A National Productivity Policy (NPP) to review government regulation, pricing and licencing arrangements and phase out industry subsidies must be established, according to the latest research report by the Committee for Economic Development of Australia (CEDA).
The report, Australia Adjusting: Optimising national prosperity, also calls for reform of the taxation system, the Federation, industrial relations policies and education.
CEDA Chief Executive Professor the Hon Stephen Martin said the NPP should be supported by a new inter-governmental agreement that provided financial incentives for the states to undertake reforms.
“Australia is at a cross-road, we have a new Federal Government and the peak of the mining boom has passed. Rather than hang onto the past, now is the time to identify and focus on the industries that will provide our future prosperity and appropriately skill people to work in these industries,” he said.
“Instead of subsidies, to drive growth and develop new industries the Federal Government should provide incentives to increase innovation and its adoption.”
Professor Martin said this latest research from CEDA drew together leading thinkers from across government, industry and academia and provided a reform agenda for government based on their contributions.