Illustration by Jim PavlidisCredit:
Dreyfus’ critique was probably fair. But it was interesting,too,for the light it sheds on an important aspect of the new government’s method. The policies Labor has pursued so far have often seemed like small,early steps:they may or may not lead somewhere significant. Here,though,the government was literally remaking an important institution. Whatever policies it enacts separately – and whether they are ambitious or not – this single change will redirect the operation of power,filtering into everyday events.
Three weeks ago,Arts Minister Tony Burke revealed a new arts policy. More comprehensive than many in the sector had expected,it included the remaking of a central funding body. Here is Burke introducing the new institution:“At the centre of the reform is a reimagined Australia Council. The new body will be known as Creative Australia. The[former arts minister George]Brandis cuts will be returned in full.”
The restoration of funding is a good thing. Still,it is worth noting how central the political messaging is to both announcements. Liberal failure is used as a justification for creating something new;and the creation of that new thing doubles as a reminder of Liberal failure. A dark past serves as high contrast for a bright future.
Which brings us to the most important example,being pursued in ways both more and less subtle than the above:the slow build-up tothe review of the Reserve Bank,due to be handed to the government next month.
Method in his gladness:Anthony Albanese’s government has been productive,but quietly so.Credit:Alex Ellinghausen
There are good reasons for the review. As economist Henry Ergas haspointed out,there is the difficult question of how to keep an institution – one that can seem almost mystical – both independent and accountable for meeting its objectives. Another is the make-up of the board. Former Reserve Bank governor Bernie Fraser has said former union chief Bill Kelty wasalways the best on his board at predicting wage rises. There are no unionists currently on the board,which is arguably a result of John Howard’s success at exactly what Labor now seeks to do:remake national institutions and shift assumptions about who deserves power.
It is unlikely these were the treasurer’s only motives. The review wasforeshadowed by Jim Chalmers in opposition,and confirmed in government. With inflation and rising interest rates charging towards the new government,the possibility of economic credibility being derailed so early must have been terrifying. The review offers inoculation. Because of the coded language in which economic debates take place,the government will not need more than a line or two.