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There is plenty of commentary and analysis of Dr Chalmers’ Third Budget in the newspapers and elsewhere in the media and I don’t intend to add to that.
Instead, I thought I would look at the reaction to the budget from civil society and the industry groups that represent the multiple vested interests in our economy and the broader community. It is illuminating to see how they frame their responses, and it is worth thinking about what they were looking for from their various audiences which include their members, the Government and the wider political class. Within an hour of the Budget’s release more than 75 such groups had provided their assessments and over the next few days that number will likely double.
Infrastructure Partnerships Australia note pithily that ‘…after years of accelerating infrastructure spending, tonight’s Budget confirms the halcyon days of year-on-year infrastructure spending growth are now firmly in the rearview mirror.’ For a sector that has benefited greatly from a boom in infrastructure spending over the past few decades, they are awake to a new reality where governments are forced to focus on cost-of-living pressures over infrastructure.
One of the country’s most powerful lobby groups, the National Farmers Federation was both scathing, ‘…the Federal Government has twisted the knife into Australian agriculture in tonight’s budget, with the biggest allocation of new funding for the sector allocated to shutting down the live sheep trade…’ This is a painful budget for Australian farmers and this is a kick in the guts when we are already down…’ yet hopeful at the same time. It noted that in relation to climate change announcements ‘…it should prove a solid down payment on investing in agriculture’s approach to addressing climate change. We look forward to understanding the detail…”
Another agricultural industry body pointed out all of the negatives from their perspective but didn’t provide one solution for the government to consider in the future. We wonder how that does their cause any assistance. Other groups to express disappointment include the AMA, Oxfam, the AAA and Catholic Health Australia. The RACGP, one of the country’s most powerful lobby groups knows that it can criticize the government, ie, ‘RACGP President Dr Nicole Higgins said the government has dropped the ball on its commitment to strengthen Medicare and reduce out-of-pocket costs for patients.’ because it knows it always has a seat at the table of the Health Ministers around the country.
For those sectors that have done well from the budget the groups tend to praise the government and talk up their success in policy changes. For example, the National Electrical and Communications Association (NECA) congratulates the government for its investment in skills and training. The CEO said, ‘…I thank Minister O’Connor for engaging closely with NECA in the development of the skills and training initiatives announced tonight. This funding has today ensured organisations like NECA will be able to train the future Australian electrical workforce”. Another ‘winner’ from the budget is sustainable air travel with prominent and well-connected lobby group, the Tourism and Transport Forum noting that ‘the commitment to the development of a Sustainable Aviation Fuel (SAF) industry unveiled in the Federal Budget will bring Australia a step closer to delivering cleaner, greener air travel…’
Another group with a good outcome to crow about is the Investor Group on Climate Change which noted that ‘…today’s Budget commitments are a critical down payment in Australia becoming a magnet for capital seeking to deliver good long-term returns, creating local jobs and economic opportunities.’ Likewise the Australian Education Union praised the government’s investment in skills and training, noting that ‘TAFE is at the heart of a future made in Australia and this funding will enable more Australians to access vocational education.’
From our experience where there are positive announcements in the budget the industry bodies work closely with the relevant minister to ensure messaging is consistent. Where there is no good news or a negative outcome, the smart operators go back to work up new arguments as there is always another budget next year.
We are always amazed where the less sophisticated advocates simply blast the government in public without offering any alternatives. It is more productive to take that message back to government out of the public eye; governments and ministers always remember what industry bodies say and given there are always more industry groups than government attention, the smart ones choose their words carefully.
