Editorial: Union deal ruins ALP ambitions

LABOR’S effortless run to power may be faltering. Midyear, some in Labor were already so confident of winning the next federal election they were openly bragging about it. But lately matters have begun to shift.

LABOR’S effortless run to power may be faltering. Midyear, some in Labor were already so confident of winning the next federal election they were openly bragging about it.

“It’s almost a shame for democracy, the way the government is making it so easy for us,” one senior Labor staffer told The Daily Telegraph at the time.

But lately matters have begun to shift. The vote on same-sex marriage, long opposed by Labor and condemned as a ­suicide risk by Labor leader Bill Shorten, instead led to a successful Yes campaign.

Shorten then backed former senator Sam Dastyari well past the point of viability, with that sorry saga concluding with ­Dastyari’s resignation.

Bill Shorten currently has an image problem. It could damage his ambitions to lead the country. Picture: AAP Image/Lukas Coch

And last weekend’s Bennelong by-election resulted in the incumbent Liberal candidate John Alexander returning to Canberra despite a high-profile Labor nominee in former NSW premier Kristina Keneally and Shorten’s equally high-profile campaign appearances. Those appearances are now a sore point within Labor, with analysts claiming Shorten’s presence may actually have halted Labor’s momentum.

There are other simmering ­issues, such as the potential for several MPs to be forced into further by-elections over their own constitutional issues.

Above that, however, is Shorten’s image problem. Unlike Bob Hawke, who was seen as being above the union movement even while leading the ACTU, Shorten has never outgrown his union ties. He is still perceived as deeply attached to unions — a perception that will be deepened by Shorten’s proposed power-maintenance deal with the CFMEU and a bulk union muscle group, including the Maritime Union of Australia, the Rail Tram and Bus Union, the Financial Sector Union and the Health and Community Services Union.

Shorten may have backed former Senator Sam Dastyari for too long. Picture: AAP Image/Ben Rushton

Such a deal might well lock in Shorten’s Labor leadership. But it could seriously damage Shorten’s ambitions to lead the country, particularly because the deal in its current form would also guarantee safe Labor seats for union-backed candidates.

This would represent a return to the darkest days of Labor’s factional decision-making, with candidates selected not by merit but by numbers. It will be easy for Malcolm Turnbull to gain political traction from any ­entrenched arrangement between Shorten and the unions.

Captain’s picks must perform

LONDON’S predicted top temperatures for the next few days look a lot like an English Test innings: 11, 12, 10, 11, 12 and so on. Hopefully Canberra’s cruel winters have prepared former attorney-general George Brandis, who is leaving parliament to become Australia’s new high commissioner to the UK. In other cabinet changes, several little-known backbenchers are stepping up to fill important roles. Bridget McKenzie, David Littleproud and John McVeigh will have all summer to prepare for ministerial tasks. Their performances will reflect on Prime Minister Malcolm Turnbull’s ability to detect talent. A great deal is riding on this.

Credit crackdown overdue

Deregulation of the banking sector has led to many improvements — and many unforeseen downsides.

If you are one of the millions of Australians who have been badgered by your bank to ­increase your credit limit, you will know exactly what we are talking about. A crackdown on such practices was required and will now be delivered, with major banks to cease offering unsolicited credit boosts. Those boosts can seem helpful in the short term but too often lead to even greater levels of debt and ever-escalating repayments.

Major banks will no longer be able to hassle credit card customers with unsolicited offers to increase their credit limit as part of a sweeping crackdown. Picture: AFP Photo/Peter Parks

According to Australian Bankers Association chief executive Anna Bligh, the changes are positive as they are aimed at “making changes to processes, providing customers with more info and introducing higher standards for how banks serve their customers”.

“This new set of rules and ­behaviours will go a long way in addressing the expectations that Australians have of their banks,” Bligh said.

Well, yes. There is of course the small matter of those expectations not previously being addressed, but perhaps that should be set aside in the anticipation of a less predatory banking system.