Inside This Issue Volume 57 • Number 1 • March 2005 2 Editorial 27 What’s a Job? Ours is a compassionate society, but is our compassion being It seems that being a corporate executive has become pretty well directed? Mike Nahan dangerous. They are being targeted by powerful regulators, unions and non-government organizations. Ken Phillips 3 The Self-Employment Revolution The condition of Australia’s old industrial relations system 28 A Philosophy of Liberalism has dominated the policy debate following the 2004 federal A personal reflection on a busy life and on the importance of election. John Roskam individual responsibility. Andrew Robb AO 6 Taxes, Health and Federalism 30 Education Agenda The Howard Government’s victory in the Senate, which Is education too politically correct and are students in danger comes into effect in July 2005, has led to a renewed push for of being indoctrinated? Kevin Donnelly reform. Mike Nahan ENVIRONMENT INDEPENDANT CONTRACTORS 8 Wake Up: They’re Misleading You 32 The Workforce of the Future Climate change is one of the defining issue of our times and A contractor is someone who contracts. The sanctity of the Kyoto Protocol is, in many ways, an historic agreement, contract is one of the three pillars of our common-law worthy of extensive and serious debate and reporting. system. Bob Day Andrew McIntyre & Chris Berg 35 Independent Contractors and Tax: The Facts 12 Waterkeepers’ Claims Sunk by Facts Some people claim that independent contractors and their It will come as no great surprise to those who have taken clients use non-employment to avoid tax and other statutory a serious interest in the Yarra River’s health that a constant obligations. It’s a claim that doesn’t match the facts. improvement, in fact, has taken place. Alan Moran & Mike Ken Phillips Nahan 14 37 The ABC’s Paralysis on Bias The Lost Battle of Queensland Farming When the Titanic hit the iceberg, the directors of the White The Eureka Stockade is such a fascinating event in Australian Star Line no doubt had some thinking to do. What will the history that it has since been reinterpreted by countless ABC do with Four Corners? Christian Kerr groups to suit their various political arguments. Michael Thomson 39 The Politics of Political Mothers and Wives 16 Once upon a time, it was generally childless women or Campaigning Against our Cultural Heritage those who had adult children who became active in politics. Banjo Paterson, perhaps more than any other writer, created Margaret Fitzherbert and defined our cultural heritage. Jennifer Marohasy 41 Letter from London 18 Global Transaction Strategy Great Britain now has laws just like the ‘banning orders’ of When the United States finally went to war again in the the apartheid regime, or the measures used with dissidents in Persian Gulf, it was not about settling old scores or simply the Soviet Union, or in Burma. John Nurick enforcing UN-mandated disarmament of illegal weapons or a distraction in the war on terror. Thomas P.M. Barnett & 42 Free Enterprise Online Henry H. Gaffney Jr. Stephen Dawson 23 What is Labor Thinking? 44 BOOK REVIEWS The dismal result for Labor at the 2004 election was easy Andrew McIntyre reviews State of Fear by Michael Crichton; to predict. The electorate was not about to swap the steady Gary Johns reviews The Case For Israel by Alan Dershowitz. hand of an experienced leader for the volatile fist of a recent arrival. Gary Johns 47 Around the tanks 25 A Constitution that Deserves Better Mates If constitutions had emotions, ours could be forgiven for feeling just a little frustrated. Greg Craven R E V I E W Editor: Mike Nahan. Associate Editors: Chris Berg & Andrew McIntyre. Production: Chris Berg. Proofreading: Stephen Dawson Designed by: Chris Berg. Printed by: Pinnacle Printing, 288 Dundas Street, Thornbury VIC 3071. Published by: The Institute of Public Affairs Ltd (Incorporated in the ACT) ACN 008 627 727. Level 2, 410 Collins Street, Melbourne Victoria 3000. Phone: (03) 9600 4744. Fax: (03) 9602 4989. E-mail: [email protected] Website: www.ipa.org.au Illustrations, Front Cover and Inside Cartoons by Chris Berg Unsolicited manuscripts welcomed. However, potential contributors are advised to discuss proposals for articles with the Editor. Views expressed in this publication are those of the authors and do not necessarily reflect the views of the IPA. Reproduction: The IPA welcomes reproduction of written material from the Review, but for copyright reasons the Editor’s permission must first be sought. FROM THE EDITOR From the Editor Ours is a compassionate society, but is their own children. our compassion being well directed? Activists are also lobbying to elim- As individuals and groups, Austral- inate trout from Victorian streams, to ians are extraordinarily willing to help exclude beekeepers, firewood col- others in need with cash and kind. lectors, horse-riders, power boats, 4- Nothing shows this more than the wheel drive vehicles and motorcycles response to the Asian tsunami, with from our national parks; to stop the around $300 million donated by indi- harvesting of native timbers, and to vidual Australians and corporations, restrict the growth of pine and native and over $1 billion pledged on their timber plantations. behalf by governments. It is estimated Jennifer Marohasy (page 14) and that, in 1997, 8.6 million Australians Michael Thompson (page 16) discuss donated $2.8 billion to non-profit some of these campaigns. organizations, and in 2000–01, Aus- These campaigns, which together tralia’s business sector provided $1.4 constitute an attempt to shut down billion to non-profit organizations Mike Nahan rural Australia, are being waged by through gifts and sponsorships. wealthy, unduly influential, urban- This is all fine and good. Indeed it large agricultural business. Water- based groups. Few of these groups is an important underpinning of a free keepers Australia’s link with the com- have more than a handful of mem- society. munity is weak and it is, for the most bers. The lion’s share of their funding We are a very affluent society part, composed of a small network of comes from governments seeking to with expectations that companies and deep Green activists working behind buy ‘the green vote’ and from gullible individuals will lend a helping hand. We a new façade. It focuses on political urban elites. have rightly become less enamoured and legal action rather than directly Unfortunately, they are being suc- of government solutions. Moreover, helping the environment. It conducts cessful and in the process are sowing many have satisfied their life’s goals a polished but essentially dishonest the seeds for a return of One Na- and are looking to give something campaign that takes the oxygen from tion. back to society. the many groups and volunteers al- Of course, people should be able Increasingly, however, some of this ready working to improve our rivers. to do with their money what they compassion is being misdirected with Moreover, it seeds fear and paranoia wish, even if it is poorly informed and unintended consequences. In short, where neither are appropriate or potentially destructive. But should we compassion can be sent awry and not helpful. subsidize their destructive indulgence all philanthropy goes towards a good In short, philanthropic funding with tax breaks? end. of the Waterkeepers Australia is de- There are things that can be done. One example is the Waterkeep- structive of civil society, economic We can revisit the definition of char- ers Australia, whose recent activities growth and the environment. ity and ensure that charity status and are discussed in this issue (page 12). Misdirected philanthropy also its financial benefits go only to groups This group has a seductive name, an lies behind the plethora of campaigns that directly address their chosen appealing purpose, an apparently ko- against farming and other traditional area. That is, we should give only to sher board, and a very impassioned, resource-based businesses. Farmers groups that get their hands dirty or slick spiel. They claim to be mobiliz- currently face campaigns to stop the undertake real research. Groups that ing community groups to protect our raising of sheep, the milking of cows, are little more than lobbyists should waterways. This appeal, and the seem- the growing of rice and cotton, the not be treated as charities. ingly good purpose, has allowed it to use of feedlots, the intensive rais- And we can also start taking on procure funds from serious and sensi- ing of pigs and chickens, the export these groups and their financiers in ble foundations. of livestock, the use of biotechnol- the halls of public opinion. Few phi- The reality is different. The Alliance ogy, the use of water, the clearing of lanthropists wish to do bad things or is a derivative of a US group of the re-growth vegetation, the culling of receive a bad press. same name which specializes in join- kangaroos and other wildlife, the use ing NIMBY’s and tort lawyers against of pesticides, and the employment of R E V I E W 2 MARCH 2005 THE SELF-RELIANT SOCIETY Self Reliance and the Employment Revolution John Roskam THE OLD INDUSTRIAL lations system. Individuals are choosing Fourth, individuals are demand- RELATIONS SYSTEM to work for themselves to gain the ben- ing choice over their working arrange- efits of the choice and flexibility that ments, as they are in every other aspect he condition of Australia’s old self-employment provides. The conse- of their lives, and self-employment pro- industrial relations system has quences of this transformation for the vides this. dominated the policy debate economy, for society, and for our politi- Fifth, individuals are more willing Tfollowing the 2004 federal election.