Australia-US link grows as hot topic

By GREG ANSLEY

CANBERRA - Australia's ties to the United States continued to grow as an election issue yesterday as the new free trade agreement entered Parliament with no clear indication if it would survive the Senate intact.

The Government is using the pact as a litmus test for Labor's support of the US alliance, exploiting divisions that could seriously harm the Opposition in the election to be called before the end of the year.

Although neither the alliance nor the free trade deal will decide whether Prime Minister John Howard wins a fourth term, relations with America and its role in Australia's security remain a key concern.

Labor Leader Mark Latham's handling of the pact, Iraq and broader alliance issues in a party riven by them will also be important for voters who place strong emphasis on leadership - especially as fears of terrorism continue to grow.

Latham has for the moment sidestepped the problems of the free trade agreement by allowing free passage through the House of Representatives - where the Government has the numbers in any case - and reserving his position in the Senate.

The tactics of both sides have become crucial as voter support narrows to almost equal pegging, and each tries to win toeholds in the other's high ground.

A Newspoll in the Australian showed that of voters' top 10 concerns, Labor was judged best able to handle the core issues of health, education, family policy, the environment, and welfare and social issues, with equal pegging on unemployment.

The Government was considered the best manager of national security, taxation, defence and interest rates.

With national security and leadership ranking behind only health and education, the alliance and Australia's wider relationship has become central to the Government's assault on Labor.

A Sydney Morning Herald poll showed that Australians were fairly evenly split on whether the relationship was too close or "about right", but most felt it would suffer under Labor.

The impact of Latham's stand on Iraq is harder to assess. Although earlier polls have shown a swing against the war, and the Herald found that most believed the US should not interfere in the Australian debate, Labor has yet to convince many.

Both the Herald poll and Newspoll said that most voters believed Latham would damage the alliance if Labor won the election and brought Australian troops home by Christmas.

The Government has exploited this concern with its drive to push the two bills needed to fully implement the free trade agreement through Parliament this week - possibly its last sitting if Howard calls the August election many commentators expect.

Ministers attacked Latham for his intention to hold the bills in the Senate until a parliamentary inquiry reports in August, supported by Democrats and Greens who oppose the agreement.

Yesterday an initial report by the joint standing committee on treaties supported the passage of the bills and the implementation of the agreement - albeit with a dissenting opinion by Labor members - handing the Government more ammunition.

Introducing the enabling bills in Parliament yesterday, Trade Minister Mark Vaile said the pact was an unprecedented opportunity for Australia that would create 30,000 jobs and boost the economy by A$6 billion ($6.5 billion) in its first decade.