Australia steps to the right as Labour is defeated after 13 years in power

AUSTRALIA stepped firmly to the right at the weekend, with the national election delivering a landslide victory to the conservative…

AUSTRALIA stepped firmly to the right at the weekend, with the national election delivering a landslide victory to the conservative Liberal/National Party Coalition after 13 years in opposition. Just how far to the right may not be clear for some time.

Although counting is not yet complete, the coalition is assured of a majority of at least 40 seats in the 178 seat Assembly, a majority which those on the right are likely to see as a mandate for tough action.

However, the middle of the road Australian Democrats, who have polled relatively well, are almost certain to continue to hold the balance of power in the Senate.

This was a "wind tunnel election", with the major parties presenting remarkably similar policies in a form designed to minimise resistance from voters rather than generate debate.

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During the past 13 years the Labour government had moved steadily to the right, deregulating financial markets, cutting tariffs, corporatising and privatising state enterprises such as the national airline Qantas, and the state owned Commonwealth Bank.

It relied heavily on interest rates and competition to control the economy, and increasingly replaced national pay agreements with local enterprise bargaining and individual contracts.

The coalition, led by the Liberal Party leader, Mr John Howard, offered the same, only more so. The wet Tories have been replaced by the dries.

The coalition overall proposed new spending of some AUS$2.8 billion (£1.4 billion) over three years, mainly on transport. tax reform and the environment although the environmental spending is conditional on the Democrats dropping their opposition to the sale of a third of the national telephone company, Telstra. Offsetting this spending, the Coalition has promised cuts and efficiency savings of at least $6.3 billion (£3.1 billion) but no new taxes.

The prime minister elect, Mr Howard is a solicitory training, married with three children, and fond of portraying himself as a middle class, suburban Australian with strong family values, and a passionate interest in cricket. He is a dogged, solid worker rather than charismatic leader.

The son of a Sydney garage owner, Mr Howard, or "Honest John" as he is known, described himself once as "the most conservative leader the Liberal Party has ever had".

He will be 56 in July, and has been a senior Liberal politician for more than 20 years. He was Treasurer (the Australian equivalent of the Minister for Finance) from 1977 to 1983, when Labour under Mr Bob Hawke swept the conservatives from office. He was later leader of the opposition from 1985 to 1989, a position he regained only a year ago.

He has already confirmed that the National Party leader, Mr Tim Fischer, will be deputy prime minister. The shadow treasurer, Mr Peter Costello, a young right wing Liberal from Victoria, will keep Treasury. The shadow foreign minister, Mr Alexander Downer, is not expected to be offered any post in the cabinet, if only because of the recent breakup of his marriage and an alleged extra marital affair.

A final list of new government ministers, is not expected to be announced until Wednesday.

The country may continue to move towards what is in effect a national conscience vote on whether to become a republic, but it is somewhat less likely that any republic will be in place in time for the centenary of federation in 2001. New migrants will have to wait two years before being entitled to regular social security benefits, instead of the present six months.

The defeated prime minister, the 42 year old, energetic, outspoken, and sometimes crude and arrogant Mr Paul Keating, has already said he will retire from politics. However, his deputy, and anointed successor, Mr Kim Beazley, may yet he defeated in his West Australian constituency of Brand.

When counting ended on Saturday night the result was too close to call, and under Australia's preferential voting system it could be at least a week before Mr Beazley's fate is settled.