FOUNDATION ON AUSTRALIAN PRODUCTIVITY-RESPONSE TO THE HON. LINDSAY TANNER MP, MINISTER FOR FINANCE AND DEREGULATION

Regulatory reform is an important plank in advancing Australia’s productivity.

The Minister for Finance and Deregulation, Lindsay Tanner commented on the OECD report at an Australian Business Foundation luncheon in Sydney today, describing the slow and steady progress the Commonwealth is making in collaborating with the States and Territories to eliminate burdensome regulation.

This frees up the ‘head space’ of business executives to concentrate on growing and innovating their businesses.

Though the Australian Business Foundation welcomes these reforms, more is needed to boost Australia’s productivity in transforming the capabilities and skills of Australian enterprises.

Recent research from the Australian Business Foundation by Cambridge Professor Alan Hughes, attributed Australia’s productivity surge of the 1990’s to business use of enabling technologies, greater management competencies as well as capitalising on regulatory reforms.

In the 21st century, the next productivity surge will not simply be about greater capital investment to replace labour. Productivity is not about doing more with less, nor about making people work harder for longer.

Transforming businesses and workplaces results in innovation-driven productivity.   

Innovative managers and workplaces create productivity by transforming the capabilities of their businesses by:

• finding imaginative new ways of problem-solving;
  
• collaborating with customers, suppliers and even competitors;
  
• adapting existing technologies and processes to new uses;
  
• devising fresh solutions to meet the needs of demanding customers.

The Foundation also applauded the Government’s intention to commence a regular ‘Business Forum’ to consult more widely on further deregulation.

To read Minister Tanner’s speech: http://www.abfoundation.com.au/research_knowledge/latest_thinking/3