Paul Keating

Paul John Keating (born 18 January 1944), Australian politician and 24th Prime Minister of Australia, came to prominence first as the reforming Treasurer in the Hawke government, then as the Prime Minister who pulled off an upset victory in the "unwinnable" election of 1993. In his second term, however, his "big picture" failed to impress an electorate increasingly concerned about economic issues, and he was defeated in 1996.

Reforming Treasurer

When Hawke won the March 1983 elections, Keating became Treasurer, a post which he held until 1991. After a shaky start Keating mastered economic policy and was soon acknowledged as the driving political force behind many of the macroeconomic reforms of the Hawke government, including floating the Australian dollar, substantial cuts in tariffs, and some taxation reforms. In 1985, Keating proposed a value-added tax (known in Australia as the Goods and Services Tax or GST), an option seriously debated before being dropped by Hawke, in the belief that the idea would be highly unpopular in the electorate.

Related Topics:
1983 - 1991 - 1985 - Value-added tax - Goods and Services Tax

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Keating and Hawke provided a study in contrasts. Hawke was a Rhodes Scholar; Keating left high school early. Hawke's enthusiasms were cigars, horse racing and all forms of sport; Keating preferred classical architecture and collecting antique clocks. Hawke was consensus-driven; Keating revelled in aggressive debate. Hawke was a lapsed Protestant; Keating was a practising Catholic. Despite, or because of, their differences, the two formed an effective political partnership.

Related Topics:
Rhodes Scholar - High school - Cigar - Horse racing - Sport - Classical architecture - Antique - Clock

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The Hawke-Keating partnership was strongest during the first two terms of the government, (1983-87), with Hawke playing the statesman and populist leader while Keating was the political attack dog. His range of parliamentary invective was legendary, and successive Liberal Opposition leaders Andrew Peacock and John Howard were unable to get the better of him. After the 1987 election, however, Keating began to feel that it was time for Hawke to make way for him. The deregulated economy led to increasing levels of foreign debt and unemployment as job security was reduced. The beginnings of a recession saw a resurgence in support for the Liberal party, which Keating used in his push for leadership.

Related Topics:
1983 - 87 - Liberal - Andrew Peacock - John Howard - Recession

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In 1988, in a famous meeting at Kirribilli House, Hawke and Keating secretly discussed the handover of the leadership to Keating. Hawke agreed in front of witnesses that after the 1990 election he would resign in Keating's favour. In 1991, when Hawke intimated to Keating that he planned to renege on the deal on the basis that Keating had been publicly disloyal and moreover was less popular than Hawke, Keating challenged him for the leadership. He lost, resigned as Treasurer, and publicly declared his leadership ambitions ended (a declaration which few believed and which he never intended to honour). Throughout the rest of 1991, the position of the Hawke government deteriorated under pressure from the poor economy, attacks from the Opposition and constant sniping from Keating and his supporters. In December 1991 Keating defeated Hawke in a second leadership challenge, and became Prime Minister.

Related Topics:
1988 - Kirribilli House - 1990 - 1991

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