Treasurer Scott Morrison this week launched the Report by the Productivity Commission (PC) on Australia’s productivity performance.
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This is the first of what will be five-yearly reports providing an overarching analysis of where Australia stands in terms of national productivity.
The PC encourages a “new path” to productivity improvements by setting a series of “signposts” via a series of key insights that point to the need for: “more integrated and patient centered healthcare to create more healthy workers; a more proactive education system that supports better teaching to create more proficient, more resilient and more adaptive workers; and more functional cities that will not choke our economy”.
The PC also continues its advocacy for “more efficient Government delivery of non-market services” and for “stronger, more efficient and competitive market systems”.
This should be done, according to the PC, and endorsed by Morrison, by “placing the customer at the apex – not the firm or any service provider”.
“At last” I hear customers/voters shouting, particularly as many struggle week-in-week-out to meet the rising costs of living, at a time when their wages are historically flat, and job insecurity is increasing.
Over the last couple of decades Governments, both Federal and State, have simply been preoccupied, and increasingly so, just playing short-term (mostly daily) politics, rather than dealing with issues, solving problems, and providing good government.
Significant issues, such as housing affordability, energy, education and training, health, child and aged care, and many more, have just been left to drift.
The result has been a very rapid increase in the costs of housing, electricity, gas, education, health insurance, childcare, and many more, many becoming unaffordable.
Recent data on our economic growth has suggested that many have simply had to run down their savings and/or increase their debt just to meet these mounting costs of day-to-day living.
Our household debt is now among the highest in the world, at over 120 per cent of GDP, and over 200 per cent of household disposable income.
Much of what the PC recommends is about accelerating the pace of reform and improving the operation of markets.
However, customers/voters now question the ”benefits” of past “reform” and are, in a sense, in a state of “reform fatigue”, where they don’t feel that they have actually “benefitted” from past reform, and now simply don’t believe our political leaders, nor trust them to deliver on their promises.
Customers/voters also feel that markets have failed, and that market based initiatives such as privatisation have been fundamental to them being ripped off in areas such as power, communications, training, and child and aged care.
How is it, they ask, that what many would consider to be “essential services” are now becoming too expensive for the average customer.
The political/policy system has failed them.
Yet, even now, our politicians are failing to recognise the significance of the struggle of the average customer.
They are not seen to be acting with the essential sense of urgency that the customer may reasonably expect.
Issues, such as housing affordability and energy have been left to drift for so many years that there are now no easy, silver bullet, immediate solutions.
It will take may years to turn these issues around to the obvious benefit of the customer.
It is little wonder that one in three voters did not vote for one of the two major parties at the last Federal election?
Expect more protest votes at all future elections.
This is how the “customer” will vent their spleen.