Sunday, March 30, 2014

How George Brandis' race-hate laws are good for democracy

What would the repeal of section 18C of the Racial Discrimination Act symbolise?  It is a sign the debate has progressed that columnist Waleed Aly and Race Discrimination Commissioner Tim Soutphommasane, both writing in Fairfax Media last week, now focus their objections to Attorney-General George Brandis' proposed reform on the symbolism of such a move, instead of its practical effects.

Section 18C makes it unlawful to offend, insult, humiliate and intimidate someone on the basis of their racial or ethnic origin.  Introducing the provision in 1994, the then attorney-general Michael Lavarch said it would be a "safety net for racial harmony".

But two decades later, no serious person argues the aggregate level of bigotry in Australia has been affected one bit by section 18C.  As Aly admitted:  "We're not exactly playing for cutthroat stakes."

The proposed reforms are not about the "right to be a bigot";  they are about whether Australians should be able to sue each other for racism.  And that is a much narrower question.  Few people have the resources or inclination to litigate speech.  No wonder the most articulate defenders of section 18C now focus on its symbolism.

But the symbolism is a two-way street.  The proposed reforms are not just designed to protect freedom of speech.  They appear to be written in a way to suggest that free speech is a basic democratic virtue.

How so?  The core of Brandis' proposal is a new defence to the accusation of racial vilification if it occurs in a discussion of "any political, social, cultural, religious, artistic, academic or scientific matter".  This distinguishes it from the existing defence, which requires the political discussion to be "reasonable" and made in "good faith".

The intuition here is that your right to participate in public debate does not hinge on whether a Federal Court judge believes you are participating reasonably, or what your motives are.  It is a fundamentally democratic change.  The High Court has rightly found that the very foundation of our liberal democracy is a right to speak freely on matters of political importance.  Brandis' proposals extend that observation to all areas of public interest:  cultural, social, religious and so forth.  And doing so is symbolism, which everybody — including those who section 18C was originally designed to protect — should have an abiding interest in.

Human rights exist to protect the minority against the whims of the majority.  To defend free speech is to recognise that no ideas are sacrosanct, that all ideas can be challenged.  Historically, free expression has been one of the strongest weapons for pluralism.  Speech rights are most necessary for the weak, not the powerful.

Nobody denies the harm of hate speech.  But nor should anybody deny the necessity of protecting free expression for the maintenance of a democratic system and as a basic individual right.

Indeed, it is surprising the same human rights bodies lining up to oppose Brandis are also the strongest advocates of an Australian bill of rights.  Any bill of rights would have a right to free speech.  What if this right made section 18C invalid?  Certainly, that has been the result of the United States' First Amendment, which has made anti-hate speech laws unconstitutional.

Brandis' reforms are carefully written.  They appear to be designed to straddle two famous controversies.  The first is the Andrew Bolt articles on light-skinned Aboriginal people, which were found to have been unlawful under section 18C in 2011.

The amendments have been tailored to cover all the major issues raised by the judge in that case.  Brandis wants to clarify that the word intimidation means physical intimidation, reset the "reasonable person" test to mean a reasonable member of the Australian community, and make sure the free speech exemption does not rely on a judge's feelings about what constitutes good faith.  The Bolt columns would be perfectly lawful under the Brandis reforms.

The other controversy was when a 13-year-old girl yelled "You're an ape" at Adam Goodes at an AFL match in May last year.  The proposed new anti-vilification provision is designed to keep speech such as this unlawful.  The girl was not commenting on a matter of public interest.

Goodes did not sue.  He made his case against bigotry in the public arena.  But many section 18C cases are like the Goodes incident:  verbal altercations and family feuds that involve some sort of racial slur.  Under the Brandis proposals, they are still supposed to be unlawful.  The theory is that such abuse has no democratic merit.

Yes, the Abbott government should reform laws that constrain freedom of speech across the board.  And certainly, it should not be proposing to censor social media as part of its anti-cyber bullying proposals.  But that this government's defence of free speech is less than comprehensive is no argument against reforming section 18C.

Soutphommasane and Aly are right.  The symbolism of getting the courts out of the business of regulating public debate would be profound, and profoundly democratic.

Friday, March 28, 2014

Abbott must be wary of faint-hearts

Tony Abbott has a problem.  And that problem is his cabinet.  Not every one of his 19 cabinet ministers is as committed to economic reform or to political liberty as they should be or as they need to be.

The fact that one of the most brazen pleas for corporate welfare in recent Australian history was rejected by a cabinet vote as close as 11 to eight is alarming.  Coca-Cola Amatil's demand for $25 million from taxpayers should have been dismissed with the contempt it deserves.  Instead eight cabinet ministers voted to hand over the money.

Then this week it's discovered that a cabinet minister believes the plan of Attorney-General senator George Brandis to restore freedom of speech in Australia is "right-wing Kool-Aid".  Any minister who believes that protecting freedom of speech, one of the pillars of a liberal democracy, is "right-wing Kool-Aid" should ask themselves why they bother serving in a government formed by a political party that has "Liberal" in its title.

It's one thing to argue about the precise wording of the Coalition's proposed amendments to the Racial Discrimination Act, which were announced on Tuesday.  It's quite something else for a Coalition cabinet minister to use the language of the left to attack freedom of speech.

The significance of the Coca-Cola Amatil decision is that it was about changing the mindset of corporate Australia that is often all too eager to run to government for a handout or a tax break.  It wasn't just the money at stake.  The symbolism was hugely important.


MONEY UNNECESSARY

The irony is that it was quickly discovered Coca-Cola Amatil didn't even need the money it was asking for.  The company went ahead with its plans anyway.

Earlier this month it was revealed Coca-Cola Amatil had enough money to pay its departing chief executive $150,000 a year for the next three years in exchange for him not working for a competitor.

If eight of the Abbott government's cabinet ministers had had their way, an Australian worker on the minimum wage of $32,355.44 a year would have helped pay for Coca-Cola Amatil giving $150,000 a year to someone who doesn't even work for the company.

The cabinet's freedom of speech decision is also very symbolic.  It reveals not just how few defenders of speech there are in the cabinet.  What's disappointing about the fact that on Monday night the cabinet forced Brandis to water down his plans to restore freedom of speech is that cabinet revealed itself willing to compromise on a pretty basic principle.  The question is what else will the cabinet compromise on.

Before the federal election, the mantra among Coalition MPs was:  "If we win, we're not going to be like the Fraser government."

In 10 years' time Coalition MPs didn't want to look back on their time in office as a wasted opportunity.


UNFAIRLY MALIGNED

It might be that after all these years we've come to appreciate that Malcolm Fraser has been unfairly maligned.

If Fraser had in his cabinet anyone like those eight ministers who wanted to cave in to Coca-Cola Amatil's threat, or anyone who thinks the cause of freedom of speech is "right-wing Kool-Aid", then his life would have been far more difficult than has previously been realised.

And it makes those reforms that Fraser did achieve all the more notable.

The task confronting the Abbott cabinet is more difficult than that faced by Fraser.

Government is now bigger, government control over people's lives is now greater, and the country's political culture is more hostile to the ideals of liberalism than ever before.

In the past decade in this country, the pendulum of policy, law and regulation has swung to the left.

At the moment, the best that can be said about the intentions of some cabinet ministers with respect to that pendulum is that they don't intend to push it any further left.  Maybe some ministers hope to nudge the pendulum a little further towards the centre.

At this stage few ministers have shown any willingness to even put the pendulum back to where it was 10 or even five years ago, let alone swing that pendulum to a position where our personal and economic liberties are actually increased.


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Tuesday, March 25, 2014

Politics stands in the way of a full 18C repeal

George Brandis' exposure draft of amendments to the Racial Discrimination Act is a magnificent example of how to repeal legislation without admitting you're repealing legislation.

It is, without doubt, a reform that advances the cause of freedom of speech in Australia.

The reforms neuter the provision (Section 18C) which Andrew Bolt was found to have breached in 2011 with his newspaper columns discussing white-skinned Aboriginal people.

As supporters of the existing law point out, the next section of the Racial Discrimination Act (Section 18D) is supposed to provide exemptions to 18C, for instance, any reasonable and good faith statements on topics in the public interest.

But Justice Bromberg decided that Bolt was not eligible to meet the exemptions in Section 18D that cover political comment because the columns were not written in good faith.  The judge said there were too many factual errors and Bolt had adopted an excessively sarcastic tone.

Well, 18D is to be repealed, and replaced with an extraordinarily, incredibly powerful exemption that reads (and it is worth reading in full):

This section does not apply to words, sounds, images or writing spoken, broadcast, published or otherwise communicated in the course of participating in the public discussion of any political, social, cultural, religious, artistic, academic or scientific matter.

There's no "reasonable" or "in good faith" there.  No ambiguous terms of art a judge could use to decide some speech on political, social, or cultural topics didn't actually qualify for the exemption.

And this rewritten exemption would undeniably have covered the Andrew Bolt columns, which spoke of what he saw as a social, cultural and political phenomenon of lighter-skinned people choosing to identify as Indigenous.

The full amendment presented by Brandis today makes a lot of other changes.

The old Section 18C prohibited any speech that would offend, insult, humiliate and intimidate a group on the basis of their, race, colour, national, or ethnic origin.

The words offend, insult, and humiliate are gone.  Intimidate is more tightly defined as intimidation that involves physical harm, duplicating much existing law.  The amendment adds "vilify", which it defines as inciting hatred against a person or group.

But none of that matters if the grand exemption applies.

The exemption is important not just for what it does to the new Section 18C, but for what it symbolises.

Back in the early 1990s, the High Court decided that freedom of speech is a fundamental lynchpin of democracy, and that therefore the constitution implied some sort of freedom of political communication.

Putting aside whether implied rights make much sense, the court's basic reasoning was a good one:  it is absurd to talk of a democracy that doesn't freely and openly debate political matters.  Or social, cultural, religious, artistic, academic or scientific matters.  Democracy is more than just voting.

The defence lawyers in the Bolt case didn't base their argument on the right to political communication.  It's a shame that they didn't.  The strict confines that the High Court has placed around this right are starting to fall apart, as we saw in the Unions NSW case late last year.  It would have been fascinating to see what they might have done with Section 18C if it was taken that far.

The new exemption makes clear the fundamental importance of free discussion on any matter of public interest, no matter how extreme that discussion is.

Yet Brandis is right that protections against racial vilification remain, even in the new amended section.

To understand why you have to be familiar with the sort of cases section 18C is used in.  Most section 18C cases don't cover high profile things like Andrew Bolt columns.  I've mentioned one such case in the Drum before:  where a lawyer called a security guard a "Singaporean prick".  Here's another one, from 2012 — a family dispute that involved throwing racial slurs around.

Nor does anybody suggest that these sort of cases are major wins in the battle against prejudice.

Depending on how judges choose to interpret the word "vilify" and the phrase "racial hatred" — both added to Section 18C in the exposure draft — it is highly plausible that they would still be considered unlawful acts of racial discrimination.  (And of course, there's all those state racial and religious vilification laws.)

But who knows?  Legislation can travel in funny directions once Parliament puts it in the hands of the courts.

That, ultimately, is the problem with leaving Section 18C in there;  with not going the whole hog and committing to a full repeal.

The phrase "racial hatred" comes from state law, but we can't know how future judges will choose to interpret it.  There is always some risk that Section 18C could be reactivated in some sense.

Now given the strength of the broad exemption, it's fair to say that risk might be small.  But why not just do the full repeal?

Politics, obviously.  The complex amendments allow George Brandis and Tony Abbott to say that they haven't repealed any protections, just cleaned them up.

And that argument is pitched entirely at the Liberal party room, who will be the ones that decide whether this draft exposure bill becomes Liberal Party policy.

Sunday, March 23, 2014

Combatting the cyberbully myth

Why do we keep telling children that the law cannot protect them against severe cyberbullying?  Time and time again politicians and the press claim that there is nothing police or parents can do if a child is being bullied on the internet, and that government needs to step in.

The parliamentary secretary for communications Paul Fletcher claimed this month that for children who were victims of bullying online, if sites like Facebook didn't help, "you really have no redress at all".

This is gobsmackingly negligent.  There are Commonwealth laws on the books that were written to do exactly that.

Section 474.17 of the Criminal Code makes it unlawful to use a carriage service — that is, telephone or internet — to menace, harass, or offend.  The penalty can be jail.

Then, should the criminal code not be enough, there is defamation law (almost all acute cyberbullying involves defamatory speech), anti-stalking laws, laws against harassment and blackmail, and laws that protect people against threats and fears of violence to the person.

Indeed, some of these laws are excessively powerful.

Still, the fact is they exist.

The Abbott government is holding an inquiry into its election promise to establish a "children's e-safety commissioner" who is supposed to protect kids from cyberbullying.

This commissioner would have the legal power to force social media companies to remove abusive content from their sites in response to complaints from the public.

"Remove", of course, is a synonym for censor.  It's bizarre that a government that promised to run a "freedom agenda" would want to create a grand new bureaucratic body to censor the internet.

(Ironies abound.  Tony Abbott announced this internet censorship proposal just a few days after he announced he would repeal section 18c of the Racial Discrimination Act because the latter was an unconscionable limit on the human right to free expression.)

But anything to help victimised children, right?  Well, not if it won't actually help them.

Bullying is a very serious problem.  The harm of bullying should not be played down.  At its worst and most tragic, it can lead to suicide.  The desire that the government has to do something about bullying is irreproachable.  But there are a lot of widely held misconceptions about the nature of cyberbullying.

First of all, there is no such thing as "cyberbullying".  There is just bullying.  The research evidence demonstrates clearly that people who are bullied online are also bullied offline.  Of course, this makes intuitive sense.  Bullying is a social problem, not a technological one.

In fact, the academic literature consistently suggests cyberbullying is less of a problem than traditional bullying.  As a 2012 paper in Complementary Pediatrics put it, "School bullying is more common than online bullying".  Furthermore, being bullied at school is more distressing.

It's important not to take the very real bullying problem and turn it into a moral panic about technology.

Bullying is intentional aggressive conduct sustained over time that incorporates some kind of power imbalance — real or perceived — between the bully and bullied.  Having a bureaucrat whose job it is to delete individual instances of abusive speech online won't tackle the basic problem of children being cruel to each other.

Certainly not if a victim is subjected to sustained harassment the moment they return to the playground.  Or if the abuse just migrates to less easily monitored websites.

A children's e-safety commissioner would only offer adults a false sense of security that the bullying has been dealt with.

The major social media sites are doing an increasingly effective job at policing their own networks, and without the iron fist of the state supervising them.  Facebook, the site with the youngest cohort, has developed rather extensive systems to report and ban abusive users.

Perhaps surprisingly, a more effective mechanism than reporting users for abuse is the humble unfollow and block.  This neutralises the cruelty, therefore reducing the harm, and is necessary to develop coping strategies for young victims.

A lot of cyberbullying is apparently done by text message.  Most mobile phones now have a feature that allows users to block calls and messages from certain numbers.

And in the case of severe abuse, there is always recourse to the law.  Too often people use the word "bullying" to describe serious criminal conduct including death threats and physical assault.  But the biggest barrier to reducing the harm from bullying is the fact that many children simply don't tell their parents or teachers what is happening.  Too often adults don't have a chance to help, to provide counsel or support.

So we have to educate parents to identify signs that their children are being bullied, and what can be done.

We have to educate children about the many institutional, legal, and technological resources available to support them.

But most of all, we have to stop this incredibly dangerous political falsehood that there are no remedies available for children who are being bullied, online or off.

Friday, March 21, 2014

A bonfire of deadwood

Prime Minister Tony Abbott and his energetic parliamentary secretary, Josh Frydenberg, have delivered the government's first bonfire of regulations, together with guidances designed to arrest the flow of new regulations.

Modern-era deregulation began in the 1980s with United States president Ronald Reagan.  He required a systematic appraisal of new regulations and a deregulatory oriented review of existing ones.

In 1985 Bob Hawke copied the US initiative in an apostasy for an Australian Labor Party, whose guiding principles entailed greater government control of the economy.  Although the ALP continues to keep faith with industry plans, over the past 30 years deregulation has prevailed in price controls, tariffs and export controls.  Labour market controls have remained and we have gone backwards in regulations covering environmental restraints, consumer protection and corporate controls.  In net terms the number of new pages of regulation each year has doubled since 1984.

The Abbott government's new impetus discards thousands of pages of unused regulations and introduces regulatory retractions, including in 10 specified areas.  These 10 areas are relatively non-controversial.  Will anyone object to simplified regulation of computer games, to longer durations for agricultural and veterinary approvals or to a changed means of administering paid parental leave?  It does seem there is opposition from the charities industry to closing down their presumably pliant regulator.

And the ALP is supporting the union controlled superannuation funds' opposition to re-allow the industry's salespersons to be remunerated through commissions.


HIGH MARKS FOR EFFORT

Perhaps of greater benefit will be the ending of regulatory duplication in new project approvals between Commonwealth and state governments and between different Commonwealth departments.  In all, $700 million of annual savings is claimed.  Many are housekeeping.  Some, like savings from repealing the carbon tax, are dependent on other reforms, and some are genuine deregulations that may not have proceeded without the initiative.  But we are unlikely to return to the 1960s nirvana when Western Mining discovered a valuable ore body at Kambalda and began work on what was one of the world's most productive mines in six months.

In addition to the regulatory bonfire, the government has released a 60-page Guide to Regulation and the Productivity Commission has issued a 40-page Regulator Audit Framework.

The Guide to Regulation reiterates, albeit in strengthened language, stipulations that new regulations should be really, really necessary, provide net benefits, have been subjected to wide consultation, be implemented "with common sense, empathy and respect", and so on.  Similar bromides characterise the PC's Regulatory Audit Framework.  Thus, it advocates improvements to regulators' performances by audit plans, rewarding good and sanctioning poor performances.

The deregulation initiative deserves high marks for effort.  But on performance it is best described in words apocryphally used on whether the French Revolution was a success:  "Too early to say".


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Tuesday, March 18, 2014

FoFA fearmongering a blow to deregulation

Never has so little been met with so much panic.

Alan Kohler has described the Abbott Government's amendments to Labor's Future of Financial Advice (known as FoFA) reforms as unseemly, suspicious and like blessing union corruption.  Bernard Keane believes the Government's plans are "a big blow to consumers' rights".  Ian Verrender, at The Drum, says the changes will be "enormous".

The Abbott Government intends to cut regulation across the board.  But the hysteria about these FoFA amendments demonstrates how hard it is to get even minor deregulation done.

The original FoFA reforms were in response to a corporate collapse:  that of Storm Financial and Opes Prime in October 2008, at the beginning of the Global Financial Crisis.

In 2010 the Labor government introduced a huge package of new regulations, new powers for regulators, and new obligations on firms that offer financial advice.

For our purposes, the key ones were a ban on financial advisors earning commissions from recommending investment products, and another one that required financial advisors to act in the "best interest" of their clients.  The bulk of FoFA came into effect in 2012.

Now in 2014 it's being amended.

That's amended, not repealed.  A casual reading of the press would suggest that Arthur Sinodinos, the Assistant Treasurer, plans to rip away every vestige of FoFA.

Instead, the Government intends to distinguish the regulation of personal financial advice — that given by an advisor who works closely with you, understands your specific goals and needs — from the regulation of "general" advice — that given over a bank counter, over the phone, or through promotions, investor newsletters, or advertisements.

For personal advice, everything important in Labor's FoFA remains.  Commission-driven advice is still banned.  Advisors still have to act in their clients' best interests.

The first controversial change is that the best interest rule is being modified to remove an ambiguous and all-encompassing "catch-all" provision.

There are nearly a dozen criteria that are used to determine if an advisor is acting in the best interest of their client.  Things like:  does the client understand the product?  Is the advisor qualified to give the advice?  These remain.

The catch-all provision (Section 961B(2(G)) of the Corporations Act if you're playing along) is basically a "anything we haven't thought of" step.  It's absurdly broad.

How — without scrutinising everything about a client's life and finances, scrutiny which would cost thousands of dollars — could you be sure you knew absolutely everything a court might decide constituted the client's best interests?

Would you want to give financial advice under that sort of legal uncertainty?

Simply put, FoFA's best interest, know-your-client rule is massively, dangerously overwritten.  The Government wants to slightly relax it.  Not remove it.

The second change concerns general advice.  This covers things like bank tellers making recommendations about travel insurance.  Here, commissions, now banned, are to be made lawful once more.  Sounds terrible?  Hardly.

Commissions are a completely legitimate form of employee remuneration.  FoFA describes commissions as "conflicted remuneration".  This is nonsense.  A commission, in practice, is not so different from a sales target, or (for higher paid professions) a key performance indicator, or (for higher paid again) an annual bonus.  It's just a different way to slice the salary pie.

If you go into a bank and ask for recommendations about financial products, you ought to expect that they will try to sell you one of their products.  Just like if you ask a Telstra store employee what mobile phone plan they recommend they're probably going to recommend a Telstra plan.  Regardless of whether they're being paid a commission.

Banning commissions in these circumstances achieves no policy goal.  Remember, all advisors, including general advisors, are still required to work in their clients' best interests.  Removing the ban on commissions just cleans up a little regulatory ludicrousness.

Perhaps you disagree with the Coalition's FoFA changes.

But it is true that Labor's original FoFA remains — in letter and spirit.  It is not being gutted.  The Coalition's changes are not radical.  They do not deserve the extreme hyperbole they have received.

More fundamentally, it is not the Government's responsibility to restore the reputation of an industry.

Voluntary industry charters or private ratings agencies are common solutions to the reputation problem.  Personal financial advisors had been reducing their reliance on commissions in the years before the FoFA reforms.

Regulation suppresses innovation, raises consumer prices, ties the sector down in compliance costs, and opens up opportunities for rent-seeking.

Indeed, rent-seeking is the real story of the FoFA reforms.

The battle here is between the super funds and the banks.  Australia's superannuation system has created a titanic financial industry based entirely on the compulsory acquisition of a portion of our salary.  Super funds — particularly the union-managed industry super funds — lobbied hard for a crackdown on avenues of financial advice outside the superannuation system.  With FoFA they got it.

Industry Super Australia is now predicting these minor FoFA adjustments will bring a wave of financial collapses.  Sure they will.  Storm Financial did not collapse because bank tellers were selling travel insurance on commission.

Where commentators fall on these changes is usually determined by their pre-existing attitudes towards the super funds and the banks.

Most of the debate has been a loose proxy for bigger questions about Australia's financial system.

But minor tinkering of FoFA isn't much to hang these questions on.

The backlash against the Government's plans demonstrates just how hard deregulation really is — held back by a mire of special interests and an unfortunate natural human tendency for doomsaying and fearmongering.


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Friday, March 14, 2014

Submission to Department of Education Review of the National Curriculum

EXECUTIVE SUMMARY

The National Curriculum is unbalanced, biased, and fundamentally hostile to Australia's Western Civilisation legacy.

The National Curriculum has three cross curriculum priorities — Sustainability, Asia and Australia's Engagement with Asia, and Aboriginal and Torres Strait Islander Histories and Cultures — which are supposed to be taught in every subject.

These priorities are inappropriate and ideologically driven.  It is surely not appropriate for a Health and Physical Education curriculum to prescribe learning objectives about Aboriginal cultural identity.  Nor should Mathematics classes include instruction on sustainability.

The ideological nature of the National Curriculum is most manifest in the Year 7 to 10 history curriculum.

The history curriculum over-emphasises themes such as environmental determinism, focuses attention disproportionately on the history of European colonialism and multiculturalism, and takes a materialist approach to questions of class.

Conversely, the history curriculum entirely downplays the role of ideas as a driver of historical change, entirely misses the significance of liberalism in the development of liberal democracy in Australia, and downplays and denigrates the development of Western Civilisation and religion.

While I welcome the review of the National Curriculum, it remains the case that any National Curriculum will be ideological in some form.

As a consequence, rather than amending or adjusting the National Curriculum to fix these problems, the most sustainable and liberal solution would be to scrap the National Curriculum altogether.  The government should focus on eliminating barriers to schools choosing and developing their own curriculum in consultation with their school community.



INTRODUCTION

My research demonstrates that the National Curriculum is unbalanced, ideologically-biased and systematically hostile to the legacy of Western Civilisation.

In January 2014, Commonwealth Education Minister Christopher Pyne announced a review of the National Curriculum.  Minister Pyne noted that the "truth about the benefits of Western civilisation should be taught in our curriculum.  And I think that there is some fair criticism that the curriculum is balanced one way rather than the other." (1)

It is my view that the National Curriculum's cross-curriculum priorities distort the curriculum's content across each learning area.

The history curriculum is of particular concern.  It over-emphasises the following themes:

  • The environment
  • Colonialism
  • Multiculturalism
  • Social history
  • Class and minority groups
  • Anti-modernism

In addition, the following themes are either under-emphasised or do not expressly appear in the history curriculum at all:

  • History of Ideas
  • Liberalism
  • Economic growth and technology
  • Political history
  • Western civilisation
  • Religion

Curriculums are by their very nature ideological.  It is my view that no coherent and ideologically-neutral National Curriculum could be developed that would satisfy the needs of all schools, all parents, and all children.  Therefore:

  • The National Curriculum should be scrapped.
  • The government should focus eliminating barriers that prevent schools from developing and implementing the curricula of their own choosing.

About this submission

This submission includes a discussion of the problems with the National Curriculum's Cross-Curriculum Priorities and a detailed critique of content of the Year 7 to 10 history curriculum.

It does not address any issues relating to the structure of the curriculum.  While I acknowledge that much could be done to improve the coherency of the National Curriculum, particularly in the history learning area, I am only concerned here with the manifestation of the curriculum's ideological and philosophical assumptions.  These are explicitly stated as the Cross Curriculum Priorities and are especially evident in the Year 7 to 10 history curriculum.

This submission is particularly concerned with the way the National Curriculum is being interpreted in classroom settings.

To gain insight into how the ideological assumptions in the curriculum documents are being interpreted, I have analysed a number of history textbooks that have been written to comply with the dictates of the new National Curriculum.

Textbooks surveyed include the Jacaranda History Alive books, the Oxford Big Ideas and the Pearson History.  These textbooks are currently being used by a large number of schools across the country.  I consider these books to provide an insight into how the history curriculum will look in practice.

Obviously, the textbooks do not always represent the intentions and sympathies of the original curriculum writers and are produced by independent publishing companies, not by the government, and schools are not required to use them.

However, the National Curriculum-compliant textbooks illustrate the most pressing shortcomings of the National Curriculum very clearly.  Because the curriculum in its current form is extremely explicit, virtually all of the textbooks are structured in exactly the same way, include the same information, and even have the same chapter headings.  As such, they all share the same over-emphases and omissions as the National Curriculum, and illustrate them far more clearly than the curriculum documents.



CROSS-CURRICULUM PRIORITIES

The most significant problem with the National Curriculum is Cross-Curriculum Priorities.  At the present, these priorities are:

  • Sustainability;
  • Asia and Australia's Engagement with Asia;  and
  • Aboriginal and Torres Strait Islander Histories and Cultures.

Currently, the curriculum is structured in such a way that makes it necessary for each of these priorities to be emphasised across all learning areas.  All three of these priorities are clearly political and ideological.  As I have written,

All [are] worthy topics, of course.  How are they ideological?  Take sustainability.  The sustainability theme is intended to "[create] a more ecologically and socially just world through informed action".  That's virtually the definition of ideology:  a positive description (we are harming the planet) combined with a normative ideal of a better social order (an ecologically and socially just world).

If this isn't clear enough, well, one of its "organising ideas" is the sustainability "world view":  "value diversity and social justice are essential for achieving sustainability".

Perhaps this is an ideology you agree with.  Ideology isn't a bad thing.  Everybody's thought is shaped by ideology, whether they're aware of it or not.  But it's ideology nonetheless. (2)

The cross-curriculum priorities crowd other important content out of the curriculum.  An example of this is the English curriculum.  In it, students are repeatedly supposed to refer to Dreamtime stories, Asian legends and Aboriginal rock art to learn concepts like the structure of stories, rhythm, and illustrated texts.

The repeated emphasis on these issues throughout the Foundation to Year 10 English curriculum means that other important aspects of "English" are omitted.  The only European literature mentioned in the Foundation to Year 10 curriculum, for example, appears to be Cinderella and Jack and the Beanstalk.  While there are frequent references to the Dreamtime and Asian literature, there is no mention at all of texts that have been foundational to western and therefore Australian literature — for example, Homer, Virgil, the Bible, Chaucer, Shakespeare, and Milton, among many others which could have warranted a mention.

The Cross-Curriculum Priorities are also emphasised throughout the Health and Physical Education, Arts, Technologies, and even Mathematics curricula.  In the first of these, there is a strong emphasis on "cultural identity" and "diversity".  For example, one content description in the Year 3 and 4 Health and Physical Education curriculum reads:  "research own heritage and cultural identities, and explore strategies to respect and value diversity".

There is a very strong emphasis on the environment in the Technologies curriculum.  Shakespeare is not studied in Drama, yet there is at least one content description for Aboriginal and Torres Strait Islander drama in virtually every year.

Elaborations in the mathematics curriculum recommend lessons about symmetry in Asian textiles and Aboriginal counting methods.

For the above reasons, the Cross-Curriculum Priorities are probably the most significant underlying problem in the National Curriculum in its current form.

Some critics of the National Curriculum have argued that balance could be restored by adding in a fourth cross-curriculum priority — "the continued recognition of 'western/Judeo-Christian influences on our society'." (3)  While I agree that this is extremely important and should indeed appear in any good curriculum, simply adding another Cross-Curriculum priority is unlikely to resolve these underlying issues.  It suggests that students will have to study Western culture and Christianity in disciplines like Science, Mathematics, and Health and Physical Education, which is certainly not appropriate in subjects that do not need to include cultural studies at all.

For this reason, the most effective and immediate change that the inquiry could recommend would be to abolish all of the Cross-Curriculum priorities.

There is no need for themes to be repeated in every section of the curriculum.  Each discipline should have its own "priorities", depending on the purpose and intended outcomes of the particular discipline.

For example, it is the role of history to give students an understanding of how the world came to be in its current state, but the primary priority of mathematics should be to give students at least a basic understanding of numeracy.  The two disciplines should be completely separate.  They do not need to overlap the content or include the same themes.



IMBALANCE IN THE HISTORY CURRICULUM:  OVER-EMPHASIS

The history curriculum disproportionately focuses on a number of themes that will give students a distorted and ideological vision of Australia's past and the significance of Western Civilisation.  This section outlines five themes that are over-emphasised in the history curriculum.  It is not intended to suggest that the importance of, for instance, the environment in history should not be taught.  Rather, the disproportionate focus on these themes to the exclusion of other themes elaborated later in the submission demonstrates the ideological flavour of the curriculum.


1. The Environment

As one of the cross-curriculum priorities, the environment plays a very prominent role throughout the entire history curriculum, but especially in the Year 7 to 10 curriculum.  Overall, it reflects an environmental determinist view of human civilisation.  The message repeated throughout much of the content is that "humans and their natural environment are closely interrelated", implicitly taken to an extreme where environmental factors such as climate presuppose the success or failure of any given civilisation.

This perspective is first revealed in Year 7, where all "depth studies" on the ancient world begin with exactly the same content description:

The physical features of [an ancient civilisation] and how they influenced the civilisation that developed there

The emphasis on this point is the same regardless of which civilisation is being described — whether Egypt, Greece, Rome, India or China.  It is one of just five content descriptions that the curriculum prescribes for each.

The environment theme re-emerges in Year 8 — particularly in the Asian section.  There, it emphasises that Polynesian societies declined because they exploited their environmental resources, that climate change caused the decline of Angkor, and includes a content description on how the Shoguns used natural resources.

In Year 9, it includes a content description on the Industrial Revolution and its impact on the environment:

The short and long-term impacts of the Industrial Revolution, including global changes in landscapes, transport and communication

Naturally, many of the textbooks follow this trend and emphasise the damage that the Industrial Revolution did to the environment.  Oxford Big Ideas includes a number of pages on it, noting — among other things — that "the Industrial Revolution left humanity dependent on carbon fuels" (a bad thing!)

By far the most concerning appearance of the environment in the history curriculum, however, is in the Year 10.  This post-WWII section could have included many things.  One would have expected a depth study on the Cold War, or at least the Cold War era.  Instead, the last two depth studies in Year 10 are a core unit on Indigenous rights and an elective on either pop culture, immigration and refugees, or the environment movement.

In this depth study, they are supposed to learn about the notion of "Gaia — the interaction of Earth and its biosphere", "limits to growth — that unlimited growth is unsustainable", and "rights of nature — recognition that humans and their natural environment are closely interrelated".  They are supposed to learn about a range of "environmental impacts" and learn about how they motivated major protests, like the campaign to stop the blocking of Gordon River.

All of the textbooks are similarly biased.  For example, the Nelson textbook rendition of this section of the National Curriculum includes lengthy descriptions of events like the Blockage of Franklin Dam and Lake Pedder, and profiles of people such as Jack Mundey, Peter Garrett and groups like the Rising Tide Newcastle and Greenpeace.  It then insists that the debate over anthropogenic climate change is settled and that scientists find An Inconvenient Truth to be "factually accurate".

Overall, there is a very strong environmental theme throughout the National Curriculum.  The theme repeated throughout is that climate presupposes the fate of a civilisation;  apparently, it presupposed the fate of ancient civilisations, was responsible for the collapse of various societies throughout history, and will be devastate us in the coming years.

This is not to suggest that the environment and geography did not play an important role in history and in shaping how different civilisations developed.  It certainly did — although so did ideas and institutions, which do not get quite the same attention.

This history curriculum, however, emphasises the impact of the environment at the cost of denigrating the role of human agency, and then worsens the situation still by including issues and events that are political in a context very sympathetic to left-wing green movements.  A history curriculum is no place to preach these ideas.


2. Colonialism

Another recurring feature in the curriculum is colonialism — or, more specifically, European colonialism and its evils.  This begins in Years 5 and 6, which discusses European settlement in Australia and "the nature of convict or colonial presence" and "experiences of Australian democracy and citizenship" of Aboriginal people.

The Year 7 to 10 curriculum includes many more references to colonialism.  Already, Year 8 includes whole depth study on the Spanish Conquest of the Americas.  This subject describes the violent conquest of the Aztecs or Incas by the Europeans and the disastrous "longer-term effects of colonisation, including slavery, population changes and lack of control over resources".  The textbook renditions of these depth studies include graphic tables detailing the population declines in the region.

Nearly half of the Year 9 depth study on early Australia is about the damage Europeans did to non-Europeans.  Much of the equivalent unit on Asia is about European colonialism.  In the History Alive textbook, this is transformed into a chapter almost purely about China gaining independence from the oppressive European powers, which conveniently cuts off when the Communist Party comes into power — but this is perhaps not entirely due to the contents of the curriculum.  The overview for that year includes an elaboration on "recognising how Asian societies responded to European imperialism, the extent to which they were changed and the influence they exercised on the rest of the world".

Finally, the Year 10 history curriculum includes a core depth study about civil rights movements and "the struggle of Aboriginal and Torres Strait Islander peoples for rights and freedoms" against the European colonists.  The Stolen Generations, the Mabo decision, and the Apology are all mentioned in the content descriptions, along with the Declaration on the Rights of Indigenous Peoples (2007).

Overall, there is a strong emphasis on specifically European colonialism throughout the history curriculum and the negative impact that this had on indigenous populations.  This is not to say that it should not be included at all, of course, or that much of what the curriculum includes is fundamentally bad or factually flawed in some way;  but the emphasis that it places upon these concepts is undue.


3. Multiculturalism

Since one of the cross-curriculum priorities is "Asia and Australia's engagement with Asia", it is likely to be of little surprise that multiculturalism is another feature of the history curriculum that is strongly over-emphasised.

Throughout Years 7 and 8, virtually half of the content descriptions are about Asian civilisations.  Of the other three electives on ancient civilisations in Year 7, two are about Greece and Rome — which are both very important — and one is about ancient Egypt — which is popular but not as relevant to Western and Australian history as the previous two.  All strictly European medieval history in Year 8 is grouped under the heading "the Western and Islamic World", which also includes an elective depth study on the Ottoman Empire.

Similarly, in Year 9 it is not compulsory to complete a depth study on Australian history;  an elective on modern Asian history can be completed instead.  Much of Year 10 is explicitly about multiculturalism — particularly the depth studies on immigration and human rights movements.

In the Year 10 depth study on immigration, students are supposed to study "the contribution of migration to Australia's changing identity as a nation and to its international relationships".  This is essentially a summary of one of the main underlying themes in the existing curriculum.


4. Social history

Most history in primary school is either about historical skills or social history.  This is understandable, although whether or not it is the best way to introduce history is indeed open to debate and it should not be a given.  The curriculum for Years 4 to 6 prescribes various content descriptions on the daily life of Australia's inhabitants, particularly Aboriginal and Torres Strait Islanders and migrants from Asian countries.

There is a problem, however, in the sense that the curriculum continues its strong focus on social history into the secondary school curriculum.  The depth studies prescribed in Year 7 on the ancient civilisations are largely about social history — about their values, practices, beliefs, key groups in society, foreign cults, and contacts between Asia and Europe.  The medieval history depth studies are also mostly about social history.  The Australian history depth study in Year 9 is mostly about "experiences", as are the depth studies on the Industrial Revolution and the Movement of peoples.  The only depth study that is not predominantly about social history in Year 10 is World War II.

Social history is undoubtedly important, and many students may find it more interesting than bare political history.  Without proper historical context, however, it is meaningless.  The over-emphasis of social history and the corresponding lack of emphasis on political history means that it must be very difficult to derive a sense of chronology from most of the curriculum in its current form, let alone a sense of narrative and long-term developments.  The Year 7 and 8 depth studies in particular are severely lacking in context.

For Years 7 and 8 at least, most of the content in the National Curriculum is social history at the cost of providing a chronological and narrative context and illustrating how changes occurred over time.


5. Class and Minority Groups

A more concerning aspect of the curriculum is that there is a strong focus on class and minority groups.  For example, the Year 7 overview content includes the following content description:

key features of ancient societies (farming, trade, social classes, religion, rule of law)

This appears to imply that all ancient societies without discrimination had exactly the same features in terms of "social classes", when the reality was very different.  Yet as if to reinforce this view, all the "Mediterranean" and "Asia" breadth studies include the following content description:

Roles of key groups in ancient [specify] Society, (such as ...) including the influence of law and religion

In each case, the role of minority groups — women, slaves, plebeians — are emphasised, giving the impression of rigid, strongly class-oriented societies.  Often the summaries are actually incorrect or omit important information.  It does not mention anywhere that Athens was the first democracy, although one elaboration does include an obscure and possibly misapplied reference to "the invention of freedom" in the ancient Greece depth study.  Similarly, it depicts the key groups of Roman society as "patricians, plebeians, women, slaves".  This might have been true in about 300 BC, but it the curriculum does not mention that the distinction between patricians and plebeian nobiles was increasingly blurred towards the end of the Republican period, and that the patrician order virtually disappeared in the early empire.  Yet the textbooks derived from the curriculum follow it in drawing this rigid depiction of Roman society.  As the Pearson Year 7 mistakenly says:

... the plebeians in Rome were the social class who were poor, uneducated and low in status.

Here, some important facts have been omitted to fit into the "key groups" content description in the curriculum.  This is a gross oversimplification of the structure of Roman society — which, in reality, was highly complex — and it appears to have Marxist undertones.  It is reflected in each of the depth studies from that year and in various places in the textbooks.

The focus on social classes and "power" reappears time and time again as a major theme throughout the curriculum.  When it is not a distinct aristocratic class that is oppressing the plebeians, then it is the Christian church instead.  The European history depth studies in Year 8 focus on "the dominance of the Catholic Church" and makes the odd suggestion that Gregorian chants and castles were an expression of its power.

The Oxford Big Ideas and History Alive textbooks for this year both include several pages of quotations from Marx and Engels.

There is also a strong emphasis throughout the curriculum on the development of socialism in the Progressive Ideas and Movements depth study, as demonstrated in the following content descriptions:

The emergence and nature of key ideas in the period, with a particular focus on ONE of the following:  capitalism, socialism, egalitarianism, nationalism, imperialism, Darwinism, Chartism

The reasons why ONE key idea emerged and/or developed a following, such as the influence of the Industrial Revolution on socialism

The Movement of Peoples subject the same year is mostly about the slave trade, while the Australian unit is mostly about the experiences of non-Europeans and living and working conditions.  In the textbooks, this translates to women's voting rights and old-age pensions.

In Year 9, there is an increasingly strong emphasis on the poor living and working conditions in the Industrial Revolution and how this led to the trade union movement.  Of course, Year 10 includes a compulsory depth study on "the struggle of Aboriginal and Torres Strait Islander peoples for rights and freedoms" and the significance of the Universal Declaration of Human Rights and the US civil rights movement.  Virtually two thirds of the year is spent completing depth studies on protest movements and the plight of minority groups.

Overall, there is a definite focus on class and minority groups in many of the content descriptions, and that in areas the history curriculum — and even more so, the textbooks derived from it — appear to have Marxist undertones.


6. Anti-modernism

In addition to all of the above over-emphases, another theme that is repeated throughout the curriculum is anti-modernism.  This theme is related to many of the above — particularly environmentalism and, to some degree, colonialism — and is brilliantly expressed in this very humourless extract from the Pearson Year 7 textbook:

Some historians speculate that the shift from the hunter-gatherer way of life to the settled life of farming was one of the worst mistakes humankind ever made.  Studies by anthropologists of the few existing hunter-gatherer societies, such as the !Kung San of the Kalahari in Africa, show that they work far less hard than neighbouring farmers and have a better and more varied diet.

This is followed a few pages later by an exercise in which students are earnestly to debate:  "Should modern humans return to the hunter-gatherer way of life?"

While there is nothing in the curriculum itself that is quite as blatant as this, a similar theme nevertheless recurs throughout the Year 7 to 10 curriculum.  As a whole, it paints a very dim image of modern society.  It includes content descriptions on the impact of the Industrial Revolution and economic growth on the environment and a whole depth study on the environment movement, which emphasises the negative impacts of "population increase, urbanisation, increasing industrial production and trade".

The curriculum portrays a very negative view of modernity, if not of human civilisation in general.  It is a theme that underlies much of the content and is clearly not appropriate in a National Curriculum.



IMBALANCE:  UNDER-EMPHASIS

The over-emphasis of themes such as environmental determinism and colonialism is matched by a marked under-emphasis of a number of significant themes in the development of human history and of Western Civilisation.  First among these is the absence of the history of ideas.


1. Ideas

An especially concerning omission from the curriculum and related textbooks is the history of ideas — or rather, a history of ideas and concepts and their relationship to the institutions, economic growth and the success of any given civilisation or nation.  At all stages of the curriculum — with the exclusion of Year 9, which will be discussed in more detail below — it prescribes what is very much a materialist and environmental view of history, in which success is largely determined by environmental and geographical conditions.  There is very little in the history curriculum on the role of ideas of how they have developed over time.

To use an example, if there are a handful of stand-alone "facts" that most thirteen year olds should know about ancient Greece, two of them would definitely be that:  the ancient Greeks (particularly the Athenians) invented philosophy and democracy;  and by extension, both of these inventions have had a profound impact on the institutions of many European nations and their former colonies, including Australia.

At the present, however, although there is much emphasis on the geographic and environmental setting on ancient Greece, the coverage of democracy in the Year 7 curriculum is extremely scant.  It introduces the concept from the perspective of social or class history, emphasising that there were still different "classes" in Athenian society — men, women, and children — and remaining silent on the significance of democratic ideas.  In fact, it doesn't actually use the word "democracy" at all;  instead, it ambiguously attributes the "the invention of freedom" to the ancient Greeks — which is not strictly justified.

In keeping with this, most textbooks include half a page to a page (usually shared with Sparta) on the development and constitution of Athenian democracy.  Some even portray Athenian democracy in a somewhat negative light.  An inquiry task on page 203 of the Year 7 Pearson textbook requires students to write an "oral history" by "an Athenian slave working in the silver mines, who talks about his view of 'democracy' in Athens".  There is very little emphasis on the historical significance of the development of democracy in historical terms.

The curriculum is even more silent on Greek philosophy, and does not even mention it in the content descriptions, despite the fact that it mandates content descriptions on "the spread of philosophies and beliefs" in the India and China depth studies the same year.  Likewise, at least one textbook — Oxford Year 7, mentions Plato and bolds the word "philosopher", without explaining what Plato's contribution to philosophy was or why it was significant.

Just as there is very little on the development of Greek democracy and philosophy and its significance, there is very little on the significance of Roman law.  Since Roman law and customs (grouped together under the same content description) get exactly the same vague treatment as every other ancient civilisation, there is nothing in there to suggest that it was a forebear of many European legal systems — and our own.  Equally, there is nothing on the development of English Law (the Domesday book, for example, does not earn a mention, nor for that matter does the Battle of Hastings) and there is very little or nothing in the years 7 to 10 on the ideas that influenced the institutions of England, and therefore of Australia.

Nowhere does the curriculum discuss anything about the development of natural law and human rights before the United Nations' Declaration of Universal Human Rights in 1945, as if it were at this point that "human rights" were invented.

One could read through most of the curriculum and gain the impression that, for the most part, ideas (with the exclusion of socialism) don't matter.  There is very little on how ideas influence institutions, and how institutions impact the success or failure of a civilisation or nation and the wellbeing of its people.  Instead, the curriculum places an emphasis on the geographic setting of each civilisation and its relationship with the environment, and the different social classes in society.  When ideas are mentioned, the curriculum paints a sketchy and incomplete picture.


2. Liberalism

Closely related to the above is the complete omission of liberalism from the curriculum.  This is especially astounding because the curriculum does include a depth study in Year 9 on "progressive ideas and movements" — perhaps, along with the protest movement depth studies in Year 10, the only place in the curriculum where "ideas" do play a role.  The ideas mentioned include capitalism, socialism, Darwinism, and Chartism, but liberalism is not mentioned.

Although the depth study emphasises socialism, using it as the example in the "progressive ideas and movements" depth study and suggesting that students learn how the labour movement was influenced by the Industrial Revolution, the concept of liberalism is omitted altogether — an idea that has done much to shape the institutions of modern Australia.

That the curriculum mentions socialism, Chartism and social Darwinism but not liberalism is not acceptable, and is very illustrative of the one-sidedness and selectiveness of the history curriculum.


3. Political history

Given the strongly social, environmental and materialist approach to the history curriculum, it is perhaps unsurprising that political history throughout the curriculum is also severely lacking.  The fact is that most of the chronology and political history is currently included in the "historical overview" content outlined at the beginning of each year — content which is supposed to comprise about 10% of total teaching time in history, or about eight hours of class.  Most depth studies focus on social history — daily life, the structure of society, and geographic features — but include very little on names, dates, chronology, historical turning points, and long-term developments.

The Year 7 depth studies each include a content description on the life and achievements of single notable individuals, but this is apparently to be examined in isolation and is therefore not likely to be very informative.  This is essentially the extent of political history in the Year 7 curriculum.  In the ancient Rome depth study, students are to learn about Julius Caesar or Augustus.  The Pearson Year 7 textbook includes a double page on the career of Julius Caesar, depicting his life as a "timeline of the fall of the Republic", without examining his relationship with other significant individuals at the time and important developments before and after his lifetime that also contributed to the collapse of the Republic.  A very bare timeline of the life of Caesar is not adequate coverage of the history of this period by any account.

This is presumably not because of lack of space — the curriculum is extremely explicit — but because learning about "big names", dates, and what actually happened is apparently not as important as learning about how civilisations interacted with the environment and about how the elite groups of society oppressed the less powerful groups, and about social customs in general.

This is very well illustrated in the Pearson Year 7 textbook, which includes a list of important names from ancient Greece for students to memorise.  Rather than being the names of important individuals — Pericles, Demosthenes, Alexander — they are the names of Greek gods, heroes and monsters.  It is about the culture and religion of ancient Greece, not the history.  There is no injunction anywhere else for students to memorise a list of names from ancient Greece.

This trend is largely the same throughout Year 8, where most depth studies include a single content description on one historical event — for example, the fall of Constantinople in 1453 is mentioned in the Ottoman Empire depth study.  Nowhere, however, is there an attempt to link these events with other important events, or to place all of this in a chronological narrative.  There are very few places in which basic list of events and developments are listed.

The situation does improve slightly in Years 9 and 10.  The depth studies on World War I and World War II are essentially adequate as a basic introduction, and the quality of these chapters in the textbooks is usually quite good.

Ironically, although the last four depth studies in Year 10 are very poor choices for a National Curriculum for various reasons, they are the only depth studies that actually do include lists of events and dates to learn.  For example, the depth study on the development of "human rights" includes a list of events in the "indigenous rights movement", leading up to Kevin Rudd's "Sorry" speech.  The depths studies themselves, however, are all at the core about social history, and mostly about social movements;  the most important political developments for that period which arguably should have been the focus of the last part of the curriculum — for example, the Cold War — are covered only in the overview content.

The lack of political history — especially in Years 7 and 8, but also in 9 and 10 — means that it must be very difficult for students to gain a sense of how the different pieces of history fit together, and of how developments occurred over time, let alone who the key individuals were and how they relate to other key individuals.


4. Economic growth and technology

The history curriculum includes very little information on economic growth and technology, and very little economic history in general.  Of course, it does mention trade between societies occasionally — for example, it is listed as a "key feature of ancient society" and in the depth study on the Vikings, and the slave trade gets a number of mentions — but the only time that "growth" is mentioned is in a reference to the growth of the environment movement in Australia and the notion of "limits to growth — that unlimited growth is unsustainable", both of which appear in the depth study on the environment movement.

Most references to technological innovation appear in Year 7, exclusively with reference to prehistory — for example, the move from using stone tools to woodwork — and Aboriginal technology — including the shell midden and the use of "natural resources".  There do not appear to be any explicit mentions anywhere of how technology and economic growth has impacted settled civilisations or how it improves living standards.

The omission becomes most obvious in modern history in Year 9 and 10, when the economic side of history should have become extremely important, particularly in the industrial period and beyond.  Yet the overview content includes very little information on the economy and how it improved living conditions, although it does mention how technological innovation affected them (which could be taken either positively or negatively.)

The depth study on the Industrial Revolution discusses the short and long-term impacts, but emphasises "global changes in landscapes, transport and communication", and not the economy and living conditions;  the elaborations emphasise the impact of factories, mines and cities on the environment and population growth, and the development of trade unions.  There is a content description on "the experiences of men, women and children" and "their changing way of life", but this is mostly in terms of "longer working hours for low pay and the use of children as a cheap source of labour" and "the impact of steam, gas and electricity on people's way of life".

While some of the textbook renditions of this section of the curriculum are excellent and include much more information on technology and economic changes, the National Curriculum itself focuses largely on working conditions, environmental damage, and the development of socialism in the section on the industrial revolution.

In addition, in Year 10 there is nothing anywhere that emphasises the fact that western countries in the twenty-first century enjoy economic prosperity unprecedented at any other time in history.  Instead, most of Year 10 is about protest movements and the impact of modernisation on the environment.  All that it does include is a content description on "the intensification of environmental effects in the twentieth century as a result of population increase, urbanisation, increasing industrial production and trade", within the environment movement depth study.


5. Religion

The curriculum is also extremely silent on the matter of religion — especially Christianity.  This is curious, since it neglects that a small majority of Australians (roughly 61%) still identify themselves as Christian, making it — quite aside from its historical importance — by far the most significant religion in the country to this day (by contrast, the second-largest category in 2011 was "no religion", which now accounts for about 22%).

Yet Christianity is not mentioned in Year 7 ancient history, although it is one of the most important legacies of the Roman Empire.  Whenever Christianity is mentioned in Year 8, it is usually in a distinctly negative context or described in terms of its oppressive power — for example, Gregorian chants and castles are somehow supposed to demonstrate the "power" of the church and how it maintained its control over the population.  It is mentioned as a motive to the Spanish conquests of the Americas, and in the context of its opposition to the "progressive movements" in Year 9.  This is a very one-sided a negative view of Christianity.  There is no emphasis anywhere of the more positive contributions it has made — for example, the invention of human rights, the first public hospitals, charities, and the abolition of slavery were all driven in a large part by Christianity.  Yet the history curriculum does not mention any of this and even incorrectly attributes the first public hospitals to Islam.


6. Western Civilisation

A final point that the curriculum neglects is Western Civilisation, and fails to recognise its significance and relevance to modern-day Australia.

Although Greece and Rome are both of key importance to the history of Western Civilisation and the development of Australia's institutions — along with many others, including the civilisation of eastern Europe and Islamic civilisation — it is impossible, given the current curriculum, for a single student to study both of them;  in fact, would be very possible for a student to study ancient Egypt and bypass Greece and Rome altogether.  Moreover, the curriculum in its current form does nothing to emphasise the importance of Greece and Rome and exactly why they are especially important for Australia;  on the contrary, both are treated in exactly the same way as all the other ancient civilisations in the Year 7 depth studies.

The same is true in Year 8, where a large number of the depth studies about Asia and the Ottoman Empire and medieval Europe are found in the same category.  Similarly, the curriculum in its current form makes it impossible for any student to study both Medieval Europe and the Renaissance, although it is not required to study either and it would be possible to go through Year 8 having studied the Ottomans and knowing very little about medieval Christendom.

It clearly would have been more difficult for the curriculum to use the same scattered approach for the modern period of history in Years 9 and 10, during which western European civilisation spread across the world — including to Asia.  However, even here, the curriculum is somewhat inadequate;  it does not adequately cover the period of European history between 1600 and 1750, which was critical for the development of Western Civilisation and for British history.  Indeed, there was very little in the curriculum as a whole on British history, although it is the primary focus in the depth study on the industrial revolution.  Finally, in Year 10, the curriculum lacks anything but a sketchy overview of the Cold War, which has shaped Western Civilisation in the present day.



CONCLUSION

A biased and confused curriculum

There are two points that can be drawn from this discussion.  The first is that the curriculum appears to portray Western Civilisation — of which Australia is undeniably a part — and the elements and earlier civilisations that have shaped it in an either ambivalent or distinctly negative light, which is disappointing and greatly concerning in a National Curriculum.

The second point that can be drawn from it is that the history curriculum in its current form is missing a crucial element:  a coherent theme.  The current National Curriculum purports to be a history of everything, at the cost of providing a continuous and coherent account of anything — not least, of Australia and its institutions.  "World history" is not something that can realistically be achieved over four years in most school settings, and certainly not something that a National Curriculum should attempt to prescribe.

At the present, the scattered and eclectic selection of depth studies available lacks cohesion and a common thread.  It is so excessively multicultural in that it consists of so many disconnected depth studies that it is impossible to determine what exactly students are supposed to draw from it, aside from so-called "historical skills" and abstract themes.  The curriculum would have made much more sense if it largely focused on a specific thread of history — ideally one which was most relevant to Australia.  The thread of history most relevant to Australia — in terms of its institutions and its culture — is that of the development of Western Civilisation and its forebears.  For the most part, this would be the history of Greece, Rome, western Christendom, and — in Australia's case — the British Empire.


The National Curriculum should be abolished, not amended

I oppose the establishment of a National Curriculum.

It is essentially an ideological exercise, and it is inherently dangerous in a liberal democracy that a government should be given the power to determine the ideology of school curricula across the entire country.

Having a National Curriculum means that school curricula are politicised.  Indeed, by definition, it is impossible to have a government-endorsed curriculum that is not politicised.  As such, it is not only difficult to justify having an Australian National Curriculum in the first place, but any National Curriculum that we do have is likely to be both contentious and unstable for as long as it continues to exist.

Different sides of Parliament are highly unlikely to agree upon an ideologically neutral curriculum.  On the contrary, it is highly likely that each side will accuse the other of politicising various academic disciplines — especially history, the most political of all disciplines — and that a review of the curriculum will be announced every time a new government comes into power to correct any perceived imbalance.

We have already seen this occur twice since 2006:  the first time, when the Rudd government scrapped the Howard government's Guide to Teaching Australian History;  the second just two months ago, when Christopher Pyne announced a review of the Labor curriculum.  A very similar pattern is currently occurring in the United Kingdom.  The trend is likely to continue here, making the National Curriculum greatly destabilising for the teachers and students involved.

On the basis of the above, the ideal situation would be to abolish the National Curriculum altogether and to introduce a competing curriculum model to allow for greater school autonomy and prevent curricula from becoming politicised.



BIBLIOGRAPHY

ACARA Australian Curriculum, Assessment and Reporting Authority. The Australian Curriculum v.6.0. Retrieved on 13 March 2014.

Addison, P., Albert, T., Bickham, C., Mellisas, S., Wood, J., Pearson History 7 Student Book (Pearson Australia:; Melbourne, 2011).

Carrodus, G., Delahy, T., Howitt, B., Smith, R., Oxford Big Ideas History 9 (Oxford University Press: Melbourne, 2012).

Darlington, R., Smithies, G., Wood, A., History Alive for the Australian Curriculum 9 (John Wiley & Sons Australia Ltd: Milton, 2012).

Greer, V., Mason, KJ., Mirams, S., Pagone, M., Young, C. Nelson Connect with History 10 (1st edition). (CENGAGE Learning Australia Pty Ltd: Melbourne, 2012).

Saldais, Maggy, Oxford Big Ideas History 7 (Oxford University Press: Melbourne, 2011).

Woollacott, A., Adcock, M., Cunneen, C., Mackinnon, A., McPherson, J., St. Julian, J., Skinner, R., Thomas, A., History for the Australian Curriculum (Cambridge University Press: Melbourne, 2012).



ENDNOTES

1. http://www.pyneonline.com.au/media/transcripts/review-of-national-curriculum

2. http://richardjwood.blogspot.com/2014/01/the-farce-of-ideologically-neutral.html

3. http://www.theguardian.com/world/2014/mar/10/national-curriculum-call-to-boost-western-judeo-christian-influence

Energy plan puts public service before public good

The energy white paper under preparation proclaims that government has a role in the energy industry.  But it is one that is best limited to controlling natural monopoly elements within the industry.  It is certainly not to provide some blueprint for the future.

Energy has an ongoing history of public ownership, at least in part stemming from misplaced notions that it is a natural monopoly and a necessity requiring government interventions.  The outcome has been deleterious and has been compounded by a determination of governments to use the industry to accommodate its social, environmental and industry policies.  This has transformed an inherently low-cost industry into one that now has among the world's highest prices.

A worrying feature of the review is a prominent role given to the supposed need to maintain analytical capability within the government.  This appears to be a priority to protect departmental personnel jobs that sits badly with the market-driven industry the white paper claims to be championing.  The priority may be partly due to an excessive number of goals that the white paper's "issues paper" specifies.  These encompass supplying and using energy:

  • To put downward costs of business and households.
  • To grow exports.
  • To promote low emissions energy technologies.
  • To encourage the more efficient use of energy.

Whatever may be said of the first two of these stated goals, the third and fourth are in conflict and have spawned the egregious interventions in energy policy that have created a need for a white paper.  The fourth also adopts the discredited hubris:  "I'm from the government and I'm here to help you."

Markets develop from the interactions of consumers with businesses, which seek to sell their goods, access inputs and reduce risks.  Government's role is to allow these processes to be pursued and to uphold the law.

Rather than a plethora of goals, the white paper should have a single focus:  to allow the market to bring about efficient production of energy with interventions limited to addressing natural monopoly situations.  Anything beyond that will perpetuate the weaknesses presently evident.

Energy is a vital factor in the direct wellbeing of consumers.

More important still for Australia, it is a key component of economic development.  Our minerals and agricultural processing industries are natural fits to the resource endowment that ­Aust­ralia has and cheap energy is both part of that endowment and crucial to its development.

Irresponsible government actions have impaired the value of our energy resources.  This can be seen in four key areas:

  • Retaining ownership of energy businesses in networks where such ownership is verifiably inefficient and always likely to remain so.
  • Placing taxes and regulatory imposts on energy suppliers to force them into costly measures in pursuit of government-determined efficiency, consumer consultation and greenhouse-re­­­d­­uc­­­­ing measures.
  • Impeding access to land for gas exploration and development.
  • Suppressing prices to certain customer groups, thereby weakening incentives to supply and maintain industry resilience.

Policies to rectify these impairments often entail government action, which are the cause of the problems in the first place.

In the past, as with the post-­Hilmer competition policy ­pay­ments, governments were re­warded (and occasionally punished) with regard to an agreed set of principles.

But the use of government to combat government deficiencies is oxymoronic.

Indeed, if a previous commonwealth government had attempted more forcefully to exert pressure on states to promote a goal it favoured, energy saving measures, the outcome would have been even more perverse than that which has eventuated.

The white paper's aforementioned issues paper continues to promote market interventions in many places associated with green energy and energy efficiency.

It also has to be said that providing incentives for governments to do things that are in the interests of their own consumers is logically questionable.

A useful starting point for policy, in line with the government's deregulation initiative, is to announce the early sunsetting of all regulatory measures and discriminatory charges and taxes on energy supplies at the commonwealth level.  This would be accompanied by an invitation to state governments to adopt similar programs.  In the absence of such a measure the best that can be hoped for is to have the process unveil costs of poor decisions in the past as counsel for future decision-makers.


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Restarting economies through independence

On Saturday there are state elections in two of the poorest and worst-run states.  Labor has been in power for 12 years in South Australia, and 16 years in Tasmania.

The two states are bottom of nearly every ranking of economic performance.  They have the country's highest unemployment:  South Australia's unemployment rate is 6.6 per cent and Tasmania's is 7.6 per cent (the national unemployment rate is 6 per cent).

As Julie Novak, a senior fellow at the Institute of Public Affairs identified in January in her report on economic freedom in Australia, the two states have, per head, the biggest government, the highest number of people on welfare, and the most public servants.  In Tasmania one in three people in full-time employment works for the federal, state, or local government.  (Across the Australia as a whole there's one public servant for every four full-time workers.)

House prices demonstrate the size of the gap between South Australia and Tasmania and the rest of the country.  Last year the median house across Australian capital cities cost $540,000.  In Sydney the median house price was $655,000.  In Adelaide the median house price was $386,000, and in Hobart it was $330,000.

If South Australia or Tasmania were countries, they would at least be able to devalue their currency to improve their economic competitiveness.  (Unless of course they were unfortunate enough to have the euro.) But they are more like Greece and don't have that option.

Nor do South Australia or Tasmania have control over taxes or industrial relations.  A state that could cut the company tax levied on its businesses would gain a huge competitive advantage.  As would a state that could free its employers from the so-called Fair Work Act.  Flexible labour laws have been the key to the economic renaissance of the south-eastern states in the United States.

HANDOUT MENTALITY

The reality is, in this country, states can only tinker at the margins unless they want to deindustrialise.  The federal government allows them to add rules and regulations but not cut them.  Tasmania has shunned economic development and now 60 per cent of its annual $4.7 billion budget is paid by the mainland.  Yet, if Will Hodgman wanted to cut red tape disproportionately hurting Tasmania, he couldn't.

One of South Australia's competitive advantages is its abundant and cheap land.  Adelaide should be a magnet of interstate and overseas migrants, yet South Australia is hostage to a population settlement policy set in Canberra.

Before the federal election, the Coalition launched its "Economic Growth Plan for Tasmania".  It pointed out that since 1901 there had been at least 75 different reports into Tasmania.  There's much that's worthwhile in the plan, but it has the tendency to see the "solution" as more, and better-targeted handouts from Canberra.  There's not much in the plan about allowing Tasmania to help itself.  The same applies to South Australia and the Abbott government's inquiry into the state's economy announced after the closure of Holden.  A $100 million "growth fund" has been promised but there's precious little about the regulations made by Canberra that stop the state being competitive.

Centralisation and uniformity have been forced upon the states over decades of Coalition and Labor rule in Canberra.  Competition and experimentation between states, and diversity in the public services they provide is now a thing of the past.

The quality of a state's education system was once a factor in attracting migration to the state, and states had an incentive to improve their education performance.  Julia Gillard's "National Curriculum" ensures all states now teach the same thing in the same way.

The Abbott government is soon to settle the details of a new inquiry into the federal system.  If Steve Marshall and Will Hodgman are premiers after tomorrow, they should work to ensure they're allowed to try something new.  Gaining back the industrial relations powers state governments once had would be a start.

A new approach is needed.  More handouts from Canberra to South Australia and Tasmania are no more likely to secure a prosperous future for those states than were Canberra's handouts to the car companies likely to secure long-term jobs in automotive manufacturing.


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Thursday, March 13, 2014

Stop bleating over tax loss and cut government spending

There is an old joke, "Don't steal.  The government hates competition".  This is certainly true when it comes to competition between governments for tax revenue.

Since the G20 finance meeting there has been a lot of chest beating and bleating about multinational corporations not paying much tax in Australia.  Joe Hockey even threatened to create a tax hurdle when deciding on foreign investment.  The phrasing of that hurdle would have to go something like, "Do you commit to paying more tax than the law of the land actually requires?"

That question is at the very heart of all the angst around so-called profit shifting or base erosion.  Those multinational corporations that are being targeted for this political abuse are fully compliant with all taxation laws.  They are also fully compliant with international tax treaties.  In short, they are not exploiting loopholes in the tax system — they are compliant with how the tax system was designed and meant to operate.

The real problem isn't that some firms don't pay enough tax;  rather that governments have been routinely and systematically living beyond their means.  There is no evidence to support the notion that the corporate income tax base is being eroded.  What is happening, however, is that the corporate tax isn't raising as much money as the government would like.

As much as Canberra might like to promote the idea of taxation as a form of tribute, the facts on the ground are very different.  Tax laws are written that allow firms to deduct legitimate expenditure incurred in the production of taxable income.  Tax treaties are written so that firms and individuals don't face double taxation on the same economic activity, and so on.  These laws are written by governments, enforced by government officials, and disputes adjudicated by judges.  In short, the odds are stacked against the taxpayer.

What prevents governments from fleecing taxpayers is competition from other governments for revenue.  In this sense government is no different from any other organisation — if you want people's money you have to earn it.

SINGAPORE:  TAX SMART

The Irish government has established a tax regime that makes it profitable for firms to locate there.  It recognises the value of economic activity beyond simply paying the corporate income tax.  Ireland is hardly alone in this endeavour;  the Singaporeans are tax smart too.

But it isn't just tax that is important — it is the attitude towards intellectual property that drives a lot of this activity.  The famed Double Dutch Irish Sandwich is a strategy to maximise the value of intellectual property.  Intellectual property is especially vulnerable to expropriation — either through outright theft, for example piracy, or through excessive taxation.

The $8.9 billion that Apple has allegedly transferred to its Irish subsidiary is a return to intellectual property and is not taxable income in Australia.  It might be taxable income somewhere else in the world.  To be sure, it may be taxed at much lower rates than Australian tax rates or even not at all.  But that is a matter for those foreign taxation authorities.  As the Wall Street Journal opined last year when the American government was investigating Apple, "We wonder what the Irish think of the spectacle of an American Senator expressing outrage that an American company doesn't pay enough Irish taxes."

Some nations have realised that they can generate more revenue if they protect intellectual property than if they try to tax it at exorbitant rates.  Those that haven't bleat about base erosion.  A question for the Australian government is why don't multinational corporations like Apple and Google and Microsoft and Starbucks feel comfortable enough to locate their intellectual property in Australia?  The answer to that question is both damning and embarrassing.

To be clear — there is no bank secrecy or dishonesty involved in these strategies.  It beggars belief that large well-known corporations could escape the scrutiny of the various law-enforcement agencies and taxation authorities.  The domestic and international tax architecture exists to promote economic activity, trade and investment.  That is what we are seeing and it turns out that governments that are cash-strapped and hungry for tax revenue are attempting to monster the private sector into paying more tax.

As it turns out that is probably their only viable strategy;  attempting to rewrite the basic principles of taxation and unravelling and rewriting international tax agreements would be a huge task that is likely to result in business uncertainty and sovereign risk.  Best that government actually concentrate on cutting spending and living within their means.


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Getting tax expenditures right is a game of hypotheticals

In recent days it's been suggested the Commission of Audit should look at so-called tax expenditures as well as government spending as traditionally defined.  Writing in the Australian Financial Review, John Hewson suggested that "the government's treatment of tax expenditures will clearly define the nature and extent of their commitment to genuine tax and expenditure reform".

Sounds very impressive — unfortunately what he is really proposing isn't tax reform so much as simply higher taxes.  At The Conversation Dale Boccabella writes that:

Attaining the goals of fairness, equity and efficiency through our public finance system dictates that all the main value exchanges between a sector or taxpayer grouping and government should be taken into account when determining whether the current level of "expenditure" is appropriate.

That seems very sensible.  Neither of them is wrong — but their arguments have less practical policy importance than simply looking at traditional government spending.  To understand why this is the case we need to drill into the idea of tax expenditure.

The notion of tax expenditure was first developed by former Harvard Law professor Stanley Surrey in the late 1960s while working in the US Treasury Department.

He took the view that government could influence economic behaviour either by spending money or by not taxing that behaviour.  His argument was that the taxation process consists of two components;  defining the tax system, and then creating exemptions to that tax system that favour specific industries, individuals, or activity.  Tax expenditures take the form of exclusions from the definition of taxable income, tax credits, non-standard rates, and so on.

In theory that sounds very simple but the devil is in the detail.  As the OECD has conceded, "definitions of exactly what constitutes a ‘benchmark' tax system — used to identify tax expenditures as deviations from the benchmark — are controversial".

In practice tax expenditures are created when the actual tax system deviates from an ideal tax system to the apparent benefit of a narrow group of taxpayers.  The difficulty is in establishing the ideal tax system — and, of course, who gets to define that "ideal tax system".

When any policy issue revolves substantially around the question of "who gets to play god?" there is always trouble on the horizon.  Economists seem to make this mistake a lot with economics Nobel Laureate James Buchannan arguing that economists enjoy playing god and imposing their own preferences through their policy prescriptions.

In the ideal Treasury tax system home owners would be taxed for living in their own homes.  Who knew that buying your own home was a tax rort?  The GST would apply to health and education, and there would be no superannuation tax concessions.

Then there are the measurement problems.

There are three approaches to measuring the size of tax expenditures;  revenue foregone, revenue gain, and equivalent outlay.  The first thing to note is that the three different approaches can generate very different numbers.  Revenue foregone is the easiest estimate of tax expenditure, but the most inappropriate.  Revenue gain figures are likely to be wishful thinking.  These two measures, however, are the measures Treasury usually reports in the annual Tax Expenditure Statement.

If tax expenditures are an alternate mechanism to achieve a given aim then the correct method of evaluating the trade-off between actual expenditure and tax expenditure is the equivalent outlay approach.  That approach, however, would involve Treasury having to estimate hypothetical policies and appropriate costings.  In other words, a "correct" estimate of tax expenditure would involve comparing the cost of a hypothetical policy to a deviation from a hypothetical tax system.  With all those hypotheticals Treasury would be able to generate arbitrarily large numbers.

The biggest numbers usually relate to things like owner-occupied housing and superannuation.  It is true that if the capital gains tax applied to the family home that more tax would be paid.  Yet no Australian government has proposed such a policy.  It is true that if superannuation contributions were taxed at the marginal rate that more tax would be collected.  Again, no Australian government has proposed such a policy.  Similarly, if there were no GST exemptions more tax would be paid.  But those exemptions weren't designed to favour any particular industry;  rather they were the political price the Howard government paid to get the GST through the Parliament.

Mind you, economists and tax lawyers don't normally point to the big ticket items when talking about tax expenditures.  Rather they tend to point to things like the car fringe benefits tax concession and meal and entertainment fringe benefits tax concessions in the non-profit health sector.

What Treasury doesn't report, and most people gloss over, is the incidence of tax expenditure.  Who gets the benefit?  When it comes to matters of taxation most people instinctively think that loopholes and tax expenditures must benefit high-income earners or those who are politically connected.  As we saw during the car fringe benefit tax debate last year, however, most of the beneficiaries were individuals on modest incomes.  So too with the meals and entertainment cards so common in the non-profit health industry — most workers in that industry are not high-paid doctors and specialists, but modestly paid nurses, cleaners, and hospital staff.

All this isn't to say that tax expenditures aren't important — but their definition is rubbery, their magnitude arbitrary, the largest expenditures politically not negotiable, and their incidence unclear.  It is unsurprising then that the government and the Commission of Audit will be concentrating on those aspects of government spending that are well understood.


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