Federal Parliament didn’t sit this week, but that doesn’t mean it wasn’t a busy week in politics. This week we take a look at the NSW state budget – first from Labor in 12 years – and also two key focus areas of the federal government this week. But let’s start with a headline roundup.
What’s making headlines?
- Rupert Murdoch will step down as chair of News Corp and Fox handing the reins to his son, Lachlan.
- Prominent Yes campaigner labels No voters ‘racist’.
- Senate inquiry into the government’s decision on Qatar began with industry leaders criticising the government decision and suggesting it will see high ticket prices continue.
- World economy forecast to slow further, caused by high inflation and a troubled China.
- New food safety regulations threaten the future of the beloved Bunnings snag.
- Comedian and global-star Russell Brand accused of sexual assault.
- New Qantas CEO takes the reins under a cloud of controversy for the national carrier.
Politics
NSW Budget
This week, the NSW Labor Government delivered its first state budget in over a decade announcing $13 billion in cuts and savings, and new taxes. The key theme of the budget, as expected, was public services and essential workers.
Here is a quick snapshot of the key figures:
- Forecast deficit of $7.8 billion in 2023-24, a surplus of $844 million in 2024-25, and eventually a surplus of $1.5 billion in 2026-27.
- Gross debt is also forecast to decrease from an estimated $188.2 billion to $173.4 billion by June 2026, a slash of nearly $15 billion.
Key budget spending measures include:
- $13.8 billion over four years for new and upgraded hospitals
- $2.4 billion to recruit and retrain frontline workers, including nurses and paramedics
- Pay increases for public servants
- $60 weekly cap on tolls for drivers
- $250 family energy rebate
- Free parking at all rural and regional public hospitals
- Additional $8 billion to green light the Metro West rail project
Key budget cuts include:
- Scrapping the electric vehicle rebates – saving an estimated $500 million
- Halve spending on Ultimo Powerhouse Museum
- Delay Great Western Highway upgrade
- $60 million cut to Made In NSW program and screen funding
- Axing of the $3.3 billion regional growth fund
- Destination NSW budget cut by 30 per cent
Multinationals will also be hit with a new tax, expected to raise an additional $750 million to help the government reach its surplus in the coming years. Mining companies will also help pay back NSW’s debt with a $2.7 billion increase in coal royalties which was announced prior to the handing down of the budget.
Covid Inquiry
The Prime Minister and Health Minister announced a 12-month long inquiry into the government’s response to the Covid-19 pandemic. The inquiry will be led by economist Angela Jackson, epidemiologist Catherine Bennett and public administration expert Robyn Kruk.
There has been criticism from the Opposition about the scope of the inquiry as it is largely restricted to governance and key health responses, and doesn’t include lockdown decisions. No doubt a few state premiers are breathing a sigh of relief.
Senior Liberal representatives say the inquiry is a broken promise from the PM who said before the election that, if elected, there would be “a royal commission or some form of inquiry, that will need to happen”.
This statement was repeated by the now PM many times before the election, but he always left himself wiggle room by stating a ‘royal commission or some form of inquiry’ – very careful not to get himself locked into a royal commission.
Some might ask, what is the difference? Well, a royal commission has enormous powers, including the powers to compel witnesses to cooperate and provide evidence. Whereas an inquiry is much more informal and limited in its powers. A royal commission into Covid-19 could have seen state premiers compelled to appear and answer questions about their handling of the pandemic. However, the inquiry doesn’t have this power.
We will no doubt hear lots more about the inquiry over the next 12 months.
Government on the attack over nuclear proposal
Facing voter backlash over rising power prices and escalating warnings from the electricity grid operator about summer blackouts, Energy Minister Chris Bowen this week launched a pre-emptive attack on the Coalition’s nuclear policy.
The opposition have suggested small modular nuclear reactors should be considered as part of Australia’s energy mix, arguing it is a cheaper and more reliable option than the Albanese Government’s ambitious renewables agenda.
Bowen released costings from his department that said the Coalition’s nuclear plan would cost taxpayers $387 billion, which the minister said made it an unviable solution to Australia’s energy grid challenges.
It came as Bowen faced intense criticism this week from regional communities that will be affected by the government’s plans for large-scale windfarms and transmission line upgrades, which will connect new renewables into the grid. The communities say they haven’t been adequately consulted by the government about the massive projects’ implications, with even some government MPs voicing concerns.
The debate around whether Australia should pursue nuclear energy will be a key election issue for both parties, with the government under pressure to prove its energy policy is in the best interests of consumers. The Coalition is likely to take a policy proposal to the election that overturns Australia’s prohibition on a domestic nuclear industry – which has been in place since 1998.
Global
What is the UN General Assembly?
The United Nations (UN) is an international organisation founded in 1945 and currently made up of 193 Member States that work together and are guided by the purposes and principles contained in its founding Charter. The UN is said to be the “one place on Earth where all the world’s nations can gather together, discuss common problems, and find shared solutions that benefit all of humanity”.
While there are various elements of the UN, the United Nations General Assembly (UNGA) is said to be the most important as it brings together global decision-makers and world leaders from 193 member nations – including Australia – to discuss the biggest issues.
UNGA is currently being held in New York and member nations are discussing a variety of topics, including the war in Ukraine, climate change, China, pandemic preparedness, and global financing.
Notable moments of the UNGA include:
- President of Ukraine Volodymyr Zelenskyy warned that Russia was weaponising food and energy supplies and called on allies to remain resolute in their support for Ukraine. He was supported by US President Joe Biden who implored world leaders to stand firm in their support of Ukraine.
- High-profile human rights lawyer Amal Clooney spoke at the High-Level Dialogue on the Declaration Against Arbitrary Detention in State-to-State Relations.
- Australia was criticised for their lack of action on climate change with a leading Australian policy think tank taking out a full-page advertisement in the New York Times to call out Australia’s record on climate change.
China Minister stood down
China’s foreign minister Qin Gang was suddenly removed from his position as Beijing’s top diplomat after a short seven-month stint.
The Wall Street Journal revealed on Tuesday that Qin was stood down after Chinese President Xi Jinping discovered his former confidant had fathered a love child with a TV presenter in the United States while he was serving as Beijing’s ambassador to Washington.
According to a transcript, a Foreign Ministry Spokesperson did not address the ‘love-child’ claims during a daily press briefing on Tuesday – but then again, the transcript also shows that she was not asked by reporters in Beijing ask about the matter.
Aftermath of Libya floods worsens
More than a week after burst dams wreaked havoc on the Libyan city of Derna, survivors are facing grim health warnings over water contamination as authorities try to coordinate aid efforts in the war-torn region.
After Storm Daniel dumped heavy rain across the Mediterranean, two ageing dams in the port city burst – sweeping away entire neighbourhoods and leaving an unimaginable trail of destruction. The death toll estimates vary widely but the UN has speculated at least 11,000 people have lost their lives, with others saying it could rise to up to 20,000 with thousands still missing.
Waterborne diseases are now a critical challenge for authorities assisting survivors in the region, along with the threat of old, unexploded land mines that were dislodged by the floods.
Humanitarian aid efforts have been delayed because of the difficult political situation in Libya. Two rival governments control Libya, the UN-backed government in the capital Tripoli and another in the country’s east, where the disaster struck.
Ageing infrastructure and the political instability have tragically contributed to the unprecedented scale of the disaster.
Sport and Pop Culture
Footy finals fever this weekend
One of the AFL’s biggest teams will play its first preliminary final in 23 years at the Gabba on Saturday. More than 5000 Carlton fans turned up to the team’s training session in Melbourne on Monday, ahead of their do-or-die clash with the Lions on Saturday night.
Collingwood will host GWS at a sold-out MCG tonight, with around 95,000 fans set to pack the stadium.
You have to go back to 2006 for the last grand final played between two non-Victorian teams (West Coast v Sydney) – a possibility if the Lions and GWS both get through.
Meanwhile, Brisbane is set for a bumper weekend with the Lions and Broncos both playing their prelim finals on Saturday evening (Lions first bounce at 5:15pm and the Broncos kick off at 7:50pm). It’s great news for the city’s tourism and hospitality industry – hotel rooms across the city are all but sold out.
If you have a team in the finals this weekend, good luck!
El Nino has arrived
After three long wet summers (thanks to La Niña), Australians are now in for a dry hot summer with the Bureau of Meteorology (BoM) confirming that El Niño has arrived.
El Niño is a major climate driver associated with an increased risk of drought, heatwaves, bushfires, and coral bleaching. For the remainder of 2023, Australia, particularly the eastern states, will be hot and dry, and we will likely experience a summer of severe heatwaves.
Australians are used to warm summers, but it’s the heatwave and bushfire warnings that are of greatest concerns. Thankfully many state jurisdictions have been undertaking backburning in preparation for the impact of El Niño, but there are still significant risks across the country.
The Australian divorce that had the world in shock
And in tragic entertainment news this week, Australia’s own Hugh Jackman and Deborra-Lee Furness announced they had called it quits, ending their 27-year marriage.
The darlings of Australia’s entertainment industry said they had “decided to separate to pursue our individual growth” and the split is said to be amicable.
It’s estimated the couple share up to $290m in assets including a luxe Hamptons holiday house that rents for nearly AUD$260,000 a month.
The news sent shockwaves across the world, but especially in Australia. The former “couple goals” pair are much-loved figures in Hollywood, and Australians are exceptionally proud of one of our best-known Aussie expats.
Love really is dead.
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