Chasing the Norm

Australian academic and blogger on politics, international relations, and culture

What’s the pay off?

Rudd is a very clever man. Sometimes however he seems to outsmart himself. Take this latest machiavellian ploy to put Costello on the board of the Future Fund:

Govt defends Costello appointment
The Australian government is not about playing politics when it comes to the appointment of former politicians to senior positions, Resources Minister Martin Ferguson says.

Former treasurer Peter Costello is the latest Howard government minister to have been appointed to a senior position by the Rudd government.

The government announced on Sunday that Mr Costello will head the board of the Future Fund from December 18.

But his appointment by the Labor government has sparked criticism from former prime minister Paul Keating, who labelled Mr Costello as “a policy bum of the first order who squandered 11 years of economic opportunity”.

“The prime minister’s goodie two-shoes approach of appointing former opponents of the Labor Party to important public jobs is no substitute for thoughtful and mature reflection as to the public requirement of those positions,” the former prime minister told AAP on Sunday.

The Howard government was rightly criticized for its arrogant politicization of many key postings. Many good institutions were damaged because of the quality and contempt in choice for office holders. To that extent, Rudd’s choice of people such as Robert Hill and Tim Fisher is a welcome return to sense, and decent political advantage. Nelson’s gig in the EU is just a pay off, but there’s enough of those in politics to not make much of a fuss over. But what is Rudd thinking appointing Peter Costello to the Future Fund board ? It’s a bad idea for three reasons:

1. Rudd & Co opposed the FF when it began and still see it as a mistake (or a “solution in search of a problem” as it was infamously dubbed). Given the fleeing of cash from the Govt’s reserves and their desire for big infrastructure developments, they want a FF with as small a media presence as possible. Appointing Costello to the board just gives it a much bigger presence for the media. It becomes a veritable institution, a junior cousin to the Reserve Bank when it comes to financial policy, and all headed by one of their chief economic opponents of the past 15 years. And he’s going to be on it’s board powerfully arguing for an economic vision that not only disagrees with the Govt, but will take pleasure in spiting it.

2. Costello may have signed all sorts of non-disclosure statements, but an ego his size will never prevent him from participating in the debate. As readers of his memoirs will know intimately, politics is personal for Costello. His smirk was never about getting policy up, but putting people down. He may won’t be the chief voice for the FF, but everything he says on economics (such as in his now regular SMH column) will be parsed for commentary on how the FF views Rudd’s government. One word about Telstra shares going down (which hurts the FF slightly) and the story will be ‘Costello slams Rudd for imperiling superannuation/debt/nations future/sunshine and rainbows/’ etc etc. Far from censoring him, it gives Costello a bigger microphone than if he was just another private merchant banker (witness how Bob Carr was regularly and unfairly slammed for his Macquarie Bank links whilst advocating removing tariffs on books)

3. The public isn’t impressed, or even paying attention. It may please the hearts of a few media folk who once had crushes on Costello, but it won’t shift a single vote in the seats Rudd needs to win, and want’s to steal from Turnbull’s enfeebled grasp. Worse, it is just going to put off a lot of labor supporting types, both in the party and out who keep wondering why their side is so weak all the time. There’s nothing wrong with putting your people in key positions. They are your people because they agree with you on the big issues and so can act as substitutes for you. Unless Rudd has figured out a way to clone himself to run every position in Govt, he needs supporters in the key positions to help push his agenda forward. Putting in people like Costello just means you face far far more roadblocks than you should have. And for no political pay off, today’s story isn’t worth anything (esp given the good economic news of this morning).

So its not good politics or economics. Why on earth bother then? I sure hope this wasn’t dangled in front of him to encourage a by-election that the Libs are sure to win in Higgins, which will help Turnbull innumerably. Likewise thank goodness Costello said yes. If he had been offered and said no (and leaked) it would look like the Govt was desperate for his help and had to go begging. Sometimes just playing a straight bat is the most sensible of all politics. Even on those times you pull off the big tricks, the pay off isn’t always worth it.

Next post »