By Rich Bowden:

Can’t say that Prime Minister Gillard’s almost immediate accommodation with the mining executives wasn’t expected. But spare a thought for former PM Kevin Rudd as he contemplates the reasons for his removal by the Labor party, among them being his perceived inability to carry through on difficult decisions, demonstrated by his alleged lack of conviction on key policy areas, according to Australian media pundits.

Rudd was seen to be completely unable to follow through or even communicate his government’s core policies, even those which were seen as vital to the future of Australia were jettisoned when the going got tough. Opinion polls from April to June saw one of the most dramatic falls in popularity for the once Labor hero who had dethroned the seemingly unbeatable John Howard and had, at one stage, been the most popular PM in Newspoll history. However once the rock star ratings fell away, his fall from grace from the Labor party was not far behind.

Most notably of course there was the U-turn on climate change, “the most important moral challenge of our time” , a shelving of an emissions trading scheme that had become increasingly “on the nose” with the Australian public. Only months before announcing the ETS would be delayed until 2013, the former PM had described it as a policy imperative, and had Rudd ridiculed the Opposition’s suggestion that the government delay the scheme until the actions of the rest of the world became clearer.

The words and actions of the prime minister, spoken at a high point of the Rudd Government, with opinion polls showing a seemingly unassailable lead and Rudd declared a major player in the Copenhagen negotiations, came back to haunt him and did more to tar his government as speaking loudly and often on policy issues yet standing for very little.

There were of course numerous reasons given in the media to explain Rudd’s fall, however the policy U-turns were always the continuing thread. Pundits said the Australian people were unable to decide what Rudd and his government actually stood with policy imperatives first hyped, then jettisoned for expediency.

Was it strange then to see new prime minister Julia Gillard announce in her first press conference as PM-elect that she would seek new negotiations with the mining executives on the tax, a tax she had allegedly supported and fought for in Cabinet under Rudd? Though it was unspoken, it appeared the reopened negotiations would be on the miner’s terms and this proved to be the case with the resources tax completely rebadged and lowered from 40 percent to 30 percent.

Was there also a hint of the Rudd backburner from PM Gillard this morning as she told reporters she was looking to move on?

“We’ve been stuck on this question as a nation for too long,” Ms Gillard told a press conference in Canberra. “Today we’re moving forward together… It’s also essential we have a stable and a coherent Government and a positive basis for trust, and I believe we have established that this week.”

While the government can argue that the new agreement with the mining companies was not a complete climbdown, it is obvious that the Gillard team wanted to clear the decks of the contentious tax ahead of a federal election which could be held as early as next month. The impressive (and apparently limitless) financial resources of the mining industry had been running a deluge of advertisements against the tax which was hurting the government. Indeed the miners’ opposition to the ETS scheme also played a not inconsiderable part in its delay.

However the multitude of policy reversals  Kevin Rudd was accused of for the very same reason (upcoming election) was the reason he dramatically lost his job to those who perceived him to be unelectable. It is hardly appropriate that the hard men and woman of the Labor right wing now support a prime minister who does the same to the mining tax.

Again, spare a thought for Kev.

Details of the changes from the ABC:

• Tax renamed the Minerals Resources Rent Tax
• Will only apply to iron ore and coal
• Iron ore and coal will now be subject to a new tax at a rate of 30pc instead of the original 40pc
• Tax will kick in at the government bond rate plus 7 per cent, which would be around 12 per cent
• Oil and coal seam gas to be rolled into the existing Petroleum Resources Rent Tax and taxed at 40pc
• Changes mean the Government loses $1.5 billion of expected revenue

Tags: julia Gillard, Kevin Rudd, labor leadership, mining tax gillard, mining tax rudd, super profits tax