So we have measures like a carbon tax where more revenue is spent compensating taxpayers than is raised in the first place, or a resource rental tax that effectively exempts the large miners from paying for years.
Trying to avoid a resolution of the Thomson issue just underscores to the public that the government lacks conviction and resolve. So it moves beyond being an issue of legality to one of the central essence of the government, which is even more damaging.
Gillard has opportunities to peg Tony Abbott back, and this may well be the nadir of her prime ministership. Abbott is making slips and polling shows that his popularity is only high relative to Gillard.
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Instead of making Peter Beattie envoy for manufacturing she could have employed him as personal advisor on damage control – it's an area where he's written the definitive manual. Labor certainly needs to change course, because business as usual will lead only to bankruptcy.
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