ALP Releases Discussion Paper On Economic Ownership
May 7, 2002
The ALP yesterday released a discussion paper on Economic Ownership, prepared by Mark Latham, the shadow minister for Economic Ownership, Housing and Urban Development, as part of its internal review of the party's policies and structure.
Immediately after its release, the paper was attacked by the Federal government and criticised by Sharan Burrow, the leader of the Australian Council of Trade Unions.
The paper represents an ongoing attempt by Latham to turn the ALP in a new policy direction, modelled in part on the success of Tony Blair's New Labour in Britain.
The release of the paper was overshadowed by the controversy over Latham's comments about the Liberal Party and its former President, Tony Staley.
The paper says:
At the 2001 Federal election the Australian Labor
Party recorded its lowest primary vote since 1906.
We now face a minimum of eight years in Opposition
(1996 –2004), staring across the chamber at a
Liberal-National Party Government. So too, support
for the Australian trade union movement has fallen to
an historic low. Its coverage of the workforce is now
less than 25 percent, down from 55 percent in the
early 1980s.
At a national level our position is not strong. In these
circumstances, nobody should be surprised that the
ALP is revising and renewing its personnel, policies
and structure. In fact, it would be stunning if the Labor
movement’s performance were not under review.
Our new Leader, Simon Crean, has adopted the right
theme: modernisation. This was the theme that led to
the election of the Whitlam, Hawke and Keating
Governments. In Britain it has produced two landslide
victories for Tony Blair’s New Labour Government.
Modernisation, of course, does not involve change for
change’s sake. Rather, it is an attempt to respond to
the fresh challenges of a fast changing society.
If trade union membership had not fallen so sharply
there would be no need to review the relationship
between political and industrial Labor. If the world of
work had not changed so significantly there would be
no need to update our employment and education
strategies. If there were no such thing as globalisation
and information technology there would be no need to
alter our economic and communications policies.
Modernisation is not an optional extra.In a world of
constant change, it has become a necessity for parties
of the Centre-Left. The Australian people do not owe
us a guaranteed future. In the long cycle of history,
political movements come and go on a regular basis.
We can either move with the times or be swept away
by them.
The discussion paper says the ownership revolution is crucial to the party's future. The papers says: "Our greatest challenge is to craft a modern Labor
response to economic change.In recent decades the
Australian economy has been through a revolution.
Within the space of a generation,assumptions about
ownership, skills and economic mobility have been
transformed."
Latham goes on to say:
"As a movement we need to move past the politics of
envy. We should be at ease with economic mobility.
I do not regard, for instance,the many Labor MPs
and union officials who own shares and other financial
investments as greedy. Rather, I see them as
stakeholders in the new economy, working hard to
give their children decent opportunities and security.
This is a good Labor thing to do, both in our private
lives and our public policies.
"The ownership revolution is here to stay. Aspirational
politics is a logical consequence of this reality. To win
the next Federal election we need to reclaim the
revolution. We need to take back from John Howard
the agenda that we started. Ownership and aspiration
need to be at the heart of Labor ’s policy platform."
Describing ownership as an act of inclusion, an act of economic security, and a solution to poverty, the paper says "asset accumulation is also vital for the long-term poor".
The paper promotes a number of ownership policies which it says is a "modern expression of social justice, with its commitment to equal life chances. It gives new
life and electoral appeal to the traditional values of the Labor movement: opportunity, security and responsibility. It needs to be part of our social contract
with the Australian people."
Specifically, the paper calls for:
- The establishment of First Share Ownership
Schemes for low to middle income earners.
- The development of Employee Share Ownership
Plans to increase worker participation and
ownership.
- The facilitation of small business ownership, with
improved capital access, research support and
regulation.
- The introduction of innovative home ownership
models, especially for low-income earners.
- The enhancement of superannuation assets for
the benefit of retired Australians.
- The establishment of Matched Savings Accounts,
as per the American experience.
- The creation of Nest-Egg Accounts,similar to the
Blair Government’s baby bonus proposal.
- The use of Lifelong Learning Accounts to meet
the growing costs of a good education.
- The revival of mutual ownership in Australia,
especially through the creation of social
enterprises.
- The establishment of new forms of community
ownership, particularly in public housing estates
and other disadvantaged neighbourhoods.
- The development of corporate responsibility
standards for credit provision, savings support
and investment in poor areas.
- The mobilisation of third sector resources for
asset-based welfare, in partnership with the
private and public sectors.
Latham says that "instead of trying to nationalise or
regulate the ownership of assets, the objective is to
increase the size of the tent, to bring in new
stakeholders."
Ownership needs to be understood as an act of
inclusion, both economically and socially. People who
save and accumulate assets have stronger self-
esteem, health outcomes and career prospects. They are also more likely to get involved in
community projects,creating social capital as well
as financial capital. In short, ownership is the
elixir of life. It is essential to a common sense of
belonging and participation in our society.
The know-how exists to create a stakeholder society.
It simply requires the initiative and leadership of the
Labor movement. Just as Whitlam and Keating started
the ownership revolution, the ALP needs to reclaim this
agenda with the next generation of asset-based
policies. Just as trade unions have led the growth and
development of Australia ’s superannuation assets, they
have a big role to play in the programs listed above. One hundred and ten years ago our movement was
created to meet the aspirations of working class
people for industrial protection. Today we must meet
the legitimate aspirations of working Australians for
asset accumulation. It is possible to achieve ownership
for all.
The paper does not have the status of official ALP policy. In a forward, the Opposition Leader, Simon Crean, says:
The Labor Party is more than a hundred years old and we are rightly known as the grand old party of Australian politics. Integral to that tradition is Labor's place as the party of Australian initiative and the party of Australian ideas; the contemporary party of progress, of change and of reform. That is why we are looking forward as we review our policies. In that spirit we offer this discussion paper on economic ownership and welcome your contribution to our review.
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