The final term of the Howard government saw the government operating with a rare majority in the Upper House of Parliament, enabling the passage of long delayed elements of Howard's economic and industrial relations agenda. While Australia enjoyed good economic conditions, wars in Afghanistan and Iraq remained controversial. The Labor Party and Trade Union movement campaigned heavily against Howard's industrial relations reforms and opposed Australia's commitment to the Iraq war. In its final months, the government launched an historic "intervention" on Aboriginal health and education.
Tsunami and Changing Opposition Leaders On 26 December 2004, a massive
Tsunami devastated large areas of Indonesia, Thailand and Sri Lanka. Howard moved quickly to offer a A$1 Billion aid package and won praise from Indonesia's president for being first on the phone and first on the ground aiding Indonesia. After nose-diving at the time of the
INTERFET intervention in
East Timor in 1999, government-to-government ties with Indonesia had been strengthening in the aftermath of the
2002 Bali Bombing, notably through counter-terrorism co-operation and inter-faith dialogue. The Australian response to the tsunami further consolidated improving relations and a personal rapport between Indonesian President
Susilo Bambang Yudhoyono and John Howard. Citing ill-health, Latham resigned as Leader soon after and was replaced by veteran
Kim Beazley. Unable to dent Howard's popularity as preferred prime minister, Beazley was replaced in December 2006 by
Kevin Rudd.
Industrial relations was Minister for Employment and Workplace Relations during the introduction and implementation of WorkChoices. The
WorkChoices policy sought to increase deregulation of the Australian employment market and replaced the former Commonwealth Employment Service with a competitive market of private employment service businesses. the changes became the subject of a national publicity campaign by the government and pronounced opposition from community groups, the union movement and state Labor governments. WorkChoices became the focus of an intense campaign of opposition from the trade union movement and Australian Labor Party. On 15 November 2005,
public rallies were held to protest against the industrial relations reforms. An estimated 100,000–175,000 people attended rallies in Melbourne and around 300 other meetings and rallies, held concurrently around the country, were also well attended. These meetings were organised by unions and community organisations with the help of Labor and the Greens. Due to the Coalition's slim majority in the Senate, the passage of the proposed laws was put in doubt following criticisms from Queensland National Party Senator
Barnaby Joyce, although he later voted in support of the legislation. The industrial relations laws were passed without substantial change. The policy was effected via the
Workplace Relations Amendment (Work Choices) Act 2005, which amended the
Workplace Relations Act 1996. WorkChoices continued to be unpopular after they came into effect on 27 March 2006. Opinion polls found that 63 percent of voters opposed WorkChoices in 2006 and 65 percent in 2007, and that the policy was reducing support for the Coalition. The government responded to the continuing union campaign against the reforms by conducting a large scale information campaign of its own. On 4 May 2007 Howard announced reforms to WorkChoices which included a new 'fairness test' to protect workers paid less than $75,000 a year. Despite these responses, the Labor Party's polling in 2007 found that opposition to WorkChoices was one of the three biggest vote drivers at the election.
Anti-terrorism measures , Attorney General
Philip Ruddock and Foreign Minister
Alexander Downer in March 2006. In mid-2005, John Howard and his cabinet began discussions of new anti-terror legislation which includes modification to the
Crimes Act 1914. In particular, sections relating to
sedition are to be modified. On 14 October 2005,
Jon Stanhope (Chief Minister of the ACT) took the controversial step of publishing the confidential draft of the Federal Anti-Terrorism Bill 2005 on his website. This action was both praised and criticised. Citing concerns about civil rights raised by the
Australian National University as well as concerns over the speed of the legislation's passage through parliament, he later refused to sign off on a revised version of the legislation, becoming the only State and Territorial leader not to sign. The House of Representatives passed the anti-terrorism legislation which was debated in the Senate before its final implementation in December 2005. On 2 November 2005, Howard held a press conference to announce that he had received information from police and the
Australian Security Intelligence Organisation (ASIO) that indicated an imminent terrorist attack in Australia. Within a week, on 8 November, anti-terrorist raids were held across Melbourne and Sydney, with 17 suspected terrorists arrested, including
Abdul Nacer Benbrika. Howard later stated that these raids demonstrated the need for his Anti-Terrorism Bill.
Mandatory detention policy Throughout the first half of 2005, the Howard government faced pressure regarding the controversial
mandatory detention program, introduced in 1992 by the Keating Labor government. It was revealed in February that a mentally ill German citizen and Australian resident,
Cornelia Rau, had been held in detention for nine months. The government then established the closed non-judicial
Palmer Inquiry promising that the findings would be made public. In May, it was revealed that another Australian, subsequently identified as
Vivian Solon, had been deported from Australia and that the department responsible was unable to locate her. By late May, it was revealed that an additional 200 cases of possible wrongful detention had been referred to the Palmer Inquiry. Also at this time Howard faced backbench revolt from small numbers of his own party demanding that reforms be made. On 9 June Australia's longest serving detainee,
Peter Qasim, was moved to a psychiatric hospital. In June 2005, several backbenchers including
Petro Georgiou challenged the Howard government's holding of
asylum-seeker children in immigration detention centres. Over 2000 asylum-seeker children were held in detention centres during previous years. The longest period a child was detained was 5 years. Under the agreement between Howard and the MPs, legislation was introduced to "soften" the detention system enacted in 1992. Detained families with children were moved out of detention centres and placed in "community detention", and people detained over two years received an
ombudsman review. Questioned as to why the government had not acted sooner, Howard was quoted as saying: "We have to confess that was one of the many failings of this government."
Energy and the environment became Minister for the Environment in 2007. The Howard government initially negotiated favourable
Kyoto Protocol targets for Australia (8% growth on 1990 levels) and Australia was estimated to have matched that target in 2007 at the close of the Howard government's term. Nevertheless, it elected not to sign the Treaty following the withdrawal of United States support for the process. Howard argued that without the involvement of the United States and without binding emission reduction targets for the other large emitters in the developing world, in particular China and India, the Treaty would not be viable and could harm Australia's coal industry without effectively reducing global emissions. On 6 June 2006, Howard announced a task force to conduct the "Uranium Mining, Processing, and Nuclear Energy Review", the terms of reference of which include "the extent to which nuclear energy will make a contribution to the reduction of global greenhouse gas emissions". Howard announced on 10 December 2006 the formation of a
Prime Ministerial Task Group on Emissions Trading. On 3 February 2007, the Australian government announced that it could not by itself have a significant effect on
mitigation of global warming, though it would continue to make efforts to cut greenhouse gases; it would be necessary for Australia to find means of
adaptation. On 4 June 2007, Howard reversed the decision and announced a new
Carbon Trading Scheme to be in place in Australia by 2012. The lengthy timeline was welcomed by investors, who were only asking for three years to plan for the scheme's introduction. In July 2007, Howard announced in a video message on his website, a government plan to introduce a new "cap and trade" emissions trading system and a $627 million increase to spending on measures to tackle climate change. The scheme was planned to enter into operation by 2011, however the policy could not be implemented following the Coalition's loss at the 2007 election. At APEC 2007, Howard and other leaders signed the
Sydney Declaration which saw developing countries officially agree, for the first time, on the need to set goals for cutting greenhouse gas emissions.
Northern Territory intervention In August 2007, Prime Minister Howard and Indigenous Affairs minister
Mal Brough announced the $1.6 billion
Northern Territory National Emergency Response (NTER, or "The Intervention"). This package of revisions to
welfare provisions, law enforcement and other measures was advanced as a plan for addressing child abuse in Aboriginal
Northern Territory communities that had been highlighted by the "
Little Children are Sacred" report in mid-June. While the scheme received bi-partisan support from the Opposition led by
Kevin Rudd, and the commitments to health and policing improvements were generally well received, other aspects of the plan were criticised. A key component of the intervention included compulsory acquisition by the federal government of local community land leases for a five-year period; and removal of the permit system that had been designed to allow aboriginal communities to control access to their land, but which Mal Brough had been arguing was in fact contributing to Aboriginal disadvantage by preventing aboriginal camps from becoming normal suburbs and towns. Another controversial aspect of the plan was the introduction of welfare income management among prescribed communities. These provisions forced 50% of government welfare payments to be reserved by recipients strictly for purchasing essential goods such as food. Alcohol and pornography were also banned in these communities. Critics of the scheme labelled these measures discriminatory. The plan drew criticism from the
Little Children Are Sacred report's authors for incorporating few of the report's recommendations, and was broadly criticised by
Lowitja O'Donoghue and the Dodson brothers; however it received support from activists including
Marcia Langton,
Sue Gordon and
Noel Pearson. Pearson outlined qualified support: "I'm in agreement with the emphasis on grog and policing. I'm in agreement with attaching conditions to welfare payments. But the difference between the proposals that we've put forward to the government... there is a difference in that we would be concerned that those people who are acting responsibly in relation to the payments they receive, should continue to exercise their freedoms and their decisions, we should only target cases of responsibility failure" Some critics, like Northern Territory Labor Parliamentarian
Marion Scrymgour questioned the government's motives implying that the intervention was an attempt at pre-election "wedge politics".
Economy served as Minister for Education, Science and Training from 2006. The final Costello Budget contained a number of education initiatives. The Howard government's fourth term took place during a period of exceptional economic growth and prosperity. During the term over 855,000 new jobs were created, unemployment declined to just over four percent and inflation generally remained within the
Reserve Bank of Australia's (RBA's) target range of 2–3 percent Due in part to changes made to the way in which the rate was calculated, creating the appearance of an improvement. The government also completed repaying the Commonwealth's debt and recorded surpluses in each of its budgets during the term. Growth in Australia's
productivity did slow during the Howard government's fourth term, however, and many areas of Australia's infrastructure reached capacity and required reform. The Howard government's ability to drive these reforms was limited by the lack of a working relationship with many of the state and territory governments. The RBA's use of
monetary policy was a significant issue during the government's fourth term. A key element of the government's campaign in the 2004 election was the argument that only a Coalition government could keep interest rates low. As a result, the ALP was able to use the RBA's six interest rate increases over the term to criticise the government. The interest rate increases and strong growth in house prices during this period contributed to housing affordability reaching an all-time low. Changes to fiscal policy introduced in the 2004–05 budget included a 'baby bonus', increased tax benefits for families with children, and lower income tax rates for all Australians. The family benefits introduced by the Howard government led to middle-income households becoming the largest single group of social welfare recipients. The
superannuation system was also changed in 2007 to allow most people to withdraw their superannuation tax-free after they reached the age of 60 and to increase incentives for semi-retired people to work part-time. Once the Commonwealth debt was repaid, the government used its financial surplus to establish a
'Future Fund' to pay its superannuation liabilities and a Higher Education Endowment Fund was established in the 2006–07 Budget. The government also negotiated and signed several
free trade agreements between 2004 and 2007, including one with the
United States which had been mostly negotiated during the third term. On 15 September 2005, the Senate passed the Telstra (Transition to Full Private Ownership) Bill 2005. The first sale one third sale had been in 1997, under the Telstra (Dilution of Public Ownership). The Howard government's 12th and final budget was brought down by Treasurer Costello in May 2007. In his Budget address, Costello told Parliament that Australia had recorded the longest economic expansion in its history and had unemployment at a 30-year low: In the 2007 Budget, Costello also announced a number of measures aimed at the education sector: including a Higher Education Endowment Fund, literacy and numeracy initiatives for schools, and measures to support vocational education and training and higher education. The Higher Education Endowment Fund had provision for tax concessions for private donors and offered $5 billion of seed money to pay for university buildings and research facilities. The government also promised income tax cuts and a range of welfare and aged care adjustments. Amidst severe drought, the government promised a $10 billion National Plan for Water Security and measures for drought assistance. The issue of Climate Change also received attention, including a solar panel rebate scheme and increased funds for research and technology.
Other activities Other previously blocked legislation secured by the government in this term included
abolition of compulsory university student union fees and the liberalisation of media ownership laws (by lowering restrictions on media companies owning multiple different media). The government instructed the Governor-General to disallow the
Civil Unions Act. In response,
Macquarie Bank economist Richard Gibbs spoke in favor of the "prudent management of debt" but cautioned that some level of debt was not necessarily bad, and that some of the debt had been transferred to the private sector. In 2005, the Howard government abolished the
Aboriginal and Torres Strait Islander Commission (ATSIC), the only federal body charged with formally representing indigenous Australians. This was done in response to concerns that its organisational structure was conducive to corrupt behaviour by its officers. In 2006, the Howard government established a $20,000 grant for schools to employ a chaplain in the
National school chaplaincy program.
International affairs leaders at
APEC Australia 2007 Australia's commitment to the
Iraq War continued through the final term of the Howard government, and an Australian military presence in Afghanistan recommenced in 2005 and was expanded as that conflict continued. Following the
2004 Asian tsunami, the government pledged US$820 million worth of assistance to affected countries, including US$761 million for Indonesia. In 2005, with the support of Indonesia, the Howard government secured a seat for Australia at the
East Asian Summit. In 2005, Howard reflected on his government's cultural and foreign policy outlook in oft repeated terms: John Howard conducted his second visit to India in 2006. The
Australia-India relations trade relationship had not undergone the growth witnessed in other regional markets during the term of the Howard government, but during talks India expressed a desire to purchase Australian uranium. The Howard government moved to overturn Australia's policy of not selling the material to India on the basis of it being a non-signatory to the
Nuclear Non-Proliferation Treaty. Howard wanted to expand Australia-India relations, and supported moves for India to be included in a Quadrilateral Security Dialogue involving India, Australia, Japan and the United States. Following Howard's loss at the 2007 Election, the
Rudd government discarded the Howard government's support for uranium sales to India, and for its inclusion in a new regional defence alliance. Following continued political violence in Zimbabwe, the Howard government moved in May 2007 to ban the
Australian cricket team from conducting a tour of Zimbabwe. Howard branded Robert Mugabe of Zimbabwe a "grubby dictator" and said that he feared that an Australian tour would be used for propaganda purposes by the repressive Mugabe regime. Discussion of increased Japanese-Australian-USA defence ties was also discussed when the Howard government played host to the
2007 APEC meeting, culminating in a Leaders Week in Sydney. Leaders, including US President Bush, Chinese President Hu Jintao and Russian President
Vladimir Putin discussed trade, climate change, energy security, counter-terrorism and anti-corruption policy for the Asia Pacific. In important trade agreements, Woodside Energy and
PetroChina Company Limited signed a $45 billion agreement to supply China with LNG gas, and Russia and Australia signed a nuclear co-operation pact to import more than $1 billion a year in Australian uranium. In climate change policy, the
Sydney Declaration saw developing countries (notably China) officially agree on the need to set goals for cutting greenhouse gas emissions. Following earlier publicity surrounding discontent from Costello at Howard's refusal to resign as leader in his favour prior to the 2007 Election, Howard and Costello appeared together on Channel Seven's
Today Tonight program in an effort to address the issue of the Coalition's leadership succession plan. For most of 2007, polling by various companies including Newspoll indicated that the Howard government was likely to be defeated if it went to an election. The election, held on 24 November, represented a 5.44 percent swing against the government nationwide, with a much stronger swing in Queensland of 7.53%. Howard lost his seat, as did three of his ministers (
Gary Nairn,
Mal Brough and
Jim Lloyd) and 17 other Coalition MPs, although the Liberals gained two marginal Labor seats in Western Australia. The
Rudd government was sworn into office on 3 December 2007. Following the election, Liberal Party was in opposition throughout Australia at the state and federal level; the highest Liberal office-holder at the time was Brisbane Lord Mayor
Campbell Newman. This ended after the
2008 Western Australian state election, when
Colin Barnett became Premier of that state. ==See also==