Latham Speech Provokes Debate On Mutual Obligation

A speech by Labor backbencher Mark Latham in which he criticised the gambling habits of Kerry Packer has prompted a debate about the mutual obligation philosophy promoted by the Howard government.

In the speech, Latham referred to recent media reports that the Publishing and Broadcasting Limited (PBL) media magnate had lost $34 million gambling at an overseas casino. Condemning "conspicuous consumption", Latham said that "having the right to do something does not necessarily make it the right thing to do."

Latham said the treatment of Packer in a number of areas of public policy, notably decisions to halve the rate of capital gains tax, lower the corporate tax rate, and the "decision to introduce a restrictive anticompetitive regime for digital television" highlighted an "ethical flaw" in the government's policy of mutual obligation.

Latham said: "What is more unacceptable in our society: for an unemployed, low income person to refuse to look for work or for a wealthy person to waste $34 million in a senseless gambling binge? I find both cases unacceptable."

• Read the full text of Latham's speech

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