The Withering Away of the Australian State: Privatisation and its Implications for Labour

Abstract

This article analyses the privatisation processes at work in Australia, and assesses their significance to the employment relationship. The argument has five aspects. First, it is argued that privatisation is a key element in a process of state restructuring. Second, the various Australian governments have pursued distinctive policies towards state restructuring; and the objective, content and consequences of privatisation programs have thus been divergent. Third, it is argued that Australian politicians who advocate privatisation tend to do so in terms of its practical benefits in reducing state debt and improving efficiency, promoting a ‘de-politicised’ version of privatisation, when in reality decisions to privatise are inescapably linked to power and authority in capitalist society, as during the processes of privatisation, the relationship between governments and organised labour is recast in order to establish the basis for control and exploitation. Fourth, it is argued that differences in policy between state governments have arisen more from the balance of power between rural and metropolitan interests than from overt ideological differences between political parties. Finally, future developments are likely to be shaped by two opposing forces: on the one hand, National Competition Policy will promote convergence towards privatisation; on the other hand, the adverse effects of privatisation on employment and employment conditions will increase resistance to further privatisations.