Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
Gillard’s "facts" create performance myth



Download PDFDownload PDF

SENATOR ARTHUR SINODINOS AO Senator for New South Wales

LEVEL 28, ANGEL PLACE, 123 PITT STREET, SYDNEY NSW 2000 TEL. 02 9223 4388 FAX. 02 9223 4399 PARLIAMENT HOUSE CANBERRA ACT 2600 TEL. 02 6277 3651 FAX. 02 6277 5755

MEDIA RELEASE

Gillard’s “Facts” Create Performance Myth

Prime Minister Julia Gillard tonight distorted Australia’s economic performance and the challenges facing the economy by using selective facts and economic analysis in her address to the AiG Annual National Dinner.

The Prime Minister finally acknowledged that much of the deterioration in multifactor productivity during the latter part of the Howard Government was due to particular conditions in mining, utilities and agriculture rather than discrete policy measures.

What she failed to acknowledge was that in absolute terms, Australia’s productivity performance has deteriorated under Labor.

This has been borne out by the Australian Bureau of Statistics, which has revealed two-thirds of the decline in multifactor productivity since July 2004 has been under Labor’s watch.

“What the Prime Minister also failed to acknowledge tonight was that according to a McKinsey Global Institute Report, Beyond the boom: Australia’s productivity imperative, published last week, there has been a significant decline in capital productivity due in part to higher costs and inefficiencies,” NSW Senator Arthur Sinodinos said.

“What was abundantly missing from the Prime Minister’s address was comparing Australia’s productivity performance with those competitors in the Asia-Pacific region. What determines investment and trade flows in a globalised economy is the relative productiveness of economic sectors in Australia vis-a-vis to their economic competitors around the world.

“The Coalition Deregulation Taskforce has heard from a range of businesses operating across the Asia-Pacific region that the costs of doing business in Australia is anywhere between 20% to 50% more than in other countries.

“The implication is that many businesses, particularly in the manufacturing sector, have over the past 12 months made the decision to move their operations away from Australia to other countries in the region,” Senator Sinodinos said.

On the Government’s deregulation performance, the economic impact of the Prime Minister’s claim of repealing or having plans to repeal over 13,000 legislative instruments is misleading. The overwhelming majority of these instruments are redundant and has no legislative and hence economic effect.

SENATOR ARTHUR SINODINOS AO Senator for New South Wales

LEVEL 28, ANGEL PLACE, 123 PITT STREET, SYDNEY NSW 2000 TEL. 02 9223 4388 FAX. 02 9223 4399 PARLIAMENT HOUSE CANBERRA ACT 2600 TEL. 02 6277 3651 FAX. 02 6277 5755

Since the 2007 election, the government has enacted more than 18,000 new regulations that impose a significant cost on various sectors of the economy, including items such as:

 the carbon tax;  the mining tax;  the Fair Work Act;  the Future of Financial Advice Act;  the Road Safety Remuneration Tribunal; and  the Childcare Industry National Quality Framework which has increased costs on the

industry by as much as 30%.

On the COAG front, the Government’s National Seamless Economy reforms have yet to deliver a big bang for buck and several reforms remain outstanding.

“The Coalition Deregulation Taskforce is continuing to hear, on a daily basis, from businesses which highlight that Australia is suffering under the weight of increasing red and green tape. This regulatory burden is imposing large costs and uncertain conditions which are inhibiting their ability to innovate and be productive.

“These are the facts that the Prime Minister refused to highlight in her address tonight,” Senator Sinodinos said.

For further information please contact: James O’Loan Media and Communications 0404 032 115

20 August 2012