Albanese and Chalmers must fix Labor’s poor reputation for fiscal skill

Jim Chalmers, left, and Anthony Albanese. Picture: AAP

The fallout from the Whitlam government’s abject failure to handle the national till is being felt to this day.

After spending more than two decades in Opposition, Labor, in 1972, had no concept of proper budgeting.

Treasurer Jim Cairns’ heart was in the right place but he possessed not one ounce of fiscal responsibility. He believed that by adding up the “asks” of his ministers he could fulfil his duty to put together a budget. He might have been more exciting than his predecessor Frank Crean, but for a government clearly struggling to cope, he was a disaster.

Bill Hayden was brought in to salvage something from the wreck. He did his best to shroud his government’s mess but it was too late.

To this day Labor suffers its awful reputation as a reckless, undisciplined and fiscally irresponsible bunch.

Former Labor treasurer Jim Cairns.

It is just as well that Anthony Albanese chose Jim Chalmers to be shadow Treasurer. Chalmers has one skill so many politicians lack: he can condense a complicated message into the language of ordinary people.

To win government, Labor must cast off this reputation of financial incompetence and look like it can govern and spend wisely. Therein lies one big problem: you cannot convince people that you have learned your lessons about the evils of big spending without revealing large chunks of your program.

Releasing policies too early is risky. At the height of the campaign it may look like you have little or nothing to say and you give the Opposition time to pick your policies apart.

What makes Labor’s task even harder is that Morrison is still a manager and has no interest in becoming a reformer. At the present time there is no sense of the mob being upset or angry. They are definitely not lining up with baseball bats to whack the government.

Meanwhile Albanese continues to show us how sharp he really is. His line this week on the $60bn mistake — “You could see that one from space” — was brilliant. He won’t go away. He may only be snapping at your heels but that’s because he is waiting to grab something far more sensitive. As the election draws nearer, like the true warrior he is, he will give or take no quarter.

Around the country politics is in a state of flux. The state governments look strong and hard to beat. In NSW, Queensland and Western Australia the premiers look pretty safe.

Since the days of Don Dunstan, I have always looked upon South Australia as a Labor State, but Steven Marshall seems well ensconced for now and looks set to rule for some time.

The mainland states seem to be doing reasonably well, with stamp duty coming through steadily if not spectacularly.

It would be an exaggeration to say governments are awash with money because the coronavirus did not even peak anywhere near the level predicted. They do, however, have some additional cash and it will be interesting to see what they do with it.

Distributing largesse never does governments any harm. You can bet they will be splashing the cash with abandon.