| Three political parties dominate the center
of the Australian political spectrum: the Liberal Party (LP), nominally
representing urban business-related groups; the National Party (NP),
nominally representing rural interests; and the Australian Labor Party
(ALP), nominally representing the trade unions and liberal groups. Although
embracing some leftists, the ALP traditionally has been moderately socialist
in its policies and approaches to social issues. All political groups are
tied by tradition to turn-of-the-century domestic welfare policies, which
have kept Australia in the forefront of societies offering extensive social
welfare programs. Australia's social welfare safety net has been reduced
in recent years, however, in response to budgetary pressures and a changing
political outlook. There is strong bipartisan sentiment on many international
issues, including Australia's commitment to its alliance with the United
States.
The Liberal Party/National Party coalition came to power in the
March 1996 election, ending 13 years of ALP government and electing John
Howard Prime Minister. The coalition holds 94 seats (76 Liberal/18 National)
in the House of Representatives, against 49 for the ALP and 5 for independents.
In the Senate, the Liberal/National coalition holds 37 seats (31 Liberal/6
national), against 28 for the ALP, 7 for the Australian Democrats, 2 for
the Greens, and 2 for independents. Lacking a majority in the Senate,
the Liberal/National coalition has relied on the smaller parties and independents
to enact legislation. Howard's conservative coalition has moved quickly
to reduce Australia's government deficit and the influence of organized
labor, placing more emphasis on workplace-based collective bargaining
for wages. The Howard government also has accelerated the pace of privatization,
beginning with the government-owned telecommunications corporation. The
Howard government has continued the foreign policy of its predecessors,
based on relations with four key countries: the United States, Japan,
China, and Indonesia. The Howard government strongly supports U.S. engagement
in the Asia-Pacific region.
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