The Australian government’s economic reform initiative, known as the productivity roundtable, has commenced discussions aimed at enhancing national productivity. Although it is still too early to assess the effectiveness of these meetings, the closed-door nature of the sessions has created challenges in tracking their progress. Participants have noted that while Treasurer Jim Chalmers is a capable chair, the information emerging from the discussions largely depends on individual representatives choosing to share insights.
During a conversation with the ABC, Sally McManus, Secretary of the Australian Council of Trade Unions (ACTU), expressed feelings of isolation in some discussions. This sentiment came after business representatives rejected a union proposal for a training levy on employers, citing both financial implications and the lack of success of similar initiatives in the past. McManus highlighted the challenging landscape for unions, particularly regarding discussions on artificial intelligence (AI), where she anticipated limited support for proposed regulations.
In a notable counter to the government’s approach, Nationals senator Matt Canavan organized an alternative roundtable, branding it the “real productivity roundtable.” With a background at the Productivity Commission, Canavan’s gathering aimed to critique the government’s focus on spending rather than regulatory reforms. Following a presentation from the current chair of the Productivity Commission, Danielle Wood, Canavan’s meeting featured insights from Gary Banks, a former head of the commission. He asserted that the government’s productivity agenda currently prioritizes spending over necessary regulatory reforms, citing energy and labour markets as areas suffering from inadequate reform efforts.
As the roundtable progressed, discussions turned to critical issues such as housing and the Environment Protection and Biodiversity Conservation Act, both of which are hindered by excessive regulations. Former treasury secretary Ken Henry advocated for a road user charge, emphasizing the need for innovative solutions to improve productivity.
In addressing the regulatory landscape, Gina Cass-Gottlieb, chair of the Australian Competition and Consumer Commission (ACCC), noted that all 22 Commonwealth regulators are collaborating to enhance the regulatory framework. She stated, “There is a recognition of the critical element of reducing regulatory duplication, including in information gathering.” Chalmers reinforced this point, revealing that the government is advancing over 100 ideas for regulatory changes, with many requiring legislative action. He acknowledged, however, that some proposals lacked ambition, citing Regulation RG97, which discourages investment in housing.
Former ACCC head Rod Sims contributed to the discussion on competition, highlighting the difference between the potential for increased productivity and the actual realization of that potential. “Doing things that mean we ‘can’ increase productivity does not mean that we ‘will’ increase productivity,” he noted. Increased competition is essential for compelling businesses to enhance their performance.
At the conclusion of the second day, Chalmers expressed optimism about the discussions, which had largely focused on boosting housing supply and responsibly improving regulatory processes. He stated, “I’m really encouraged by the consensus in the room for economic reform in these areas, and we’re enthusiastic about some of the policies that participants put on the table.” Chalmers emphasized the government’s commitment to easing the burden on businesses, reducing red tape, and increasing housing construction.
In contrast, Canavan underscored the need for a smaller government to stimulate economic growth, stating that a larger economy requires a smaller government. The third day of the roundtable is set to focus on budget sustainability. Meanwhile, Minister for Health and Ageing, Mark Butler, has already initiated discussions about curbing the rapid growth of the National Disability Insurance Scheme (NDIS).
As part of the roundtable’s social activities, attendees gathered at The Lodge for informal discussions and to meet the Prime Minister’s dog, Toto, who had previously posed for photos with Chalmers and the Prime Minister during a show of unity before the roundtable began. The contrasting approaches between the government and the alternative roundtable indicate a vibrant discourse on Australia’s economic future.
