Australia's Conservatives Win Surprise Election Victory -- Update
19 May 2019 - 4:08AM
Dow Jones News
By Rob Taylor and Rachel Pannett
SYDNEY -- Australia's conservative government eked out a
surprise victory in Saturday's national elections after voters in
resource-rich districts turned against center-left opponents who
had put climate change at the heart of their campaign.
Behind in polls for more than two years, Prime Minister Scott
Morrison's Liberal-National coalition appealed to voters in
battleground states such as Queensland, struggling at the end of a
long mining boom, with a campaign focused on the economy and
jobs.
With 75%of votes counted, the conservatives were hopeful of
gaining a narrow majority in Parliament's 151-seat House of
Representatives, or more likely governing in minority with the
support of conservative-leaning independents. Political experts
predicted the government would win 74 to 75 seats, just short of a
majority and improving on the 73 seats it previously held.
"I have always believed in miracles," Mr. Morrison, a devout
Christian, said in a speech to jubilant supporters gathered at a
Sydney hotel after midnight local time. "Our government will come
together after this night and we will get back to work." His
center-left Labor opponent, Bill Shorten, conceded defeat a short
time earlier, stepping down as party leader. "Labor's next victory
will belong to the next leader," he said.
The election comes at a pivotal time for Australia, as global
trade rivalries and a slowing economy threaten to end the country's
record growth run. Australia has the world's longest ongoing growth
streak -- 27 years and counting -- powered largely by Chinese
demand for resources like iron ore and coal. But the economy nearly
stalled in the second half of 2018 as China's growth slowed and
Australian consumers -- worried by falling home values, record debt
and stagnant wage growth -- reined in spending. Annualized growth
dipped to about 1% from 4% in the first half.
Mining, a top export sector, helped Australia sidestep the
2007-09 recession a decade ago. Mr. Morrison campaigned in support
of major coal mine projects located near the Great Barrier Reef,
boosting the conservatives' fortunes in those areas and offsetting
losses in more progressive-leaning cities along the east coast.
Climate change, a thorny problem that has ripped apart
governments, re-emerged as an election issue following a summer of
wildfires, drought, floods and extreme temperatures: Voter support
for policies aimed at addressing climate change was at the highest
level since 2007. But, as in the U.S., divisions grew more stark as
the issue gathered steam.
Labor campaigned on a pledge to reduce emissions by 45% from
2005 levels by 2030, after Australia under the conservatives became
the first developed nation to abolish a price on carbon in 2014.
The party also promised a push on renewable energy and electric
vehicles.
While the message appealed to many city voters, voters in
resource-rich regions worried Labor's climate plan would drive up
living costs and put coal miners out of work. Mr. Morrison's
government approved a controversial coal mine in northeastern
Queensland planned by Indian conglomerate Adani Corp just days
before declaring elections.
Underscoring the city-versus-rural divide, one of the
highest-profile casualties of the election was Tony Abbott, a
former conservative prime minister and climate skeptic who in 2014
championed the dumping of carbon taxes. He was defeated in the
Sydney beachside district he has held for 25 years against an
independent candidate who made his resistance to climate change
policies her key appeal.
"When climate change is a moral issue, we Liberals do it tough.
When climate change is an economic issue, we do well," Mr. Abbott
said Saturday as he conceded defeat.
Few had seen a conservative victory coming. Exit polls as voting
stations closed had pointed to a conservative defeat. The
conservatives struggled during their first two terms in office with
internal rifts over climate and energy policies, and social issues
such as same-sex marriage. That led them to switch leaders twice in
six years, fueling perceptions of political dysfunction in
Parliament after a decade of leadership coups on both sides.
Mr. Morrison, however, ran a disciplined and aggressive
campaign, urging voters to look beyond internal divisions and back
his economic record. Among his campaign pledges were tax cuts to
stoke growth and a program to help young home buyers into what is
still one of the world's most expensive housing markets.
Mr. Shorten offered voters a more radical interventionist
approach to tackle growing wealth divides, promising to end tax
breaks for investors and global corporations, while spending more
on public health and education.
Write to Rob Taylor at rob.taylor@wsj.com and Rachel Pannett at
rachel.pannett@wsj.com
(END) Dow Jones Newswires
May 18, 2019 22:53 ET (02:53 GMT)
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