Wednesday 29th October 2008

Crisis management:Rudd sets out his aims

by Alan Thornhill

In some of his strongest language yet, Kevin Rudd last night explained what his government is doing – and is likely to do – about the global economic crisis.

Addressing business and community leaders in Melbourne, the Prime Minister also spelt out just how serious – and dangerous – theÂ current crisis is.

At the distinct risk of sounding unpleasantly macho, Rudd warned that Australia is sailing into “unchartered waters.”

He said, too, that the government’s “challenge” is “keeping ahead of the curve, while building both confidence and the national economy.

Rudd also took a fierce swipe at the Opposition Leader, Malcolm Turnbull, saying the government would approach this challenge “through decisive policy action” in the “national interest,” not by “undermining confidence through partisan political manoeuvering.”

That won’t be easy. However,Â Rudd delivered a clear message.

“Australia has exhibited great resilience in the shockwaves of the global financial crisis,” he said.

Mr RuddÂ signaled fresh action, both at home and abroad.

He also gave the first clear indication of what the government might do, to help older investors, who find themselves in hardship, because their market linked investments have been frozen.Â (See next story)

And he thanked President Bush for calling a G20 meeting, to draw up new international plans, to deal with the crisis.

Diplomatically, Mr Rudd chose not to mention the fact that George W Bush has apparently not heard of the G20, before Mr Rudd, himself, reminded him of it, in a weekend telephone call.

The Prime Minister, incidentally,Â has had a plan for global economic reform in his briefcase, for some months now.

Whether he will get a chance to present it, at the G20 meeting in Washington on November 15 is still, very much, an open question.

The G20 includes China, India, Indonesia and Australia.

It was established after the 1997 Asian financial crisis.

As Private Briefing readers will know, Mr Bush is insisting on a declaration in favour of free trade, at that meeting.

That shouldn’t be too hard to arrange, so long as this lame duck President is prepared to be flexible on a few other things, as well.

Things like greater transparency, common rules and better management of the world’s financial systems.

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Profile

Alan Thornhill is a parliamentary press gallery journalist. Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.

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