Birthday cake interview


The birthday cake interview was a famous interview in Australia between reporter Mike Willesee and Liberal Party Opposition Leader John Hewson shortly before the 1993 federal election. Hewson was unable to easily answer whether a birthday cake would cost more or less under his proposed tax reforms, causing voters to reject the plan as overly complex. It is remembered as the interview which contributed to Hewson's failure to win the election because he was unable to explain one of his key tax policies on live television.

Background

After winning leadership of the Liberal Party, Hewson launched a comprehensive package of proposed reforms called Fightback! in November 1991, after years of Australian Labor Party dominance in Federal politics. The package included new social structures, industrial reforms and radical economic policies. One of the key elements of the package was the introduction of a consumption tax called the Goods and Services Tax, the compensatory abolition of a range of other taxes such as sales tax, deep cuts in income tax for the middle and upper-middle classes, and increases in pensions and benefits to compensate the poor for the rise in prices flowing from the GST.
Bob Hawke and his Treasurer John Kerin were unable to mount an effective response, and in December 1991, Paul Keating successfully challenged Hawke and became Prime Minister.
Through 1992, Keating mounted a campaign against the Fightback! package and, particularly, against the GST, which he described as an attack on the working class in that it shifted the tax burden from direct taxation of the wealthy to indirect taxation of the mass of consumers. Keating famously described Hewson as a "feral abacus".

The interview

This assault forced Hewson into a partial backdown, agreeing not to levy the GST on food. However, this concession opened Hewson to charges of weakness and inconsistency, and it also complicated the arithmetic of the whole package. Essentially, the weakening of the GST reduced the scope for the tax cuts, which were the most attractive elements of the package for middle-class voters. A particular problem was coming up with a precise legal definition for 'food'. The complications of the new package were demonstrated in the interview ten days before the election, in which Hewson was unable to answer a question posed by journalist Mike Willessee about whether a birthday cake would cost more or less under a Coalition government. Hewson stonewalled and was unable to answer a seemingly straightforward question. Hewson was instead forced into a series of circumlocutions about whether the cake would be decorated, have candles on it, and so on.

Aftermath

Even after the interview, the Coalition led by Hewson was favoured to win the election, and polls right up to election day predicted a Coalition victory. However, Hewson subsequently lost the 1993 election, which, until that point, had been billed by many of his supporters as the "unloseable election".
The birthday cake interview was widely seen as the crucial in the loss, making Hewson's tax proposal seem too complicated.
After the election Fightback! was declared dead and buried, in May 1994 Hewson lost the Liberal leadership to Alexander Downer, and the issue of the GST was dropped from the Liberal Party's agenda until the 1998 election campaign.
In August 2006, Andrew Denton conducted an in-depth interview with Hewson on the ABC TV program Enough Rope. Upon being shown footage of the birthday cake interview, Hewson commented, "Well I answered the question honestly. The answer's actually right. That doesn't count... I should have told him to get stuffed!"