Former Labor Prime Minister Paul Keating聽聽Greens leader Adam Bandt鈥檚聽聽on August 3 that Labor is 鈥渘ow the party of the centre-right鈥 and 鈥渉as adopted neoliberalism鈥.
Bandt described neoliberalism under governments in which Keating played a significant role in 1983鈥96, saying they 鈥減rivatised public services, cut taxes for the wealthy and adopted more and more austerity鈥.
Keating would have found it difficult to deny neoliberal policy measures by referring to his government鈥檚聽privatisation聽of the Commonwealth Bank, Qantas and other public assets such as the聽Commonwealth Serum Laboratories.
The massive聽transfer of national income聽from wages to profits, the reintroduction of聽university fees聽and the聽dismantling of national wage arbitration聽would not have bolstered his case either.
Keating instead聽pointed to聽聽where he thought his ground was stronger: introducing Medicare and establishing compulsory superannuation.
It might seem that Keating has a point. However, on closer examination, it becomes clear that neoliberalism is also at the heart of those policies.
Superannuation
Keating implied his superannuation policy meant that 鈥渆very working person鈥 would have 鈥渕andated capital savings leading to substantial superannuation assets and retirement incomes鈥.
That has not happened. And it is not surprising.
Superannuation is, in essence, a user-pays retirement package. If you are fortunate enough to secure a well-paid and permanent job during your working life, you can expect to build a reasonable superannuation total.
But those on low wages, in聽insecure work, or who leave the workforce for childcare or illness, will face meagre聽superannuation.
Women, in particular, are聽disadvantaged聽by the聽superannuation聽system, as even the government聽.
Superannuation industry spokesperson Glen McCrea told the聽聽on August 11 that only by 2050聽will聽half of all retirees have superannuation balances that allow for 鈥渄ignity in retirement鈥.
To spell that out: about聽60 years after superannuation became compulsory, half of those retiring with compulsory superannuation their entire working lives will be living precariously.
A progressive approach would be to provide a universal and fair retirement pension paid for by a progressive taxation system.
As well as forcing workers to pay for their own retirement, the superannuation system makes them susceptible to market fluctuations. Even short-term economic fluctuations 鈥斅爓hich are inevitable 鈥斅燾an wipe out superannuation balances.
Last financial year only three superannuation funds provided positive returns for members with balanced investments. This can make a big difference for working people planning to retire in the short term.
When workers have to delay retirement due to聽fluctuations in the capitalist economy, that is a product of neoliberalism 鈥 which puts profits before people.
Medicare
Keating asked how 鈥渁ny reasonable person [could] describe the universality of Medicare as an exercise in conservative neoliberalism?鈥
The Hawke government鈥檚 introduction of Medicare was a progressive reform, although, back then,聽more people were covered by bulk billing doctors.
Far from being 鈥渦niversal鈥,聽Medicare is聽not聽available to everyone. International students are denied coverage, as well as many on work visas.
As the Australian Greens are highlighting, mental health and dental care are not covered by Medicare. It is also becoming impossible聽in many areas聽to find practitioners who bulk bill.
Importantly, and Keating knows this, Medicare is health insurance, not a health service. Under Medicare, health care remains a fee-for-service commodity. Even if your local doctor bulk bills 鈥斅爐hat is, collects payment directly from the health insurer (Medicare) 鈥斅爐he doctor is paid for each consultation or procedure.
This contrasts with Australia鈥檚 public hospital system and those in many European countries where publicly-run clinics provide health care. In these cases, the government allocates a budget to the health authority which then pays the salaries and other costs of providing聽a service for free.
Providing a public health system on that basis聽instead of forcing GPs to practice in for-profit, private clinics聽would聽be progressive.
However, the fee-for-service model of Medicare is a neoliberal measure: it means that the market can and does impact health services.
Keating can鈥檛 be blamed for subsequent governments failing to raise the Medicare rebate in line with inflation (which creates a direct pressure on doctors to charge co-payment and to raise their prices over time). However, it is fair to point out that the Medicare system made such privatisations possible.
[Alex Bainbridge is a member of the Socialist Alliance national executive.]