Issue 211, 19 November 2008

Issue of the week:

Yesterday’s Australian Council of Local Government saw the Rudd Government unveil a program to fund infrastructure projects through local councils. It’s a smarter, more covertly political and therefore far more defensible program than the Howard Government/National Party Regional Partnerships Program but will still deliver Government members the desired political outcome.

Every local council came out of yesterday’s meeting with at least $100,000, with the largest councils receiving up to $2.9 million and local government areas with more than 30,000 people in high growth areas also scored an extra $300,000. In addition, $50 million has been set aside to fund swimming pools, stadium upgrades and other major community infrastructure projects worth $2 million or more.

Funding all local councils removes any smell of federal political interference (unlike criticisms levelled at the old Area Consultative Committees) and in the current environment it can be legitimately badged as ‘economic stimulus’, while still providing thousands of soil-turning and launch events for every Labor backbencher and marginal seat holder. Local Councils will now be racing to commence projects and spend the cash by September 2009.

What’s to come:

Maxine McKew’s first big test will be policy reforms in the Childcare sector in the wake of ABC Learning’s collapse. The answer the Government comes up with will be indicative of how the Government wants to position childcare policy. Is it about early education, in which case childcare centres should arguably be run on a not for profit basis similar to private schools. Or are childminding services the legitimate purview of business the way other domestic services are.

The collapse has also prompted Government reforms to Corporate Law. Graeme Samuels said on Lateline earlier this week that the company's steady takeover of the childcare market shows Australia's laws on creeping acquisitions are not tough enough. Minister for Competition Policy and Consumer Affairs, Chris Bowen agrees and has said the Government will unveil plans to increase the power of the ACCC to block such acquisitions by the end of the year.

Something you didn’t know:

The upcoming COAG meeting that Health Minister Roxon has been discussing was actually meant to be held on Monday. OTR hears that it was pushed back a few weeks as the Commonwealth and State Government cannot agree on health and hospitals funding under the Australian Health Care Agreements. The evaporation of Commonwealth funds due to the GFC (global financial crisis) is also making negotiations more difficult.

ICU:

Ben Cousins and his potential return to professional sport this week has put the AFL right back in the middle of the ‘drugs in sport’ faecal sandwich. The AFL has to be seen to be tackling what one commentator described today as “the running sores” of alcohol and drug abuse in the game - so it was no surprise to hear Andrew Demetriou announce a special set of conditions on Cousins’ return to footy.

The AFL are now in the difficult position of having to explain why its Illicit Drugs Policy - that it so vigorously defended in the wake of public criticism - now doesn’t appear to be sufficiently robust in this instance. It also faces the difficult question of why one player is being publicly held to a higher standard, when there have been widespread instances of drug abuse in the sport for years. Cousins is the gift that just keeps giving…

Personality of the week:

As Hilary is slowly being vetted for the post of America’s stop diplomat, and Rahm Emanuel is getting used to the title “Chief of Staff”, today Michael Isikoff of Newsweek reported that President elect Obama had asked Eric Holder to be the 82nd Attorney General of the United States. Once confirmed he will be the first African-American to hold the post of Attorney General.

Holder, 57 was born and raised in New York City, gaining both his undergraduate and law degrees from Columbia University and has served as a superior court judge in Washington DC. He was named DC’s US attorney by former president Clinton before accepting the post of Deputy Attorney General under Janet Reno in 1997. He served Obama as senior campaign legal advisor and was co-chief of the vice presidential selection committee.

Before the Obama camp makes any firm announcements, his vetting team will need to thoroughly ensure that the controversy surrounding Holder's role in the presidential pardon of Marc Rich at the end of the Clinton administration will not prevent his confirmation in the Senate.

Political quotes of the week:

“I am not going to say it because we're projecting modest surpluses Kerry.”

- Treasurer Wayne Swan, not saying the ‘D word’ on the 7.30 Report, 12 November 2008.

Media quote of the week:

"Baz came over to Broome and we went out to where my country is, where my grandfather's country is. I took him out fishing.”

- Brandon Walters, the real star of Baz Luhrmann's film Australia, 18 November 2008.

ICU quote of the week:

"It looks like a war zone, and it feels like a war zone, and what's good about it is the people pulling together and neighbours looking after each other."

- Prime Minister Kevin Rudd, on inspecting storm damage in the Brisbane suburb of The Gap, 18 November 2008.