the ALP is about 'jobs and growth' and the 'Fair Go' — but 'fairness' says Gillard 'can only be funded through economic strength'.

'ALP values', Gillard has said, can only be achieved with 'new structural savings that will maintain the sustainability of the budget and make room for key Labor priorities'. This contention has proved only partially true, it seems Gillard's welfare policy style has been part cut and part thrust: carrots for industry, education providers and government departments, and sticks for the unemployed.

Gillard has expanded the unemployment bureaucracy beyond recognition — her 'social democracy' is too-often narrowly framed by the economic and political interests of middle Australia. Her Government's record on welfare is fairly poor: she has refused to boost the Newstart Allowance, she made it much harder to qualify for the disability pension