It really does get up John Howard's nostrils, listening to Kevin Rudd talking about how well-placed Australia is to see our way through difficult global financial challenges.
''We have a strong, well-regulated banking sector,'' Rudd says. Bank balance sheets are strong. Corporate balance sheets are strong. Australia is strongly placed to see our way through difficult global financial challenges.
Actually, not all that strongly placed. We are expanding the issue of Commonwealth Government Securities by $25billion to support an efficient bond market and reduce its vulnerability to adverse shocks. I would have thought, on the basis of the past 12 years, that $25 billion in Commonwealth debt would have completely the opposite effect. Furthermore, there are signs that some of the steam is going out of commodities, metals as well as oil.
Rudd told his audience of bankers that the ALP Government had a comprehensive program of long-term economic reform to build a seamless national economy, a highly skilled workforce, advanced infrastructure, competitive markets and efficient regulation all of which would underpin the competitiveness of the financial services sector.
If he was saying anything behind the cliches, it was that regulation was good and that more of it was coming. In fact, recession is flickering across Europe accompanied by unaffordable wage claims.
There is no case, in anything happening elsewhere in the world, for changing the economic fundamentals of the Howard-Costello years. Going back into debt is certainly not one of them.
The special meeting of the state council of the NSW division of the Liberal Party was summoned on Saturday to consider constitutional changes to the way the party operates, in order to put an end to branch-stacking.
Branch-stacking is when a sudden influx of new members into a branch changes its factional complexion. It affects the composition of the candidates. In the ALP the policy content does not seem as important at it does with the Libs, where the division is over social welfare. The right is about right to life, stem cell research and the morning-after pill. ''Gender'', as the federal director reported to the federal party after their loss.
There were 50 pages of amendments, which passed without discussion. They were drawn up by the right, which controls the council and the executive. The NSW division will be right-wing for some years.
That done, the party focused on political strategy. The starting point was Brendan Nelson's appropriately skeptical address on climate change. It was sound policy, but it wasn't rah-rah-rah.
Council set aside a few minutes to award John and Janette Howard life membership. He made his standard gracious acceptance speech: ''I owe the party more than it owes me'', which is an arguable proposition. He wasn't merely successful at getting into office and staying there. He was successful at delivering good government. We have never had that before.
He paused, rather dramatically. He might say a few words about the Rudd Government. Indeed, he would, and he made the speech the party has been waiting six months to hear, that to the extent the Rudd Government was resisting successfully economic vicissitudes it was because of the Howard government's measures, every one of which had been opposed by the ALP. What would interest rates be like now, if he hadn't eradicated the government debt.
Federal Parliament meets again on August 26, by which time Brendan Nelson will have made up his mind, although he probably has already. If Costello is willing, as he seems to be, it is in nobody's interest in Australia that the matter lingers on. With every misrepresentation with which it gets away, the Government narrows its own policy options, while the international economy continues to deteriorate.
Anecdotally, it is said that tradesmen in the building industry are being hard hit by the down-turn. Reports are coming along quite regularly of retrenchments: Qantas, Blundstone, Baxters, Starbucks. Interest rates are on the rise.
Peter Costello arrived back in Australia from a Fijian holiday looking cheerful and relaxed, and, of course, enigmatic. He won't be able to get away with being enigmatic for much longer.
David Barnett is a Canberra writer.
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