Opinion

How Rudd's ETS was killed from within Labor ranks

Kevin Rudd was coy last night about which of his cabinet colleagues had supported the strategy of ''killing'' the emissions trading scheme altogether in March and April last year.

But the Sydney Morning Herald has already reported who did.

Initially we heard that it was national secretary Karl Bitar and NSW right frontbencher Mark Arbib.

But in a deeper post-election post-mortem of the period during which the Rudd government hit the wall we discovered that two other frontbenchers had also eventually come around to advocate what was being called the ''kill option'' - Julia Gillard and Wayne Swan.

Those vehemently, adamantly opposed were Penny Wong, Greg Combet and Lindsay Tanner. Rudd was caught in the middle, having invested more in the policy than almost any other, but aware that Tony Abbott was making strong headway with his ''great big new tax'' campaign.

Those arguing the government had to press ahead with its plan said it was both bad policy and disastrous politics to do anything else, given all the government had said before.

The issue was discussed by the inner ''kitchen cabinet'' and various groupings of these ministers at least a dozen times. Three weeks before the 2009 budget it could be delayed no longer, because the ETS had to be included in the budget figuring or taken out.

The ''kitchen cabinet'' decided it would be taken out of the budget and delayed until at least 2013. Some money was to be ''parked'' in the budget's contingency reserve to develop an alternative strategy to take to the looming election. The ''kitchen cabinet'' was due to meet to discuss that strategy on April 27, but on that same day the Herald revealed the decision.

Cabinet had been scheduled to learn of the decision, and the new ''plan'', two days later, on April 29. As then environment minister Peter Garrett revealed at the time, most of them learned about it from the newspaper instead.

It was the decision that appeared to snap voters faith in the government and in Kevin Rudd.

The former prime minister publicly acknowledged last night it was a serious mistake.

Lenore Taylor is the Sydney Morning Herald's national affairs correspondent.

Posted By: Lenore Taylor on 5/04/2011 10:24:00 AM | Comments (6)

© SMH

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Date: Newest first | Oldest first

I frankly can't stand Lenore Taylor's inability to bring herself to dump on the ALP when it's clearly required. What we see from her is mild rebukes, unemotional language, and a 'feather duster,' in comparison to her willingness to regularly give Tony Abbott a frequent shellacking on Insiders and the SMH.

The real story from last night's Q&A is that Kevin Rudd divulged (on national television) Cabinet positions on a substantive policy issue. This gives rise to the likelihood that Labor frontbenchers who were adamantly against an ETS in 2010 are now enthusiastic supporters of a Carbon Tax in 2011.

Come on Lenore...given the circumstances, just 'give it to em' this once.

Posted by Andrew, 5/04/2011 12:00:31 PM

The "Gang of Four" consisted of PM Rudd, deputy Gillard, Treasurer Swan and Finance Minister Tanner, Lindsay Tanner resigned and did not contest the 2010 election.

Apparently he was disgusted at the lack of business and financial acumen displayed by the other Gang members, in particular them ignoring his and the head of treasury, Ken Henry's, advice not to spend so much money and as early as was done on economic stimulus.

No doubt the growing debt, now $182b and increasing, budget deficit etc also annoyed him because he had worked hard to cut costs and his work was being wasted.

Now we know that Gillard and Swan opposed the ETS, and now, both having promised there would be no carbon dioxide tax they are telling us that they are planning to go ahead with the TAX.

And to remit 10% of the tax revenue to the UN every future year.

Incompetent is not a strong enough description of this mob.

Posted by JohnT, 5/04/2011 12:21:09 PM

Perhaps Kevin Rudd missed out on a UN position so the show pony is trying to make a comeback as PM .

He is such an arrogant B..... !

Posted by SPOTTER, 5/04/2011 2:09:53 PM

No great surprise to read that Gillard and Swan, the two individuals who personally had the most to gain by the removal of Kevin Rudd, were involved in Labor's 'et tu, Brute' action last year. I hold no truck for Kevin Rudd, whatsoever, however it's little wonder that after Swan's handy work with the knife that apparently Rudd hasn't spoken to him since that night. I think it's crystal clear that the Australian population saw the Real Julia in action that night, proving beyond all doubt what an unprincipled, ruthless and selfish individual currently holds the Prime Ministership of Australia. Little wonder indeed that Gillard refuses to discuss what happened in the course of the night of the long knives in Canberra last year. Quite how Gillard, given her track record, could reasonably expect that in the eyes of the average Australian, or even the average working Australian (as defined by Gillard) that she would have any shred of credibility, beggars belief.

Posted by The Billy Hawk, 5/04/2011 4:52:45 PM

Come on, the night of the long knives, Swan and Gillard being "adamantly" opposed and lack of business acumen!

I am as strong believer in a surplus as the next voter but the government needs to spend when we can't. No bank has accepted me for a billion dollar loan to act as a Keynesian economic saver.

These are the facts. Misrepresentation of them only acts to distort the reality we find ourselves in. GFC to disaster to global slow down what next?

Or would these critics expect the next generation to carry the burden of current high unemployment, inability to secure credit, and crippling loss of tax revenue which the only answer to would be increased taxes. Through your silence on those aspects i can only guess thats your solution.

Regardless of Julias personal style which at times is lacking the results speak highly enough.

Job creation, attainable credit and sustained and sustainable tax levels.

I hope this brings a little reality back to an argument plagued with hyperbole.

Posted by Lached out, 6/04/2011 11:55:18 AM

'The Billy Hawk', John T, Andrew statements, are a nonsense. This is what really happened. All Federal ALP Members met in their meeting room. A member moved that all positions be declared vacant. Motion passed. A member moved that all votes for the nominations of candidate for leadership be either by a show of hands or by a secret vote. Motion passed, adopting a show of hands. Members were asked to nominate for the position of leadership. Only one person nominated for the leadership position. That being the case, the person was duly elected as leader unopposed. That's all folks. No conspiracy, just a democratic election. In the case of the Liberal Party the same system, except that three persons nominated and one was elected by a margin of one vote as leader. Abbott is hanging in there by one vote and Gillard is elected unopposed. The people elected a hung parliament and we know the rest.

Posted by Know It All, 6/04/2011 2:24:19 PM

Here is the place for you to vent on any national or world news and lifestyle stories on the YourGuide websites. If there is anything you see or hear that you like or don't like, tell us. Don't keep it to yourself!