PM Anthony Albanese and Treasurer Jim Chalmers are currently walking a tightrope. They’re going to be hosting a productivity round table, Wednesday at Parliament House. Now, accusations have surfaced that the upcoming meeting could be a do-nothing waste of time. In response Albanese was intrepidly quoted saying, “Ideas are coming up left and right.” This quote shows the extent of the federal government’s desire to encourage conversations focused on enhancing innovation and efficiency across urban, rural, and suburban areas. However, the leaked document coming out of Chalmers’ department has added a confusing twist. Among other things, it shows what is on the table and what it could lead to.
Chalmers stressed that no ideas would be too big or too small to be considered in these discussions. He noted that any proposals presented must be budget positive or at least budget neutral, reinforcing the government’s fiscal responsibility. Implementation of the recommended nine-month pause on changes to the National Construction Code. This recommendation is similar to an idea from the Coalition that got beaten up by Labor on the campaign trail during the last federal election. Chalmers played down the significance of the leak. He claimed that the very fact of such detailed preparatory briefings shouldn’t be a “huge surprise.”
Industry Response and Cautious Approach
To date, the industry response to the upcoming summit has been measured. Some business leaders who attended last year’s Jobs and Skills Summit expressed concerns that the government entered those discussions with predetermined outcomes. This echo chamber of pessimism has led many to wonder just how serious the administration’s makeshift talks on productivity will be. With good reason, because now, surprisingly, Opposition Leader Sussan Ley is moving on the leaked document. She further describes it as a sign of an ambitious “stitch-up” by the government.
Against this backdrop of tension, inserted into this context, Chalmers drove home the point that the government would be open to considering ideas from anywhere but promising nothing up front. He has voiced his desire to make comprehensive tax reform the government’s first major priority. Albanese pointed out that talks would ultimately only focus on the tax measures that the Labor party took to their election campaign. This particular ambiguity has already created a significant cloud over the government’s stated desire to pursue serious, comprehensive tax reform.
Housing Minister Clare O’Neil confirmed that the National Construction Code will be a key topic of discussion at the talks. She repeated Chalmers’ position, saying she didn’t want to “pre-empt” any outcomes. To that end, she said it was critical to give a space for all stakeholders—business leaders, unions, and economists alike—to weigh in on the discussion.
The Broader Context of Productivity Improvement
The productivity round table will address all angles of economic growth vs. efficiency debate so often presented as a false choice. Throughout the process, the UK government has repeatedly promised to leave no stone unturned, no options in or out of scope before the summit. This all-inclusive approach is meant to lay the groundwork for increased cooperation between sectors, business and labor, and academia.
Skepticism remains prevalent among industry leaders. As always, a great concern is that history has created a precedent of low expectations for the end results of these discussions. The below guidance included in the leaked document calls for a halt to changes to the National Construction Code. This shocking announcement has further fueled fears that DOT is closed-minded to innovative ideas and has already made a back-room decision in secret.
As the government seeks to balance fiscal responsibility with innovation, the outcome of this productivity round table could have lasting implications for Australia’s economic landscape. Combined with the emphasis on budget-positive proposals, this is a very risk-averse approach. What stakeholders really want is to see concrete progress coming out of these talks.
