
A BRIEF HISTORY OF AUSTRALIA
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private companies. The first of these sales was of a lucrative property
in Tokyo that had once housed the Australian embassy, which netted
the government nearly AU$700 million in revenue over several years
(Hawker 2006, 250). While all of these changes were highly symbolic
of Labor’s new economic “ideology of free trade and economic rational-
ism” (Clarke 2003, 328), perhaps the most important symbol was the
use of the government’s Hercules troop planes to break an airline pilots’
strike in 1989 (Douglas and Cunningham 1992, 5). Labor, the party of
the union movement and working people more generally, turned to the
military to break a strike.
Even immigration, which had dominated postwar Australia, was
transformed during the Hawke-Keating years on the basis of the ideol-
ogy of economic rationalism. The turning point in this process was in
1988, when the Committee to Advise on Australia’s Immigration Policies
released its report, “Immigration—a Commitment to Australia,” some-
times also called the Fitzgerald Report. Claiming to be responding to
the concerns of a large number of Australians about high immigration
rates, the report argued that Australia’s immigrant “selection methods
need a sharper economic focus, for the public to be convinced that
the program is in Australia’s interests” (Committee to Advise 1988, 1).
In the aftermath, and especially after Keating took office in 1991, fees
were introduced for migrant services, such as visa applications and the
appeals process, and new migrants themselves were denied access to
health care for their first six months of residence in the country (Jupp
2002, 55–56). As a result of these and other policies, the number of
immigrants radically decreased in this period (Jupp 2007, 46).
Many economists would have agreed with Paul Keating when he
stated, after a 20 percent fall in the value of the Australian dollar in
1986, that Australia was at risk of becoming little more than a banana
republic and needed economic restructuring to favor free markets and
other neoliberal reforms (Robins 1989). Nonetheless, there is another
side of the story. Labor’s adoption of traditional right-wing economic
policies lowered the unemployment rate but also increased income
inequality (Harding 1995, 31) and the poverty rate, which, according
to an OECD estimate, rose from 14.4 to 16.1 percent between 1981–82
and 1989–90 (cited in Department of Families, Community Services
2000, 6.3). Real wages in Australia fell significantly from 1984 through
1989, and then more slowly (Clarke 2003, 318), to result in a lower
standard of living for most of the middle class. The Australian political
scientist Michael Hogan argues that “the great losers from the Keating
years have not been the potential underclass, but the great bulk of