A comprehensive and long-lasting reform program will be needed to meet the Prime Minister’s new target of two per cent annual productivity growth, Business Council of Australia President Graham Bradley says.
“The reforms needed to raise Australia’s productivity growth will not come easily,” Mr Bradley said. “Prime Minister Rudd’s challenge highlights the need to get moving on a comprehensive and continued program of key reforms.”
“To reach the target of two per cent annual productivity growth will require a 100 per cent focus on reform.
“Hitting that target will mean changes to our tax system, continued microeconomic reform across state borders to create a seamless national economy, and a new level of rigour and urgency in decision making and investment in vital national infrastructure.
“We will also need to increase the productivity of our schools through incentives to encourage better teachers. And we need a health system that not only ensures a productive and healthy workforce, but also operates more productively itself.
“A long-lasting rise in productivity will require business investment to continue at its current high levels and even to rise further. The two per cent target will require governments to create the most investment-friendly climate possible.
“We congratulate the Prime Minister for being willing to set an ambitious target.”
The Business Council of Australia has consistently called for a reform agenda that improves productivity and addresses long-term demographic challenges.