Is this a comedy show or are we really in this political circus?

28/08/2010: Can you  really believe we are in this political circus? After waking up last Sunday to news of a hung Parliament, where neither of the major parties won the majority of votes needed to govern, we are faced with a caretaker government and the major parties courting three independents. Former National Party members Bob Katter (Kennedy), Tony Windsor (New England) and Rob Oakeshott (Lyne) and the Greens' first House of Representatives MP, Adam Bandt (Melbourne), hold the balance of power. It's an extraordinary shift for these representatives after dealing with local issues and policies to be thrust in the limelight with federal responsibilities.

For the three independents now holding the fate of the country and our two main political parties to ransom, it's been an almost unbelievable ride. Clearly, the three are not going to move quickly from their moments of fame and from semi-obscurity, they are now fully ensconced as celebrity independent politicians.

We're witnessing an extraordinary act of political kingmaking, and now, able to command the media at their every word, they are intent on cutting the best deal — but for whom? How do we know the good of the country is being represented as opposed to the good of the individual?

The independents can almost demand whatever they like. They have already put forth seven demands to Opposition Leader Tony Abbott and Prime Minister Julia Gillard. It's interesting to see their responses. Gillard has bent to all seven demands but Abbott is refusing to play ball on releasing the briefing Treasury would provide a Coalition government.

But while members of the lower house squabble and fawn, in the Senate, the Greens hold the balance of power. This may slow things down with their ideologies, uncompromising style and left-wing agenda.

This morning the polls were leaning towards the Coalition but I'm watching it almost change by the hour. Evidently, there are 2 million more votes still to count.

What you and I want is a government that has the capacity to rule, that is, legislate and achieve its policy goals and promises and get things done. So what are our three options while the caretaker government tries to hold the peace?

• A government by either major party could be formed with the support of independents.
• A minority government could be formed. This is where concessions and negotiations are made on every decision including, who the leader would be. There is currently a minority government in the UK.
• Another election could be held.

A hung Parliament is not new in other countries, but how do the dangers of a hung Parliament and leader uncertainty affect us and the economy?

Basically a hung Parliament can pose a risk to the economy and dampen consumer confidence — it could slow us down. If a minority government is formed it means that leader has to be decided and once a leader is decided, as each piece of legislation is introduced, there are more concessions/negotiations that occur in order to pass bills in the lower house.

The economy could be affected because it's harder to predict what policies will be implemented and the Australian dollar comes under threat as overseas investors start to reposition their interests according to polls. On the whole, investors tend to prefer a minority conservative administration over a Labor-Green arrangement.

As 40 percent of Australia's market is owned by foreign investors, any uncertainty can have a detrimental impact on markets and shares.

A minority government could potentially lead to instability, uncertainty and short-termism in policy development — all of which poses risks and challenges for the economy.

I've had a quick look at what the independents want and Bob Katter wants industry protection (particularly for banana and sugar growers), increased regional health and infrastructure spending, cutting of environmental restrictions on landowners and the National Broadband Network. He has said he would support the party that does more for rural communities.

Rob Oakeshott is calling for a stable government, emissions trading scheme, health and aged care, regional telecommunications and broadband and his preference is for a cross-party cabinet. He has said he may not support either side of politics if a cross-party cabinet could not be formed.

Thirdly, Tony Windsor wants a stable government, health and aged care attention, National Broadband Network, water issues and reforming question time.

Only time will tell, but what does remain a cert, is that this is the biggest shake-up in Australian politics for 30 years!

What type of government are you vying for?

(to view the blog in Ninemsn click here)

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