Blame, apoplexy and power plays:
Labor's post-mortem

By Pamela Williams,
National Correspondent
(Australian Financial Review Saturday 10th October 1998)

It was an election result that could have signalled a massive campaign to destabilise Howard's Government, but the ALP has become embroiled in some nasty post-mortem infighting, writes Pamela Williams

It was a gamble that took a large infusion of dollars and 8,000 phone calls to voters, as desperate Liberal strategists tried to save Bass, the seat of Family Services Minister Warwick Smith, in the dying days of the election campaign.

On the latest counting, the gamble has probably failed. Seat after seat, the Coalition's vast majority has been swallowed by the GST. It was an election result that prepared the ground for a massive campaign to destabilise John Howard's leadership. But there hasn't been much talk about the GST in ALP post-mortems. And there hasn't been much chance for Labor to gloat over Howard or, for that matter, over the woes of Warwick Smith.

Instead, Labor has provided its own drama.

And the rumblings include a power play between the NSW and Victorian right wing, and between the NSW branch and national ALP headquarters. It is being decoded by some as part of a bigger power play – an attempt to clip the wings of the legendary NSW right machine for good.

Along the way, the parliamentary wing of the party has provided its own embellishments.

Take this comment yesterday from the angry former ALP frontbencher and education spokesman, Mark Latham, who has attacked the party leadership over policy, and who in turn was accused by former shadow treasurer Gareth Evans of not being a team player.

"Gareth was a real team player when he presented the tax plan to the shadow ministry team and told us it was already on the way to the printers and the 'team' couldn't make any changes," Latham snarled. "I wasn't allowed to play with his document, but they sure as hell played with mine," he told The Australian Financial Review.

"And from a Labor point of view, why, in policy areas just dripping with caution, and not wanting to give any ammunition to the Government, did we take the courage pills on just two issues: four-wheel drives and the capital gains tax?"

Quite.

On machine politics, take this comment from Graham Richardson, former Labor Government Graham Richardson minister and right-wing number-cruncher, now broadcaster and Olympics big wheel.

"I've spoken to no-one about plotting against anyone. If I've got anything to say to Della I'll say it to his face. And I haven't got anything to say to him."

Plotting? Pardon?

Richardson's reference is to reports that his influence is once again on the rise as part of an orchestrated campaign to dilute the power of the current NSW party boss, John Della Bosca.

In a classic case of intra-factional intrigue, Labor operatives have spent a week searing each other over the near-win which should have seen the party stalking Howard. Labor's tax policy, the management of Labor's marginal seats strategy and tensions between the ALP national office and the NSW branch have tumbled together in a mix of recriminations and blame, while the tantrums of the stars have rivetted the media.

There have been rumblings from NSW about Gray's management of the campaign; complaints that Della Bosca failed to run a strong enough campaign against the GST and spent too much time on his wife Belinda Neal's campaign for the marginal seat of Robertson; there has been rage vented against the Victorian branch which is suspected of white-anting the NSW branch; and fury at the utterings of Latham, Evans and the sour loser who still could win, Cheryl Kernot.

All this after Labor hauled back from the brink.

Evans' comments about quitting politics on election night were followed by a front page photo in the Melbourne Herald-Sun with Gareth on the golf course, and a report on the superannuation he stood to collect – all plastered under the headline, Gareth Drives Your Dollar Further. It nearly caused fainting spells in Beazley's office. Evans was contacted by a senior colleague who conveyed the information that the party need him to correct the damage by announcing he would stay on. By midweek, the NSW Right was apoplectic over a report in The Sydney Morning Herald that there was pressure within the party to wind back the power of John Della Bosca and to give greater influence to past strategists and powerbrokers, including Graham Richardson and Peter Barron.

Barron, a former adviser to Neville Wran, Bob Hawke and Mark Latham Kerry Packer, was involved in the federal campaign before the election was called, spending time at the Saatchi office as Gray's man. But Barron pulled out when the campaign began. His supporters say he withdrew because he wanted to; his enemies say he was "punted" by Della. Whatever happened before the start of the campaign, what is certain is that Della Bosca was not happy with Barron's columns in The Australian Financial Review after the campaign began – which were critical of Labor's slow start to savaging the GST.

The names of both Barron and Richardson were in fact floated some time ago within the NSW ALP as possibles for a campaign group to be established ahead of the NSW election – a proposal that hasn't gone anywhere.

But the story sparked a round of speculation about relationships within the Right and the control of the biggest branch. It also sparked suspicions which would be incomprehensible outside the Sussex Street headquarters of the NSW Labor Party. "Did you notice David Tierney sitting next to Richardson on election night?" whispers one worried player. Tierney, a former chief of staff to Richardson has been singled out because he is suspected of harbouring ambitions to challenge for Della Bosca's position against assistant State secretary Eric Roozendaal – the anointed successor when Della Bosca makes his expected move to the NSW Parliament.

"There's no way David is going to be ALP secretary in NSW," declares Richardson. "He doesn't want it. This is all coming from the enemies of the NSW branch and NSW will circle the wagons."

Richardson still sounds pretty tribal himself.

His advice to Della Bosca has been to ignore the critics and go and lie on a beach with a book. Della Bosca is now on leave.

By yesterday, a witchhunt had been started and concluded by the NSW Right to investigate whether national secretary Gary Gray had any part in backgrounding journalists about the poor performance of the NSW branch in the election. "We thought it was Gary, but we've declared him innocent," announced one leading NSW right-winger (strictly anonymous of course).

Instead the witchhunt has moved to Victoria, and the culprits are now presumed to be in that State's Right Wing, motivated by jealousy, hunger for power and the usual factional fare. Tried and convicted in traditional NSW ALP Right machine style.

Ask members of the Victorian Right if they have been stirring up trouble between Gray and the NSW Right and there are dark mutterings about on-going anger directed at Gray because of his falling out with Paul Keating during the 1996 election campaign. Revenge is a dish best served cold, they say.

In reality, there have been increasing tensions over the past year between long-time friends, Gray and Della Bosca, particularly since the arguments over Labor's advertising agency which culminated with John Singleton losing the account to Saatchi& Saatchi at the behest of the NSW and Queensland branches. It was a fight which affected the trust between key machine players and which has soured relationships and friendships across the Right in NSW as well as between State and national offices.

There have also been simmering tensions between the national ALP Anon. headquarters and some States about campaign funding. The NSW branch in particular believes the branches should control their own destiny and that they should not have to rely on the national machine to dole out the cash.

In the federal campaign, NSW went its own way with its marginal seats campaign.

Gray has a system which identifies marginal seats to be given a large boost of campaign funds depending on the size of the swing required. NSW differed from Gray's analysis, and identified all seats needing 6 per cent or less, a tally of 12 marginals to fight.

The national office provided $360,000 on the basis of its marginal seats assessment and the NSW branch poured in well over $1 million in additional funds. With just two seats in the bag, NSW is desperately hoping to secure Eden-Monaro after the postals are counted to prove the value of its 12-seats campaign.

On the Monday before the election, Della Bosca singled out Labor's tax plan, in particular the capital gains tax and the cut-off for tax relief, as a problem preventing Labor "hitting" with voters in his Anon. State. As far as the crucial young families in the outer suburbs were concerned, Labor wasn't offering much. Della Bosca briefed the NSW administrative committee to expect victory in no more than three NSW seats. Anything more would be a surprise.

There were tensions, too, about the advertising strategy and the balance between positive and negative messages.

In the past couple of days, Gray and Della Bosca have been trying to iron out their problems and Gray has told colleagues the differences are minimal.

What they all hope now is that a few of Labor's parliamentary stars will also keep their mouths shut. Most especially Mark Latham.

Latham's opinions on Gray would warm the heart of Paul Keating (who in fact did a little campaigning for Latham during the campaign, dazzling the guests at a Werriwa fund-raiser with a dissertation on the economy).

Yesterday, Latham was reluctant to have another go at Gray (who he thinks should just "go") but he welcomed the opportunity to make some further points about Labor's economic policy.

"Keating transformed the Labor Party by giving the commitment to the open economy. Why would anyone ever think it's good economic policy to dole out handouts to multi-nationals? It's impossible to fund industry welfare at the same time as all the national investments for a highly skilled workforce to stand on its own feet in the inter- national economy. If you smother companies in handouts they lose the competitive edge. It doesn't address jobs and it doesn't address insecurity."

So how were Latham's colleagues feeling yesterday about his outbursts?

"I'd like a kilo of whatever Mark is on," said one, adding, "and maybe we can send Gareth on the UN trip. That'll get him out of the country for three months.

And it's only three years until the next election.

Return to the Australian paper archives