Productivity Commission Annual Report Tabled

The Government today released the Productivity Commission’s annual report for 1998-99. Commission Chairman, Gary Banks, said: “Australia is seeing the benefits of a decade or more of microeconomic reform. But in a highly competitive and rapidly changing world, the imperative for further reform remains if we are to secure higher living standards for all Australians.”

The report draws together some key insights from the Commission’s inquiry and research work during the past year which show how further reform can build on the substantial gains already achieved.

The Commission looks at recent developments in competition policy, work arrangements and industry assistance. It notes that competition policy has been an important driver of Australia’s improved economic performance. However, improved community understanding of the purpose and effects of reform would assist in completing the substantial reform task which lies ahead.

The Commission’s studies of container stevedoring, black coal mining, meat processing and large capital city building projects exemplify the importance of workplace arrangements to enterprise performance and productivity. Greater product market competition, together with revamped labour market regulation, have encouraged people to address restrictive arrangements in their workplaces. That said, there is scope to improve workplace productivity within the existing regulatory framework and to explore further regulatory flexibility.

The importance of social infrastructure to the wellbeing of Australians and the productivity of the economy as a whole is also highlighted in the annual report. The Commission argues that improving the efficiency and effectiveness of social infrastructure services — particularly education, training and healthcare — should be a priority for all Australian governments.