Thursday, June 05, 2008

Kevin Rudd taking a beating, and rightly so

The last couple of weeks have taken some shine off Kevin Rudd. Labor hasn't been affected in the polls, but Kevin Rudd's approval rating dropped to 56% in Newspoll. (I think that's what happened anyway.) He's been battered and fried by Brendan Nelson's populist stunt to cut petrol excise by 5c a litre. Nelson never has to deliver on that, because the election is so far away and he has next to no chance of winning it, but it puts the spotlight on Big Kev, as if to say: I'm committed to actually doing something about petrol prices, while you're just going to form another committee. In fact he did use words to that very effect in Parliament.

And when he did, I smiled. Not because I have any love for Brendan Nelson; in fact, I have only sympathy. Not because I support his policy to cut the cost of petrol; it's ridiculous. No, because although I voted for Big Kev with all the optimism in the world, I can't stand his Government By Committee. It's Inquiry This, and Working Party That; Commission This and Study That. Ridiculous! The man has been setting the impression that he will endeavour to tackle every issue, and it's now time to pay up and all he can find is loose change.

The excruciating fact is that he's trying to sell the following line to the Australian people: my government will get involved in all aspects of your life, and Do Something. Now I'm no opponent of government action, but two things I can't stand are government action for the sake of it, and the misleading appearance of government action for the sake of it. To wit, we have an atrocious "FuelWatch" idea, whereby all petrol vendors must register their prices on a website, and maintain that price for the next 24 hours. If I were a petrol vendor, I would be telling Mr Rudd to mind his own Bucking Fusiness. Unless petrol stations are significantly subsidised by federal funds, which I doubt, what right does the government have to tell them when they can and can't adjust their prices? Inform the consumer what the price is, sure, but regulate price movements to that extent? No way.

Government action for the sake of it is bad because of two perfectly good cliches: the law of unintended consequences (e.g. stabilising the fuel price thereby robbing consumers of occasional savings caused by competition); and the road to hell being paved with good intentions (e.g. meddling in people's business for the supposed but illusory good of consumers).

Why should I get upset on behalf of petrol vendors? Firstly, I know that they exist on slim margins. There's not much retail profit in petrol; they basically rely on people buying chocolates etc. to stay afloat. So I support the little guy against the do-gooder but really do-nothing government. And secondly, if the government can get away with this today, then maybe tomorrow they'll be interfering in my job and eroding freedom from my life.

Krudd and co promised a government based on sound policy that looked beyond the short term. Getting locked into a demeaning battle on petrol prices is the antithesis of that. Krudd needs to take some advice from Mr. T: stop yo' jibber-jabber and get some nuts! Say to the Australian people:
I understand the pressure that rising fuel prices puts on your personal and family budgets. However, there is nothing I can do to bring petrol prices down. The international price of oil is rising and will probably continue to do so because of its scarcity. As individuals and as a society we are going to need to adjust to that, and I will not be drawn into petty arguments. The solutions I have offered are to monitor fuel prices so you can shop around more easily, and to cut taxes so you have more money in your pocket. Thank you and goodnight.