Hawke government
The Hawke government was the federal executive government of Australia led by Prime Minister Bob Hawke of the Australian Labor Party from 1983 to 1991. The government followed the Liberal-National Coalition Fraser government and was succeeded by another Labor administration, the Keating government, led by Paul Keating after an internal party leadership challenge in 1991. Keating was Treasurer through much of Hawke's term as prime minister and the period is sometimes termed the Hawke-Keating government.
Background
was president of the Australian Council of Trade Unions from 1969 to 1980. On 14 October 1980,he was preselected as the Australian Labor Party candidate for the Seat of Wills and resigned from the ACTU. Hawke won the seat at the 1980 Election and was appointed as Shadow Minister for Industrial Relations, Employment and Youth Affairs by Opposition Leader Bill Hayden. In 1982, amongst the early 1980s recession, he initiated a leadership challenge against Hayden, and narrowly lost. At the February 1983 Funeral of former Labor Prime Minister Frank Forde, Hayden was persuaded by colleagues to step down, leaving the way open for Hawke to assume leadership of the ALP. In announcing his resignation, Hayden famously remarked that, given the electoral climate, "a drover's dog could lead the Labor Party to victory".
Long-serving Liberal prime minister Malcolm Fraser announced an election that same day, with a date set for 5 March. Hawke served just one month as Opposition Leader before taking the ALP to victory against Fraser at the 1983 Election. Labor had been out of office since the divisive Dismissal of the Whitlam government in 1975.
Terms in office
Hawke led the Australian Labor Party to a landslide victory against Malcolm Fraser's Liberal-National Coalition government at the 1983 Australian Federal Election, with Labor seizing 75 seats in the Australian House of Representatives against the Liberal Party's 33 and the National Party 17. He went on to become Australia's longest serving Labor prime minister and remains the third longest serving Australian prime minister after Robert Menzies and John Howard.Hawke again led the party to the 1984 Election and was returned with a reduced majority, in an expanded House of Representatives: with Labor taking 82 seats to the Coalition's 66. Labor went on to a third straight victory at the 1987 Election and increased its majority from 16 to 24 seats. Hawke fought his final election in 1990, with Labor winning a nine-seat majority. Hawke retired from Parliament in February 1992, following the December 1991 leadership spill which saw him replaced as leader by Paul Keating.
Early years
The inaugural days of the Hawke government were distinctly different from those of the Whitlam era. Rather than immediately initiating extensive reform programmes, Hawke announced that Fraser's pre-election concealment of the budget deficit meant that many of Labor's election commitments would have to be deferred. Hawke convinced the Labor caucus to divide the ministry into two tiers, with only the most important Ministers attending regular cabinet meetings. This was to avoid what Hawke viewed as the unwieldy nature of the 27-member Whitlam cabinet. The caucus under Hawke exhibited a much more formalised system of parliamentary factions, which significantly altered the dynamics of caucus operations.Hawke and Keating formed an effective political partnership despite their differences. Hawke was a Rhodes Scholar; Keating left high school early. Hawke's enthusiasms were cigars, horse racing and sport whereas Keating preferred classical architecture, Mahler symphonies, and antique collecting. Hawke was consensus-driven whereas Keating revelled in debate. Hawke was a lapsed Protestant and Keating was a practising Catholic, although the extent of his commitment to formal practices are . While the impetus for economic reform largely came from Keating, Hawke took the role of reaching consensus and providing political guidance on what was electorally feasible and how best to sell it to the public. In his first term, Hawke set the record for the highest approval rating on the ACNielsen Poll.
The government benefited from the disarray within the Liberal opposition after the resignation of Fraser. The Liberals were divided between supporters of John Howard and Andrew Peacock. The conservative Premier of Queensland, Sir Joh Bjelke-Petersen, also helped Hawke with his "Joh for Canberra" campaign in 1987, which proved highly damaging for the conservatives. Exploiting these divisions, Hawke led the Labor Party to comfortable election victories in 1984 and 1987.
In its first months in office the government stopped the construction of the Franklin Dam, on the Franklin River in Tasmania, responding to protest about the issue.
Economic policy
The Hawke government came to power in 1983 amidst an economic downturn, but pursued a number of economic reforms that assisted in a strong recovery through the 1980s. Economic factors at play during the Hawke government were globalisation, micro-economic reform and industrial relations reform, as well as the opening of Australian finance and industry to international competition and adjustments to the role of trade unions. Hawke concluded his tenure during the worst downturn in Australia since the Great Depression.Major economic reforms included the floating of the Australian dollar, deregulation of financial markets, dismantling of the tariff system, privatised state sector industries, ended subsidisation of loss-making industries, and the sale of the state-owned Commonwealth Bank, Telstra, Qantas and CSL.
Hawke's prime ministership saw friction between himself and the grassroots of the Labor Party, who were unhappy at what they viewed as Hawke's iconoclasm and willingness to co-operate with business interests. The Socialist Left faction, as well as prominent Labor figure Barry Jones, offered severe criticism of a number of government decisions. He has also received criticism for his 'confrontationalist style' in siding with the airlines in the 1989 Australian pilots' strike. The Hawke government did, however, significantly increase the social wage as part of its Accord with the trade unions, a social democratic policy continued by the Keating government. Improvements to the social wage included improved affordability of and access to key services such as health and child-care and health, together with large increases to payments for low-wage and jobless families with children. Indexation of child payments was also introduced, while coverage of occupational superannuation pensions was also widened significantly, from 46% of employees in 1985 to 79% in 1991.
During the course of the 1980s and early 1990s, government benefits substantially improved the incomes of the bottom 20% of households, with rent assistance, family payments, and sole parent benefits all substantially boosted in real terms. According to some historians, when examining the economic reforms carried out during the Eighties in both Australia and New Zealand, "some modest case can be mounted for Labor in Australia as refurbisher of the welfare state". From 1983 to 1996, improved service provision, higher government transfer payments, and changes to the taxation system "either entirely offset, or at the very least substantially moderated, the increase in inequality of market incomes over the period". During the period 1983 to 1996, Australia was one of the leading OECD countries in terms of social expenditure growth, with total social spending increasing by more than four percentage points of GDP compared to an OECD average of around 2.5 percentage points.
"Active society" measures were also introduced in an attempt to limit the growth of poverty and inequality. From 1980 to 1994, financial assistance for low-income families in Australia increased from 60% of the OECD average in 1980 to 140% in 1994, and it is argued that the social and economic policies delivered under the government-trade union Accord had some substantial success in reducing family poverty, as characterised by reductions in child poverty from the early Eighties onwards. According to the OECD, the percentage of Australians living in poverty fell during the Hawke government's time in office, from 11.6% of the population in 1985–86 to 9.3% in 1989–90. Child poverty also fell dramatically under the Hawke-Keating government, with the percentage of children estimated to be living in poverty falling from nearly 16% in 1985 to around 11% by 1995. As noted by Brian Howe, social policy under Hawke was effective in reducing poverty and protecting those most vulnerable to massive social and economic change. According to some observers, "improvements in government policies and programs in income support payments, and services such as education, health, public housing and child care, and the progressive nature of the income tax system, have all contributed to the result that Australia appears to have become a more equal society over the period from 1981–82 to 1993–94".
In 1984, the government introduced its three mine policy to limit the number of uranium mines in the Australia to three. The policy resulted from the strength of the anti-nuclear movement within Labor.
The 1987 budget extended rental assistance to all Family Allowance Supplement recipients together with longer-term unemployment benefit beneficiaries. A family package was introduced that same year, designed not only to improve the adequacy of welfare payments for low-income families, but was also designed to ensure that participating in part-time work or full-time work didn't lead to a loss in income support. The Hawke government's achievements in boosting financial support to low-income households were substantial, with the family assistance package bringing significant benefits to millions of low-income families in the years ahead. As noted by Ann Harding at the University of Canberra:
The Hawke government carried out a series of other measures during its time in office. Upon taking office in 1983, a Community Employment Program was set up, providing a large number of work experience opportunities in the public and non-profit sectors. Together with smaller programs such as the Community Youth Support scheme, this played a major role in both alleviating and reversing the effects of the 1982 economic recession. A Home and Community Care Program was established to provide community-based services for frail aged people and people with disabilities, while to combat homelessness a Supported Accommodation Assistance program was introduced to assist those who are homeless, at risk of homelessness, or escaping domestic violence. A bereavement payment equivalent to fourteen weeks pension for the surviving member of a pensioner couple was also introduced, together with an Asylum Seeker Assistance scheme to provide help to applicants for refugee status in need. A wide range of measures were introduced to protect the environment., such a Landcare program, which was established to promote environmental conservation. In addition, spending on housing, education, and health was increased, while an anti-poverty trap package was introduced in the 1985 budget. That same year, rent assistance was extended to include unemployed and low-income working families. The 1985 Tax Summit led to a reduction of loopholes and distortions in the tax system, while the Family Assistance Package significantly strengthened the amount of income support for hundreds of thousands of low-income families. Some sole parents and unemployed persons benefited from other measures designed to reduce barriers to workforce participation, deal with their housing costs, and increase their incomes. In addition, a new Child Support Agency was established, designed to provide a more efficient system of maintenance and tackle child poverty. Funding for public housing and disadvantaged students was also considerably increased. Various measures were also introduced which enhanced the rights of women in the workplace. The Sex Discrimination Act of 1984 prohibited sex discrimination in employment while the Affirmative Action Act of 1986 required all higher education institutions and all private companies with more than 100 employees to introduce affirmative action programmes on behalf of women. A year later, equal opportunity legislation for the Commonwealth Public Service was introduced. In 1986, a Disability Services Act was passed to expand opportunities for the participation of disabled persons in local communities.
A major cash benefit for low-income working households, known as the Family Allowance Supplement, was introduced which reduced poverty and provided a better-graduated system of family income support. This new benefit significantly boosted the level of income support for families principally dependent on social welfare benefits. The supplement was also made fully payable, tax-free, to low-income families who were principally reliant on wages, albeit for those who earned below a certain amount. Above that amount, the payment rate fell by 50 cents for every additional dollar of other income until it vanished entirely from families approaching the middle-income range. In addition, the social security rent allowance was extended to these families if they lived in private rental accommodation. The rates of payment were also index-linked to inflation, while additional benchmarks were fixed to help achieve and maintain relativities with community earnings levels. As a result of the FAS, major improvements were made in the financial position of working families on low incomes. In his memoirs, Hawke described this as "the greatest social reform of my government, and perhaps of all Labor governments".
To increase workforce participation, a Jobs, Education and Training Program for sole parents was launched, comprising a package of measures aimed at liberalising income tests measures, ensuring access to child care, and upgrading the skills of single parents. This reform helped to enable many single parents to take on part-time work and increase their earnings. Between 1986 and 1996, according to one estimate, the percentage of single parents receiving 90% or more of their income from benefits fell from 47% to less than 36%. Other important social security initiatives introduced for the unemployed included the introduction of the New Employment Entry payment, while some administrative obstacles and income tests were relaxed.