Australian Prime Minister John Howard has conceded defeat in Australia’s Federal Election and has called newly elected opposition Leader, Kevin Rudd, to congratulate him on his victory on the 24 November poll.
He is also fighting to hang on to his personal electorate, and an upset looms in the seat of Bennelong, always considered a Liberal stronghold, as he runs neck and neck with the Labour candidate Maxine McKew.
This would be a sad end to a career of over 30 years in Federal politics for Mr Howard.
It brings to an end 11½ years of rule for John Howard as Prime Minister who history may judge as arguably the best Western Leader from a financial perspective in world politics.
I don’t make this claim lightly, however when you consider the great fiscal position Australia now finds itself in, it is hard not to acknowledge the accomplishments of the Howard & Costello partnership.
Some of the achievements include:
- Leading Australia be completely Debt Free at Federal Government level, having paid the last debt off in May 2006.
- Over 10 years of Federal Budget surpluses and balanced budgets, including an estimated A$16bn surplus this year.
- Handing over of A$64bn in personal tax cuts to Australians in the last 2 Federal Budgets and lifting the top marginal Tax rate to A$180,000, a massive lift from the inherited A$60,000 threshold.
- Implementation of GST, a very unpopular but critically necessary consumption tax, that has allowed the foundation of personal tax reductions and normalized financial relations with State Governments who receive the full proceeds of GST collections under set allocation formulas.
- Australia has remained as a growing economy throughout the term of office, even during the “Asian Crisis”, and currently has Australia as the fastest growing western economy.
- Unemployment and industrial disputes are currently at record lows.
- Interest rates remained at record lows through much of his term, and even with the recent rises remain well under the rates inherited when they took office.
On social issues, Mr Howard may not have fared as well and would be open to much more dispute and interpretation, however financial records have the facts to support them.
Notwithstanding this strong financial record, he may well be remembered for his biggest mistake that, in my mind, cost him the election.
A failure to pass on the Leadership to his Deputy Peter Costello, or any other suitable candidate, was the critical factor as Australians decided to have a change and fresh face rather than the consistency and credibility of the Howard led Liberal Government.
I would have considered the best time to have handed over the reigns would have been at the May 2006 Federal Budget, when A$32bn in personal tax cuts were handed out, and that would have given Costello a great foundation to build his personal profile and credibility to the electorate leading up to the 2007 Election period.
We may never know why this did not occur, or the reasons behind Mr Howard choosing to aim for a record term in office rather than go out on top and resign, but history will show him as a long standing and well respected leader, who achieved great things for his country.
The bitterness of going out with a loss, will soon fade once he ponders the great achievements of his period of tenure.
