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That seems a little naive. A great deal is achieved via cross-party working, and it seems reasonable to expect elected officials to understand how to be effective while on the wrong side of parliamentary arithmetic. For a party to abandon all hope of influencing the course of events simply because it is in opposition is nonsensical. If that was the case then there would be little point in having an opposition until the end of an electoral cycle. And even then you might expect the incumbents to stand a greater chance of staying in power by virtue of the opposition having had too little visibility to make an impact during the term of the parliament. Fortunately, Labour looks like it might be beginning wake up from its navel-gazing torpor, so perhaps we might start to see some progress.
The problem with playing chicken is that you run the very real risk of running out of time to do anything that can actually change direction (i.e. some form of organised legislative intervention) when you eventually decide to act.