FORMER ALP PM KEATING WHACKS RUDD

UNCLAS CANBERRA 000790


E.O. 12958: N/A
TAGS: AS PGOV
SUBJECT: FORMER ALP PM KEATING WHACKS RUDD


1. (SBU) SUMMARY: Former ALP Prime Minister Paul Keating has
criticized the Rudd government for lacking an "overall
narrative"; warned Rudd about the pitfalls of "micro-managing
and "running at the behest of little press secretaries"; and
suggested the Rudd government is taking the wrong approach to
climate change. Although most of Keating's attack was
directed at former Treasurer Peter Costello, his assessment
of Rudd was the most notable part of his remarks. END SUMMARY.

"SLOW ACTING DOPE"


2. (SBU) On August 6, Keating launched a book "Unfinished
Business: Paul Keating's Interrupted Revolution" by former
finance journalist David Love. Featuring interviews with
Keating, the book warns that "the failure to finish the job
Keating started has left our new-found prosperity
vulnerable", particularly in relation to superannuation. But
the aspect of the launch the media focused on was Keating's
attack on former Treasurer Peter Costello. Keating, never
known as one to mince words, described Costello as a "slow
acting dope" and a "clodhopper" who had not continued the
structural reform of the Australian economy. According to
Keating, Costello and former Prime Minister Howard had reaped
the benefits of Keating's economic reforms despite being "the
biggest pair of policy bums the country has ever had".

RUDD NOT SPARED


3. (SBU) But Keating also criticized the Rudd government at
the launch: "This Government, like the last one, is doing
nothing about taking superannuation (compulsory employer
contributions saving scheme) to 15%. Not even to 12." In an
interview on ABC television's "7:30 Report" that evening, he
said the Rudd government had made a "solid but cautious"
start, but lacked an "overarching narrative". When asked
about Rudd's management style (Rudd is widely viewed as a
micro-manager and obsessed with the media),Keating said "you
can't micro-manage a thing like the Commonwealth" and that
"in these jobs you must have time to think". He warned that
"frenetic activity, in the end suiting journos, running at
the behest of little press secretaries, does not pay off".
Keating suggested the Rudd government had taken the wrong
approach to addressing climate change by focusing on
production, rather than consumption, of greenhouse emissions.

HONEYMOON OVER


4. COMMENT: (SBU) Keating's remarks complement growing media
sentiment that Rudd is putting spin ahead of substance.
Indeed, that day the Rudd government launched a "grocery
watch" web-site that was widely ridiculed in the media as a
useless stunt. Also that day, we held a luncheon with four
prominent political journalists who indicated that Rudd's
media honeymoon is over. They are tiring of Rudd's spin and
evasiveness, particularly on the economy. Although Keating
remains generally unpopular, his comments were taken very
seriously by the press gallery. They provide momentum for
further scrutiny of the Rudd government when the slowing
economy is growing in importance as a political issue.
Keating will likely make further splashes. He is proud of his
economic record, from which the ALP distanced itself while in
Opposition; and has contempt for Rudd's advisers, whom he
views as poll-driven and visionless. END COMMENT.


McCallum