Forgive the spelling, the original does not respond well to spam filters for some reason!
From Bernard Keane at Crikey today:
Way back when, I suggested that game theory provided a good guide as to how Labor should respond to Abbott’s extraordinary cynicism when in opposition in blocking at every turn Labor’s efforts to govern responsibly. In short, once in opposition, Labor should behave exactly as Abbott had behaved, in order to provide a disincentive for the Coalition to repeat such behaviour when next in opposition. That was the most sensible political course, and perhaps the most sensible policy course in the long term. But in the short term, it would be bad for the national interest.
On Qantas, Labor’s elected to go with the populist politics and repay Abbott in kind. The Labor message is that the government is all over the place on the issue (which is correct) but that ideology has triumphed, while Labor would do the right thing and protect Qantas jobs with a handout and leave the foreign ownership restrictions intact. Shorten even took to quoting I Still Call Australia Home in question time yesterday, a new kind of low in that much-abused ritual.
So now the Coalition has the task of trying to blame Labor for Qantas’ woes and obstructing the Coalition’s efforts to unshackle the airline. But Labor’s hand is strong. In 2011, nearly 90% of voters thought Qantas should keep jobs in Australia — and over 50% thought that “strongly”. Voters also think Qantas management are the ones most responsible for damaging Qantas’s reputation. Pinning the blame for the airline’s woes on Labor will be a difficult task, especially while Alan Joyce remains at the, er, helm.
While the political parties are busy trying to crash Kwantas in each others political hopes and dreams, I will point out, again, that there is plenty of middle ground for the resolution of Kwantas’ issues that save the airline, placate the polity, and preserve market discipline.
I personally think that Kwantas should be left to fend for itself. But if the pollies feel that a disorderly collapse is too greater risk then the way out is to give Kwantas the guarantee in return for a discounted equity stake (to be re-privatised in two years), a government board seat, and sacked management.
Then watch every other hand in the industry slip silently back into its own pocket.
