Bob Hawke: His economic legacy
Former Prime Minister, union boss and potentially “the greatest Australian of the post-war era”, Bob Hawke has died at age 89.
Described as “Labor’s greatest son” by opposition leader Bill Shorten on Thursday, Hawke is credited with revolutionising Australian politics, workplaces and economy at the same time.
In a statement, Hawke’s wife Blanche D’Alpuget described him as possibly “the greatest Australian of the post-war era”.
Remembered largely as the loveable larrikin who could skoll 2.5 pints of beer in 11 seconds, and who famously said on Australia’s 1983 America’s Cup victory “Any boss who sacks anyone for not turning up today is a bum”, Hawke is also known for floating the Australian dollar, launching Medicare and overhauling how politicians, unions and businesses engaged with each other.
Floating the Australian dollar and deregulating the financial system
Hawke and then-Treasurer Paul Keating established reforms designed to open Australia’s economy up to the world, focusing largely on Asia, with Hawke embracing the “Asian Century”.
Part of these reforms was a decision to float the Aussie dollar and deregulate the financial system.
In an era when other leftist parties were pretty isolationist, Hawke led Labor to engage with the world. When I interviewed him for an article on the reforms, he said scrapping protectionism was a vital part of being an internationalist https://t.co/gPVFuYyhej #RIPHawkey #auspol pic.twitter.com/GIQqTwzOsM
— Andrew Leigh (@ALeighMP) May 16, 2019
Hawke also privatised some previously publicly owned institutions, including Qantas and the Commonwealth Bank.
Industrial relations accord with the unions
In an open letter this week, Hawke endorsed Shorten’s campaign citing his union background as a strength.
"While Bill's political opponents argue his trade union background is a liability for a future prime minister, I consider it an asset, as it was for me,” Hawke wrote.
R.I.P Bob Hawke. A great Labor Prime Minister. A great Australian.
“A working class hero is something to be” pic.twitter.com/cBGMKQxTPx— Jimmy Barnes (@JimmyBarnes) May 16, 2019
"It gives him the experience to achieve consensus with business, unions and community-based organisations for the challengers that lie ahead."
Shorten was the Victorian secretary of the Australian Workers Union prior to entering politics, while Hawke was the president of the ACTU (Australian Council of Trade Unions) before he also entered politics.
In his time as Prime Minister, Hawke was passionate about workers’ rights but struck an industrial relations agreement with unions through a consensus in 1983.
The Prices and Incomes Accord meant unions agreed to restrict their wage demands in exchange for a government promise to minimise inflation and boost family payments and child care.
The first Accord saw all workers receive a 4.3 per cent pay rise in September 1983, and two more pay rises over the initial three-year period.
Bringing superannuation to all workers
Hawke introduced universal compulsory superannuation in his final budget in August 1991. This was brought into law during Paul Keating’s government in 1992.
When Hawke came to power in 1983, around half of Australian employees had superannuation. By 1989, around 65 per cent of workers were receiving 3 per cent of their wages as super.
Vale Bob Hawke. Giant of the labour movement and economic moderniser. A genuine one off who established a special bond with his fellow Australians. Condolences to Blanche and his wider family.
— Arthur Sinodinos AO (@A_Sinodinos) May 16, 2019
However, the 1991 budget delivered by then-treasurer John Kerin announced that from 1 July 1992, all employers would be required to make superannuation contributions on their employees’ behalf.
This was the birth of the Superannuation Guarantee.
Legislating against gender discrimination in the workplace
“Women of Australia, be grateful for what Bob Hawke did,” education minister under Hawke, and Labor’s first female minister, Susan Ryan wrote Friday in an editorial for The Guardian.
When Hawke came to power, employers could legally sack women who became pregnant or married, or even just for being female. Maternity leave was often unavailable and women were unable to access home loans.
Hawke’s government established the Sex Discrimination Act 1984 which protected women against discrimination in the workplace, and launched laws requiring absent fathers make child support payments.
Medicare
Perhaps his crowning achievement, this is a legacy that lives on in most Australians' wallets: their Medicare cards.
Introduced on 1 February 1984, Medicare introduced universal health coverage for all Australians.
“With this historic initiative, all Australians now have a new, simpler and fairer health insurance system,” Hawke said at the time.
From Bill Shorten: Every Australian carries a monument to Bob Hawke with them, their Medicare card. A green-and-gold promise that the health of any one of us, matters to all of us.
— Dee Madigan (@deemadigan) May 16, 2019
The Gough Whitlam government first introduced Medicare as Medibank in 1975, which was then modified by the Fraser government which introduced a 2.5 per cent income levy to fund it. Australians could choose to take out private insurance instead of paying the levy.
Medicare was more or less a return to Whitlam’s vision for Medibank and saw the Hawke government overturn most of the changes to Medicare that had occurred since the Whitlam era. It was named Medicare so as to avoid confusion with Medibank Private.
Speaking today, the president of the Doctors Reform Society, Dr Tim Woodruff said Hawke represented a commitment to “a fair go”.
“He brought back our public health insurance scheme originally introduced by Gough Whitlam’s Government and subsequently repealed by Malcolm Fraser’s Government,” Woodruff said.
“Hawke then entrenched it in the Australian psyche such that those who dare to threaten Medicare dare to lose the Australian electorate.”
Improving access to education
As Blanche D’Alpuget noted in her statement last night, one of Hawke’s “proudest achievements” was the increase in number of Australian children finishing high school.
As Australia mourns the passing of its 23rd PM (1983-91), Robert (Bob) James Lee Hawke, we would like to pay our respects to a charismatic leader who provided a lifetime of service to Australia. #Qldstateschools will be flying their flags at half-mast today. #RIPHawkey pic.twitter.com/gr8WULXmwD
— Queensland Department of Education (@QLDEducation) May 16, 2019
The Hawke-Keating government saw more funds directed to schools, and steps taken to improve access to education for indigenous Australians.
This equated to a 136 per cent increase in funding per student for government schools, and 71 per cent for non-government schools. When Hawke came to office only 30 per cent of Australian children completed high school, but when he left that number had soared to 70 per cent, as financial assistance to low-income families was rolled out.
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