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There’s no "coherent message" in "team"

Saturday, 27 October, 2007 by Tobby

John Howard’s response to questions about Tip’s tsunami warning:

“Well, if you have a wages breakout, you could see very significant falls in economic activity.” But would you see a recession? “I think you could have recessionary tendencies if there was a wages breakout, and we think a wages breakout is very likely under a Labor government.”

When it was pointed out that it was irresponsible for Costello to be throwing around the claim, the PM blustered. “Well, you say, I mean, I didn’t, I’ve been in the west, I didn’t hear the full, you know, the full comment that he made, but he is quite rightly warning that if you have an industrial relations policy that allows wages increases in one part of the economy to flow through to others where it can’t be afforded, that will have an effect on employment. It will have an effect on growth, it will create far more difficult circumstances.”

Howard was trying to stay on the message about Labor’s IR policy damaging the economy. Costello was trying to scare off the Reserve Bank. Howard was talking about a “wages breakout” within the Australian economy resulting from a centralised wage system (which will not exist under Labor). Costello was talking about an economic downturn due to instability in the global economy, originating from China and the US. The end result is that they make each other look silly.

It might be time for a team conference call – or perhaps some marriage counseling.

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Posted in Australian politics | Tagged John Howard, Peter Costello |

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