Bob Hawke and Paul Keating feud continues

More revelations from the release of 1982 and 1983 cabinet documents by the National Archives, particularly about the rift between our two ex Labor Prime Ministers, Paul Keating and Bob Hawke. When Hawk gave himself a pat on the back for saving Australia from becoming “the poor white trash of Asia” Paul Keating couldn’t let it go.


Mr Hawke placed particular emphasis on the national economic summit which brought together federal, state and local governments, trade unions, small business, churches and other community groups. With the exception of Joh Bjelke-Petersen, they agreed to bring back centralised wage fixing and resolved to tackle inflation and unemployment.


Mr Hawke said of the summit "That was, in many senses, I think the foundation of the total success of our government." And then "I was in the fortunate position that I was probably better prepared in economic terms and knowledge of the Australian economy than anyone before or since coming to the job." He added "I understood we were in a mess and what had to be done, it is very difficult to overstate the extent of the economic challenges then confronting Australia."


Not so, says Paul Keating who yesterday blamed Hawk for the wage explosions in the 1970s and said he was responsible for wage blowouts that nearly destroyed the economy twice, both times as ACTU President. The first time was between 1974-75 under Whitlam and the second time was 1979-80. According to Keating, wage increases in the 1970’s contributed to two recessions and unemployment went up to 10.3 per cent.


Mr Hawke blames Malcolm Fraser for the wages blow out and told him "For Christ's sake, why don't we sit down and work out a more sensible approach, rather than going flat out for unions getting as much as they can and employers price gouging. He wouldn't listen. He was basically anti-union."


At 82, Bob Hawke is still playing golf and is committed to helping develop the Boao Forum as an Asian version of the World Economic Forum and establishing a centre for Muslim and non-Muslim understanding.