Rudd’s challenges
More than a week after the leadership spill in Australian labour, the new Rudd government has not shown any indications whether the federal elections will be held on the date announced by Gillard government. There are several speculations about possible changes in dates: some argue early polls might be favourable for Rudd to get more votes while others claim early polls means less time for him to prepare.
There are several economic and social issues on which Rudd has not his future plan. The most controversial is the carbon pricing. Though Gillard when taking over leadership by ousting Rudd three years ago had assured the voters they need not pay for carbon pricing. She lived short to her assurances.
The concept was formulated by Rudd against which the big businesses campaigned and lobbied at the highest political circle. Now the situation is square to one. It is for sure carbon tax would remain in place but in what shape and form. The parliament has already passed legislation for it to get executed.
The other big challenge Rudd faces is dwindling mining industry. Australia is likely to face mining-slump after a decade of mining boom. The mining industry has not been able to inject any more money for Australia. There are reports of increase job losses in the industry in recent months.
According to Australian Bureau of Statistics (ABS) figures, business investment has slumped by 4.7% in last quarter, led by marked dropped in mining sector. Drop in investment means drop in job opportunities. The latest figure from ABS show jobless rate has jumped to 5.7 percent.
The Rudd government has challenges to convince the voters it has appropriate and concrete plans to address these uncertainties. Major threat for it to lose the race would be increasing joblessness among youngsters.
Several social reforms initiated by Gillard government are under radar. The top of which is the National Disability Insurance Scheme. The program is regarded consequential in garnering more votes and public sympathy. It is one of the bold initiatives of the left-leaned labour party.
Other backbone of the Australian economy – car industry – is in verge of collapse. Ford has closed its Victorian manufacturing plant. Holden – a subsidiary of the US motor company GM Motors – is threatening to shut down manufacturing in Australia to move to India where labour is very cheap. Several efforts of the government to support the industry financial produced no positive results.
Amidst these economic challenges Rudd has taken the leadership role. His claim to oust Gillard was not to let Abbot rule Australia. But unless voters see concrete plans to address these and many other critical issues, leadership change is unlikely to make upheaval in the way people vote.