‘The dilemmas and paradoxes of public bodies performing commercial tasks’: The rhetoric of rationality and the rejection of traditional labor philosophy on the role of the state.

Abstract

Traditionally a commitment to an active public sector has been a centrepiece of Labor's official thinking. Rhetorical conflict between Labor and non‐Labor has always focused upon the role of the State. The most recent instance of this was the debate between Labor and non‐Labor over the Fraser Government's Review of Commonwealth Functions (commonly known as the ‘Razor Gang'). Traditions have been changing and developing on both sides. The changes made by E. G. Whitlam have been widely discussed. Three years and as many months after the election of the first Hawke Government Labor traditions themselves are being rewritten. In this paper I shall use the policy area of the function and administration of public sector enterprises in order to demonstrate the depth and significance of this change. It has been said also that the Hawke Government has reduced politics to pronouncements from the Kirribilli Cabinet and non‐productive factional squabbling. The ‘fourth graders’ of the Hawke Government, which apparently includes members of the outer Cabinet as well as the backbenchers, have been excluded from the policy‐making process. This is notwithstanding the firm intentions of the Report of Task Force on Government Administration. The public sector area can be used to demonstrate shifts along four axes, (i) Significant frontbenchers have been bent upon changing the rhetoric, so that the activities of public sector enterprises are assessed in terms like ‘efficiency’ and ‘dollar rationality’. Change in rhetoric is part of a wider tendency to reject appeals to traditional Labor imagery (such as equality, welfare, the public sector as a good in its own right and other social as opposed to economic goals). (ii) This, in turn, is related to a rejection of the traditional Labor practices whereby the Labor Party Platform (which could broadly be seen as a pro‐public enterprise document) is no longer seen by significant members of the Labor front‐bench as the most important guide to policy, (iii) Other sources of policy have become more salient, in the case of public sector enterprises, the rhetoric and ideas of the Department of Finance have become prominent (iv) The changing tone of the rhetoric has reflected to a small extent changes being made to official party theology as expressed in the Party Platform. Key individuals have successfully opposed left‐wing challenges to maintain and to shore up the role of the public sector and of public sector enterprises. To the extent that the Platform will retain its traditional symbolic role these activities are significant. Policy‐making has been about domination from above and the ‘crowding out’ of traditional ideas and their sources. Control, however, has not always been successful. Sources of objection have included the Left Faction of Caucus, key Ministerial Departments (viz. Transport and Communications) dealing with public sector enterprises, and the Ministers themselves.