Three state and territory Labor governments are at the heart of the storms buffeting Australian politics. New South Wales’ economy is shrinking and last week its government imploded spectacularly. The Northern Territory Government mismanaged the crisis of child protection in indigenous communities that led to the federal intervention last year. And the West Australian Government is on the verge of losing office after an opportunistic and cynical election campaign.

Successive Labor governments have ignored the union movement’s power inside the party. The example of Simon Crean is no great encouragement to further action. But it is a problem that is not going to go away. Party members in New South Wales are emboldened by the victory they have achieved over the Iemma Government.

During the 12 years of the Howard government, these voters were capable of voting for John Howard federally, then turning to throw their support behind Labor at the state level. The question was always what these voters would do once the government changed in Canberra, and now we are starting to get an answer.

Industry Minister Kim Carr previously encouraged the idea that he would freeze or slow down the scheduled 2010 cut in tariffs on imported motor vehicles. That was a feint to enrage the policy neo-liberals and allow Bracks’ review to slip through a multi-billion-dollar expansion of direct subsidies to the car companies.

As the Rudd Government prepares to release special reviews into car and textile industry assistance, the Productivity Commissioner has criticised plans to delay tariff reductions and increase government subsidies to manufacturers.

Since the late 1960s, the big assaults on protectionism have come from Labor. So it’s a surprise to find that the Rudd Government’s Industry Minister is itching to stall or even stop the removal of the last vestiges of import protection.