EDITORIAL: Albo needs more than kicking with the wind
With opinion polls showing plunging Labor support, putting it in a dog fight with One Nation as his own popularity dives, the Prime Minister assured his colleagues that political momentum will swing their way.
Albo loves footy.
And Anthony Albanese is fond of using footy references to spice up pep talks to his Labor colleagues.
On Tuesday, with opinion polls showing Labor’s support has plunged, putting it in a dog fight with One Nation as his own popularity has dived, the Prime Minister moved to assure his colleagues that political momentum would soon swing their way.
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By continuing you agree to our Terms and Privacy Policy.“As some caucus members who were here in 2019 will have heard me say before, ‘we will be kicking with the wind in the fourth quarter’,” he said.
The way things are going, he will need more than a wind. More like a strong gale at his back.
The evidence of this continues to pile up.
The International Monetary Fund has warned Australia will have some of the rich world’s highest inflation this year.
With Government spending at a four-decade high outside COVID, the IMF warned in its world economic outlook that high levels of public spending and debt were unsustainable and adding to demand.
“For countries with above-target inflation or elevated underlying inflationary pressures, fiscal consolidation can moderate demand and complement monetary policy efforts to maintain price stability,” the IMF said.
It came as the NSW Labor Government moved to distance itself from Federal Labor by promoting itself as a responsible economic manager aiming to slash State Government debt levels.
With Premier Chris Minns facing voters in five months’ time, his Treasurer Daniel Mookhey is promising to cap net debt at 15 per cent of gross State product, or the size of the economy.
This would mark a contrast with Mr Albanese’s Treasurer Jim Chalmers, who has presided over net debt making up 18.8 per cent of gross domestic product in 2025-26, with the Treasury expecting that to climb in four years to almost 22 per cent.
The IMF warning was issued shortly after the Reserve Bank of Australia’s September meeting minutes blamed domestic factors for keeping underlying inflation elevated.
The RBA last month raised the cash rate to a 15-year high of 4.6 per cent, marking the fourth hike this year.
But more interest rate pain is likely again on Melbourne Cup day with inflation in August remaining above the RBA’s 2-3 per cent target for the 13th straight month.
Meanwhile a leading economist delivered a sobering house price warning.
Chris Joye, founder and chief investment officer at Coolabah Capital Investments, said prices in Sydney were dropping at an annual rate of 18 per cent, and that individual suburbs in Sydney could see a price fall of as much as 40 per cent — with double-digit falls around the country.
And NAB figures on Tuesday showed business confidence was sitting in the bottom 5 per cent of all readings in the survey’s history.
Opposition Leader Angus Taylor delivered his own pep talk, calling on the Coalition to “fight for the soul of the country”.
It came amid speculation about a political comeback by former treasurer Josh Frydenberg — and that he had his eye on leadership.
As Mr Albanese waits for the wind at his back, Mr Taylor will be hoping to avoid Liberal winds of change.
