John Howard has begun to unveil the makings of the campaign tactics for the 2007 election. This week Howard has been apologising for both the interest rate rise and petrol prices - and letting voters know there hasn't been too much he can do about either. I see Howard crafting a simple campaign - both Costello and Howard have been talking up concerns within the economy - their tactic will be to convince voters the economy is to delicate to risk changing management and giving an unproven Labor treasury team the reigns.
This fear will target Beazley's plans to rip up AWAs, abolish foreign skilled workers (seriously increasing the skills shortage in the short term, despite what Labor policy incentives he promises in the medium to long term) and increase spending on capital infrastructure (increasing strains on skills and capital, putting pressure on the economy again).
One of the most interesting points that have come out of the interest rate rise this week is the realisation that it is the number two issues for households around Australia. Petrol pinches the weekly budget far more significantly - and it affects all Australians, not just those with morgatges. This is also an issue that the average Australian realises is not the fault of the Government - in fact, after Howard ensured the tax was on litres of petrol, not percentage of the price, petrol won't be an issue that will stick to Howard.
It will be interesting to see this week Labor attempt to begin establishing their economic credentials - putting forward alternative policy perhaps? (not likely)....
Parliament resumes after one of the most turbulant winter breaks in recent times - leadership dramas, middle east conflict to name some of the issues. Let the games begin!
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