John Passant

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The Greens: Opportunities for the Left?
The swing of 3.7 % to the Greens gives them almost 12% nationally. It offers the left an opportunity to argue our case with those who will become disillusioned with the Greens and their incapacity to fundamentally change anything. They support the profit system which is the root cause of our problems – climate change, war, poverty. They are unwilling to mobilise mass support in the streets for climate change, refugees, jobs. I hope I am wrong. However I made the same point about Obama before he was elected. I was right. (0)

Some questions for Abbott and Gillard
And when the boats keep coming (a good thing), and interest rates go up, and unemployment skyrockets, and GDP falls, and climate change wreaks more and more havoc on our planet, and the Taliban win in Afghanistan, what then? A retreat further into reaction and the politics of fear and attacking the victims even more? (2)

There is no red ink
‘In an old joke from the defunct German Democratic Republic, an engineer gets a job in Siberia. Aware of how all mail will be read by censors, he establishes a code with his friends: “If a letter is written in blue ink, it is true; in red ink, false.” ‘His first letter, written in blue ink, began: “Everything is wonderful: stores full, food abundant, apartments large and heated, movie theatres show films from the West – the only thing unavailable is red ink.” ‘ Zizek: The colour of truth. (0)

Tax the mining companies to keep interest rates down

One of the best ways to keep interest rates down would be to properly tax resource rents. Thanks for the forthcoming interest rate rises Julia and Tony and Markus, Tom, Twiggy and Clive.
(0)

What will socialism be like?
 There is a beauty in not having to rush to work but rather enjoy the morning at human pace, not capitalism’s pace. Holidays are what socialism will be like, I imagine. Minus all the democracy. (0)

Greece: what is happening?
Under threat of civil conscription Greek truck workers voted narrowly to return to work. Rhys Williams gives his thoughts.  

I don’t think this outcome actually constitutes a defeat. The level of struggle in Greece is increasing every day and the drivers’ vote to return to work was only taken due to the fact that the drivers feared that a continued strike would result in the Government’s civil conscription of drivers and use of the Armed Forces. Reports from the drivers seem to suggest that they are still incredibly militant and ready to strike again if needed. The drivers stopped their strike not out of defeat but because of tactical considerations. Other strikes are coming up in the next few weeks and I hear another general strike is planned. Workers in Macedonia , Slovakia, and elsewhere across the Balkans are also beginning to strike in solidarity with Greece and due to their own austerity measures . Interesting things are also developing in Spain, France, Britain and Germany. The fight back across Europe is entering a new phase. It is not, however, slowing down.
(0)

Unscripted?
So Julia Gillard is going to tear up the script and be herself. I can’t help but think this is a scripted campaign to be unscripted, probably the result of focus group analysis. (0)

Blood on Gates' hands
A headline from today’s Australian: ‘Wikileaks may have blood on its hands already, says Gates.’ What, unlike Gates and Obama? (1)

Election 2010: There is no choice - build a socialist alternative
I will be talking about the elections at the University of Canberra on Wednesday 18 August at 1 pm in 22 B 25 (ie room 25 on level B of Building 22 above the retro cafe). Election 2010: There is no choice – build a socialist alternative. (4)

Gillard's gender pay gap
Evidently Julia Gillard has the interests of working people and retirees at heart.  So I ask her to explain her role as Employment and Workplace Relations Minister and Deputy Prime Minister for almost 3 years in addressing the gender pay gap? Under Labor it actually increased to 18.2%. So apart from platitudes, what will Prime Minister Gillard offer to redress the imbalance and cut the gender pay gap to zero by 2013 if she is re-elected? Or could it be that such a policy would be too costly for her key supporters – business? So she will talk about equal pay for equal work but do nothing.  Add equal pay to the mining tax, climate change. WorkChoices Lite, the Australian Building and Construction Commission and many other examples of Gillard and Labor not being prepared to upset their real masters – the rich and powerful. (0)

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The new Gillard Government: neoliberalism in crisis

The election has produced a deadlock for neoliberalism in Australia. Neither major bloc of free marketeers won a majority in the House of Representatives.

A trickle, nay a stream, of voters expressed their opposition to neoliberalism by supporting either old style protectionists on the right (or their more sophisticated spokesmen in the likes of Oakeshott and Windsor), and the Greens on the left.  Will it become a flood?  Maybe.

The election reins in aspects of the neoliberal agenda, those aspects which would involve attacks on particular sections of the ruling class for the benefit of the whole class.

 Thus economics editor Alan Mitchell, writing in the Australian Financial Review, the paper of the bourgeoisie, has described the independents’ deal with the Labor Party as producing a government whose ‘legislation will be hostage to the wavering support of men whose opinions will be set by the last rent seeker they have spoken to.’

What he means is they will be hostage to rent seekers who may not be from big business. But the situation is more complex than that. 

The bourgeoisie want a Government who rules in both their specific and general interests.  Often the two are in harmony, or the social surplus is enough to buy off some sections without attacking them. The result is often a Liberal Government who can rule successfully for business.

 But sometimes the needs of the system (especially as the rate of profit stagnates and the social surplus dwindles) require overriding the interests of specific capitalists. Historically the Labor Party has represented that wing of the bourgeoisie which could as an outsider impose solutions beneficial for capital at the expense of specific sections of capital.

The Resource Super Profits tax was but the latest example of this. It was an attempt to re-distribute profit via general company tax cuts from a super profitable section of Australian capitalism to all the bourgeoisie. 

Labor’s back down on that tax may be the tocsin of the changing nature of the Labor Party, indicating that its historic role as ruling in the interests of capitalism at the expense if needs be of capitalists may be changing.

Certainly the tax fiasco, coupled with the Emissions Trading Scheme which would have transferred wealth from the working class to the big polluters, are clear signals of this. 

On top of this the charade that Labor represents in some way the interests of working class people fell apart during the 2 and 1/2 years of the Rudd Government. The party has become a carbon copy of the Liberals.

The policy differences are minor. Where they exist they are debates about the detail, not the general neoliberal agenda itself.

The lack of a strong left wing socialist or even militant alternative to Labor has allowed the seeming opponents of neoliberalism, the Greens and various rural independents and the WA nationals, to win, combined, millions of votes.

This may well see some sections of the Nationals move closer to this protectionist and state interventionist faction of capital. 

The power the Greens now have – both with Adam Bandt in the House and the balance of power in the Senate –   may see them moving closer in rhetoric to the social movements while balancing the interests of the petit bourgeoisie and big business who will benefit directly or indirectly from their policies.

Big business wants ‘stability’. This means they want change managed for their interests and strict control over the working class and the rewards its receives for creating the wealth of society.

The paralysis of generalised capitalist reform - of neoliberalism – that this election has produced will see the ruling class force an election on the Government within the next year unless Labor can find a way to rule in their interests as a class and for particular sections of that class.

It is difficult at the moment to see that being possible.

Tony Abbot waits.

But so too do the opponents of neoliberalism. The task for socialists will be to turn that inchoate left wing opposition into an active fightback.

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Tax terrorism: re-thinking Wickenby

Tax terrorists are a greater threat to Australian society than individuals wanting to blow up public buildings and kill tens of people. 

Tax terrorists deny the Australian community billions upon billions in revenue which could be used to build much needed infrastructure in health and education and to address climate change. They do this in a number of ways.

The evaders scam the system, hiding income offshore for example or engaging in round robins a la Glen Wheatley that involve fake invoices and payments for services that were never provided but were the claimed as deductions.  The money is then ‘loaned’ back.

Often evasion is the working man’s tax avoidance. Estimates vary but some put the black economy – often in the building and taxi industries and small retailers – at up to 15% of GDP. This could be in the order of $200 billion, or tax of around $70 billion.

Wickenby is the name given to the operation and the project aimed at certain offshore activity that has both a criminal and a tax component. 

According to the ATO, as at 31 July 2010 Project Wickenby has collected just under $200 million in tax, raised liabilities of $855 million and produced a compliance dividend of just over $300 million.

This latter is the claimed extra revenue raised in later years from those under Wickenby investigation. It looks too convenient a figure to be anything but a guess to bolster the figures for Wickenby.

However, having been highly critical of Wickenby in the past let me say that I was wrong.

There are currently 26 investigations under way. 58 people have been charged – many are awaiting trial – and 11 convicted. 1519 people to date have been audited. 

The important revenue figures are both the cash collected to date and  the liabilities raised.

$200 million is a lot of money to have in the bank. $855 million is a lot to have on the way, even though it is not yet collected.

The ATO doesn’t raise assessments willy nilly and much of this $855 million will be collected once the rich and powerful exhaust their legal and PR avenues.

Indeed the success of Wickenby can perhaps be measured by the increasing shrillness of the response. Much of the media for example have jumped on the bandwagon of Paul Hogan in his battle against a rumoured multi-million dollar tax assessment issued in April.

Much of it is unadulterated bullshit. But let’s put this into a different context. Perhaps what is worrying the rich and powerful is not the inadequacies of Wickenby but its successes to date and looming successes over the next few years.

As Wickenby slowly grinds away collecting information and money, and I might add prosecutions, the rich and powerful have begun to use their media to denounce the project.

Apart from the scammers and evaders another stream of tax terrorists play games with our tax laws to avoid tax. Avoidance is using legal means in sophisticated ways to reduce the tax otherwise payable.

It helps to explain for example why 40 percent of big business pays no income tax.

It explains why half of all world trade passes through tax havens – no or low tax jurisdictions with bank secrecy provisions that prevent those countries, under pain of jail for the workers in the banks in the havens, providing  information to revenue and other agencies in places like Australia.

That is changing as a consequence of the global financial crisis and now havens are entering into agreements to provide information in certain circumstances to developed countries like Australia.

Finally the ruling elite have captured the development of tax policy and legislation and shackled the Tax Office to such an extent that tax law is neoliberal for us and keynesian for them. The tax system for example transfers about $100 billion of our wealth to big companies and the mainly well off in society.   

What drives tax terrorists of either variety? Self interest. In the case of the above the board tax terrorists the driver is profit. Reducing the tax payable by one company at the expense of other companies gives the avoider an edge over their competitors.

Of course what is good for the individual company is bad for community overall. And it is the community from which the tax terrorists and the ruling elite draw their profit.

 So, like much of the rest of the story of capitalism,  individual benefit threatens community well being.

Short of a revolution to democratically overthrow the profit system, the State could give up its ambiguous attitude to increasing profit by reducing tax and move to strengthen the Tax Office and the laws its applies to recoup hundreds of billions more in revenue.

This would involve not just beefing up the tax administrative arm of the state but also changing the whole orientation of tax policy over the last 4 decades from cutting tax on the well off to taxing the rich till their pips squeak. 

Making the 40 percent of companies who pay no tax, and the rest of the profit bludgers who pay less than the headline 30 percent rate, would be a good first step.

Adopting some of Ken Henry’s more progressive tax suggestions – like a real resource super profits tax and  death and gift duties on the well off would be another tiny step towards tax justice.

Stop tax terrorism. Make the rich pay.

Paul Hogan, hype and paying tax

This is the copy of  a letter I sent to The Australian in response to an article about the Hogan tax matter. They won’t publish it.

John

As a former Assistant Commissioner of Taxation I found Susannah Moran’s puff piece on Paul Hogan (‘Hogan free to return to the US as the heavy hand of the tax office relents’, The Weekend Australian September 4-5, page 1) laughable.

As a current senior lecturer in tax law at the University of Canberra I found it risible.

As an Australian citizen I found it reprehensible.

First, Moran fails to distinguish between the criminal and civil aspects of the various cases she mentions. Tax evasion is a crime, tax avoidance is not. 

In April I understand from newspaper reports that Hogan was assessed to pay tax. As a consequence Hogan owes a multi-million debt to the ATO. It is a debt that is payable now and makes Hogan a tax debtor. It is a civil matter. He is fighting it.

It appears the assessments may go back to the mid 80s. The Commissioner can only do that if he believes fraud or evasion is involved. So the civil tax matter when it comes to Court will test that view and put into the public arena the activities upon which the backdated assessments are based. [I have added this paragraph in after the letter was sent.]

As part of the successful Operation Wickenby, Hogan and others are under investigation for possible criminal offences.

 
Suspected white collar criminals can easily hide or destroy evidence and hence the need for all sorts of quick responses, including if the police and other law enforcement agencies deem it necessary, raids on the homes of the suspected criminals. 
 
Moran seems to be suggesting that raiding the homes of the rich and powerful is inappropriate. This reveals her class bias. Apparently criminal laws are all well and good when they apply to the lower classes. But the same rules shouldn’t apply to the rich. Give me a break Susannah.
Wickenby has exposed this double standard. And the rich don’t like it.
 
Hence The Australian’s relentless campaign against the criminal and tax aspects of Wickenby and the calls by some for various regulatory bodies to investigate the Project.
 
These attempts to disrupt and sidetrack criminal and tax investigations are really just cover for protecting the rich and powerful.
 
Moran thinks issuing Hogan with a Departure Prohibition Order was an ‘extraordinary turn’. She offers no justification for this view.
 
The Commissioner has the ability to issue DPOs when there is a tax debt outstanding and the Commissioner has reasonable grounds for believing that it is desirable to issue an order to ensure the debtor does not depart Australia without wholly discharging the liability or making arrangements satisfactory to the Commissioner for the tax liability to be discharged. 
 
The ATO has issued 14 DPOs over the last 5 years, mainly as a consequence of Wickenby. 
 
The matters the ATO takes into account in considering whether to issue a DPO include whether known assets are enough to pay the debt, whether those assets are in Australia, if there have been any transfers of funds to relatives or offshore, whether the debtor is under investigation and if there is any evidence to suggest concealment of assets. 
 
Hogan could have sought an order in the courts to have the DPO lifted. He didn’t.
 
A hard hitting investigative journalist might have asked why not and whether the possibility that  the reasons for the Commissioner’s decision to issue the DPO would have been made public in any court case may have influenced Hogan not to seek judicial intervention.
 
A hard hitting investigative journalist might have asked tax debtor Hogan if he had any connection with various tax havens and, depending on the answer, might then have asked about Trelene Investments and GB Films, two British Virgin Island companies. He or she might then have followed up with questions about whether Hogan or others associated with him have any connection to those companies.
 
A hard hitting investigative journalist might have explored the QC advice tax debtor Hogan appears to be relying on from about 1986 and what relevance that has to today. Such a journalist might have asked if a piece of advice that appears to be 25 years old has any relevance to tax liabilities today and why tax debtor Hogan appears to be hiding behind what could well be limited, outdated and irrelevant advice.
 
I could make many many more points but let me finish off by commenting on the first and final points Moran makes.  She ends up by saying that ‘Hogan was victorious yesterday..’
 
And yet she started her Hogan hagiography with the comment that the actor and tax debtor provided a “security” to the ATO – the use of the inverted commas appears deliberate and sends a possibly misleading message – to lift the DPO.
 
A hard hitting investigative journalist might have asked about the nature of that security, the amount, the requirements it imposed on Hogan and the like.
 
Moran did none of this. This is not surprising because those campaigning for tax debtor Hogan and against Wickenby and the ATO are protecting the interests of the rich and powerful at the expense of the rest of the community.
 

Elections schmelections – let the real fightback begin: Saturday’s socialist speak out

At the moment Australia is in electoral limbo. But the big bosses still rule, which is why things are ticking over as usual – war, climate change, economic crisis, racism, homophobia… The election won’t change any of the systemic drivers underpinning these things and the Greens’ vote, while a powerful signal of the desire of millions of Australians for a better world, won’t challenge the rule of the bosses. So even with the Greens in a more powerful position (or even if they were in power) it will be business as usual for the bosses with a  few different crumbs from their table. Unless we organise a fightback in our unions and on the streets, and build a socialist alternative to Labor and the Greens. Have your say on the election, war, racism, economic crisis. Just hit the comments button.

The Labor-Greens agreement – is Bob Brown serious?

The Greens have completely capitulated to the Labor Party.

According to Emma Rodgers, in her ABC News website article Greens, Labor seal deal, the concessions secured by the Greens include: 

  • the formation of a climate change committee
  • a parliamentary debate on Afghanistan
  • a referendum on recognising Indigenous Australians
  • restrictions on political donations
  • legislation on truth in political advertising
  • the establishment of a Parliamentary Budget Committee
  • a parliamentary integrity commissioner
  • improved processes for release of documents in Parliament
  • a leaders debates Commission
  • a move towards full three-year parliamentary terms
  • two-and-a-half hours of allocated debate for private members’ bills
  • access for Greens to various Treasury documents

Is that all? Here is a party which holds the balance of power in the Senate and could be instrumental in who forms Government, and they demand future negotiations, and ignore the big questions.

Where is the action on climate change? Their much vaunted price on carbon?  What about the humane treatment of refugees? Same-sex marriage?  Denticare now?  Nothing. Zilch. Zip . Except to have talks about talks in never never land. So for example there will be $20 million set aside for a study into high speed light rail. Wow. That’s progress!

Here are some of the demands I suggested in my article Greens: make the parliament unworkable that the Greens could make from their position of power.

The immediate withdrawal of troops from Afghanistan.

A super profits tax on the miners to fund denticare, public health, education and transport.

A massive tax on the polluters, with the green cheque to be used to lift the poor out of poverty.

A massive program of green jobs and green retraining as needed.

An immediate price freeze on electricity costs.

An end to demonising boat people both in words and actions and their processing onshore and release into the community.

A viable same-sex marriage regime.

The abolition of the anti-worker Fair Work Act and the Australian Building and Construction Commission and the empowerment of unions in the workplace and of their struggles to win better wages and conditions and protect and create jobs.

An end to the racist Northern Territory intervention, recognition of prior aboriginal sovereignty and the signing of a treaty, coupled with more spending under the control of communities to address aboriginal disadvantage.

An immediate increase in pensions and other social security payments by $100 a week.

An immediate increase in the minimum wage of $100 a week.

A massive program of Government solar and wind farms and other renewable energy programs to generate enough energy to turn off the coal fired power stations by 2020.

Huge tax increases and new taxes on the rich to pay for these socially necessary spending programs.

Rigorous price controls over big business.

The surrender means the Greens didn’t even get halfway decent commitments. They have betrayed their millions of voters.

They have abandoned their reforming project in the interests of bourgeois stability and good government. This is code for letting Labor continue its neoliberal agenda.

Here is what the agreement means if we let the Greens get away with this complete sellout.

In 3 years time there will still be nothing done on climate change, the dead in Afghanistan will have doubled, denticare won’t be ‘affordable’, people who love each other won’t be able to marry if they are gays or lesbians, our aboriginal brothers and sisters will be dying 20 years earlier than the rest of us, refugees will be locked up in concentration camps and the miners and big polluters will be laughing all the way to the bank.

Unlike Judas the Greens didn’t even get their 30 pieces of silver. They got a worthless piece of paper.

The Labor-Green agreement shows that the need for a real fighting alternative to Labor and the Greens is greater than ever.

Let’s build a socialist alternative to eventually lead the fight for real action on climate change, for refugees, for same-sex marriage, for getting the troops out of Afghanistan, taxing the rich and improving the lives of the poor and working class.

That is a fight that to be successful must be waged in our workplaces and on the streets, not in the talks fests of Parliament.

Cricket, bribes and capitalism

Taking bribes is a natural market response to inequality.  Where some are rewarded with millions and others doing similar work in a global competition receive very little, one logical individualistic response to this systemic inequality is to line your own pocket.

Global cricket is massively unequal.

As a worldwide product cricket is a very profitable venture. Most of the rewards go to the bloodsuckers in the media, the various cricket associations and the rich IPL franchise owners.

Some cricketers do very well too. But not Pakistan’s cricketers. They earn around $35,000 a year.

Ricky Ponting, Australia’s cricket captain, is paid a base salary of over $1 million and with endorsements and other emoluments earns more than $4 million a year.

Sachin Tendulkar, the Indian cricket superstar, signed an endorsement deal a few years ago worth $40 million.

After the Mumbai attacks in late 2008,  the Pakistan Government in 2009 banned its cricketers from playing in the very very lucrative Indian Premier League where they could earn  hundreds of thousands of dollars for a few weeks work.

This year 11 of them participated in the auction for spots in the various cricketing franchises the filthy rich own in the IPL, but not one was picked up despite the fact that Pakistan were the Twenty20 World Champions.

The massive inequality in global cricket is mirrored and intensified in Pakistani society. The poverty is staggering. Almost half the population live below the poverty line. The rich however are very very rich.

The country is one of the poorest and most unequal in the world. And yet its ruling elite are wealthy indeed. The political caste and business compete for the shares of profit the poor villagers and urbanised poor create. This criminal clique have and are raping Pakistan.

The floods in Pakistan have forced 20 million to flee their homes and now threaten the country with disease and starvation. The Pakistan Government’s lack of response to the  floods show their interests lie in protecting their wealth at the expense of their people.

The interests of the rulers of the West lie in continuing the poverty and inequality, and in a case highlighting the barbarity of the western elite, drone bombing people fleeing the floods to stay alive.

The time has come to sweep away the rotten systems in cricket and globally that produce these outrages.

The first step should be to pay the Pakistan cricketers ten times what they are receiving now and give them back a little of the profits they create for channel 9 and the other media conglomerates around the world.

The next step would be to stop bombing Pakistan and use the billions our rulers give the corrupt criminals in charge of Pakistan not to fight ‘terrorism’ but to feed and house the people properly.

Cut Packer’s profits and Ponting’s plenty, not the pay of Pakistan’s players. Feed Pakistan, not bomb it.

Strikes rock South Africa

There is something truly inspiring about seeing thousands of mostly black South Africans blockading roads and hurling rocks at police in Soweto, Johannesburg, again, writes Ben Hillier in Socialist Alternative.

In the same district that saw the historic June 1976 uprising, which was the beginning of the end for apartheid, dissent and rebellion is once again the order of the day. Across South Africa, an estimated 1.3 million state workers have taken the step of launching an open-ended strike. And while a generation ago it was school students leading the charge, the third week of August saw schoolteachers take up their mantle as they joined with nurses and other hospital workers to demand the basic right to be able to afford housing. The strikers are demanding pay rises and improved housing allowances.

South Africa has been severely hit by two economic crises lately – first by the global financial crisis and then by the 2010 FIFA World Cup. Around $5 billion from the public purse was spent on the World Cup, leaving significant holes in a budget that had already been hammered by the GFC.

Despite their radical history, the ruling ANC (African National Congress, the most prominent anti-apartheid party) government are loyal servants of capitalism – and as any loyal servant of the ruling elite can tell you, the only solution to a budget crisis is to make the working class pay.

During the World Cup, stadium builders worked 70-95 hour weeks for around $160. And now that the party is over, the hangover begins. Government employees who are sick of being forced to live in shacks are being denied wage rises that might let them rent or own houses, in the name of “fiscal responsibility”. Meanwhile ANC President Jacob Zuma earns a cool $330,000 a year, and many government ministers and senior bureaucrats received free VIP tickets to the World Cup.

As is the case for workers in any country facing economic crisis, the public sector workers had two choices. They could sit back, tolerate their lot and help South Africa’s millionaires and billionaires try to restore profitability at their expense – or they could organise to fight for their rights. They chose to resist.

August 18 saw an inspiring start to the strikes. Despite being considered “essential services” and thus being unable to strike legally, nurses and cleaners have largely paralysed hospitals by striking. Battles with police ensued after workers blockaded roads and attempted to storm the Chris Hani Baragwanath hospital in Soweto to try to drive out strikebreakers. Unlike 1976, the bullets used to disperse the protest were made of rubber, but the pictures of police firing at a protest in Soweto must conjure up horrific images in the minds of many older South Africans. In addition to violent repression, the government is trying to break the strikes by using nurses from the army as scab labour.

It’s important to support nurses and other hospital staff taking radical strike action. Striking and shutting down hospitals is a much more confrontational and militant action than shutting down a factory or department store, and it’s an action that will undoubtedly cause some working-class people to suffer. The ruling class knows this, and will always use it to attack strikes in so-called “essential services”.

Why does the South African government suddenly care about the hospital patients that they have for so long neglected? The answer is simple – they don’t. When the government elected to spend billions on the World Cup instead of health, they demonstrated their utter contempt for the health of workers and the poor. Any talk of concern for the well-being of patients now is nothing but cynical point-scoring, and an attempt to have ordinary people scapegoat trade unions for the real harm done by a system that puts profitability ahead of health, and prefers a balanced budget to a healthy population.

What would improve the lives of working-class South Africans – even those in the private sector which isn’t out on strike – would be for the strikes to win.

Workers are completely right to try to make South Africa as ungovernable as possible in their fight for better pay, which is really a fight about which class will pay for the country’s economic woes. Forcing the ANC to back down on the issue of public sector pay opens up the possibility of putting the brakes on austerity plans before they hit home, and can be an inspiration to people all around the world who are fighting the same battles in places very far from Soweto.

There may be a general strike of all workers – public and private sector – on Thursday to support the striking workers. I will update details in the near future.

Systemic racism against Aborigines

The United Nations has pointed out yet again that racism is systemic in Australia.

This year it was the turn of the UN Committee on the Elimination of Racial Discrimination. It condemned the ”unacceptably high level of disadvantage and social dislocation” of Aborigines and the fact the Australian Government does nothing but talk.

Right on cue the Minister for talking about aboriginal disadvantage, Jenny Macklin, pontificated about Labor’s aspirations for addressing the life expectancy gap.

Earlier this year a UN report, State of the World’s Indigenous Peoples, found that Australian aborigines have the worst life expectancy rates of any indigenous peoples in the world. In Australia the life expectancy gap is 20 years. In Guatemala it is 13, and in New Zealand it is 11.

Last year James Aneya, the UN special rapporteur on indigenous rights, said racism was entrenched in Australia and that the Northern Territory intervention was an attempt to disempower Aborigines. “It undermines the right of indigenous peoples to control their own destinies, their right to self-determination,” he said.

The racially discriminatory Northern Territory intervention and the huge life expectancy gap are the two most obvious indicators of this entrenched racism.

The most recent example of this systemic racism is the hate mail and abusive comments Ken Wyatt has been receiving. Wyatt is the first aborigine to be elected to the House of Representatives in Australia.

This racism is important to the Australian ruling class. Capitalism was built in Australia on a campaign of genocide against the Aboriginal people. That genocide – dispossession, massacres, poverty, assimilation, stealing the children, disempowerment – continues today overtly and covertly.

Racism also divides workers and shifts the focus of anger from the ruling class and its exploitative system to aboriginal people and more recently refugees and Muslims.

But there is an honourable tradition of resistance to ruling class racism - from the aboriginal freedom fighters of long ago to today.

 One example is the Alyawarr people’s walk-off.  The Labor Government compulsorily “acquired” their community for five years. Their welfare income was quarantined, meaning a basics card replaced half their income. The card means they have to go to certain shops to buy basics like food. 

The excuse the Liberal and Labor Governments use to justify the Northern Territory invasion is to protect children from neglect and abuse. It’s a lie.

The intervention is about stealing aboriginal land and disempowering aborigines.

There is massive overcrowding in Aboriginal communities. After 2 1/2 years the intervention had not built one new house. Since then a few have been built in hub towns. This is a way of removing aboriginal people from their traditional lands. 

Earlier this year unions and activists got together and built a house at Ampilatwatja to highlight Government inaction and racism. It took a few days to build it.  

There is a wider message here. Liberal and Labor politicians used the Little Children are Sacred Report  to justify the Northern Territory intervention.

That report had at its heart aboriginal empowerment, giving the communities the power to address the problems. Howard, Rudd and Gillard ignored this and have imposed racist solutions on the aboriginal people of the Northern Territory.

The UN has highlighted Australia’s embedded racism. The  Alyawarr  people’s walk off and the community and union house building at Ampilatwatja show an alternative to systemic racism.

A long term solution must involve recognition of prior ownership and sovereignty, paying the rent and negotiating a treaty with aboriginal people.

 Only a mass movement from below involving hundreds of thousands of people across Australia can win that new Australia.

Ultimately, to be successful, the fight against systemic racism must be a fight against the system and its racism.

Paul Hogan and Departure Prohibition Orders

Newspaper and other reports are describing the Australian Tax Office’s action in issuing a Departure Prohibition Order against Paul Hogan, an order preventing him leaving Australia, as draconian, heavy handed, and even that it makes Australia a police state.

It seems I am the voice of reason in all of this, having been quoted in Saturday’s Australian Financial Review saying that it was perfectly OK to use these orders when there was a flight risk and that the orders weren’t draconian.

For example David Rydon, one of Paul Hogan’s lawyers, says that the Tax Office is holding Hogan to ransom with its order preventing him leaving Australia until his tax claim is settled and that he ‘could be detained for up to four years in Australia.’ Rydon goes on to claim that ‘news of the order could harm foreign investment’. (‘Hogan’s fate hangs in the balance’ The Sunday Canberra Times August 29 p 7).

The ATO very rarely uses Departure Prohibition Orders. In the last 5 years there have been 14 issued, mainly in relation to Project Wickenby, the multi-agency investigation into tax evasion and other criminal matters.

It is the role of the ATO to protect the revenue. DPOs do that by preventing those owing money to the community removing themselves (and often removing their assets too) from our jurisdiction.

The relevant law says that the Commissioner must believe on reasonable grounds that it is desirable to issue an order for the purpose of ensuring that the debtor does not depart Australia without:

·            wholly discharging the tax liability, or
·            making arrangements satisfactory to the Commissioner for the tax liability to be discharged.
Because of the gravity of restricting a person’s freedom of movement, the Commissioner takes into account a range of factors in deciding whether to issue a DPO. These include the existence of a tax liability and the prospects of recovery, whether there are enough assets to pay the debt, if there is evidence to suggest concealment of assets, whether there have been transfers of assets to related parties (including offshore) and if the debtor is under investigation for criminal activities and whether he has been charged.

The Australian claims the amount of income undeclared is $37 million and that the tax not paid plus interest and penalties possibly totals $150 million. One of his advisers has denied the figure but said it is substantial. I suspect the tax, interest and penalties assessed and in dispute will be less than $150 million but still very very large.

 While Hogan is currently under investigation as part of Operation Wickenby he has not been charged with any offence.

The DPO could be revoked if Hogan paid his tax debt or made satisfactory arrangements with the ATO for the debt to be discharged. The solution lies with him. Alternatively Hogan could apply to a Court for an order to revoke the DPO, presumably arguing that the Commissioner did not have reasonable grounds for issuing it.

That may be a high risk strategy for a debtor since it may put into the public arena the reasons the Commissioner had for issuing the DPO. This might lessen public support for the debtor.

As to the DPO harming foreign investment, the idea is laughable. It appears to be nothing more than part of the spin emanating from the Hogan camp in the battle for the hearts and minds of the Australian community.

What we have here is another instance of a very rich person thinking we owe him and that the tax laws that apply to us all are draconian when and if they catch them.  This is the nature of our society.

The main tax burden is borne by ordinary workers. We can’t manipulate our wage income, and we don’t have the money to pay advisors to structure our affairs to avoid or evade tax. This drive of the rich and big business (40 percent of whom pay not income tax) to cut their tax is inherent to capitalism.

Readers might also like to read an earlier article prompted by a court decision to release many documents relating to Hogan’s tax affairs called Hogan’s tax crock and the more general issue of the transfer of our tax wealth to big business and the rich called Fund the ATO to attack big business.

Election ‘instability’ – Saturday’s socialist speak out

‘Independent MPs will do nothing to solve the problems facing workers and students in Australia today. Instead, we need a clearly left-wing alternative that is prepared to stand up for workers’ rights, against racism and war, and which will resist the pro-capitalist policies of Labor and the Liberals.’  So wrote Corey Oakley in Nothing positive about rise of independents in Socialist Alternative. I agree. Have your say on the Independents or ‘instability’ or anything else you want by hitting the comments button.