Labor’s gripped by midlife crisis with caucus split on policies

LABOR’S state caucus is split over the direction of the Andrews Government midway through its term, with some attacking the premier for focusing too much on Left-wing social issues.

Daniel Andrews holds a press conference after Jane Garrett resigns.

• Dan’s lost control, shock Vic poll reveals
• Law and order wake-up call for soft Dan
• Dan’s law and order poll hit
• Youths in adult jails no answer

LABOR’S state caucus is split over the direction of the Andrews Government midway through its term, with some attacking the premier for focusing too much on Left-wing social issues.

Senior figures say Premier Daniel Andrews must recalibrate and start to concentrate on “bread and butter” policies targeted at the party’s suburban and regional bases.

But Mr Andrews’ allies have defended the government’s social agenda, saying a choice has been made to “go hard and deliver as much as you can” rather than act cautiously.

After almost two years in office, Labor has been hit with a series of crises, including ministerial sackings or resignations, the CFA workplace agreement debacle, and the shredding of the East West Link, which wasted $1.2 billion spent on the project.

But it has also kickstarted infrastructure projects that have created jobs, and sold the Port of Melbourne lease to pay for roads and rail while delivering Budget surpluses.

One minister told the Herald Sun these issues were the issues voters wanted to know about, and that the victory of Donald Trump in the US is a timely reminder.

“Everyone is s----ing themselves because Trump won, but it’s just a matter of telling people what they want to hear,” the minister said.

“No one is focusing on equality in the outer suburbs. They care about paying their mortgage and bills.”

Victorian Opposition Leader Matthew Guy.

Firebrand UFU Victoria boss Peter Marshall.

Former emergency services minister Jane Garrett (left).

Steve Herbert quit after chauffeuring his dogs around the state.

No Sky Rail protesters gather in Edithvale.

A protester is arrested after outside a house in which squatters had settled.

Peter Mac Comprehensive Cancer Centre.

Another minister said that it was possible to “do two things at once”, but that with a broad agenda it was easy to get sidetracked.

One MP said the social agenda had gone “mad”, and it was time to “stop being Greens-focused” because that would see the rise of a Trump-like character.

“Then there’s the CFA issue still going. Some people are wondering if that’s ever going to end.”

But Housing, Disability and Equality Minister Martin Foley defended the government’s direction, saying governing was “all about choices” and that Labor wanted to help vulnerable groups.

“Take Safe Schools for instance. I know that program has been instrumental at bringing some kids back from some very dark places,” he said.

Critics of Safe Schools are uneasy about the program because they say it has become too much about ideology over anti-bullying messages.

One Labor MP admitted there was some internal concern about the focus on Safe Schools, amid concerns about being distracted from core issues. But another MP said, “We see ourselves as a socially progressive government that gets things done ... and it’s not like we can’t do both”.

Mr Foley said boosting spending on services and ­“shaping” markets was part of Labor’s agenda, but so was tackling social issues.

“The choice is you go hard and deliver as much as you can and then you take that back for the judgment of the people,” he said.

Ben Davis, state secretary of the Australian Workers’ Union, said the closure of the Hazelwood power station posed a significant challenge for the government, threatening businesses around the state, including the Alcoa smelter in Portland.

“Those who are so keen to see renewable energy come into place don’t understand that when you take out such a large lump of the grid, without having something reliable to replace it immediately, that puts a lot of pressure on our already under-pressure manufacturing sector, including Alcoa,” Mr Davis said.

Opposition Leader Matthew Guy accused the premier of failing to back the people of the Latrobe Valley, and also pointed to the CFA crisis and Sky Rail as times when he snubbed communities.

“In everything that Daniel Andrews does he picks his ­favourites and makes sure they win, no matter the ­consequences.”

“Daniel Andrews doesn’t care if he rips communities apart so long as he gets his way.”

A Labor MP also pointed to the end of the car industry in Victoria as a major challenge looming over the next two years.

Police Minister Lisa Neville said she believed Mr Andrews was willing to intervene where necessary, and has “understood the levers government have to drive jobs and economic benefits”.

Labor has been slammed for its law and order efforts, but Ms Neville said the premier was aware of “what we need to do to tackle crime”, and to  “ensure those who are causing fear and harm are held to account”.

Monash University political scientist Dr Nick Economou said the government had “a few accidents along the way”, but fundamentals, such as the economy, were sound.

Dr Economou said the government had “really struggled to deal” with the CFA dispute and that the subsequent resignation of former emergency services minister Jane Garrett had been “the most dramatic and potentially threatening” moment in the government’s first two years.

The government also lost Adem Somyurek from Cabinet, which Dr Economou said stoked internal factions tensions, while Steve Herbert recently quit after chauffeuring his dogs around the state.

A senior Labor source said the government now needed to resolve the CFA dispute “but there was still time to do that”.

Earlier this year, Mr Andrews met with firebrand UFU boss Peter Marshall, and the government suddenly capitulated to the union’s demands in relation to their EBA.

Up to that point, the government had been critical of some key conditions, saying they were unworkable.

“In two years, is the CFA dispute still going to be an issue in Melbourne? No,” the source said.

“Is it still going to be an issue in the regions where we need to win seats to offset losses against the Greens? Yes.”

One Labor MP said, while the party had to “fight for every seat”, the Premier knew he couldn’t stray too far from base issues.

“He needs to temper people who want to run a big Left-wing agenda. That’s not what the majority of Victorians who voted us in want,” the MP said.

“If we are getting the basics right then there’s things that can be done, but it can’t be the main game.”

DAN’S FIRST TWO YEARS: THE REPORT CARD

WINS

Budget surplus

$2.7 billion surplus forecast in last year’s Budget on back of extra $901 million in land and stamp duty taxes. Treasurer Tim Pallas says Victoria should be $2.9 billion in black this financial year. But expenses are rising fast. Port of Melbourne sale has helped bottom line.

 

Unemployment

Unemployment rate has dropped to 5.7 per cent, well below November 2014 figure of 6.8 per cent. More than 184,000 new jobs have been created, including 93,200 fulltime positions. Over the past year, Victoria is the only state to record an increase in fulltime jobs.

 

The port lease

A whopping $9.7 billion has been secured for the 50-year lease of the Port of Melbourne after early forecasts suggested Victoria would make
$5-7 billion. The premier says money will be ploughed into his signature level-crossing removal program and other infrastructure.

 

Royal Commission into Family Violence

The inquiry has come up with 227 recommendations to tackle the scourge, with all accepted by the government. This year’s Budget had a $572 million package to start on 65 recommendations, including shelters for women and extra child protection services.

 

LOSSES

Crime and youth justice

Victoria has been experiencing a youth crime wave, with teen burglary rates almost tripling in the past year. The violent Apex gang has also emerged. New laws are promised, but there are concerns the government is not tough enough on crime.

 

CFA/MFB crisis

The pay deal dispute has rocked the CFA and MFB and caused the resignation of senior management, as well as emergency services minister Jane Garrett. Until April, the government backed the CFA, but after Daniel Andrews met with United Firefighters Union boss Peter Marshall, the government caved to the union’s demands. Volunteers are furious.

 

Peter Mac Private

A deal for the Victorian Comprehensive Cancer Centre to include private beds on the 13th floor was dumped by Daniel Andrews, costing the Peter MacCallum Cancer Foundation $40 million in donations. Critics have slammed the move as an ideological decision.

 

Cabinet

The premier has lost three ministers in two years. Adem Somyurek’s supporters say he was a victim of a factional hit, Jane Garrett quit rather than force through an EBA she thought was bad for fire services, and Steve Herbert was forced to resign after ordering his driver to chauffeur his pet dogs in a taxpayer-funded car. Voters see chaos and dysfunction.

 

Rorts

Whistleblowers revealed Labor MPs rorted parliamentary budgets to pay for staff who campaigned for the ALP in the lead-up to the 2014 election. The crisis saw Ombudsman Deborah Glass called in, but the government is now trying to stop her investigation.

 

Union power

Unions have been handed massive pay rises, well above inflation. The government says it is rewarding workers, but critics say it is unsustainable and a pay-off for political support.

 

East West Link

Daniel Andrews dumped the toll road contract when he won power, wasting more than $1.2 billion. Meanwhile, houses left empty after acquisitions and promised to vulnerable families were taken over by squatters.

 

Safe Schools

The government-funded Safe Schools program is designed to promote inclusiveness for “same-sex attracted, intersex and gender diverse” students, but critics say it has gone too far and is indoctrinating children in sexual identity politics under the pretence of a bullying program.

 

Desalination plant

Water has been ordered from the Wonthaggi plant when storages are almost two thirds full, at a cost of $27 million to be passed on to water bills. That comes on top of massive repayments for the plant. Spring rains have increased storages since the March order.

 

Hazelwood

In a massive blow to the Latrobe Valley community, majority-owner Engie has announced it will close the coal-fired power station in March, shedding hundreds of jobs. The government, which had increased coal royalties and increased its renewable energy target, has promised more than $266 million for the region.

 

JURY’S OUT

Melbourne Metro Tunnel

Work on the new rail link under the CBD, one of the biggest public transport projects since the City Loop, has begun. But questions over costs remain, despite the government saying it can fully fund it.

 

Level crossings and sky rail

The government’s signature policy of removing 50 level crossings is well advanced, with seven gone already, and work on another 30 to be finished or in progress by the end of 2018. But the shock Sky Rail solution for the Cranbourne-Pakenham line and prospect of elevated rail on the Frankston line has angered residents.

 

Rate-capping

Under one the government’s most popular policies, councils have been forced to justify rate hikes above a cap set by the government. But the cap has been set higher than the promised CPI and several councils have won exemptions.

 

Western Distributor

The government’s major road project provides a second river crossing to make up for the scrapped East West Link. But questions have been raised over the funding arrangements with Transurban.

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