Kennett Critiques Australia: From Lucky Country to Selfish and Complacent Society
Jeff Kennett, the former Premier of Victoria, has critiqued Australia’s evolution from the “Lucky Country” to a nation perceived as selfish and complacent. His remarks focus on significant government subsidies aimed at supporting struggling industries, encouraging a pressing discussion about the implications for Australia’s economic future.
Kennett’s Concerns About Government Subsidies
Kennett highlights the financial assistance provided to various industries, arguing that these measures may lead to long-term inefficiency. He draws parallels with Kodak, an iconic photography company that failed despite receiving substantial government support in the late 1980s.
Historical Context
- Kodak’s Subsidy: In 1989, Kodak received a $36 million subsidy from the Hawke Labor government to remain operational.
- Closure: The company ceased operations in 2004, leading to lost jobs and wasted public funds.
Fast forward to 2025, and Australia is facing a similar situation with its manufacturing sector. The South Australian and federal governments have pledged $2 billion to sustain the Whyalla steel plant while a buyer is sought. An additional $600 million has been allocated to Glencore’s smelter in Mount Isa, Queensland. These financial commitments echo past trends of government dependence.
The Cycle of Dependency
According to Kennett, the reliance on subsidies ultimately weakens Australian industries. He asserts that rising labor and energy costs, compounded by governmental taxes and administrative expenses, are pricing the nation out of the manufacturing market. Other countries, particularly in Asia, produce steel and aluminum more efficiently and at lower costs, raising concerns about Australia’s competitiveness.
Current Manufacturing Challenges
- High Costs: Australia has transformed from having the cheapest gas in the 1950s to experiencing some of the highest costs today.
- Exploration Restrictions: Limitations on gas exploration have persisted for over two decades.
- Clean Energy Transition: Australia’s swift shift towards renewable energy could jeopardize existing jobs and businesses.
Kennett argues that while subsidies may provide immediate relief, they do not guarantee long-term job security. Many industries may face closure without a fundamental reassessment of economic strategies. He emphasizes the need for Australia to prioritize sustainable growth while responsibly managing climate change.
A Call for Accountability
In his critique, Kennett calls for greater individual and business responsibility in the pursuit of success. He urges Australians to reconsider their reliance on government support to foster a more competitive and resilient economy. This perspective extends to how policies are shaped, suggesting that they should be focused on genuine long-term solutions rather than short-term electoral gains.
Kennett concludes by reflecting on Australia’s current status. While he recognizes the country’s geographical safety, he warns that complacency, combined with ineffective government leadership and over-reliance on subsidies, could diminish Australia’s standing globally. The question remains: how will Australia address these challenges moving forward?
