cut red tape to unleash prosperity

The unions and the government “are driving me and other truck drivers out of business. Craig Prosser ” Pross Haulage, Murray Bridge, South Australia

Every year businesses spend thousands of hours complying with unnecessary reports, confusing permits, and needless licenses.

Every minute employees spend pandering to red tape requirements is a minute those employees are not dedicating to their businesses and economic activity.

Red tape costs the Australian economy $176 billion. To unleash prosperity, governments need to reduce the red tape burden on businesses and entrepreneurs.

TELL US YOUR RED TAPE STORIES AT www.ipacutredtape.org.au Volume 68 I 3 FROM THE EDITOR R Progress on the fight to repeal 18C

18C entirely. This is hardly a radical post has been going on for three and position. Conduct that intimidates or a half years. Wood and others have CHRIS BERG (to a lesser extent) humiliates a person been accused of violating 18C. Their Editor of the IPA Review is already amply prohibited by other case is currently with the Federal state and federal laws—regardless Circuit Court, which is due to rule olicy change doesn’t happen of whether that intimidation or whether the case should be taken to overnight. Supporters of humiliation has some ethnic or racial trial. The court may decide that the freedom of speech were basis. Once the egregious 'offend' and QUT students do not have a case to Ppalpably disappointed that 'insult' are removed from the Racial answer. But this is hardly the point. the Abbott government abandoned Discrimination Act, 18C is redundant As Morgan Begg writes, the process its promise to repeal section 18C of and can be repealed comfortably. is the punishment. Even before it has the Racial Discrimination Act in Nevertheless, it is the amendment concluded, the QUT case is a travesty August 2014—branding it a 'needless bill, rather than the full repeal bill, which of justice, and an unambiguous complication'. In retrospect it is is most prospective, in large part because demonstration of the harm of 18C. clear that the Abbott government’s it is supported by so many on the left. The defenders of 18C often approach to free speech reform was ask what opponents of 18C would misconceived. But two years later, not THERE IS GOOD like to say that they are prevented only is the cause of free speech still REASON TO BELIEVE from saying. The QUT case alive, it has momentum. > THAT THE PUBLIC IS answers that question and raises As the IPA's Morgan Begg writes SWINGING BEHIND another in response. Is dragging in this issue, three significant events REFORM, ESPECIALLY a group of students through the give reason to think that the path to IN THE LIGHT OF THE courts for three years for making a reform is opening up. The first was QUT CASE. political statement—'QUT stopping the virtually unprecedented show of segregation with segregation'—really support for Senator Cory Bernardi’s Policy change cannot proceed without an example of 18C working well? Notice of Motion that he was going compromise, and in this we have Finally, there is good reason to to reintroduce a private member's bill a compromise position that will believe that the public is swinging to amend 18C that had lapsed at the genuinely remove one of the most behind reform, especially in the light 2016 federal election. The bill—first meaningful restrictions on free speech of the QUT case. An Essential poll introduced by Family First Senator Bob in Australia. published in September this year Day in September 2014—removes the The second event hardly can be found that 45 per cent of Australians words 'offend' and 'insult' from 18C. described as an 'event' at all, as it has approved of the proposal to remove In the last parliament the bill had been dragged out to a farcical extent. offend and insult from 18C while a handful of supporters. But in this In May 2013 an engineering student at leaving humiliate and intimidate parliament, 20 Senators co-signed Queensland University of Technology in place, including 56 per cent of Bernardi’s Notice of Motion— named Alex Wood, and two other Coalition voters. Just 35 per cent including the new senators Derryn students, entered a computer lab at opposed the proposal. It is hard not to Hinch and the One Nation group. The that university and began to study. conclude that 18C is on its last legs. R full Coalition Senate backbench have They were confronted and told that committed to supporting the bill. the lab in question was reserved for Of course, 18C should be abolished indigenous students. The students Note: As this edition of IPA Review was outright, not merely amended. The then left. Wood subsequently posted going to print, it was revealed on 15 Oct 2016 that the Australian Human Rights Commision Bernardi / Day bill would mean that on an unofficial Facebook group for had received and will investigate a complaint it was still unlawful to 'humiliate' or QUT students that he had: 'Just got against Bill Leak for his cartoon on personal 'intimidate' someone on the basis kicked out of the unsigned indigenous responsibility in the Indigenous community, of their racial, ethnic or national computer room. QUT stopping published in The Australian on 4 August 2016. origins. David Leyonhjelm, the Liberal segregation with segregation'. The IPA Review will have more coverage of Democrat senator from New South As I write this in October 2016, this in the next edition. Wales, has a bill which would repeal the legal fallout of that Facebook

NOVEMBER 2016 | IPA Review 1 Editor-in-Chief: Chris Berg Executive Director: John Roskam Printed by: Printgraphics Contents Published by: Institute of Public Affairs Ltd (Incorporated in the ACT) 1 EDITORIAL 4 THE LATEST FROM THE IPA 68 STRANGE TIMES ACN 008 627 727 CHRIS BERG JAMES BOLT Level 2, 410 Collins Street, Melbourne Victoria 3000. Phone: (03) 9600 4744 Fax: (03) 9602 4989 Email: [email protected] FEATURED Editorial Design: Charles Elena Design charleselena.com.au TOXIC LOSING FAITH Reproduction: 10 34 The IPA welcomes The Australian Church has a lot to reproduction of written GREENS learn from their Polish counterparts. material from the How green lawfare is strangling IPA Review, but for FR JAMES GRANT & MORGAN BEGG copyright reasons the Australia with red tape. editor’s permission must first be sought. DARCY ALLEN & DANIEL WILD A LICENCE Views expressed in this 40 publication are those of the authors and do not TO NANNY necessarily reflect the THROTTLING Dangerous notions of ‘social licence’ views of the Institute of 16 destroyed NSW’s greyhound racing Public Affairs. SUPER industry, but Evan Mulholland fears For all the latest news and information, visit us The bipartisan attack on our worse is to come. online at: superannuation system puts EVAN MULHOLLAND www.ipa.org.au Australians' retirement savings at risk. BRETT HOGAN THE HIGH 42 COST OF 20 AUSTRALIA'S POPULISM TAX Populist politics brings with it threats to the trade and deregulation that MUTINEERS has made us prosperous. From the Rum Rebellion to the GEORGINA DOWNER ill-fated mining tax, Australians have a long and proud history of fighting WILL OF unfair taxes. 46  MATTHEW LESH THE PEOPLE History is repeating itself in Britain as the nation’s intelligentsia do their best YOUR DINNER to stifle democracy. 28 BELLA D’ABRERA PARTY SURVIVAL 52 TAMING GUIDE THE FINAL Climate change might be a taboo FRONTIER topic, but Jennifer Marohasy suggests Property rights in outer space will putting the facts about ocean give humans incentive to explore acidification on the table. our skies again. JENNIFER MAROHASY PETER GREGORY Pictured: the Cube building at QUT

The repeal of section 18C STRANGE TIMES JAMES BOLT 6 When it comes to freedom of speech, the process is the punishment. MORGAN BEGG

BOOKS AND ARTS WAR'S END REVOLUTIONARY 56 A new book shines a light on Australia’s pivotal 64 role in the final days of the First World War. HUMOUR Pop culture meets America’s most loved revolutionary RICHARD ALLSOP war hero in a new book on the life of Lafayette. JAMES BOLT 58 MYTH BUSTING Thomas Sowell uncovers the flawed assumptions on the CREATIVE causes of poverty and inequality. 66  JOHN HAJEK DESTRUCTION A new book predicts a future where city buildings and spaces can evolve to meet change. PRIVATE ORDER STUART EATON 62 The history of private governance offers a glimpse into a world of social and economic freedom. DARCY ALLEN THE LATEST FROM THE

IPATo see more of the IPA’s publications go to www.ipa.org.au

IPA EVENTS

In August 2016, Brendan O'Neill, editor of Spiked Online, toured Australia with the Institute of Public Affairs to talk about freedom of speech, the Enlightenment and the divide between the elites and the rest. As well as speaking at functions in Sydney, Brisbane, Canberra and the Gold Coast, O'Neill appeared on ABC TV's Q&A program, The Bolt Report and on campus at the University of Queensland with the IPA's Generation Liberty program.

4 IPA Review | ipa.org.au Volume 68 I 3 THE LATEST FROM THE IPA R IN CONVERSATION WITH BRENDAN O'NEILL RACE HAS NO More than 500 people across Australia saw Brendan PLACEO'Neill when he toured the nation with the IPA. For Thethose IPA who has missedreleased thisout—or short for those who can't get bookletenough—the to IPA's Simon Breheny sat down with Brendan for a conversation on the future of freedom,

free to watch on the IPA's YouTube channel. Watch at https://youtu.be/iAfwSU9VbD4

IPA RESEARCH

RED TAPE IS STRANGLING StranglingTHE GOOSE NATION’S PRIMARY INDUSTRIES WITH THE Jobs and businesses bear the brunt of the trend for ever more rules and regulations DANIEL WILD The Palaszczuk government’s Thirdly, land clearing has remote risk. The Queensland licences, permits and approv- GOLDEN EGG proposed changes to native been anything but a free-for- Dairyfarmers’ Organ isation als from federal, state and vegetation laws demonstrate all. Even Schneiders’ own es- noted that information pro- local governments. how Australia’s economic timate of one million hectares vided by departmental officers And it has taken more than growth and prosperity is be- of clearing represents only a has often been found to be six years and a billion dollars Why we need to cut superannuation ing held back by red tape. tiny proportion of the total incorrect. for Adani to get approval for Changes to native vege- agricultural land in the state. Additionally, the onus of its central Queensland coalm- taxes on Middle Australia tation laws introduced by In fact, this equates to just a proof would be reversed. ine — and that development the Newman government in 0.6 per cent increase in agri- Landowners would not be still might not even go ahead. 2013 encouraged agricultural cultural use because of land entitled to compensation The Institute of Public Rebecca Weisser production by allowing land clearing. And even this is an should their land value plum- Affairs has calculated that in collaboration with Henry Ergas clearing on private property overstatement: a share of that met. And the changes will be red tape costs the Australian according to requirements clearing would have taken retrospective. economy $176bn a year in outlined in self assessable place under previous laws. Unfortunately, landholders forgone economic output — codes. These codes specify in Fourthly, in 2013 the all across the country are sim- equivalent to 11 per cent of September 2016 great detail how land clearing Queensland government set a ilarly affected by bad red tape. G D P. is to be managed to mini- target of doubling agricultural The draft Productivity Com- Reducing this imposition CODE RED: Fair Work and the mise negative environmental production by 2040. It is in- mission report into regulation must be central to any plan to effects. conceivable that this would be of agriculture, released on July spur growth and restore our Lyndon Schneiders, the achieved through productivity 29, made this clear by high- nation’s finances. Wilderness Society national improvements alone. More lighting the array of complex, By now, the only realistic long march of the unions through campaign director, claims land needs to be developed if duplicative and inconsistent option to repair the federal these changes led to the the Palaszczuk government is red tape requirements on the budget is to boost the econo- decimation of Queensland’s to meet this target. sector. my with a comprehensive and biodiversity. This claim is Finally, not once does Nor is agriculture the only revitalised red tape reduction our emergency services institutions wrong and lacks context. Schneiders reference agribusi- sector struggling with the program. Firstly, there are still rules nesses, jobs or communities. red tape burden. Austra- Cutting spending is governing native vegetation The agriculture sector in lian prosperity is built on effectively off the table. And clearing. About 15 codes of Queensland employs 65,500 primary industries but state raising taxes would further conduct specify precisely what people in 30,500 busi nesses, and federal governments are hamper growth and job Gideon Rozner can be undertaken during contributing more than $10 loading them up with exces- creation. land clearing. While these billion to the state economy sive, unnecessary and often There are no silver bullets Adjunct Fellow codes are self- assessed, they each year. What will happen counter-productive rules and in economic reform. But there carry significant bite: failure to these workers and busi- regulations. are certainties. Cutting red to comply could put a farmer nesses under the Palaszczuk Just last week one of Aus- tape to allow businesses to Aaron Lane in jail for up to five years. changes? Schneiders doesn’t tralia’s largest potential urani- develop our natural resources Secondly, the clearing done say. Perhaps they don’t count. um mines, the Yeelirrie mine and create jobs will stimulate Legal Fellow so far has barely affected And it gets even worse. located in Western Australia, growth, which is the only way endangered or threatened Under the proposed laws, if was blocked because of the we will ever repair the budget. species. That land has much a farmer follows government effect it could have on blind, higher social value when used advice and clears land, but microscopic desert prawns Daniel Wild is a research fellow for production. the advice is later found to that are just 0.3mm in size. with the Institute of Public Affairs. October, 2016 An Institute of Public Affairs be wrong, the farmer could Constructing the Roy Hill Research Essay be held liable. This is not a iron ore mine required 4147 www.ipa.org.au

HOW UNIONS STRANGLING CUTTING HURT OUR SUPER ENVIRONMENTAL EMERGENCY REBECCA WEISSER RED TAPE IN COLLABORATION WITH SERVICES HENRY ERGAS The IPA has been researching the GIDEON ROZNER heavy red tape burden of native AND AARON LANE Almost a quarter of a century after vegetation laws since the 1990s. the introduction of compulsory The entreprise bargaining agreement When the Queensland Palaszczuk superannuation, four out of five government proposed to increase between Victoria's Country Fire Australians face not having enough Authority and the United Firefighters controls on native vegetation, the IPA savings to fully fund their retirement. identified the heavy costs that would Union was a major political issue Yet rather than identify new ways to during the 2016 federal election. But impose on Queensland agriculture. encourage people to put more money The IPA produced a submission to this debate was just a window into into their retirement accounts, the the broader problems with Australia's the Queensland government, a video, bipartisan approach of national policy and was cited throughout the state anachronistic industrial relations makers is to treat this $2 trillion worth regime. and national press. The legislation was of private funds as just another source defeated in parliament in August. of taxation revenue.

NOVEMBER 2016 | IPA Review 5 THE REPEAL OF SECTION 18C When it comes to freedom of speech, the process is the punishment, writes Morgan Begg. SECTION 18C R

freedom, the individual and the market'. Arguably, the Turnbull MORGAN BEGG government up to this point cannot Research Fellow at the Institute of Public Affairs claim to have been 'thoroughly liberal' in most policy areas, but in particular, it has poured cold water he tide has well and truly on the suggestion that section 18C turned in the free speech reform would be back the agenda. debate. In the space The only hope for free speech T of just 12 months, the supporters was in the form of a momentum is now undeniably in private member’s bill in the Senate favour of reforming section 18C of put forward by Family First Senator the Racial Discrimination Act. Bob Day in September 2014. The bill, At the start of 2016, supporters which proposed to remove the words of freedom of speech would be 'offend' and 'insult' from section forgiven for being quite pessimistic 18C and initially enjoyed the public at the prospect of reforming section support of Liberal senators Cory 18C, which makes it unlawful to do Bernardi and Dean Smith and Liberal an act that causes offence, insult, Democrat Senator David Leyonhjelm, intimidation or harassment because could only rely on the support of of race. approximately a dozen senators prior

Alex Wood's Facebook comment dated 28 May 2013 as tendered in court

The Abbott government’s 2013 to the 2016 federal election in June. election promise to repeal section Post-election, the free speech 18C in its entirety was sound debate has completely flipped. A then and remains sound now. number of significant events have The prohibitions on offensive and highlighted how the debate has insulting speech reduce the law to a changed, and explain why the signs protection of hurt feelings, and the are so encouraging for free speech prohibitions on intimidation and supporters. harassment are covered by a plethora of state laws regardless of any racial THE QUT CASE motivation. The Abbott government’s The most important development is decision in August 2014 to abandon not a political development, but an this promise not only hastened indefensible example of 18C at work. Abbott’s downfall as Prime Minister A baseless complaint against several 13 months later, it also stalled the university students in Queensland movement to reform the restrictive has led to a farcical three-and- law. His successor Malcolm Turnbull a-half-year saga and a claim for announced that the government he approximately $250,000 in damages. was to lead would be 'a thoroughly This complaint arises from liberal government committed to an incident in May 2013, when

NOVEMBER 2016 | IPA Review 7 R SECTION 18C Volume 68 I 3

The IPA's Simon Breheny visiting the Oodgeroo Unit at QUT | How 18C is corrupting our legal rights, https://youtu.be/o9BodyOtpPA

several students at the Queensland comments that brought another in the guise of a process. University of Technology made student, Jackson Powell, into Prior’s comments on an unofficial student- complaint are, in context, obviously THE PROCESS IS THE run Facebook page. The comments sarcastic: 'I wonder where the white PUNISHMENT were made in relation to the eviction supremacist computer lab is'; '… it’s of 20-year-old engineering student white supremacist, get it right. We In May 2014, almost a full year Alex Wood and two other students don’t like to affiliate with those hill- after Wood and the other students from the QUT’s 'Oodgeroo Unit', a billies'; and after another student said were evicted from the Oodgeroo QUT space on campus reserved for 'We need a room strictly for white Unit, Prior lodged a complaint indigenous students. males, so i can wear my fedora and with the Australian Human Rights The students left the lab and, wallet chain without being mocked. Commission against the students soon after, Alex Wood posted on I’m being oppressed here!' Powell under section 18C. Even then, it Facebook page 'QUT Stalkerspace': said '… today’s your lucky day, join was not until July 2015—14 months 'Just got kicked out of the unsigned the white supremacist group and after the complaint was lodged— indigenous computer room. we’ll take care of your every need'. that the students were informed of QUT stopping segregation with Another student, Chris Lee, allegedly the complaint made against them. segregation…?'. made a quip about 'casual racism'. Settlement discussions took place For that comment alone, Wood The comment attributed to education between Prior and QUT, but the became the subject of a long-running student Calum Thwaites came from a students were not invited, with complaint under section 18C by fake account bearing his name. documents filed with the Federal the staff member who evicted While many of the comments Circuit Court suggesting this was him, Cynthia Prior. The complaint were crude, they were clearly little at the request of the solicitors against other students was on the more than banter between university representing Prior. basis of patently sarcastic or satirical students that the government has no In June 2015—as the students were comments. business policing. But what followed still unaware of the complaint—the For instance, the specific can only be described as punishment Commission organised a 'conciliation

8 IPA Review | ipa.org.au Volume 68 I 3 SECTION 18C R

conference' between the parties listed Senate backbench, senators Day and protect people's dignity against on the complaint for 3 August. The Leyonhjelm and the newly elected assault ... However, I do not students were told of the conference crossbench senators Derryn Hinch believe that it should be the aim in an email dated 27 July, less than a and all four members of Pauline of these laws to prevent people week before it was scheduled to occur. Hanson’s One Nation Party. from being offended. Protecting On such short notice, several students The Bernardi amendments would people's feelings against offence were overseas and unable to attend, remove the most restrictive elements is not an appropriate objective and only two attended. of section 18C, and have the highest of the law. Despite this, the Commission possibility of successfully passing effectively concluded dispute through federal parliament. The QUT case is a case study in resolution that day. With only two of A key reason for this is because why, as Professor Waldron argues the seven students then listed on the conceptually, protection from and as Chief Justice French alludes, complaint in attendance, the delegate offensive speech is not widely protecting merely being offended is of the President of the Commission accepted as a legitimate part of racial an inappropriate part of any legal was 'satisfied that there [was] no discrimination laws. In a speech to system. reasonable prospect of the matter the Samuel Griffith Society in August being settled by conciliation' and 2016, current Chief Justice of the High GROWING SUPPORT FOR formally concluded the complaint Court Robert French noted there 'is CHANGE in a letter to the students dated 25 no generally accepted human right not August. It is not clear how such to be offended' and that even if there There are signs that the public a conclusion could be reached were 'the law alone cannot protect us support reform. A Neilson poll when most students listed were not from being offended.' published in Fairfax media in actually present to participate in the This view is shared not only April 2014 suggested 88 per cent of conciliation process. on the conservative, liberal and Australians supported prohibitions With the complaint terminated, libertarian right, but also by many on offence and insult because of Prior was at liberty to take the members on the left, who are race. complaint instead to the Federal generally comfortable restricting free More recently, an Essential Circuit Court. Three of the students speech, but find protections from Report poll published on 13 have allegedly paid $5,000 to be offence or insult a step too far. September 2016 suggested there removed from proceedings. In 2016 In Australia, this view has has been a significant reversal the remaining students are on the been expressed by progressive on attitudes to 18C, with 45 per line for $250,000 for banter and organisations such as the Human cent of respondents supporting debate on Facebook in 2013. Rights Law Centre and Liberty amendments to remove the words Victoria, as well as human rights 'insult' and 'offend' from the Act, SENATORS BACK lawyer Julian Burnside QC, Fairfax while 37 per cent were opposed. REFORM journalist David Marr, Guardian Such a substantial shift can be journalist Gay Alcorn, Professor partly explained in the context As the QUT story continued Sarah Joseph and former ABC of when the Neilson poll was to unfold, the most important Chairman Jim Spigelman. conducted—at the height of the political development in the 18C This view from the left is perhaps debate on the Abbott government’s debate occurred. This was the best explained by Jeremy Waldron, proposed amendments. unprecedented support for Senator professor of law and philosophy at The climate is entirely different Bernardi’s Notice of Motion to the New York University. Waldron, who now: the QUT case has proven that Senate in August, declaring he was supports restricting free speech to 18C isn’t about racism, but about going to introduce a bill emulating protect people from 'hate speech', how the hyper-sensitive can use Senator Day’s private member’s bill recognises that conceptually, hate the legal system against university that lapsed at the end of the last speech is substantially different students, causing immeasurable parliament. offensive speech. As Waldron stress and reputation harm in the What was especially momentous outlined in his 2012 book The Harm process. about Senator Bernardi’s notice was in Hate Speech, laws Supporters of free speech have that it was signed by 20 senators, very good reason to be confident of including almost the entire Coalition restricting hate speech aim to significant reform in the future. R

NOVEMBER 2016 | IPA Review 9 TOXIC GREENS Environmental red tape is a wasteful burden on our economy and prosperity, argue Darcy Allen and Daniel Wild.

10 IPA Review | ipa.org.au TOXIC GREENS R

These stories are part of a broader regime of costly red tape weighing down Australian primary DARCY ALLEN industry. They are strikingly Research Fellow at the Institute of Public Affairs similar in that they all demonstrate the bureaucracy surrounding environmental approvals. A recent Deloitte report found nearly 10 per cent of the mining DANIEL WILD workforce is dedicated solely Research Fellow at the Institute of Public Affairs to regulatory compliance. The Consolidated Pastoral Company has estimated that it is required to arlier this year in central comply with more than 300 pieces Victoria, an orchid of legislation, regulations and codes. stopped a gold mine. The And the Roy Hill mine in the Pilbara E plant was growing seven had to comply with more than 4000 kilometres away from the proposed permits, approvals and licences in its mine site—a treeless, badly eroded pre-construction phase alone. 15 hectare block grazed by sheep The unfortunate reality of modern for more than a century. But the politics is that governments will three miners were told pay at least regulate. But when they do it should $900,000 to offset the loss of native have minimal imposition on industry. grass—all because an orchid may This is a basic principle of public grow on the degraded site in the policy known as ‘minimally effective’ future. The proposed mine was regulation—the fewest rules needed abandoned. to achieve a given objective. Anything more is unnecessary red tape. Unfortunately for Australia, THE ROY HILL MINE IN THE PILBARA HAD TO it’s becoming normal to impose > COMPLY WITH MORE requirements on projects far beyond THAN 4000 PERMITS, what would be needed to achieve APPROVALS AND a stated public policy objective, LICENCES IN ITS notwithstanding the dubious PRE-CONSTRUCTION merits of the objectives themselves. PHASE ALONE. To understand why, we need to understand how it works in practice. In Western Australia, the In the past, red tape was as simple discovery of microscopic ‘desert as filling out forms and documenting prawns’ led the Western Australia compliance with government rules— Environmental Protection an inefficient but perhaps unavoidable Authority to block approval of by-product of a regulatory state. Now Cameco’s proposed Yeelirrie red tape is used as an intentional uranium mine, a project for which political tool to push agendas and stop BHP had previously paid US$450 economic development. million. No need for governments to be And in Queensland, Adani’s $16 the bad guys (and take responsibility) billion Carmichael coal mine waits and ban projects. They simply heap in political limbo even after its costly requirements onto projects—in lawyers emerged victorious from its the name of responsible government latest court challenge. Three more and environmental protection—until court battles lay ahead. those projects become unviable. How

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A protest in Melbourne against Adani Mining's proposed Carmichael coal mine, 1,749 kilometres away | Flickr Creative Commons , John Englart (Takver)

CONTINUED governments are increasing using Reform is desperately needed else can 4000 permits, approvals and red tape as a method of control. It is in two rapidly growing areas of licences for one project be explained? backdoor socialism. environmental regulation—the In an even more insidious shift, Primary industries are no longer federal Environment Protection red tape is increasingly used to merely dealing with uncertain global and Biodiversity Conservation Act cajole industry into implementing commodity markets and the whims 1999 (EPBC Act) and the state-based and paying for pet political agendas. of nature. Scarce time and resources native vegetation laws. For example, the Productivity are being channelled into defending The EPBC Act is the federal Commission identified a major themselves from a hostile network government’s main piece of project approval that came attached of legislation, regulation and quasi- environmental legislation, with 1,500 conditions, plus 8,000 regulation cumulatively crafted to stifle covering nine ‘matters of national sub-conditions. These conditions development. environmental significance’ including go far beyond environmental risk The Adani coal mine has a 60- world heritage and marine areas, management requirements. One year life expectancy. If it eventually and, as we will outline, nationally condition of approving an iron succeeds—bruised and battered from threatened species and ecological ore mine in Tasmania was for the challenges—it is estimated to generate communities, as well as water company to ‘donate’ $350 000 to the $2.96 billion for the Queensland resources. Save the Tasmanian Devil Program economy, while creating 10,000 jobs The EPBC Act applies when a Appeal. Rather than directly and providing enough coal to generate project—such as a mine, dam, or managing and owning businesses, electricity for 100 million people. railroad—could have a significant

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impact on one of these matters. processes found, the time between THE WATER TRIGGER For the project to proceed, it then approval and legal judgement for coal requires approval by the Federal projects ranged from seven months In 2010, the ninth matter of Environment Minister. to more than two years. The PC also national environmental significance The EPBC Act is forever estimated that a one-year delay for was added to the EPBC Act in a expanding. Indeed, the objective of a major project could cost between political deal hatched by the Gillard green groups and environmentalists is $26 million and $59 million. Not to government to secure Independent to expand the EPBC Act until it covers mention forgone employment, often MP Tony Windsor’s support. That every conceivable project, handing concentrated in regional and rural inclusion has become known control of all economic development areas. as the ‘water trigger’, requiring to the Federal government. This strategy of using the law to federal approval of a coal seam gas There are three key ways this disrupt and delay projects was outlined development or a large coal mining expansion is occurring: special legal by Greenpeace Australia in their development which could affect a standing under the EPBC Act; the document Stopping the Australian Coal ‘water resource’. inclusion of water resource as a matter Export Boom, which notes: ‘Our vision It is obvious the addition of the of national environmental significance; for the Australian anti-coal movement water trigger has nothing to do with and the expansion to the number of is that it functions like an orchestra, the environment. We have the water listed species classed as threatened. with a large number of different voices trigger because of pure politics— combining together into a beautiful Windsor capitalised on misplaced ENDING LAWFARE BY symphony (or a deafening cacophony!).’ community concerns about the REPEALING SECTION 487 effects of coal seam gas and coal mines on water resources. Section 487 of the EPBC Act allows BUSINESSES ARE Further, the inclusion of the water green groups to challenge the SPENDING TIME trigger didn’t have the usual veneer Ministerial approval of projects in > AND RESOURCES of objective analysis attached to court with the aim of having the DEFENDING it. There was no regulatory impact approval overturned. The section THEMSELVES FROM statement, nor was industry was intended to provide a safeguard A HOSTILE SYSTEM consulted. As with the use of Section OF LEGISLATION, on the approvals process. 487, the water trigger aims to REGULATION AND But the reality is that green QUASI-REGULATION capture more projects and expand groups exploit this provision by CUMULATIVELY the environmental law to target coal launching frivolous and vexatious CRAFTED TO STIFLE and gas. law suits. Only 13 per cent of cases DEVELOPMENT. Ironically, the water trigger fails brought under Section 487 that have to capture the sector which uses the proceeded to judgement have been most water—agriculture. It is aimed successful. And just one in four of the Green groups are using the legal squarely at mining and gas. If there successful cases could be said to have system to seek expansive rulings. For were fundamental concerns about resulted in a tangible change to the instance, they seek rulings which in water resources, the inclusion would conditions under which the minister effect say that the minister approving have included agriculture. Coal gave original approval. One out of 32 a mine in Australia needs to consider mines, for instance, only use about is the clear sign of a failed policy. the environmental impact of burning 0.8 per cent of Australia’s water But these challenges do not aim mined coal overseas (such as in India). resources, whereas agriculture uses to succeed. They aim to ‘disrupt and Green groups argue that this burning about 60 per cent. delay’ projects to make them costly affects global warming, causing Additionally, the federal and economically unviable, which in the sea level to rise and damaging regulation of projects affecting water turn serves as a deterrent to future the Great Barrier Reef (which has resources comes on top of extensive investment and exploration. national environmental significance). state regulation. All jurisdictions Delays caused by legal challenges A ruling to this effect would result already have regulations over the can have a profound impact on our in practically every major project use of water, and place conditions economy. As a 2013 Productivity needing to receive federal ministerial on mines and coal seam gas (where Commission (PC) report on major approval—precisely the aim of it is legal) in relation to use of water, project development assessment environmental activists. including a requirement to replace

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assessed by the Threatened Species current trend will lead to an endless CONTINUED Scientific Committee, which under supply of red tape. certain water that has been used. section 179 follows various criteria and thresholds for determining NATIVE VEGETATION THREATENED the listing of species. But the more SPECIES LIST species we look for, the more will be Farmers do not escape the tyranny found. of environmental extremism under The third way the EPBC Act is being Unsurprisingly, environmentalists the native vegetation laws. A system expanded is through the number tend to welcome and nominate of bureaucratic rules, different in of listed threatened flora, fauna additional threatened species to the each state, outline how and where and ‘ecological communities’. At EPBC list. But doing so takes little landholders can clear their own land. the introduction of the EPBC Act account of the societal and economic In recent years native vegetation in 2000, there were approximately value of a particular species in relation rules have cost millions of dollars 1300 listed flora and fauna. In 2016, to the potential economic value of and placed huge regulatory that number has grown almost a project. uncertainties upon our farmers. 50 per cent. This is significant The federal government should Recent Labor attempts to because if a project could affect one develop a systematic process further tighten native vegetation of these listed species that project to halt this damaging trend. regulations in Queensland were needs approval from the Federal Listings should at least return to thankfully blocked in parliament. Environmental Minister. the baseline number of species But even given this victory, it is Pressure comes from green when the current list began, in markedly clear that across Australia groups in ‘nominating’ species to be recognition of the reality that the vegetation laws do not adequately

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on their land rather than use it for economic development. This would ensure the costs of policy preferences are incurred by the groups with those preferences, rather than landowners and others in the community. The second approach, and the one recommended by the PC, is for governments to get the costs of regulation onto their books, rather than placing the financial burden on farmers. This would mean governments would be responsible for purchasing land for environmental purposes rather than regulating farmers into doing the same thing. This market-based approach recognises that governments shouldn’t place the costs of regulation onto landholders. Rather, it would ensure that the costs of these actions are borne by those seeking them­—governments or green groups.

OVERCOMING OUR RED TAPE CRISIS

We have an environmental red tape crisis. Red tape is holding back the WE HAVE AN remove seven trees so that a fence on efficiency and productivity of our ENVIRONMENTAL RED the owner’s private property could be key industries, without leading to > TAPE CRISIS, AND fixed. any consequent improvement in IT’S HOLDING BACK All Australian jurisdictions environmental amenity. Federal and THE EFFICIENCY AND require a new approach to native state governments, pushed by green PRODUCTIVITY OF OUR vegetation management that is not groups, are placing the enormous KEY INDUSTRIES. consistently skewed towards stricter cost of environmental preservation and more complex red tape. directly onto private industries. enable farmers the capacity to One such solution could come In a world of competing and manage their land in the way they from market-based solutions to mobile capital and labour, we cannot see fit, and balance the trade-off environmental policies, as recently afford to be complacent about our between the environment and recommended by the PC. capacity to withstand costly red tape. economic growth. Market-based environmental The role of a truly liberal Policies such as ‘no-net-loss’— solutions can come in two forms. The government—one that believes where landowners must at least first is for governments to return to in free markets and economic fully offset all native vegetation their proper role in protecting private freedom—is to develop a regulatory clearing elsewhere—are too strict property and allowing transactions of environment conducive to economic and cumbersome to enable a modern that property to be freely made. If green development. And our primary agricultural business to flourish. groups want a piece of land conserved, industries play a crucial role in In one instance a farm worker in then they should purchase that land. Australia’s future prosperity. North Eastern Victoria was told to Alternatively, they should be free to pay The first step in this direction is pay $115,000 in compensation to landowners to undertake conservation clear: cut environmental red tape. R

NOVEMBER 2016 | IPA Review 15 R XXXXXXXXXX Volume 68 I 3 THROTTLING SUPERANNUATION The bipartisan attack on our superannuation system puts Australians' retirement savings at risk, writes Brett Hogan.

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THE BIPARTISAN ATTACK $25,000 per year. ON SUPERANNUATION On 15 September, after fierce community opposition, the BRETT HOGAN In April 2015, the ALP announced government announced that Director of Research at the Institute of Public Affairs its new 'Fairer Super' policy, in it would replace the proposed which it promised to levy a new $500,000 lifetime cap on post- 15 per cent tax on superannuation tax contributions with an annual pension earnings of over $75,000 $100,000 limit. n 3 May 2016, in his first per year, and also reduce the Morrison also issued a statement budget as Treasurer, income threshold for the 30 per cent on budget night saying that the Scott Morrison took the contributions tax, introduced by the government would establish a Onation by surprise when Gillard Government in 2012, from new objective that the role of the he announced significant changes $300,000 per year to $250,000. superannuation system was merely to the taxation and regulatory Unsurprisingly, its policy was to ‘provide income in retirement treatment of superannuation. couched in the context of needing to substitute or supplement the age Now both the Coalition and to limit so-called superannuation pension’. the Labor Party are treating ‘tax concessions’ claimed by superannuation as just another pot higher income earners, with no A CONTEST OF of money to dip into for government acknowledgement that the top three DEFINITIONS revenue, undermining the integrity per cent of income earners actually and viability of the retirement pay 27 per cent of all net income The primary objective of the income system. tax or that the top nine per cent of superannuation system should be to Policymakers have been at income earners pay 47 per cent. ensure that as many Australians as pains to emphasise terms such as In response, then Prime possible take personal responsibility ‘fairness’ to explain their proposed Minister Tony Abbott said: ‘Unlike to save for their own retirement superannuation changes. But Labor, we have no plans to increase and reduce dependence on the age two numbers explain what the taxes on superannuation and will pension. Private funds put aside superannuation debate is really honour our commitment not to for retirement represent deferred about. make any adverse or unexpected consumption, so flat and low The first number is $502 billion. changes to superannuation during superannuation taxes on contributions According to its own budget papers, this term.’ and earnings for everyone is actually in 2019-20—less than three years Seven months later, Scott good public policy. from now—Australian Government Morrison also observed at the However it is increasingly clear spending (not including states and Association of Superannuation in this debate that the actions of territories) will reach half a trillion Funds of Australia Conference policy makers too often do not dollars per year. In comparison, that ‘above all else, however, we match the rhetoric. government spending in the last year must remember superannuation In his budget speech, after of the Howard Government (2007- belongs to those who have noting that ‘becoming financially 08) was $271 billion. earned it over their working independent in retirement, free The second number is $500 life. It is not my money, nor the of welfare support, is one of life’s billion. Sometime after 30 June 2017, Government’s money. It is your great challenges and achievements’, Australian Government gross debt money’. Nevertheless, on Budget Morrison then went on to detail the is expected to pass $500 billion for night, the government announced Government’s changes to reduce the first time. Gross debt on 30 June a raft of changes including a limit ‘access to generous superannuation 2007 was only $53.2 billion. of $1.6 million on the value of tax concessions’. Contrary to claims about equity, assets that could be transferred He also justified the new transfer fairness and the need to tackle so- into superannuation pension balance cap by claiming that ‘a called ‘tax concessions’, it is out-of- accounts, the imposition of a new balance of $1.6 million can support control government spending that $500,000 lifetime cap on post-tax an income stream in retirement is driving these superannuation contributions backdated to 2007 and around four times the level of the changes and ongoing efforts to a reduction of the annual cap on pre- single age pension’. Both of these increase the government’s tax take. tax superannuation contributions to concepts are flawed.

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We made a very clear commitment prior to the last election that there would be no adverse changes in superannuation... we aren’t ever going to increase the taxes on super, we aren’t ever going to increase the restrictions on super because super belongs to the people. —Tony Abbott, 1 July 2015

1

The Coalition makes this pledge: We will not make any unexpected detrimental changes to superannuation.

We will deliver greater stability and certainty on The Coalition’s Policy superannuation—we won’t move the goalposts. for Superannuation September 2013 —The Coalition's Policy for Superannuation, September 2013

The Coalition’s Policy for Superannuation

CONTINUED superannuation account balance social safety net should not be held Every January, Treasury is acceptable because it will earn out as an ideal goal for individuals publishes a 'Tax Expenditures an individual four times the Age in a private market. Statement', an Orwellian term Pension in interest is wrong in scope for a document that tallies up all and practice. THE TREND IS of the extra money it believes it It is almost a carbon copy of NOT OUR FRIEND should be getting by way of higher Labor’s own proposal, and uses the taxes or abolishing rebates or age pension as a retirement income It is difficult to believe that it was only deductions, allowing it and other big reference point, rather than a four years ago that all superannuation government advocates to promote fallback welfare payment. contributions and earnings, regardless the concept of ‘tax concessions’. The reference to a $1.6 million of a person’s income, were taxed at So for instance, Treasury costs superannuation balance delivering a flat 15 per cent with earnings in the exemption of the sale of a annual income equal to four times retirement tax free. family home from capital gains tax the age pension implies that it would It was accepted conventional and fresh food from the GST as pay $80,000 per year or deliver an wisdom that while this flat tax was $25 billion and $7 billion annual investment return of five per cent. levied on our super contributions ‘concessions’. That is completely unrealistic in an and earnings, once we reached It is in this context that Treasury’s environment where the ten-year retirement age the hand of characterisation of the 15 per cent Australian Government bond yields government would be removed from tax rate on employer superannuation are currently hovering around two our pockets forever with people contributions and superannuation per cent. finally allowed to enjoy the fruits of fund earnings as $16.2 billion and The chair of the Rudd their life’s work tax free. But how $13.5 billion ‘concessions’ gains Government’s superannuation quickly things have changed. currency in the public domain. review, Jeremy Cooper, also pointed The precedent of the doubling A tax that is not as high as out in early 2015 that the age pension of the contributions tax from Treasury would like it to be, or that of $1297 a fortnight (including 15 per cent to 30 per cent by the doesn’t exist in the first place, is not supplements) for a couple would cost Gillard Government in 2012 for a concession—it is a low or non- $1,022,000 to buy, if it were a product people earning over $300,000 per existent tax whose absence probably that could be purchased. year was used by Labor last year serves another purpose. The age pension is an to promise to further reduce this Similarly, the Treasurer’s inappropriate benchmark of threshold to $250,000. justification that a $1.6 million adequate retirement income. A In April, the Turnbull

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government publicly floated bringing It is clear that as governments spending, or more stringently this threshold down to $180,000, but continue to struggle to find punish those who seek to take care in the Budget confirmed that support the money to pay for their own of themselves. for the $250,000 threshold is now promises, superannuation tax rates It should be about how our bipartisan. Unsurprisingly, in late will continue to go up and the society can encourage more people August 2016 the Labor opposition applicable thresholds will continue to take responsibility for their own announced it now supported to come down. lives, maximise every Australian’s bringing this threshold down to retirement income and reduce the $200,000. THESE CHANGES cost of welfare. The more taxpayers that can WILL CONDEMN MORE While the Government’s be captured by the 30 per cent rate > MIDDLE-INCOME September announcement that it the better for government revenue. AUSTRALIANS TO wouldn’t proceed with its $500,000 How long before the $180,000 THE AGE PENSION IN lifetime post-tax contributions cap threshold is tested again and why COMING DECADES. was welcome, limits on what can stop there, given that the Private be transferred into a retirement Health Insurance Rebate, for A POOL OF MONEY JUST account remain, as do the tax example, cuts out at $140,000 or WAITING TO BE TAXED increases and the proposed objective Family Tax Benefit Part B cuts out that superannuation exists only to at $100,000? Both major parties now ‘substitute or supplement the Age The amount of extra money you consider Australia’s $2 trillion Pension’. can add to your superannuation superannuation pool primarily How do middle-income account is also under siege, with as a source of additional taxation individuals, with university, allowable pre-tax amounts cut from revenue as well as another means of child rearing and mortgage costs, $30,000 and $35,000 per year to pursuing redistributive social policy. also save enough money to fund $25,000 per year and the post-tax Given that the 2014 National their own retirement? How do limit of $180,000 per year to be cut Commission of Audit found that 80 these changes help a woman to $100,000. per cent of Australian retirees were who has spent years out of the The proposed new ‘substitute and on the full or part age pension, and workforce but in the second half supplement’ objective has already that this overall figure will remain of her career is finally earning a led one prominent body to declare unchanged over the next three higher income, yet now faces that so-called ‘tax breaks should decades, it is alarming that Labor limits on what she can transfer only be available when they serve and the Coalition appear to be on a into her superannuation account, this policy aim’. unity ticket to implement policies and a 30 per cent tax on her Most worrying is that for the to discourage savings, making this contributions? first time, both major parties situation worse. Every government tax increase— now see income in retirement as These changes will condemn whether on contributions, earnings fair game, with Labor and the more middle-income Australians or income—limits money transferred government intending to tax to the age pension in coming into superannuation accounts, takes income from assets worth over decades. money out of the system, reduces $1.5 million and $1.6 million Rather than supplementing retirement balances and sends a respectively at 15 per cent. or substituting the pension, the message to everyone that their It is hard to know which is more objective of the superannuation investments may be safer elsewhere. concerning—the justification of system should be to encourage Taking an extra dollar out of private retirement incomes with independence and allow people in one person’s account in tax does not reference to the age pension, the retirement to achieve an income mean an equivalent dollar is added optimistic presumption of five per of 70-80 per cent of their pre- to someone else’s savings. It just goes cent investment income returns, retirement incomes, a widely into the Government’s pocket. or the new revelation that both the accepted benchmark throughout the This bipartisan approach government and opposition are now developed world. to superannuation policy will in the business of telling people how The question shouldn’t be permanently damage trust and much income they should enjoy in how the superannuation system confidence in the superannuation retirement. can better support government system. R

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MUTINEERSTA X

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From the Rum Rebellion to the ill-fated mining tax, Australians have a long and proud history of fighting unfair taxes, writes Matthew Lesh.

political history. They were diverse, led to the Corps turning on the both geographically and topically, Governor—Bligh’s attempted covering issues as broad as rum, crackdown on alcohol, known MATTHEW LESH water, vehicles, land and mining. generically at the time as rum. Research Fellow at the Bligh instigated prohibitions on the Institute of Public Affairs 1. RUM REBELLION, 1808 importation of alcohol and bartering of spirits for labour, food, and he most significant At 6pm on 26 January 1808—just other goods. These prohibitions, an political transformations 20 years after the arrival of the first effective tax, particularly frustrated in human history fleet—the New South Wales Corps, the most powerful men in the colony T originated as rebellions with full band and dress, marched who had previously profited from against unfair taxation. on Government House to enact the the trade. The Magna Carta and the only successful armed takeover of The rebellion was about much Glorious Revolution, establishing government in Australian history. more than just rum. Ultimately, it the principles of the rule of law was a tussle between entrepreneurs and parliamentary sovereignty, seeking progress and a regressive THE RUM REBELLION were responses to excessive overbearing government. It was REPRESENTS THE taxation sought by a monarch. > REJECTION OF a battle that involved breaches of The American revolutionaries ARBITRARY POWER, the rule of law and property rights, chanted ‘no taxation without THE ESTABLISHMENT and questioned over the role of representation’, throwing tea OF THE PRINCIPLES commerce and trade in the new into Boston Harbor, instigating OF THE RULE OF LAW colony. a rebellion that led to the IN THE COLONY AND Bligh attracted immense establishment of the United States AN EARLY VICTORY animosity using untrammelled of America. The French Revolution FOR COMMERCE colonial executive power to was intimately intertwined with OVER ARBITRARY confiscate property and cancel the Louis XVI’s regressive taxation GOVERNMENT POWER. leases of free settlers. Bligh’s broad system and consequential discretionary powers, perhaps financial troubles. The officers spent two hours appropriate vis-à-vis convicts, were The human instinct to oppose searching for their target, Governor untenable to free settlers seeking to unfair taxation is found throughout William Bligh, while rampaging establish commerce and trade. human history. The earliest recorded through the Governor’s papers looking The bustling colony was desperate tax revolts go as far back as the First for evidence of wrongdoing. Bligh was for expansion, which depended on Babylonian Dynasty under King eventually discovered hiding behind additional leases of property. Bligh, Hammurabi (1750BC), along with his bed and placed under house arrest. however, took a more conservative the Roman Empire (27BC) and the Rarely in human history has approach than previous governors. Han dynasty (AD25). David F Burg’s a political revolution unfolded in He made just three land grants in his A World History of Tax Rebellions such an orderly, peaceful, and swift 18 months at the realm. catalogues almost 400 tax revolts. manner. Not a single shot was fired; Bligh also took aim at John Taxation has consistently proven no one was stabbed with a bayonet. Macarthur, the pioneer of Australia’s onerous, excessive and cruel. Its All involved—officers, soldiers, wool industry, which was a key enforcement has been inconsistent, captives and spectators—were in bed industry for our nation’s early heated and even violent. long before midnight. economic success. Bligh took issue Australia has its own history The pithy name of these events, with Macarthur’s level of private of tax revolts. The following six the Rum Rebellion, comes from wealth, stripping him of a major land tax rebellions helped shape our a key element of the tensions that grant and putting him on trial in

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'The arrest of Governor Bligh' | National Library of Australia

CONTINUED 2. SOUTH AUSTRALIA propertied class was represented, relation to a ship bond. Macarthur ANTI-DRAY AND LAND creating a disproportionate burden on refused to appear before the court, TAX REBELLION, 1850 poor farmers and barely impacting the complaining about an apparent bias wealthier merchants and bankers. of the Judge-Advocate, a close Bligh They severed ties with their mothers The people of South Australia ally. Bligh subsequently ordered the and fathers, left behind a lifetime refused to take the impost lying down. NSW Corps to arrest Macarthur, of friendships and travelled across The first Anti-Dray Tax League was which, after a number of other the ocean in search of a new land founded in April 1850 in Mount affronts, they refused. Lieutenant- of freedom and opportunity. South Barker, with subsequent local leagues Colonel George Johnston, the leader Australia’s colonists sought ‘to established across the colony. The of the NSW Corps, led the military reap a more liberal reward for our Yatala league reached 1,000 members revolt the next day. toil and exertions’, as the South within just a few days. The leagues A key event in Australia’s history, Australian Register put it. sent delegates to establish the Great the Rum Rebellion represents the This not atypical hope for a better Confederated Anti-Dray and Land Tax rejection of arbitrary power, the life, however, was coming unstuck. League of South Australia in May 1850. establishment of the principles of the The ‘minions of tyranny’, South The newly formed League rule of law in the colony and an early Australia’s colonial administration, published a declaration in the victory for commerce over arbitrary introduced a new land tax, as well as advertising sections of South government power. a tax on drays (a type of horse-drawn Australian newspapers under the In practical terms, it led to the wagon), carts and lighter wheeled headline ‘No taxation without appointment of Lachlan Macquarie vehicles, to pay for the upkeep of representation’ decrying the unequal as Governor. Macquarie went on to roads and highways. and outrageous nature of the taxes. oversee the successful transformation The ‘obnoxious, odious, and The Dray Tax had a of NSW from a penal colony into a detestable impositions’ were enacted disproportionate impact on small free settlement. by a legislature in which only the businesses, the League claimed, as

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they had to pay the same amount of tax no matter the number of trips. Larger wagons driven by farmers were taxed at double the rate of the smaller versions owned by the gentry. However, the biggest issue for the league was the very principle of taxation imposed by a legislature in which they were not represented. They drew direct inspiration from the Boston Tea Party. When making their case, the League drew upon the ideal of British liberty and a better life free from onerous taxation. The colonists had escaped an overcrowded, over-taxed England only to face ‘a system of oppression and misrule, unparalleled in the history of British legislation’. The declaration was subsequently made into a song and put to music: West Terrace flour mill, Adelaide, c. 1850

Then down with the road and the According to editorial from Such words could easily describe dray-tax, too, the South Australian Register, the the Boston Tea Party, the American And show to the minions of League opposed ‘anything inimical Revolution and the adoption of the tyranny, to a free and full representation; American constitution, but this Bold Britons are we, who dare to and resisting the partial and unjust story was not unfolding on the be free, clause which aims a blow at their other side of the world. It describes And die for our rights and liberty. religious liberty’. our very own Eureka Stockade, an In 1857, South Australia became enormously under-appreciated and The League undertook direct political the first colony to introduce often misinterpreted chapter of lobbying, petitioned the Legislative universal suffrage for men aged over Australian history. Council and agreed to a pact of 21. The democratic spirit, fueled by a The Victorian gold rush (1851- civil disobedience—refusing to pay tax rebellion, came to fruition. 60) attracted hundreds of thousands the impost. They also considered to Victoria, many seeking fame and violence against tax collectors on their 3. EUREKA fortune at the goldfields. However, properties, but thankfully decided REBELLION, 1854 tensions swiftly formed surrounding against this action. the level and collection of taxation. By July 1850, their opposition Citizens of a British colony met The Victorian Government, proved too much for the South in a town hall to complain about seeking revenue to fund the Australian government and the unfair taxation policies, calling expansion of the colony, imposed Governor capitulated. The Dray Tax for an extension of voting rights. a costly miners’ licence on was repealed and those who had paid They wrote a deceleration outlining prospectors, most of them poor were refunded. After further rancour, their demands, but the authorities and unsuccessful. The licence fee the land tax was also scrapped. refused to negotiate. In the name of was steadily increased and enforced The League was also intimately defending their rights and liberties, through aggressive licence hunts and entwined with the drafting of the the people gather firearms to harassment by authorities. Tensions new South Australian constitution defend themselves. Many die in the came to fruition after a man accused as Westminster began increasing ensuing violence. Shortly thereafter, of murdering a miner was acquitted colonial self-government through a democratic revolution comes to by an allegedly corrupt magistrate. the 1850 Australian Colonies fruition, which extends voting rights These grievances culminated Government Act. to every adult male. with the establishment of the

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Meeting of gold diggers in Victoria, 1851.

CONTINUED their licences, and swore allegiance to popular support for their cause led Ballarat Reform League in the Eureka Flag, the Southern Cross. to the Electoral Act 1856, which November 1854. The first meeting They armed themselves, and set up a introduced full male suffrage for the attracted a crowd estimated at more crude encampment at Eureka. Victorian Legislative Assembly. than 10,000. They were heavily At 3am on 3 December 1854, The Australian labour movement inspired by the Chartist movement a combined force of soldiers and would not exist for many decades in England, demanding voting police launched an assault on the after Eureka, but its supporters often rights for all citizens, and declaring encampment. The miners were claim ideological roots from events ‘taxation without representation outnumbered, inexperienced and ill- at the stockade. In particular, the is tyranny’. They even threatened equipped. They stood little chance. CFMEU have adopted the Eureka secession from the United Kingdom The battle, which was over in less flag. However, the collectivist if their demands were not met. than half an hour, resulted in the union movements have ignored The Victorian Government deaths of at least 27 people. that the Eureka diggers were in fact refused to respond to their demands, Despite their failure on the independent workers, fighting for leading to the league to elect a more battlefield, the miners attracted lower taxes and less regulation. militant leader, Peter Lalor, who substantial sympathy in Melbourne Thanks to the sacrifices of the introduced a military structure when they were put on trial for men at Eureka, where many paid including the formation of brigades sedition and high treason. The the ultimate price, Victoria became and appointment of captains. On 1 accused were rapidly acquitted the second Australian colony to December 1854, the miners burnt to great public acclaim, and the introduce political democracy.

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4. CHINESE MIGRANTS IN AUSTRALIA, 1859-62

On 25 May 1859, a huge crowd of more than 3000 Chinese immigrants marched on the local warden’s residence in Castlemaine, Victoria. The Chinese had come to Victoria, like tens of thousands from around the world, seeking riches in the goldfields. Most of them were peasant men, becoming indentured servants upon arrival to pay for the three-month voyage from China to Melbourne. However, unlike arrivals from the British Empire, Chinese immigrants were slapped with a special £10 landing tax upon arrival in the colony, plus the standard annual gold digger’s fee of £1 and an extra £1 per annum for a protection ticket. The ticket was vital to secure protection from local authorities Washing Tailings, Ten Australian Views, c.1870s | National Library of Australia against the growing anti-Chinese sentiment—which included riots and racist calls for expulsion. attempted to be enforced upon any settlers. They continued presenting The Chinese lived separately other class of foreigners would be petitions from across the state. to the rest of the community, deemed a violation of British good Some claimed they were from preferring safety in numbers in faith and hospitality’. British colonies (Hong Kong, their own community camps. They protested about the new Penang or Singapore) and hence However, the worsening situation impost, considering their existing should not have to pay the tax. became untenable by early 1859, tax burdens, and called for a Others were sentenced to hard when the government introduced an compromise tax £2 per head per labour for non-payment—not annual £4 residence tax on Chinese annum, payable quarterly. The because they couldn’t pay, but immigrants. The Chinese responded local warden, who promised to because they chose not to. with one of the most sustained pass the petition to his superiors, In a big win for the rule of law, anti-tax campaigns in Australian complimented the protesters’ ‘proper in March 1860 a Melbourne court political history, using civil and constitutional manner, and ruled that an individual could not disobedience, protests, petitions, the orderly and peaceful character’. be arrested for not paying a resident boycotts and political lobbying to The crowd gave a cheer, and after tax, and must instead be taken to argue against the imposition of the announcement that it was the court via summons. A police officer racist and burdensome taxation. Queen’s Birthday, they gave another was also sentenced to prison for The most spectacular event was respectful cheer. killing a Chinese man evading such the march on Castlemaine. They Sadly, however, the government an illegal arrest. read out a petition complaining did not immediately respond to their After years of effort, the long- about discrimination, harassment demands. The Chinese refused to running resistance campaign came and oppression against the natives of give up. They refused to pay the new to fruition in February 1862 when China—unlike anything experienced tax, in the knowledge that there was the Victorian Government finally in other parts of the world. They not enough prison space to lock up abolished the residence tax. The complained about the heavy taxation everyone. They also went on strike, Chinese immigrants fought for their that is ‘unjust in principle, and if refusing to do work or trade with white rights, and they won.

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came from Kalapa’s association in March 1927, declaring ‘an emphatic protest against the action of the Government in making these undue levies against the primary producers of Queensland’. Resolutions called on farmers to refuse to register or pay any tax. They were passed by associations across the state at meetings attended by thousands of farmers. The farmers were strongly supported by local papers across Queensland. Members of shire councils said they would prefer to go to jail than pay the tax. Others threatened to remove their oil engines and fill in their wells rather than pay the fees.

Picking and bagging in the Queensland peanut industry, 1927 THE FARMERS ARGUED CONTINUED and water pumps. When the fees THAT WELLS AND > PUMPING STATIONS were announced, it became swiftly 5. QUEENSLAND WERE THEIR apparent that this was not simply an PROPERTY—NOT THE FARMERS’ STRIKE, 1927 administrative fee, but rather a gigantic GOVERNMENT’S. IT revenue-raising exercise. WAS NONSENSICAL Queensland’s McCormack Labor After years of increasing taxes, TO TAX INDIVIDUALS Government (1925-9) was in combined with the strain of drought ON CAPITAL extensive debt. Rather than attempt and rising government-owned freight IMPROVEMENTS, to address their addiction to costs, the farmers refused to accept the THEY ARGUED. spending, the government instigated new fees. They argued that they could a series of new taxes including not pass along the tax to consumers, land, income, machinery, hospital, that it discriminated against farmers Spectacularly, it took just a month unemployment and vehicle taxes. without access to running water on for the tax resistance campaign However, the government’s their property, and that it punished to succeed. On 7 May 1927, the attempt to introduce a new water farmers who had taken the risk of Queensland government withdrew management scheme crossed the line. converting previously unsuitable the tax. The Townsville Daily Queensland’s over-taxed farmers agricultural lands. Bulletin editorialised: ‘Never since refused to pay another impost. Additionally, the farmers argued that historical occasion when the This almost clichéd situation, again that wells and pumping stations were cargo of tea was tossed overboard proving Margret Thatcher’s dictum their property—not the government’s. in Boston Harbor, has there been a that ‘the problem with socialism is It was nonsensical to tax individuals more successful rebellion against an that you eventually run out of other on capital improvements, they argued. unpopular government impost’. people’s money’, led to the Queensland Overall though, for the overburdened The success against the water tax Farmers’ Strike of 1927. farmers, the water tax became the emboldened the farmers to oppose The Queensland Water Act seminal issue to reject the never-ending other burdensome taxes. McCormack 1926 initially evaded scrutiny, increases in taxes. Enough was enough. was removed from power at the appearing to be not particularly The farmers used existing next election in 1929. This led to the cumbersome. However, it empowered organisational structures in local election, albeit for just one term, of a commissioner to charge farmers producer associations to spread the only non-Labor government in excessive fees to use their own wells news of the tax strike. The first Queensland between 1915 and 1952.

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6. KEVIN RUDD’S MINING mining investment, effectively pulling slump and the incompetence of TAX, 2010 up a handbrake on Australia’s most Rudd’s leadership, Labor’s caucus successful industry. was forced to act. His formerly Wearing their folksy tieless Sunday The mining industry also pointed loyal deputy challenged for Labor best, then-Prime Minister Kevin Rudd out that the tax was built on a false leadership on 24 June. and Treasurer Wayne Swan announced premise that the industry was not Julia Gillard immediately sought a new mining tax as their flagship paying a decent amount of tax. The consultations with the industry and response to the Henry Tax Review in industry’s company tax receipts reached a compromise deal with the May 2010. Less than two weeks before alone had increased over eight years three biggest miners. However, by the the budget, the new tax was presented from $1.4 billion to more than $10 time the amended tax was introduced, as a fait accompli with no industry billion in 2010. The industry also paid the resource prices had slumped. consultation, a bizarre and overly extensive state royalties. The tax raised less than the amounts complex design and an extraordinarily The industry, led by the Minerals intended to be spent from the revenue. high rate of 40 per cent. It was the Council, launched an aggressive The Abbott Government abolished the beginning of the end of Rudd’s prime advertising campaign against the tax in September 2014. ministership, with Rudd becoming changes. The industry advertisements This most recent Australian increasingly erratic and incapable of focused on individuals who would tax revolt reiterates a lesson that working with his colleagues. lose their jobs, and pointed out how must seemingly be learnt again and Government economists had the tax would impact the economy. again. As humans, we ultimately designed the mining tax in an In total, they spent $22.2 million on seek dignity, personal flourishing extremely complex manner with the campaign from early May to late and earned success. When that a range of bizarre features. The June, when Julia Gillard took over the success is taken away unfairly, we government planned to refund 40 leadership and the advertisements were naturally rebel against the system per cent of the losses of unprofitable suspended. behind the changes. If taxes are mines—effectively nationalising 40 The tax severely damaged Rudd’s seen to be unfair they are naturally per cent of the mining industry. The reputation and poll standing. Rudd opposed. Rebellions are particularly plan also refunded state royalties, refused to budge on the issue, or furious when our earnings are creating a perverse incentive for negotiate with the industry. In the taken without consent or proper states to increase their royalties at end, after seeing the poll numbers justification. R the federal government’s cost. This gigantic tax was projected to raise $22.5 billion over four years as part of a massive new tax and spend effort. The proceeds were slated to be spent on tax cuts, welfare and infrastructure, strengthening Rudd’s weakened budget situation. Rudd thought he had a perfect populist plan—tax those supposedly evil mining magnates, who were then making record profits. The plan backfired. The mining industry launched the largest tax revolt in Australian political history, measured in terms of the revenue at stake. They argued the tax was a threat to the viability of Australia’s minerals industry, destroying shareholder value. They said the tax would lead to shelving of projects because it was a massive disincentive for future June 2010 rally in Perth against the Rudd government's mining tax | AAP One

NOVEMBER 2016 | IPA Review 27 R XXXXXXXXXX Volume 68 I 3 YOUR DINNER PARTY SURVIVAL

GUIDEClimate change might be a taboo topic, but Dr Jennifer Marohasy suggests putting the facts on the table.

28 IPA Review | ipa.org.au Volume 68 I 3

DR JENNIFER MAROHASY Senior Fellow at the Institute of Public Affairs

here are certain things best not discussed at dinner parties and T gatherings of the extended family. This list used to only include religion, sex and politics. More recently ‘climate change’ has become a sensitive issue. At the same time climate change is more likely to be included in a church sermon—indeed, while once considered the concern of scientific institutions, climate is now increasingly incorporated into faith-based initiatives. Pope Francis has even issued an Encyclical on the subject, explaining that: ‘A very solid scientific consensus indicates that we are presently witnessing a disturbing warming of the climatic system.’

ONCE CONSIDERED THE CONCERN > OF SCIENTIFIC INSTITUTIONS, CLIMATE IS NOW INCREASINGLY INCORPORATED INTO FAITH-BASED INITIATIVES.

A problem for those wanting to negotiate a middle road is that communities are increasingly polarised. There are those who believe Pope Francis and admire Al Gore. Then there are the die-hard sceptics and their support-base, which some claim have an undue political influence, successfully thwarting attempts to implement necessary public policy change. Both groups argue that they have the empirical evidence on their side, yet they seem unable to engage in any meaningful discussion together.

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CONTINUED values are more alkaline). Editors the Australian government has Pope Francis’s 2015 Encyclical like to publish research that the even funded a survey attempting Laudato Si’ definitely reflects the ocean may become acidic because to link skepticism of catastrophic view of the establishment, a view of increasing levels of atmospheric anthropogenic global warming with often reported in the mainstream carbon dioxide. This has become belief in conspiracy theories—in media via the release of new peer- known as consensus science. particular drawing a link between reviewed studies, well-funded from It is more difficult to find a those unconvinced of catastrophic the public purse. In just one area of sceptical perspective, which is anthropogenic global warming and research—ocean acidification—the why I’m so pleased to be editing those who deny the moon landing. number of published papers has Climate Change: The Facts 2017 to Yet this in itself ignores the increased from about zero a year be published by the IPA in the new former astronauts—including to almost 800—all in less than 20 year. This follows earlier iterations of Harrison Jack Schmitt—who have years. Climate Change: The Facts 2017 that been to the moon and back and have Ocean acidification is sometimes were published by the IPA in 2012 publicly stated that the risks posed referred to as global warming’s evil and 2014, and it will be dedicated to by climate change are overrated. twin. And of course most articles the memory of the late Professor Bob Harrison has gone as far as to state on ocean acidification emphasise Carter. that ‘climate change’ is a tool for the detrimental effects, often based Professor Carter was very people who are trying to increase on output from a model, which is aware that it is impossible to get the size of government—though extrapolating from a laboratory government funding to test the he does not deny that he was a part experiment in which scientists might alternative hypothesis—to study of the last mission to the moon on have even added some hydrochloric natural climate cycles and their Apollo 17 in 1972. acid to artificially reduce the pH (the drivers, or natural variability in Use of the word ‘fact’ has become scale in which seven is neutral, lower ocean pH. Rather than providing almost as controversial as the issue of values are more acidic and higher funding to consider all perspectives, climate change. We use the word in the

30 IPA Review | ipa.org.au Volume 68 I 3 DINNER PARTY SURVIVAL GUIDE R

title of our new book: Climate Change: Professor Carter would remind The Facts 2017. Then again, you will us that climate change is real, rarely hear someone from our side and it presents dangers. For argue that climate change is a moral example, 1816 was known as 'the issue. Science, of course, is meant to year without a summer'. It was be concerned with empirical evidence, cold because of the Dalton solar which, when appropriately amassed minimum (a period of low solar can generate a fact. Scepticism was activity) and a super-eruption of once considered a mindset that was the Indonesian volcano Tambora. critical to proper scientific enquiry. This eruption, which occurred For example, Thomas Huxley, a exactly 201 years ago, caused contemporary of Charles Darwin and famine in Europe. Such events former president of the Royal Society, are often associated with extreme wrote in 1866 that: hardship and famine, so Professor Carter would argue that to the The improver of natural extent possible, nations should knowledge absolutely use their resources to mitigate refuses to acknowledge against such catastrophes. Instead, authority, as such. For him, weather and climate have become scepticism is the highest Professor Bob Carter a point of politics, with climate of duties; blind faith the VERIFICATION, science little more than the one unpardonable sin. And EVIDENCE AND FACT handmaiden of the particular it cannot be otherwise, > WERE ALSO OF ideology to which you might for every great advance PRIMARY CONCERN TO subscribe. in natural knowledge PROFESSOR CARTER There will be twenty chapters has involved the absolute – A GIANT AMONGST in Climate Change: The Facts rejection of authority, the THE MODERN 2017, which ends with a chapter cherishing of the keenest COMMUNITY OF by Clive James, a literary giant. SO-CALLED SCEPTICS. scepticism, the annihilation His works are examined and re- of the spirit of blind faith; Bob Carter—a giant amongst the examined regularly by the literary and the most ardent votary modern community of so-called elite, but so far he has written only of science holds his firmest sceptics. A real expert on climate incidentally on climate change. convictions, not because change, he was director of the In what will be the final chapter the men he most venerates Australian Office of the Ocean of our book, James acknowledges hold them; not because their Drilling Program, an international that he is no expert on simulation verity is testified by portents co-operative effort to collect deep modelling. He is, however, able to and wonders; but because sea cores. From these cores, records place the current obsession with his experience teaches him of past climates for specific regions catastrophic global warming—and that whenever he chooses to have been reconstructed. the imminent demise of the bring these convictions into Bob Carter considered himself Great Barrier Reef—in a broader contact with their primary a rationalist, rather than a sceptic. cultural context. source, Nature—whenever He would argue from a reasonable The book will begin with a he thinks fit to test them by and logical perspective that the chapter on the Great Barrier Reef appealing to experiment and recent preoccupation of the Royal by Peter Ridd (a professor at James to observation—Nature will Society with a ‘global temperature’ Cook University), followed by a confirm them. The man of and its yearly change is wholly review of the ocean acidification science has learned to believe political, and that no one lives literature by John Abbot (an in justification, not by faith, in a world climate. He also Imperial College trained chemist). but by verification. noted that popular usage of the You can also read Bjørn Lomborg term ‘climate change’ was on the Paris Accord, Craig Idso Verification, evidence and fact a tautology: climate on the beneficial effects of carbon were also of primary concern to by its very nature always changes. dioxide, Willie Soon and Sallie

NOVEMBER 2016 | IPA Review 31 R DINNER PARTY SURVIVAL GUIDE Volume 68 I 3

Torres del Paine National Park, Chile, Patagonia | Douglas Scortegagna

CONTINUED homogenisation, the technical WEATHER AND Baliunas on everything except CLIMATE HAVE term for remodeling raw the Medieval Warm Period and > BECOME A POINT temperature data so it better Roy Spencer on the satellite OF POLITICS, WITH fits the theory of catastrophic temperature record—all in one CLIMATE SCIENCE anthropogenic global warming. little book. Of course, my friends LITTLE MORE THAN The last chapter by Clive James Ian Plimer, Jo Nova, Tony Watts THE HANDMAIDEN will hopefully put all of this— and Steve Goddard have also OF THE PARTICULAR everything that has gone before— contributed chapters, along with IDEOLOGY TO in some context for readers the very clever Matt Ridley and WHICH YOU MIGHT wherever you may belong (or not) Nicola Scafetta, ever-earnest Paul SUBSCRIBE. in the extended family. Driessen, moon-obsessed Ken Ring, Oxford-don Tom Quirk Simon Breheny. And there is a This is an edited extract from and free speech advocate and IPA chapter by Pat Michaels on the the introduction to Climate Change: Executive Director John Roskam funding of science. I contributed The Facts 2017. The book will be in conjunction with his colleague something small on temperature published by the IPA in early 2017. R

32 IPA Review | ipa.org.au Make a tax-deductible donation to support CLIMATE CHANGE: THE FACTS 2017

Visit http://thefacts2017.ipa.org.au

The Institute of Public Affairs is bringing together some of the world’s leading experts in the field including Peter Ridd, Roy Spencer, Nicola Scafetta, Ian Plimer, Willie Soon, Sallie Baliunas, Jo Nova, Anthony Watts, Matt Ridley, Bjørn Lomborg, Simon Breheny, and John Roskam.

Now also including an essay from Clive James. R XXXXXXXXXX Volume 68 I 3 LOSING

FAIAustralian churches have a lot to learn from theirH Polish counterparts, write Fr James Grant and Morgan Begg.

34 IPA Review | ipa.org.au Volume 68 I 3 LOSING FAITH R

FR JAMES GRANT Adjunct Fellow at the LOSING Institute of Public Affairs

MORGAN BEGG Research Fellow at the Institute of Public Affairs

hroughout the German occupation of Poland during World War II, T Polish Catholic clergy FAIAustralian churches have a lot to learn from theirH Polish were subjected to aggressive methods counterparts, write Fr James Grant and Morgan Begg. of imprisonment and extermination. Later, the Soviet regime sought to eradicate what it meant to be Polish altogether, and the Catholic church received special attention. But even in this most repressive environment, the church in Poland was a steadfast defender of Christian European values and individual liberty. Contrast this with churches in Australia. In a far more hospitable environment, church leaders have become less concerned with Christian pieties, and obsessed instead with leftist dogma. From centralised government and higher taxes, to an undue focus on environmental issues, many Australian churches promote a Greens view of the world. Sadly, this means that our churches are talking less about individual freedoms and more about policies that would hurt the poor. The courage of Poland’s church should be remembered as an inspirational movement to save an entire nation from the horrors of Communism. Churches today should be mindful not to betray or ignore this legacy.

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CONTINUED STRENGTH UNDER In these organised assaults on The Polish expression of ADVERSITY Catholicism, the Polish Communist communism lamentably prompted Party recognised that Catholicism a serious number of deep social German and Soviet invaders viewed acted as a powerful agent in forming problems. In addition, the prospect Catholic clergy as an educated and sustaining national culture. The of finding tradesmen, nurses, leadership group of national Church as an institution carried out doctors or even police prepared to resistance fighting their subsequent a central role as patron of cultural attend to the needs of their wider planned extermination of Polish endeavours and acquired a reputation community, without incentives, was culture and faith. forged under German and Soviet rule a constant concern. Following the German-Soviet for the defence of the Polish language Non-Aggression Treaty, Poland and Western cultural traditions. THE BATTLE OF IDEAS was invaded by Nazi Germany Under communist rule, on 1 September 1939 and by the revisionist historians tried to remove This situation encouraged Catholics Soviet Union 16 days later. These Catholicism from all literature and to refocus their parish communities campaigns ended with both historical works. In falsifying Polish into centres with an increased countries dividing and annexing history and literature, communists emphasis on support, compassion Poland. Both Germany and the hoped to cleanse the culture of and cooperation. The Catholic Soviet Union sought the short- religious achievements and ideas lifestyle became a notable contrast to term goal of destroying the Polish thereby making the process of the chaos and disorder that affected state and the heinous long-term secularisation easier. many individuals demotivated destruction of Polish consciousness in their daily contact with Polish as a unique and separate people. communism. FROM CENTRALISED Of the 10,017 Catholic priests Over time, Polish communism GOVERNMENT AND serving in Poland in 1939, 2647 > HIGHER TAXES, TO modified its stance towards were killed under German and AN UNDUE FOCUS Catholicism, recognising its right Soviet authority. ON ENVIRONMENTAL to exist in principle, yet seeking to After communist rule was ISSUES, MANY make that existence a purely private imposed across all of Poland after AUSTRALIAN and individual matter. The place of the war, tensions between church CHURCHES PROMOTE Catholicism within the public sphere and state continued. A GREENS VIEW OF was still aggressively criticised and Whilst Polish communists THE WORLD. resisted. The Catholic conviction that were hostile to all autonomous religious practice ennobled human organisations, the Catholic Church Paradoxically, Catholic support for conduct in community life, business, was its primary focus for abolition traditional values and culture found culture and politics was not one given that atheism was an inherent support amongst large numbers ever to be accepted by communists. component of Marxist ideology. Polish of non-believers. Catholic defence In response, Catholics initiated a communists viewed Catholicism as a of civil liberties, whilst centred whole range of programs, such as false and malevolent faith that acted around religious freedom, also retreats, public talks on Catholic as a barrier to the full acceptance by fought against all forms of coercion topics, summer camps and friendship ordinary Poles of alleged communist imposed by governments on groups for university students. All of betterment. individuals and social groups. these activities sought to stimulate The communist government The clear Catholic defence and encourage intellectual discourse immediately enacted extreme of traditional values impacted on the challenges facing Poland. restrictions on Catholic significantly on Marxist claims It should also be noted that publications and actively closed which usually centred on issues Catholic priests were encouraged Catholic organisations working in such as ‘equality’ and alleged by their bishops to engage the wider society. Many priests, ‘exploitation’. Importantly, in these kinds of intellectual Catholic teachers and lecturers Catholics were able to regularly endeavours. Liturgical and endured constant surveillance, point to the despotic tendencies of pastoral responsibilities remained arbitrary arrest and beatings and communist bureaucracy and the as primary concerns, yet priests suffered personal attacks in state stultifying nature of communist life were also expected to work media. and cultural expression. with small communities on

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Adam Mickiewicz monument and St. Mary's Basilica in Krakow, Poland. intellectual and creative responses format that both celebrated Polish rooted in Western ideology. It to problems confronting Polish culture and Catholicism’s place advocated for free speech and a society. The ‘weeks of Christian within it. separation of powers that highlighted Culture’ initiative saw the Church Polish resistance to national the church’s rightful place in society, incorporate music, theatre, films, socialism and communism was led yet a place unhindered by government dance, poetry talks and mass into a by a Catholic Church unashamedly control. The Church importantly saw

NOVEMBER 2016 | IPA Review 37 R LOSING FAITH Volume 68 I 3

CONTINUED their citizens. Unfortunately, the investment decisions to maximise these fundamentals as bound strongly position of European churches in returns to reinvest in the Church to the outcomes they produced: civic championing the agenda of rights, to fund core activities in its engagement, private property rights refugees and the environment communities. and the equality of women. has also ensured a disconnection The decision of St John’s between church and parishioner. Anglican Cathedral in Brisbane to A STARK CONTRAST Australian churches show a offer ‘sanctuary to refugees’ affected profound tendency to mimic their by a high court ruling that their The accomplishments of Polish European cousins, yet Australian detention on Nauru was lawful is Catholicism could not be in starker churches are perhaps at their a case in point. This was nothing contrast to what we are currently lowest ebb in our nation’s history. more than a frivolous chase for a witnessing in the fragile churches of The statistical evidence points to headline. Where are the refugee Western Europe and Australia. a decline for some churches where centres established by this church? The European Union is recovery is becoming impossible. Where is the purchased property continuing to spend way beyond Anglicans admit that six of their that would allow refugees to live its means. An increasing number dioceses from a total of 23 are in proper facilities befitting their of bureaucrats, consultants and currently unviable and all but one dignity? Where are the refugee unelected officials pass thousands of or two are in deep financial chaos. workers established by these new laws that enshrine permanent Reviews over why this ‘new reality’ churches to nurture and care for deficits. And where are the has occurred are unable to move refugee individuals and families? churches? Almost totally silent beyond superficial laments over When a church has no skin in and distracted with environmental the rise of secularism and the game, yet is determined to causes over which they have no commercialism. vigorously critique others, it loudly influence and that have been trumpets its disconnection from demonstrably proven to hurt the reality. UNFORTUNATELY, poor. THIS DISMISSIVE THE NEED FOR CHURCH Throughout Europe, home > ATTITUDE TO heating costs have tripled, real wages COMPANY TAX IS ALL ENGAGEMENT are depressed and poorer Europeans TOO COMMON TO spend more than 10 per cent of their SOCIALLY CONSCIOUS Australian society faces a number income on energy. The high cost CHRISTIAN LEADERS. of core problems. Each of our major of renewable energy sees around cities now has neighbourhoods 300,000 German households cut Yet, the acute disconnection where individuals and families find off from electricity each year due to between Australian churches and no jobs and little hope of improving unaffordable bills. ordinary Australians is at the heart themselves. These suburbs are In nations where taxation, of this loss of influence and demands marked by high rates of unmarried spending and borrowing rise each a deeper and more honest appraisal. mothers, absent fathers, drug year, climate change is not seen by Emblematic of this disconnect dependence and total reliance on struggling Europeans as a main has been the decision in recent years welfare. game. Employment, border security for various Australian churches to Nevertheless, many Australian and cultural integrity are the factors ‘divest’ from fossil fuel companies. churches continue to call for that centrally impinge on daily life. It’s not objectionable for a Church increases in welfare provision In a Europe where illegal to refuse to invest in firms that go failing to recognise the central immigrants can regularly and against their faith, but the decision failings of the system. It is successfully appeal against of the Sydney Anglican Church government regulation (such as deportation on flimsy grounds to withdraw its then-$262 million minimum wages) that makes it so such as human rights violations investment fund from resource difficult for low-skilled individuals (examples include lower health care stocks in June 2015 was a pointless to find work. How is it reasonable in home countries being claimed symbolic gesture. The trustees of for churches to continue calls for as potential torture there is now the Church fund—and of the other increased welfare and yet totally a strong disconnection between church funds which have made the omit to call for the abolition of European governments and same decision—should be making barriers to entry-level work?

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Even the Australian branch of surely a terrible dereliction of duty. to communism has much to the St Vincent de Paul Society, an A youth unemployment rate of 13 teach modern Australian organisation ostensibly dedicated to per cent is a blight on all of us, yet Christianity. They advocated serving the poor, argued before the again Australian churches have no close contact with ordinary people federal election that the incoming commitment to this issue. Surely and their problems and aspirations. government should commit to a the promotion of employment is Importantly, the Catholic ‘fairer tax system’. In particular, the foundation of the whole social church connected faith with the society’s national CEO Dr John justice agenda. issues of freedom across a wide Falzon cited negative gearing as a Employment is the rock that social spectrum, not just religious ‘cost’ to taxpayers, and proposed provides for marriage and family, freedoms. It courageously company tax cuts as a giveaway to the ownership of a home and defended people against injustice, the big end of town. the resources to educate and violation of human rights, free Unfortunately, this dismissive raise children. Australian speech, economic exploitation attitude to company tax is all too churches that continue to and other government abuses common to socially conscious attack free markets and call for of power. Christian leaders. But a lower restrictions on job creation fail to Perhaps centrally it suggests tax liability for businesses means understand that broader notions that issues of culture, western extra capacity to expand their of wealth include the physical, civilisation and free speech are activities, and to employ more physiological and spiritual issues the Australian church people. For the head of St Vincent benefits that stem from the must again champion as it seeks de Paul to ignore the positive world of work. to renew a divine mandate for economic effect of tax cuts is The Polish Catholic response all Australians. R

NOVEMBER 2016 | IPA Review 39 Volume 68 I 3 A LICENCE TO NANNY A nebulous ‘social licence’ nearly destroyed NSW’s greyhound racing industry, but Evan Mulholland fears worse is to come.

EVAN of an unprecedented backlash by operate is the set of conditions that MULHOLLAND country voters, and a pending by- society places on a company or Media and Communications Manager at the election in the safe Nationals seat industry to exist and grow. Institute of Public Affairs of Orange, the Baird Government Many claim it is a legitimate tool reversed its decision, arguing the for government decision-making— industry deserved one last chance to providing a mechanism to regulate n July 2016, the New South reform. the obligations and operations of Wales government announced The idea that governments hold industries. But if these rules do not a ban on greyhound racing and a ‘social licence’ is increasingly actually exist in the first place, who I subsequently sought to shut popular amongst the political class. governs them? Who determines what down the entire industry. When This concept, however, presents an they are? In reality a government's making the decision, Premier Mike arbitrary and damaging method social licence is simply another tool Baird said ‘a sport which utilises by which to impose moral views it can wield to impose a particular animals cannot operate without a through the state. Such a trend politically popular moral world view social licence.’ cannot remain unchallenged. upon society. Three months later, in the face Supposedly, a social licence to Prime Minister Malcolm

40 IPA Review | ipa.org.au Volume 68 I 3 A LICENCE TO NANNY R

Turnbull used the term recently to livelihood? everyday punter. justify a new parliamentary show Towns like Dapto, Lismore and A government minister claimed trial for banking executives: 'They Albury were on the verge of suffering that the practise should be banned operate with a very substantial significant job losses as a result of and heavier regulations introduced social licence and they owe it to this rushed decision. More than 1000 because of a personal story of a the Australian people and their people are directly employed by the constituent who had lost money on a customers to explain fully and industry. The industry simply does Sportsbet app. comprehensively why they have not not have the financial might nor While gambling may seem passed on the full rate cut and they well organised activists to defend unsociable to some, it is undeniably must do so.' themselves. a core element of Australian sport, To be clear, banking executives and indeed maintains the financial are not department heads. Executives viability of most sports. have responsibility to their A ‘SOCIAL LICENCE’ Furthermore, the evidence that shareholders and customers, not IS SIMPLY ANOTHER in-play online betting increases the the Government. Hauling them in > TOOL POLITICIANS likelihood of problem gambling just before a parliamentary committee CAN WIELD TO IMPOSE isn’t there. According to Betfair, as for decisions made on behalf of their POLITICALLY POPULAR they noted in their submission to shareholders is incredibly bad public MORAL VIEWPOINTS government: ‘For many punters, this policy. ON SOCIET Y. type of betting is crucial for hedging It also sets a terrible precedent. bets to minimise their exposure or The established view of a western enable a guaranteed return from an democracy is to ask the electorate to It took a grassroots campaign of event.’ endorse a certain set of values and country people to stand up to this The NSW Government lockout policies at an election. It should not paternalistic decision. Inner city laws have to be considered one of the be imposed through the arbitrary animal activists might fire off a tweet worst public policy failures in recent judgement of politicians in the heat of support when you announce a years, and it seems Mike Baird may of a debate. policy like this, but did they jump to be on the verge of common sense in Now suddenly, a new, dangerous the Government's defence when Mike considering a reversal. term has managed to creep into Baird suffered the biggest drop in poll Pubs have closed. Young people vernacular of Australian political life numbers in the history of Newspoll? have lost jobs. Sydney has lost its almost unnoticed and unchallenged. This greyhound racing saga is character. These things happen The greyhound example is truly a case of the working class when a decision is made as a particularly bad. Greyhound versus the smirking class. result of moral panic and media racing is a battler’s sport. Former Moral and social licence views get campaigns with little empirical NSW Premier Jack Lang described used across the country by politicians foundation. Ordinary Australians greyhounds as 'the working man’s pushing agendas on pet issues. are prevented from going out for a racehorse'. He was right. Many In Victoria, the former Napthine drink—punished for the actions of a Australians can’t afford a share in a government was bitterly opposed small minority as a result of a social thoroughbred racehorse, so they will to mixed martial arts, following licence having been lost. invest in a greyhound as a hobby. It is the rising popularity of Ultimate Common sense and due diligence the main social community activity Fighting Championship (UFC). must be at the forefront when for many regional towns. This is a sport that attracts millions considering these types of public The overwhelming majority of of views worldwide. Last year a policy issues. Otherwise these greyhound owners are hard-working UFC event sold out Etihad Stadium creeping victories of nanny statists Australians. Anyone who has been in what was a massive economic will only embolden activists to target around greyhound racing knows success for the state. The Andrews other freedoms that many enjoy. R that the majority of people involved government was right to lift the ban. have nothing but affection for their The Turnbull government's dogs. They treat their greyhounds decision to keep a ban on in-play Note: On 11 October, 2016, the NSW like family, and devote their lives betting is another example of the Government announced it would not proceed to looking after them. Where were government imposing its own moral with the ban on greyhound racing. the moral arguments for their view of a popular practise onto the

NOVEMBER 2016 | IPA Review 41 R XXXXXXXXXX Volume 68 I 3 THE HIGH COST OF POPULISM Populist politics brings with it threats to the trade and deregulation that have made us prosperous, writes Georgina Downer.

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Trump’s anti-NAFTA rhetoric is trade outcomes for Australia’. focused on US job losses to Mexico, Disturbingly these views are GEORGINA which he links to wage stagnation and now filtering into mainstream DOWNER increasing income inequality in the political parties as well. During Adjunct Fellow at the Institute of Public Affairs US. He argues that NAFTA’s benefits 2015, the ALP broke decades of to consumers of lower prices are bipartisanship on free trade to outweighed by rising unemployment protest against the China Australia t’s high time we acknowledged and falling wages. This is despite the Free Trade Agreement, arguing the crisis facing free market latest data from the US Census Bureau Chinese companies could steal economics in Western indicating that median US household Australian jobs. I democracies. The legacies of incomes rose by an impressive 5.2 per Concerns about foreign Reagan, Thatcher and the Hawke/ cent in 2015. investment in agriculture, property Keating/Howard economic reforms In the Australian context, minor and infrastructure have led some of the 1980s and 90s are now in parties on both the left and the right Liberal MPs to call for clampdowns, serious need of protection. embrace anti-free trade rhetoric. despite the desperate need in capital- In Australia, the bipartisanship With over a million Senate votes on poor Australia for investment. we witnessed throughout the 1980s their side, the protectionist policies So why is free trade losing support? and 90s in support of economic of Pauline Hanson’s One Nation The central argument from the likes liberalisation—deregulation, Party (593,013 Senate votes or 4.3 of Clinton, Hanson, Xenophon and privatisation and tariff reduction per cent) and the Nick Xenophon others is that globalisation and free and elimination—is being whittled Team (456,369 votes or 3.3 per cent) trade have led to wage stagnation away by rising popular support for can’t be ignored. and income inequality in our post- industry policies and protectionism. industrial societies, creating an In the US, for the first time in ever-growing class of ‘losers’ from IN THE US, FOR THE modern history, both the Republican globalisation, while the rich at the FIRST TIME IN MODERN and Democrat presidential candidates > HISTORY, BOTH very top continue to see a growth are running on an anti-free trade THE REPUBLICAN in incomes. The argument has platform in response to concerns over AND DEMOCRAT often been parroted uncritically by a supposed stagnation of middle class PRESIDENTIAL mainstream media outlets, who fail to incomes and lack of social mobility. CANDIDATES ARE investigate the facts and report them, A frequent claim is that US jobs are RUNNING ON AN preferring to acquiesce in reprinting being exported to Mexico and China. ANTI-FREE TRADE unsubstantiated left-leaning opinions. The attack on trade is also a moral PLATFORM. As unsubstantiated left-wing one. Hillary Clinton now echoes the claims turn into accepted home rhetoric of Bernie Sanders, her rival Channelling Trump, Senator truths, major political parties have for the Democratic nomination, who Hanson has called for a review of failed to offer a competing narrative. argued throughout his campaign Australia’s FTAs (including the Governments seem scared to that ‘inequality [was] bad for growth’. TPP) and the revocation of deals argue for a system that encourages Sanders attracted public support deemed not in the national interest. individual autonomy and effort as by pitching the gap in incomes as a One Nation ‘is strongly opposed to the key to productivity and wealth, question of morality: ‘The issue of the “free trade” economic policies lest they offend those who believe wealth and income inequality is the which, over the years, have led an ever-burgeoning and unfunded great moral issue of our time, it is to the gradual destruction of the system of welfare is the way to a the great economic issue of our time, Australian manufacturing industry.’ Swedish paradise. and it is the great political issue of Nick Xenophon has said he stands Broken promises and a lack our time.’ Both Clinton and Donald ‘against free trade fundamentalism’ of principled and values-driven Trump have vowed to renegotiate and that Australia is known overseas policy making engender a mistrust US free trade deals such as the North as the ‘Free Trade Taliban’ because of mainstream political parties American Free Trade Agreement of its ‘fundamentalist, literalist and conversely trust in populist (NAFTA) and even tear up the US- approach to free trade’. Xenophon candidates who speak with a backed Trans Pacific Partnership believes that ‘bilateral free trade frankness and authenticity too often Agreement (TPP). deals have led to relatively poor absent in the political establishment.

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Donald Trump tours a factory in Ohio, September 2016 | AAP One

CONTINUED AS UNSUBSTANTIATED interests are concentrated, so when So, how do we counter these LEFT-WING CLAIMS producers feel the impacts of increased rising protectionist sentiments? > TURN INTO ACCEPTED international competition their First, we need to engage with HOME TRUTHS, MAJOR individual losses are greater than the protectionists on the facts. The POLITICAL PARTIES more diffuse benefits to consumers HAVE FAILED TO rhetoric of falling incomes is untrue. of lower prices and increased choice. OFFER A COMPETING Major developed countries like NARRATIVE. There is also an intuitive appeal to Australia, the UK and the US have devoting attention to the way we get liberalised their economies and seen accept the argument that free trade our income than to measures relating income growth across the spectrum. is the cause. Rather, as is the case to how we spend it. It is necessary to To be sure, income growth in the US in Japan, income inequality arose counter the view that protectionism has been lower than that in Australia because of an abject failure to engage will secure your job while free trade and the UK, but regardless, all in serious fiscal and structural will sacrifice it or see your incomes income levels have experienced reform to the economy. decline in an effort to remain growth. Where income inequality Second, we need to overcome competitive. has arisen in countries such as the tension between producer Import competition and free trade Japan, we shouldn’t uncritically and consumer interests. Producer delivers a myriad of benefits to society.

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Senator Nick Xenophon holds a press conference with Transport Workers Union workers, October 2015 | AAP One

We see greater variety in products at THE LEFT HAS BECOME of the world in favour of Europe. more competitive prices. Importantly, THE CHAMPION For Britain, joining the EU meant > OF PROTECTING in this world of Schumpeterian surrendering its sovereign right FAILING FIRMS, THEIR disruption, trade inspires innovation. to negotiate bilateral free trade UNIONISED LABOUR Competition and sharing ideas means FORCES AND THEIR agreements with other countries. an improvement in ways of doing SHAREHOLDER Instead, Britain became shackled to business and product offerings. ELITES AT THE the red tape of Brussels and its focus Third, we need to prosecute EXPENSE OF THE on intra-European subsidies and an the positive case for free trade. It is ORDINARY PERSON. ever-expanding system of welfare. about human flourishing, not just In Australia, we need to harness economic success. Liberal markets agreements and the dismantling of the Brexit push for free trade. It is are essential because they put power protectionist cartels. A bright spark pleasing that both our government and into the hands of ordinary people. for free trade is Brexit. Beginning the UK government are prioritising Liberal markets not only deliver with Adam Smith’s treatise on an Australia-UK free trade deal. But the most economically efficient the desirability of free trade in his we need to use this moment to once allocation of resources but also the Wealth of Nations in 1776, followed again remind people of the benefits most democratic. They empower by the hard-fought repeal of the of free trade and open markets. Trade ordinary people, consumers, to make Corn Laws in the 1840s, and then overwhelmingly delivers prosperity the choices that guide society rather Britain’s unilateral dismantlement and affordable living. A return to than cabals of producers, labour of tariffs to become a free trading the days of protectionism and its unions and welfare advocates. The left, mercantilist nation, Britain had a high tariffs, industry support and big on the other hand, has become the strong track record on free trade. government will only contribute to champion of protecting failing firms, Then Britain joined the unsustainable government spending, their unionised labour forces and their European Economic Community further indenturing future generations shareholder elites at the expense of the (the EU’s precursor) in the 1970s to pay for our profligacy. It will also ordinary person. and things changed. Britain, a stifle much needed innovation, Finally, we must continue to previously open internationalist excellence and affordable living seek opportunities for free trade country, closed itself off to the rest through lower prices for all. R

NOVEMBER 2016 | IPA Review 45 R XXXXXXXXXX Volume 68 I 3

History is repeating itself in Britain as the nation’s intelligentsia do their best to stifle democracy, writes Bella d’Abrera.

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Photograph of the Great Chartist Meeting in London, 1848

SINCE BREXIT, tyranny by a ruling elite—of which BELLA D’ABRERA THIS POWERFUL they clearly believe they are a part— Director of the Foundations of INTELLIGENTSIA HAS Western Civilisation Program > rather than popular democracy. at the Institute of Public Affairs OPENLY ADVOCATED These anti-democratic arguments A KIND OF SOFT were employed nearly 200 years ago TYRANNY BY A he day before 52 per cent in Britain when the public began to RULING ELITE RATHER of Britons voted to exit THAN POPULAR make their presence felt though the the European Union, DEMOCRACY. radical political reform movement T Jean-Claude Juncker of Chartism. The Chartists were declared that he was ‘not a big fan essentially a loose association of 19th of referendums’. His colleague century working class democrats, Donald Tusk, clearly not a member cabal of politicians, journalists and whose aim was the enfranchisement of the referendum fan club either, academics, who sincerely believe of British men through parliamentary defiantly stated after Brexit that that the majority of their fellow reform. Then, as now, the political elite ‘whatever doesn’t kill us, makes citizens are simply ill-equipped to presented the idea that allowing the us stronger’. Juncker and Tusk’s play any sort of political role. Since masses a voice would set society on complete and utter disregard for Brexit, this powerful intelligentsia a destructive path to revolution and the will of the people is shared by a has openly advocated a kind of soft anarchy.

NOVEMBER 2016 | IPA Review 47 R WILL OF THE PEOPLE Volume 68 I 3

Former Chartist Mural at Newport City Council

CONTINUED DEMOCRACY IN A TIME grew from 94,000 to 310,000 as a range of factors determined OF CHANGE inhabitants. Within these densely voting eligibility. All men were able populated cities, the working classes to vote, but only in a few places, Chartism emerged during a benefited from improved living and in the majority of locations it century of rapid change. The conditions and new freedoms. ‘In depended on whether they were Industrial Revolution dramatically my opinion,’ commented a carpenter property owners or paid certain altered Britain’s physical and from Wiltshire ‘the working classes taxes. Whilst the new urban social landscape. The population … was (sic) never so well off’. working classes might have been of England had almost doubled, By the early 1800s, it had financially better off, they were growing from 8.6 million in 1801 become generally accepted that certainly not well represented in to 17 million in 1831. The rural parliamentary reform was necessary parliament. Some boroughs, such poor had moved en masse to cities in Britain, and the electoral system as those in the rapidly growing and towns. Sheffield, for example, fell under intense scrutiny. Until industrial towns of Birmingham had multiplied nearly threefold to the 1830s, Britain’s elections were and Manchester, had no MPs to 110,000 people, while Manchester neither representative nor balanced represent them at all. At the same

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FROM THE VERY the entire country. Despite the MOMENT THAT opposition however, the Great > THE MOVEMENT Reform Act was finally passed in PRESENTED ITS 1832 amid much popular unrest FIRST SIGNATURE- and agitation. LADEN PETITION TO PARLIAMENT IN In its final form, the Great 1839, MEMBERS OF Reform Act was not exactly ‘great’ THE POLITICAL ELITE for the majority of the population. It FOUGHT TOOTH AND increased the electorate from around NAIL TO PREVENT 366,000 to 650,000, which was about THEIR DEMANDS FROM 18 per cent of the total adult male BEING HEARD. population in England and Wales. Before 1832, the electorate had been 11% of the total population. The this bill, the Tory Prime Minister, existence of property qualifications the Duke of Wellington, promptly still excluded most men. The act also resigned. failed to introduce the secret ballot. He declared that the state of The working classes felt betrayed, representation of the people had proposing that the changes were been designed by providence simply not enough. and believed that ‘it could not be improved’. ‘It had,’ he stated ‘the OUT OF THE HANDS OF full and entire confidence of the PARLIAMENT country’. The passing of a reform bill, even one as moderate as this The failure of the act sparked new would, in his opinion, constitute action by William Lovett, a Cornish a ‘greater political crime than any cabinetmaker, and Frances Place, committed in history’. a radical tailor. Lovett and Place Lord Grey, a moderate reformer were thoroughly disillusioned with and Whig, whose most notable Parliament. ‘Instead of RE-forming, it reform was to abolish slavery has DEformed,’ they quipped following throughout the British Empire, the passing of the act. Convinced that replaced the Duke of Wellington. both national and local government In 1831, Grey introduced the elected by a small proportion of society ‘Representation of the People had become hostile and unjust, they Act’ or Great Reform Act, which sought to change the democratic he thought would prevent a full- landscape. In 1838, the pair wrote time, there were notorious ‘rotten’ scale revolution. The Act proposed the People’s Charter, setting down the boroughs, such as Old Sarum at the abolition of the worst of the ideological basis of the movement, Salisbury, which had MPs but rotten boroughs and demanded as well as six key points that they comprised just seven voters, some representation for the largest of the considered imperative to electoral stones and a field. There were also industrial towns, with a reduction in reform. They wanted: ‘pocket’ boroughs owned by major property qualification for voters in landowners who could choose their some boroughs. ii Universal male suffrage; own MPs. Moreover, the absence of The opposition to the bill was ii A secret ballot; the secret ballot meant that voters significant. Unlike Lord Grey, the ii Annual general elections; were easily bribed or intimidated. Tories believed that the slightest ii Equal constituencies; By the 1830s, demand for reform measure of reform would precipitate, ii Payment of MPs: and was becoming impossible to ignore, rather than prevent, a full-scale ii No property qualification for sitting and it entered the hallowed halls of English revolution and that it would in parliament. Westminster Palace in the form of lead to the destruction of property, a proposed bill. And in the face of the monarchy and ultimately The People’s Charter was launched

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CONTINUED a third petition to Parliament, this credibility of the Chartists’ cause. In in Glasgow in May 1838 at a meeting one purportedly bearing some 6 1850, the Scottish philosopher and attended by an estimated 150,000 million signatures. In April, a crowd historian Thomas Carlyle wrote with people. Presented as a popular-style of approximately 15,000 people a certain element of satisfaction that Magna Carta, it rapidly gained gathered on Kennington Common. ‘it is the everlasting privilege of the support across the country and its It was hoped that they would foolish to be governed by the wise; to supporters became known as the carry the petition in a triumphant be guided in the right path by those Chartists. procession to Westminster, where who know it better than they’. A year later, a petition passed the sheer weight of the document from one Chartist meeting to would finally convince the political CHARTISM IN another across Britain was brought elite that the people had spoken. AUSTRALIA to London. This was the largest The government, however, had petition ever to be presented to other plans. Fearing anarchy and Whilst the failure of the third Parliament, numbering 1.2 million petition essentially signified an signatures. But when the vast reams end of the Chartist movement in THE REACTION of paper were rolled out in front of TO BREXIT HAS Britain, it was to find new life, the Commons, it was greeted with > REVEALED THAT and with it, success in Australia. mocking laughter and derision. ANTI-DEMOCRATIC During the 1840s, an increase It was finally proposed by a radical SENTIMENTS ARE in violent Chartist activity in liberal MP Thomas Attwood, ALIVE AND WELL, AND Britain, with some Chartists even but was roundly defeated 235 to THAT AT A CERTAIN organising themselves into military 46 votes. LEVEL OF SOCIETY, units, resulted in a government Despite their defeat, the THERE RESIDES A crackdown. A number of Chartists Chartists continued to campaign, DEEP AND DISTURBING found themselves on ships being keeping up momentum by CONTEMPT FOR transported to Australia, while DEMOCRACY. organising lectures, dances, sports, others chose to emigrate. They sermons, poetry readings and plays. brought with them the same ideas, They started their own newspapers, revolution, the authorities stationed directly influencing the development using the print media to spread their 100,000 police on the common, sent of democracy in Australia. message to the masses. The most Queen Victoria to the Isle of White In 1854, Welsh Chartist and successful was the Northern Star, and in the event that the angry gold miner John Basson Humffray which at its peak sold around 48,000 mob might decide to indulge in a founded the Ballarat Reform League. copies per week in 1839. little plundering, ordered workmen He and his fellow miners sought to In 1842, a second petition was to partially saw through the stair counter the injustice of the miners’ signed by over 3 million people and case which led to the precious coin licence as well as official corruption once again presented to Parliament collection in the British Museum. on the goldfields. But they also and once again it was roundly The charismatic leader of wanted representation. To that end, rejected, 287 to 49. In the summer the Chartists, Irish MP Feargus they presented the government with of that year, a series of riots broke O’Connor, agreed to meet with a list of demands that were taken out. Despite the vast number of the Assistant Commissioner of directly from the People’s Charter. ‘It signatories, MP Thomas Babington Police, and they arranged for a is,’ stated the Ballarat reformers ‘an Macaulay had refused to believe smaller deputation to present the inalienable right of every citizen to that the second petition represented petition to Parliament. This third have a voice in making the laws he is the will of the people. Rather, and final petition was rejected. called upon to obey—that taxation the poor had been led astray and The Chartists insisted it had been without representation is tyranny.’ manipulated by the Chartists who signed by 6 million people, but The Ballarat Reform League were professional ‘agitators’ and the parliamentary clerks counted demanded universal male ‘tempters’. ‘Is it strange that the poor just 1.9 million names, including suffrage, abolition of the property man should be deluded, and should questionable signatures apparently qualifications for members of eagerly sign such as petition as this?’ belonging to Queen Victoria, the parliament, payment for members of Macaulay asked. Duke of Wellington and Sir Robert parliament, voting by secret ballot, In 1848, the Chartists presented Peel, drastically lowering the short-term parliaments and equal

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Chartist demonstration, illustration from The Life and Times of Queen Victoria (1900). electoral districts. All very familiar this act stood at 5.5 million, though that granting democratic rights demands, and nearly all of which an estimated 40 per cent of all men to the masses was ill-advised were eventually granted. The secret still did not have the right to vote as because the masses were too ballot was introduced in Victoria’s a result of their status within society. ignorant and uneducated, and 1856 general election, followed The Chartists’ legacy should not their enfranchisement would swiftly by legislation giving all men be underestimated. Although it took constitute a dangerous threat to aged over 21 the right to vote. nearly 80 years, five of the Chartists’ national stability. The reaction to Things however took a little six demands were finally met in 1918, Brexit has revealed that the same longer in Britain, where Chartism when all men over 21, and all women anti-democratic sentiments are had been born. The 1867 Reform Act over 30 years of age were finally alive and well, and that at a certain enfranchised a further 1.5 million given the right to vote in Britain. level of society, there resides a men, doubling the electorate. The But from the very moment deep and disturbing contempt for act also redistributed 52 seats that the movement presented its democracy. These elite are now from small towns to the growing first, signature-laden petition to openly denouncing democracy. We industrial towns or counties. Later, Parliament in 1839, members of must ensure that the remarkable the 1884 Reform Act gave the the political elite fought tooth victory made by the Chartists for counties the same voting rights as and nail to prevent their demands democracy is passed down to the boroughs. The electorate after from being heard. They believed future generations. R

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TAMING THE FINAL FRONTIER Property rights in outer space will give humans incentive to explore our skies again, writes Peter Gregory.

Space Launch Competitiveness Act. eyes of the US government, it owns PETER GREGORY The Act enables American citizens to whatever it finds. Research Fellow with the claim property rights over the entire It is hoped this legislation will give Institute of Public Affairs non-living universe (apart from earth). entrepreneurs the legislative security The form of property rights established they need to launch projects that will n November 25 last in the Act are those espoused by 17th lead to human flourishing in space. year, Barack Obama century British philosopher John In March 2015, Microsoft signed what one Locke. Locke believed that if a person billionaire Naveen Jain said of O commentator described invested their labour into an object, human activities in space: ‘It’s clear as ‘the most sweeping legislative they could acquire a property right over that the baton has been passed recognition of property rights in it. In practice, the Act means that if an from the government to the private human history’. The cause for such American company mines an asteroid, sector.’ It is because of this shift that a grand claim? The US Commercial or anything else in the cosmos, in the the US government has attempted

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View from 'Naukluft Plateau' on Mars taken from NASA's Curiosity rover | NASA

to update international space law, AS HAS BEEN million) to the first company that crafted when space exploration was RECOGNISED lands a commercial spacecraft on purely the province of governments. > FOR SOME TIME, the moon, travels 500 metres across Various attempts are underway UNLOCKING OUTER its surface and sends high-definition to kick-start industries in space. SPACE MAY HAVE images and video back to Earth. But UNIMAGINABLE Planetary Resources—a company it must do this by the end of 2016. BENEFITS FOR formed by Google executives Larry HUMANITY. Whilst it is impossible to say when Page and Eric Schmidt—intends these companies will be in a position to mine asteroids. Jain plans to use Shackleton Energy Company intends to launch serious economic projects in robots to mine the moon with his to mine ice from the moon to create space, recent advances in technology company Moon Express. He aims propellant for planetary missions. have made them closer than ever. to send the first commercial robotic The X Prize Foundation has Advances like the SpaceX Falcon spacecraft to the moon this year. launched the Lunar X Prize ($US30 Heavy Launcher, for example, should

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A rendering of SpaceX’s Falcon Heavy rocket | SpaceX

CONTINUED allow material to be shipped into space These projects require adequate TRAGEDY OF THE for about a thousand dollars per pound. property rights to go ahead. It INTERPLANETARY As has been recognised for some goes without saying that private COMMONS time, unlocking outer space may have property rights underpin all unimaginable benefits for humanity. economic prosperity. Risk and The Act attempts to provide this The moon is known to have gold, innovation can’t happen if people for the American space industry. cobalt, iron, palladium, platinum, are unable to say with any certainty To understand its significance it tungsten and Helium-3, a gas that that they own things. This is is necessary to understand the may enable nuclear power to be only exacerbated in the case of history of international space law. generated without radioactive waste. space property rights. It is still International space law developed Asteroids contain valuable and often fantastically expensive to travel to in the context of the space race as rare elements such as neodymium, space and an understatement to say a proxy of the Cold War. The most scandium, yttrium, iridium, platinum that investing in an asteroid mining important piece of international and palladium. venture would be anything but space law is the 1967 Outer Space Of course, what we know about highly speculative. It simply will not Treaty (OST). Its main priority was space is infinitesimal compared to happen unless entrepreneurs know to prevent nations claiming national what we don’t know. The possibilities they will be able reap any benefits sovereignty over outer space. Whilst it for humanity in space are endless. that ensue from such a project. allowed for non-government activity

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in outer space, this had to take place Antarctica has to offer humanity An important element of under government supervision. have remained untapped to this day. the Commercial Space Launch Furthermore, the OST remained Contrast this with the growing Competitiveness Act is that the US unclear on whether individuals could resource sectors emerging in the is not claiming national sovereignty claim property rights. Arctic Circle which is under the over any of the territory its citizens As a result, some private jurisdiction of the Artic nations who may occupy in space. This is an activities have been able to take to varying degrees have established acknowledgement of the OST place in space, including commercial property rights regimes that do which, as mentioned above, telecommunications, remote sensing enable economic activities to take stipulated that no nation could and spacecraft launching industries. place. It is telling that in 1960 US claim sovereignty over space. But as space technology has President Eisenhower recommended Mines built by Americans on continued to evolve, it has become that the coming OST be based on asteroids will not become part of clear that a legislative framework the Antarctic Treaty. America. But the US will recognise that protects property rights is that US citizens applying their necessary to provide investors and labour to parts of outer space will IT IS SHAMEFUL entrepreneurs with the security THAT AUSTRALIA be able to claim a property right necessary to make incredibly > IS A SIGNATORY over them. expensive and speculative space TO THE 1979 MOON Obviously, a few questions projects worthwhile. AGREEMENT, WHICH remain. If these areas aren’t part Muddying international space law (UNSUCCESSFULLY) of the US, what are they part of? further is the 1979 Moon Agreement CONSIGNS THE Will the US defend the property signed by 16 non-spacefaring nations UNIVERSE TO BEING rights of their citizens by force if (including Australia at the behest of AN INTERGALACTIC necessary? If long-term economic the Fraser Government). The Moon SOVIET WASTELAND. activities are established in space Agreement stated that all of space requiring large groups of people was public land and couldn’t be A further example is seabed mining. to operate them over an extended owned by individuals. All benefits of Seabed mining is considered by period of time, will new legal space—economic or otherwise—must many to be the next frontier of the jurisdictions and political be distributed between nations with resources sector but entities and eventually even special consideration given to poorer it is yet to take place beyond countries be able to be formed nations. Significantly, the US was not a countries’ territorial waters. The in outer space? signatory to the Moon Agreement. seabed in international waters Australia too has a role to With only 16 non-spacefaring is governed by the International play. It is shameful that Australia signatories, clearly the Moon Seabed Authority (ISA) under the is a signatory to the 1979 Moon Agreement is a failed treaty. But auspices of the United Nations Agreement, which (unsuccessfully) it still challenged the notion that Convention on the Law of the Sea. consigns the universe to being an individuals would ever be able to Thus far, the ISA has issued intergalactic Soviet wasteland. claim property rights in outer space. only exploratory licences—not Australia should renounce this There are a couple of precedents licences for production—and treaty as soon as possible. back on earth that demonstrate has indicated in the past that it Furthermore, Australia could the benefits of workable individual would expect mining companies do worse than to follow America’s property rights regimes for to share proceeds with developing lead. Although Australia doesn’t uninhabited territories. In 1959, nations. The extent of seabed have a space industry, it doesn’t the Antarctic Treaty was signed mining in nations’ territorial waters mean it can’t have one in the future. with the intention of preventing with relatively effective property It is unlikely one will emerge the militarisation of Antarctica rights regimes compared to the with the current property rights and ensuring that scientific complete lack of seabed mining in arrangements in place. exploration be allowed to continue. international waters is instructive. Humans are only just taking It also prevented individuals from The international community our first tentative steps into space. acquiring property rights there must take heed of these examples To realise the space’s full potential, and stopped any economic activity. when crafting future space we must heed the property rights As a result, many of the benefits property rights arrangements. lessons learned on earth. R

NOVEMBER 2016 | IPA Review 55 WAR’S

ENDA new book shines a light on Australia’s pivotal role in the final days of the First World War, writes Richard Allsop.

His reference to ‘the last fifty miles’ in the title refers to the RICHARD ALLSOP distance from the most forward Senior Fellow at the point of the German Spring Institute of Public Affairs Offensive in March 1918 to the position of the front in October n 1918, Australia played 1918 after six months of Allied a larger role in world events advances. than it ever had before and, Wakeling argues that these perhaps, ever will.' events have not been sufficiently ‘I The Last Fifty Miles: This is the bold conclusion of recognised in the Australian Australia and the End first-time author Adam Wakeling historical consciousness, being of the Great War in his stimulating account of overshadowed, not just by Gallipoli, Australia’s role in the concluding but also by some of the earlier action By Adam Wakeling Viking Penguin, 2016, 316 pages months of the First World War. on the Western Front.

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A key reason why Australian war Japanese proposal for equal conscription referendums, but significance was at its height in 1918 treatment of the races. As also about developments in other was General John Monash’s role Wakeling comments, a watered- countries, and how the war as an Allied leader. Monash was down version of this proposal triggered long-lasting changes in instrumental in the development satisfied ‘the pro-segregationist the roles of women and the size of new battle tactics that not only Wilson, and even the proto- of government. The quality of reduced the pointless slaughter apartheid government of South Wakeling’s work is also enhanced of infantry, but also increased the Africa, but not Hughes’. by his ability to include quirky opportunities to break through anecdotes, such as his description enemy lines. Instead of hours of of author Arthur Conan Doyle and WAKELING NEVER artillery bombardment, followed LETS HIS READERS former Australian Prime Minister by a pause and then a well- > FORGET THE TRAGEDY Joseph Cook watching a battle from flagged infantry attack, Monash’s OF WAR, WHILE AT the top of a derelict tank. new strategy saw an ongoing THE SAME TIME War is always a sad affair and bombardment targeting enemy RECOGNISING HOW there is something particularly positions just forward of the MUCH WAS AT STAKE poignant about deaths when the advancing Allied infantry. This IN THIS CONFLICT, fighting is almost over. In one of reduced the opportunity for the FOR THE WORLD AND the most terrible examples in the enemy to resurface from bunkers FOR AUSTRALIA. First World War, 2738 men lost to mow down advancing troops. their lives on the final morning Moreover, the infantry were As well as the importance of of the war when US General John provided with aerial support and Monash and Hughes, Australian Pershing insisted on continuing were assisted by tanks, which were troops played significant roles in to fight for ground that the Allies becoming far more effective than many of the crucial battles of 1918. would receive anyway when the the first prototypes from earlier in There was some exaggeration about Armistice took effect at 11am. the war. Wakeling argues that the fighting qualities of Australian In Australia’s case, Wakeling Monash’s efforts were ‘critical to troops, well-illustrated by the personalises this loss in the form the Allied success’. words of Henry Gullett, the official of young men, introduced to his Another important Australian Australian war correspondent readers earlier in the narrative, who figure in 1918 was Prime Minister for the Palestine campaign, who lost their lives on the last day of Billy Hughes, who kept himself described the Light Horseman as Australia’s fighting on the Western at the centre of debate on the war ‘the flower of their race’, men of Front, Saturday 5 October 1918. On and the ensuing discussion about ‘pure British stock’ refined by the that day, Australian troops helped conditions to demand of Germany Australian elements to produce capture Montbrehain, but men when peace came. Along the way, in ‘the most restless, adventurous, who had survived many battles equal measure, he managed to upset and virile individuals of that over the previous three years, from United States President Woodrow stock’. While recognising the the Somme onwards, ‘now died at Wilson and delight French Prime Australians were generally an a small village whose name is not Minister Georges Clemenceau. effective force, Wakeling argues remembered except by a few The fact that the war had that troops from other dominions, history enthusiasts’. made Australia more independent and from parts of Britain itself, Overall, Australian involvement of Britain was evidenced by particularly Londoners, were often in securing the fifty miles of French Hughes’ 1918 stance that Australia of similar quality. soil cost the nation 5500 lives, with would not feel itself bound to an One of the features of Wakeling’s injuries to 18,500. Wakeling never armistice signed by Britain if it did book is that it is much more than lets his readers forget the tragedy not properly protect Australian a military history. He constantly of war, while at the same time interests, a position which ‘would places 1918’s battlefields of the recognising how much was at stake have been unthinkable in 1914’. Yet, Western Front into the broader in this conflict, for the world and for it is hard to feel any national pride context of the war and events on Australia. In doing this so skillfully, in an Australian Prime Minister the home fronts of the participants. Wakeling must surely have written who took the strongest stand of The reader learns not only about one of the best debut histories for a any Allied leader against a post- key Australian events, such as the considerable time. R

NOVEMBER 2016 | IPA Review 57 R XXXXXXXXXX Volume 68 I 3 MYTH BUSTING Thomas Sowell uncovers the flawed assumptions on the causes of poverty and inequality, writes John Hajek.

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JOHN HAJEK Campus Coordinator at the Institute of Public Affairs

nyone with an ear to the ground of political discourse A must be aware of the intensifying obsession with Wealth, Poverty and Politics inequality, oppression, poverty, privilege, racism and colonialism. By Dr Thomas Sowell Terms like these form the bulk Basic Books, 2015, 336 pages of the vocabulary of the modern day student of gender studies, But it contains the encyclopaedic critical race theory or general knowledge of an entire career victimology—pure gold for those and hyper-lucid insights honed wishing to engage in a spot of moral by someone who has clearly spent exhibitionism. You might hear it decades in the fray of this ongoing even more if you spend any time argument about wealth, inequality within pontificating distance of a and cosmic justice. Happily, Sowell university campus. seems to be taking the same approach to retirement as Barbra Streisand. HAPPILY, SOWELL Just as the songstress winds up her SEEMS TO BE TAKING seventh farewell tour, Sowell, has > insisted that each of roughly his last THE SAME APPROACH TO RETIREMENT AS four books would be his last, and BARBRA STREISAND. he will probably bang out another treatise on the effects of affirmative action in Sri Lanka. It shows that there is definitely an The best possible summary assumption in the current zeitgeist of the thesis of this book, and in that prosperity and equality are, if some ways a big chunk of Sowell’s not the rule, then at least the default academic career, can be found in or natural state of humanity, and the final chapter, 'Implications and would be widely enjoyed were it Prospects': not for some form of villainy. It must be some form of injustice This implicit assumption of equal imposed exogenously—be it slavery, outcomes in the absence imperialism or discrimination—that of malice flies in the face of explains why some people, cultures evidence from around the world and nations enjoy fabulous prosperity that geographic, demographic, while others are mired in poverty and cultural and other factors backwardness. It is with the aim of influencing outcomes are not cutting through this thicket of flawed even approximately equal. assumptions that Thomas Sowell publishes his latest offering, Wealth, In Wealth, Poverty and Politics, Sowell Poverty and Politics. takes the reader back to basics to At 86 years old, this may explain that it is not just idealistic but unfortunately be his swansong, inconceivable to expect that different and Sowell has hinted as much. nations, and different people within

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CONTINUED By the same token, geographically them, should enjoy equal levels of isolated indigenous people such as prosperity. Ask any student pursuing Indigenous Australians had nowhere a Bachelor of Indignation Studies near the same level of wealth as why the Congo is so much poorer European colonisers at the point of than America, and they will probably their arrival. embark on a hectoring monologue about the legacy of colonialism. It is SOWELL MOUNTS true that this A COMPELLING factor cannot be ignored, but it is > ARGUMENT THAT one among an endlessly diverse THERE IS LITTLE multitude of reasons why BENEFIT IN A SOCIETY sub-Saharan Africa is HAVING GEOGRAPHIC far less wealthy than the ACCESS TO OTHER US (rather saliently, it was also CULTURES IF IT LACKS far poorer even before European ANY RECEPTIVITY TO colonisation). Some of them are THOSE CULTURES. Thomas Sowell as simple as geography, which, as Sowell stresses, ‘is not egalitarian’. For example, the Mississippi River Sowell is quick to remind readers that world that transformed China from flows downwards by four inches per geographic factors are not the same as perhaps the world’s most advanced mile and has no rapids or waterfalls, geographic determinism. Otherwise, civilisation to a Third World country while the Congo River has 'more how would one explain the wild in recent times. Similarly, cultural than thirty cataracts, falling a total of fluctuations in the fortunes of different factors, such as work ethic, honesty, nearly a thousand feet in a distance nations over the course of centuries? entrepreneurialism and reverence of 150 miles', totally vitiating its use In the Classical Era, Greece led the for learning are real phenomena that as a commercial waterway for freight. world in mathematics, literature, offer profound benefits to people with One river opens up a continent to architecture and philosophy, while cultures featuring these traits. Sowell water-born trade. The other is little Britain was inhabited entirely by credits this as a huge factor behind more than a majestic nuisance, illiterate tribesmen. Moreover ‘Athens the success of communities like the economically speaking. had the Acropolis—whose ruins are global Jewish diaspora, the Chinese in Sowell singles out geographic still impressive today, thousands of South-East Asia and the Germans in isolation and its ruinous effect on the years later—at a time when there was Eastern Europe and South America, ability of communities to exchange not a single building in all of Britain’. all of whom economically outstrip goods, ideas and attitudes with one But by the nineteenth century, Britain the majority populations of their another as probably the greatest would be the preeminent economic adopted homes. Moreover, Sowell impediment to wealth generation and and military power on Earth and the argues that some groups lag behind human progress. On top of a dearth centre of the Industrial Revolution. due at least partly to deficiencies in of navigable rivers, sub-Saharan Since changes in geographic fortune their own culture, and must change Africa is doubly and triply cursed cannot be the cause, one has to credit in order to progress. Unfortunately, with a colossal desert in its path to a combination of cultural, social and such a narrative is nowadays angrily the Mediterranean, along with a lack political factors, as Sowell does in the dismissed as ‘blaming the victim’, of natural harbours on its smooth following three chapters in his book. and naturally, so-called ‘community coastline, which further isolate it Sowell mounts a compelling leaders’ looking to preserve their from Asia and Europe and the huge argument that there is little benefit popularity are unlikely to tell their economic and cultural boons that in a society having geographic followers such hard truths. contact with foreign peoples could access to other cultures if it lacks any As always, Sowell engages in a provide. Similarly, Sowell explains receptivity to those cultures, citing healthy amount of myth busting, that people in the mountains the decision by Fifteenth Century picking the most thought-provoking almost always lag behind people in Chinese elites to destroy China’s areas to upheave the conventional the plains, given the difficulties of ocean-going ships and sever economic wisdom. For example, while most are travelling far in mountainous terrain. and diplomatic ties with the outside inclined to believe that state-backed

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Festival (1934) by Daniel Celentano, held at the Smithsonian American Art Museum discrimination consigns a particular African Americans have become by from memory. However, a first-time group to destitution, it is more often any measure wealthier. So much for reader will probably find before them the case the groups that are officially racism and the legacy of slavery, which a cornucopia of new facts, research discriminated against outperform were surely both more potent in the and insights. their oppressors, be it the Chinese in 1950s. There is little revolutionary or Malaysia or various Jewish diaspora Through all the knowledge cutting edge in this book, and many communities. Similarly, the political that he imparts, Sowell’s writing parts are somewhat derivative of power a group enjoys is often inversely style is always clear, concise and Sowell’s earlier work. But it is not correlated with their socio-economic uncomplicated. It might be accused of supposed to be a huge innovation success: while Americans of Irish lacking panache, but Sowell generally in the field of economic history or descent have dominated politics, avoids monotony with some subtle sociology, but rather a compendium Irish Americans have little to show jabs at his intellectual opponents, like of a prolific career of research for it compared with the far wealthier Paul Krugman and Thomas Piketty. and writing, ultimately proving and far higher-achieving Japanese Sowell is full bottle on just that differences between Americans, who have never enjoyed about every facet of socio-economics, individuals and peoples are so any political power: ' Historical but for the avid Sowell reader, varied and vast that we have no records show no… pattern of success Wealth, Poverty and Politics may right to expect anything like equal for politics, as compared to education, lack in originality. Speaking as one wealth, progress or representation job skills and intact families.' myself, I can recall several other in any field. Furthermore, the social problems Sowell books in which he extensively Once people think about the of crime, incarceration and broken cites Theodore Dalrymple’s Life at world through this prism, those who families that plague black America the Bottom, and I have been regaled study the differences between people began in the 1960s during the era of so many times with the University are relieved of the need to search for dramatic expansions to the welfare of Michigan’s study on income some bogeyman that is probably not state and have worsened even as mobility that I can almost recite it even there. R

NOVEMBER 2016 | IPA Review 61 The Amsterdam Stock Exchange, built in 1608 PRIVATE ORDER The history of private governance offers a glimpse into a world of social and economic freedom, writes Darcy Allen.

Enter Edward Stringham’s Private Governance: Creating Order in Economic and Social Life. This book DARCY ALLEN is an excellent addition to a small Research Fellow at the Institute of Public Affairs but growing collection of private governance literature—including Anarchy Unbound by Pete Leeson and ibertarians hail the The Social Order of the Underworld by wonders of ‘private David Skarbek—analysing situations governance’—the idea that where governments don’t have the left to their own devices, ability, knowledge or incentive to solve L Private Governance: free people will organise themselves societal problems. without needing the coercive power Creating Order in Economic For centuries, Stringham claims and Social Life of the state. To others, however, this private individuals have filled the libertarian view is akin to riding By Edward Stringham void where government regulation is Oxford University Press, June 2015, 296pp unicorns—no one can quite see too costly, too time consuming or is any tangible examples. All they can simply unable to be effective. This is see is the power of government, Can the cooperation, trust, private governance. a potent force solving almost all and voluntary agreements of Most research with a focus on societal problems. Everywhere they private institutions outperform cooperation in the face of conflict uses look—from zoning to drug laws— coercive government alternatives? abstract economic game-theoretic the government is there to help. This is fundamentally an methods (often observing people Supposedly, the fabric of society will empirical question. Such empirical cooperating in a lab). In contrast, be torn apart without state coercion. evidence, however, has long Stringham analyses the real world, But how do we really know? been lacking. asking key questions. How do markets

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work? What are the mechanisms This private governance worked There is one important omission in employed to overcome trust issues? long before governments could even the book—a discussion on blockchain Must a coercive state provide a shadow understand what it was. (or bitcoin) technology. A chapter over private dealings? How is social Stringham also touches on on this would have added depth to order provided where the government historical examples of private police, Stringham’s discussion on private is either ineffective or simply such as the San Francisco Patrol governance. The blockchain brings to uninterested in facilitating exchange? Special Police. These examples, life the competitive rivalry between The earliest stock exchanges from however, raise messy questions. governance structures, removing Amsterdam to New York thrived, When does ‘private governance’ monopoly and enabling competition. despite governments explicitly become ‘public governance’? At Leaving the provision of governance banning exchange. Brokers in these what point is a private police in the monopolist hands of the nascent stock markets with growing force no different from a coercive state means there is little feedback market capitalisation devised their state one? The difference is that (democratic voting is slow and own rules with no recourse to the private governance mechanisms expensive) to discover the optimum state. These arrangements were must compete for their customers. level of rules for society. The best essential in underpinning exchange Monopoly state governments do system enables different governance and making the markets work. not. For instance, when you choose mechanisms, each with their own At the London Stock Exchange, a credit card, you’re choosing unique level and quality of rules to for example, rules emerged from between governance mechanisms. compete. May the best protocol win. within because brokers realised The difference between private and New technologies are they could make their markets public governance, then, is a matter increasingly bringing competition more efficient. Brokers met in of degree, namely the cost of ‘exiting’ back into governance. And when coffeehouses (which later became one governance mechanism and we have competing providers of the bustling exchanges we know entering another. It seems relatively rules, just like there was between today) and enforced listing easy to change credit cards. It’s not so the New York Stock Exchange and requirements, screened each firms’ easy to change cities. the London Stock Exchange, there’s credibility and required disclosure. an incentive to produce a ‘club’ As membership grew, the cost SUPPOSEDLY, THE good which best suits its members. of defecting on agreements rose. FABRIC OF SOCIETY Technologies such as the blockchain Cooperation was incentivised before > WILL BE TORN APART will only make private governance a the courts become necessary. The WITHOUT STATE more effective and pervasive force in rules became a crucial backbone COERCION. BUT HOW the years to come, taking away the for the development of some of the DO WE REALLY KNOW? government’s monopoly position on world’s largest financial dealings. provision of rules. Even now, in the face of what Definitions aside, the best chapter Governments are, of course, seems like an omnipresent state, of the book focuses on the poignant not always there to help. They are private governance is widespread— lessons of the great Friedrich often absent, unknowledgeable, it’s just hard to see. Take for Hayek on the market as a discovery incompetent or simply instance the fast-moving technology process. In regular goods markets, uninterested. In this book, sector. In early 2001, PayPal was monopoly positions tend to be Stringham provides real examples losing over $10 million a month undesirable because they offer no of where the market has filled that to fraud. While fraud is of course feedback mechanism. No feedback void through private governance. illegal, the tools of government are means less discovery of what the This private order often solves ineffective at catching criminals market wants. The same story problems before they happen online, especially across multiple applies for governance. Competitive (rather than use the courts after the jurisdictions. Governments simply governance is a fantastic mechanism fact) and it’s much more widespread cannot keep pace. With their because feedback creates an than commonly believed. As business in jeopardy, PayPal chose evolutionary selection process. One research progresses, it will provide a different path—prevent fraud bank might be cheap and dirty, the irrefutable evidence on the benefits before it happens. They developed other expensive and secure: The of private governance. Hopefully monitoring systems to detect optimum governance mechanism for libertarians, they won’t have to suspicious transactions in real time. sits somewhere on this spectrum. ride unicorns much longer. R

NOVEMBER 2016 | IPA Review 63 REVOLUTIONARY HUMOUR Pop culture meets America’s most loved revolutionary war hero in a new book on the life of Lafayette, writes James Bolt.

The level of love for Lafayette in the US is remarkable, but even more so when we consider Lafayette’s first JAMES BOLT Communications Coordinator visit to America. He was a 19-year- at the Institute of Public Affairs old Frenchman from a wealthy landowning family in France. He was also a Marquis—a title given to hen the Marquis de Lafayette at birth that guaranteed he Lafayette returned was above (not equal with) his fellow to the USA in man. 1824—his first visit So how did this boy become such W Lafayette in the Somewhat since fighting with the Americans in a beloved figure in the US? And United States the War of Independence—a crowd what drove a teenager so far from of 80,000 greeted him at New York By Sarah Vowell his home to fight for a people he had Harbour. Back then, New York had a Riverhead Books, 2015 never met? These are some of the population of 123,000. questions answered in Lafayette in Let’s put the crowd in perspective: 1964 in those famous Beatlemania the Somewhat United States. Sarah When The Beatles were greeted scenes, the crowd was 4000 out of a Vowell, whose previous works by screaming fans in New York in population of 17 million. include the popular Assassination

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Vacation and Unfamiliar Fishes, at the tender age of 19 against the efforts threatened to derail the continues to make her mark as the express wishes of family, government revolutionaries’ plans. George historian for the pop culture era. and King, and Lafayette had bravado Washington was nearly replaced as Lafayette in the Somewhat United in droves. Enjoying a brief visit to the leader of the revolutionaries after a States is laden with humour and United Kingdom shortly before sailing bitter defeat in New York, with other personal observations, now staples to join the American revolutionaries, revolutionary leaders wanting to of Vowell’s works. Her tireless Lafayette ‘rejoiced at [the American] transition power to Horatio Gates— research efforts also shine through success at Trenton’ while gallivanting the victor of Saratoga. Washington in this book, using diary entries and with the English aristocracy, including was able to repel this, but ran into correspondences between Lafayette with King George III and the future similar hostilities trying to appoint and his contemporaries to reveal leader of the British army in the Baron Von Steuben to Inspector fascinating insights into Lafayette’s American War of Independence, Sir General of the army, despite Congress character, such as the friendship Henry Clinton. already appointing someone to that between Lafayette and George position so they could keep a firmer Washington and the political eye on Washington. and military machinations of the BITTER DIVISIONS But as the Americans united revolutionary war. And through MARRED THE behind Washington’s victories, these insights we see how ‘united’ > UNITED STATES’ the British generals become more may not have been the best adjective MILITARY EFFORTS divided. Vowell takes us to the to describe the American colonies. AND THREATENED fascinating correspondences TO DERAIL THE Perhaps the famous painting of between British generals as they REVOLUTIONARIES’ Washington crossing the Delaware PLANS. start to realise the war may be more should not be the defining image difficult than they anticipated. of the revolution. With what is The book is not perfect conveyed through Lafayette in the Lafayette lost his father when young, however. Vowell’s talent for mixing Somewhat United States, a more and one gets the impression he found a personal stories and contemporary accurate representation might be surrogate father figure in Washington. observations on historical periods Washington standing in front of two He praised Washington often in letters is well known, but it didn’t work politicians discussing how to replace to his wife, and once started a letter so well in this book when her Washington as leader of the rebels, to Washington with ‘it is not to the encounter with a group of Quakers next to another general deliberately commander-in-chief, it is to my most led to a thought-provoking disobeying Washington’s orders. dearest friend, General Washington, discussion about how we study Then there might be a soldier off that I am speaking’.The feeling was history. When Vowell ventured into to a side receiving a letter from a mutual. Washington constantly the world of modern politics, it did bureaucrat informing him there is expanded Lafayette’s responsibilities the book a disservice. still no way of transporting his shoes through the war and put him in Vowell is a terrific historian. from the factory to the front. charge of some decisive battles, And as a political commentator, she But there was one person fighting appointing Lafayette to lead a charge is a terrific historian. Choosing to for the Americans that Washington on the British instead of Alexander end the book on a discussion of the could trust completely—young Hamilton. The Washingtons would American suffragette movement Lafayette. Lafayette fell in love with also shelter Lafayette’s son Georges because a major protest took place America from afar and became Washington Lafayette when the latter in Lafayette Park is a prime example enamoured with their ideas of liberty had to flee the French Revolution. of Vowell’s political mind hindering and equality. However, his desire The book is firmly grounded her stronger talents. to join them was not shared by the in the experiences of Lafayette, But these moments of weakness French government. Not wanting to but Vowell also takes us to are few and far between. Lafayette cause an international incident, the the political machinations in the Somewhat United States is an French government forbade Lafayette underpinning—and often excellent book and a must-read for from going to fight. undermining—the American all lovers of American history who Of course, Lafayette ignored these revolution. prefer their non-fiction—and their demands. It took a level of bravado The bitter divisions that historical figures—charged with to abscond to a war across the ocean marred the United States’ military humour and personality. R

NOVEMBER 2016 | IPA Review 65 R XXXXXXXXXX Volume 68 I 3 CRE AT IVE DESTRUCTION A new book imagines a future where city buildings and public spaces are allowed to evolve, writes Stuart Eaton.

The changes and challenges arising from this population explosion extend across every STUART EATON area of society; employment, Engagement Manager for the Institute of Public Affairs housing, recreation, transportation and development. In Destructive Cities, Macroplan or years, we have heard executive chairman and founder about the incredible Brian Haratsis argues that a new population growth that approach is needed for our cities to F Australia will experience get the best out of this growth and Destructive Cities over the next 50 years, rising from the increasingly globalised economy. about 24 million at present to more Haratsis believes that there needs By Brian Haratsis Macroplan Dimasi than 41 million in 2061. to be a change in the way people think

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about urban development that will the revival of our CBDs as the The approach that Haratsis allow cities, buildings and areas to population chooses to return to the argues for is not to restrict the change their usage and purpose as centre of our cities. Even in regional choices of the individual but to the city evolves; not just a change and rural Australia, the major create the circumstances to make to the current city layout. Haratsis population centres are growing at life easier for the individual no promotes the theory of ‘continuous the expense of smaller communities. matter what they choose. regeneration’. These cycles influence today’s This philosophy should guide Indeed, there are plenty of urban environments, whether it the approach of governments as they current situations which show the be the high use of the private car, examine how we can make more need for exactly this approach, such the hub and spoke approach to effective use of the instruments and as empty CBD office towers that single city states or major CBDs, or levers available to us, whether it is cannot easily be converted to hotels, housing affordability. getting better value from existing or purpose-built industrial areas infrastructure investments or that are now vacant as companies HARATSIS ARGUES whether it is our investments in move further out of the city. THAT POLICYMAKERS different modes of travel that allow While a lot of this thinking is not > NEED TO ALLOW people to make their own choices. new, Haratsis rightly points out that CITIES TO GROW Haratsis also covers a number of these days red and green tape can ORGANICALLY RATHER other issues, such as the emergence see projects needing between five THAN IMPOSE A of driverless vehicles, the high cost and ten years for approval. NANNY STATE ‘PLACE- of infrastructure, the need for the Haratsis argues for a change MAKING’ FRAMEWORK. private sector to have a role in the in approach to allow for cities to provision of infrastructure and evolve to their next iteration as the Changes in living patterns also flow changes to taxation and planning situation demands. through our infrastructure and policy to allow for more affordable Yet our cities have always other programs. They influence housing, amongst others. evolved. From the time of where we build roads, railways, Many of these issues are of settlement, in what would hospitals, police stations and interest to city planners and predictably become our major cities, airports. residents, however, the truth is to the waves of new residents as But all of these decisions have that our cities succeed because a result of economic conditions, historically been reactive rather of the choices individuals make. immigration or uncertainty than proactive. And it will be the reaction of the overseas. The challenge for the future is public to new entries, like driverless We have also seen influxes to get ahead of issues rather than to vehicles, that cannot be predicted. of people from regional and be playing catch up, whether we are Remember the internet was going rural Australia as successive investing in infrastructure projects to allow people to work from home primary industries have faced or are we making the decisions and see the end of office buildings challenging economic climates in to protect corridors for major as we know them, yet in reality farming, minerals or the search for infrastructure in the future. our CBDs are growing faster precious metals. In recognition of that fact, than ever. Generations of people moved Haratsis argues that policymakers It is precisely this density that from the inner cities to the suburbs need to allow cities to grow allows our cities to succeed. Even following the influence of Frank organically rather than impose a city park and garden requires a Lloyd Wright and his designs for the a Nanny State ‘place-making’ sustainable population base. American suburbs of the 1930s and framework. And while the future of later the rise of the motor car which This view neatly fits between our cities relies on millions made travel between home and the rigid approach where people of people making their own work easy. are directed where to live choices, government can assist In Australia in the 1950s and regardless of the infrastructure and in that success if they create the 1960s, everybody wanted to own services, and the Field of Dreams environment for people to make their own piece of the country philosophy—‘build it and they will their own choices in response to and the Australian suburbs grew. come’—neither of which are the best their own circumstances at a time In recent decades we have seen approach to any development. of their choosing. R

NOVEMBER 2016 | IPA Review 67 STRANGE TIMES WITH JAMES BOLT

INGLOURIOUS BASTERDS

Quentin Tarantino tries to infiltrate the Nazis in their occupation of Paris. Due to his incessant need to tell everyone around him what a genius he is, he immediately gives away his plans in incredible detail and is executed. LORD OF THE FLIES

William Golding finds himself stranded on an island with a score of young boys after a plane crash. Being an adult and therefore able to maintain stability, they all wait patiently by a fire until they are rescued. GLADIATOR

Ridley Scott strives to get revenge for the murders of his wife and son by assassinating the Emperor. A visibly shocked Maria Falconetti, arrested for the crimes of a fifteenth century French woman. Completely unable to speak Latin, he fails to drum up significant support from his fellow gladiators. CULTURAL THE GRAPES OF WRATH John Steinbeck joins with sharecroppers at the height of the APPROPRIATION Great Depression and helps them get by in an unforgiving economy. Noting the wealth Steinbeck has uthor Lionel Shriver themselves as protagonists. Here gained from the sales of Of Mice and raised a lot of we revise classic tales to conform Men, the sharecroppers rob him at controversy at this to modern standards. first opportunity. year’s Brisbane Writers’ A CATCHER IN THE RYE Festival for her defence of cultural THE PASSION OF JOAN appropriation in literature. She OF ARC argued that authors should be able J.D. Salinger struggles with his to borrow the experiences of people teenage feelings of angst and Maria Falconetti stands accused of the from other cultures to inform their alienation from society. Society, crimes of Joan of Arc. The English, work—otherwise she would only noting that J.D. Salinger is 32 realising they have clearly arrested the be able to write about the years old, continues to treat him wrong woman, release the 1920s actress. experiences of 'smart-alecky 59-year- with suspicion. old 5-foot-2-inch white women from BLADE RUNNER North Carolina.' TO KILL A MOCKINGBIRD The controversy raised by Harrison Ford grapples with the Shriver’s argument suggests there Harper Lee takes up the case of a thought that he might be a replicant, is a market for non-culturally black man wrongfully accused of a just like the people he is chasing. Then, appropriated works—where the crime. Due to her being an author remembering he is Harrison Ford, his writers or performers can only have and not a lawyer, she loses the case. conscience is eased. R

68 IPA Review | ipa.org.au A thought-provoking blueprint for a freer and more responsible Australia. - Tim Wilson

A new book by Chris Berg

Published by Melbourne University Press www.mup.com.au Available in bookstores now, or for or AVAILABLE NOW

A new book from the Institute of Public Affairs Foundations of Western Civilisation Program