THIS ARTICLE was again reprinted reissued in the Daily Telegraph earlier this week!
DID The Liargraf have this piece by Daniel Wild ‘Cut Red Tape, Get in Black’ it would seem as another justification for sweeping aside more of the ‘Rules’ aka doing the right thing … maintaining standards etc, etc
-with faulty towers cracking … 85% of ‘new homes’ defective on completion …
-the importation of some 1.6 Million Visa Workers … not trained in our TAFE … working at slave rates with long hours
-their goal being to get a ‘Permanent Resident Visa’ … the consequence being high Youth Unemployment and Underemployment in Australia …
ARE we being set up to get used to ‘a new norm’ where just about anything goes?
NOTE CAAN INSERTS FOR FACTS throughout this article!
Cut red tape and keep investment in the black
- JUNE 25, 2019
- 90 COMMENTS
Scott Morrison’s vision to cut red tape will allow more Australians to reach their potential and for the Australian economy to flourish.
In an address to the Chamber of Commerce & Industry of Western Australia yesterday, the Prime Minister highlighted the need to “bust regulatory congestion” to remove “obstacles to business investment”.
CAAN: DEREGULATION … Loss of Standards and protections! As with the property sector …
His announcement that Assistant Minister to the Prime Minister Ben Morton will lead a review of red tape is an excellent first step. This move, along with Josh Frydenberg’s commitment to driving productivity growth, is the beginning of an ambitious third-term agenda for the Coalition.
Treasurer Josh Frydenberg is focusing on productivity growth. Picture: AAPSource:AAP
ALBANESE will note that annual productivity growth averaged 2.2% when Tony Abbott was elected in 2013, and the rate of growth has now halved, declining over the past two quarters, and with “productivity missing in action, that old anchor chain of class and destiny threatens to make a comeback”.
It is right for the government to focus on regulatory reform and cutting red tape.
Red tape is the biggest barrier to economic opportunity and prosperity in Australia.
Research by the Institute of Public Affairs estimates red tape reduces economic output by $176 billion a year, the equivalent to 10 per cent of gross domestic product. This makes red tape Australia’s biggest industry.
The lesson from the US under President Donald Trump is that cutting red tape and lowering taxes lead to an economic boom, and not just in terms of profits to businesses.
Since Trump came to office in January 2017, the unemployment rate has dropped to 3.6 per cent; the lowest rate since 1967; unemployment for minorities reached its lowest levels ever recorded; the unemployment rate for women has fallen to 3.1 per cent, which is the lowest since 1953; 422,000 jobs have been added in the manufacturing sector; and private sector business investment has increased from 17 per cent to 18.1 per cent of GDP.
This has led to the US labour market gradually tightening, which has placed upward pressure on wages and put workers in a stronger bargaining position.
The centrepiece of the reduction of red tape in the US has been a one-in-two-out approach, where two regulations are eliminated for every one introduced. Last year, 12 regulations were repealed for each new regulation introduced, resulting in a $US23bn reduction to regulatory costs.
The result is that in Trump’s first full year as president in 2017, total pages of legislation passed dropped by 36 per cent.
This is the largest reduction since records began in 1936.
In Australia, red tape affects every sector of the economy, from multi-billion-dollar projects in the resources sector to small shops on the local high street. The Roy Hill iron ore mine in the Pilbara in Western Australia, for example, required 4967 licences, permits and conditions for the pre-construction phase alone; and a contravention order was recently issued by a local council in NSW to a small food shop whose bottle of hand soap in the bathroom was less than 50 per cent full.
These examples demonstrate why business investment in Australia is just 11.8 per cent of GDP, which is lower than during the business-hostile Whitlam years. Low rates of business investment truncate the nation’s capital stock, which reduces productivity growth, and holds down real wages growth in the private sector.
CAAN: To the contrary … VIEW: ‘One Million Aussies Forgotten in Unemployment Statistics’. Therefore Unemployment is 19.7% not 5.2% in Australia!
“This says to me that one in five potential workers in Australia, or about 20 per cent, are people who want to work, want to work more, aren’t working at all, or working less than they want to,” Dr Stanford said.
As well as dragging down productivity and wages, red tape is pushing up the cost of living.
IPA research last year found that consumer prices in sectors with heavy government intervention have risen far faster than sectors with minimal intervention.
Across 20 years from 1997 to 2017, the cost of housing increased by 330 per cent, childcare by 310 per cent and electricity by 215 per cent.
CAAN: The cost of HOUSING rose through the increased competition of foreign buyers seeking ‘Permanent Residency’ and able to launder black money in our Real Estate locking out Australian First Home Buyers!
-in the late 1990s the Howard Government made changes to our Immigration Policy for the Chinese Middle Class to invest in our education and real estate to gain “flexible citizenship”
-that led the housing boom of the early 2000s and a hike in housing prices
-the 100% sell-off of ‘new homes’ to foreign buyers esp. in China (FIRB
Ruling introduced in 2009 was this at the behest of the Developer Lobby? and May 2017 Budget Reg.)
–2012/13 Planning Law changes in NSW for higher density to compliment the high immigration and Visa manipulation of the Abbot Government in 2013 to date
–Real Estate Gatekeepers made exempt from the Anti-Money Laundering Legislation (second tranche) in October 2018
.AML second tranche shelved for more than 12 years prior
POWER PRICES escalated with the sell-off of Our Public Assets!
At September 2018: The foreign takeover of Australian gas and electricity
There are three main electricity distributors in NSW: Essential Energy, Endeavour Energy and Ausgrid. The NSW Government wants to sell half of Ausgrid to fund infrastructure projects.
Childcare has largely not been subsidised by government as in other countries so it is expensive for parents however Childcare Workers continue to be underpaid! Question that Childcare has increased by 310%?
But cutting red tape is not just an economic issue. It is a profound moral issue: red tape is disempowering. It prevents Australians from starting their own business, winning a pay rise and following their dreams.
CAAN: The Morrison Government currently is pushing its Union Busting Bill which will make it harder for workers to win pay rises and protect their jobs.
Every hour spent on complying with red tape is an hour less dedicated to business expansion, in the community or helping the kids with their homework.
It is inherently undignified for an entrepreneur, a farmer, a prospector or a small-business owner to seek the permission of bureaucrats to start or expand a business or take on a new project that will employ more people and create greater opportunities. The disposition of a risk-averse bureaucracy will always clash with the entrepreneurial flair of hardworking Australians who are willing to take a risk, often putting their family home on the line, for the betterment of our nation. What have bureaucrats and regulators ever risked for Australia?
The exciting policy agenda of the Morrison government to cut red tape, along with reforming industrial relations and cutting income taxes, will help reverse the decline of small business, boost investment and allow the Australian middle class to prosper.
Daniel Wild is director of research with the Institute of Public Affairs.
CAAN: The Middle Class in Australia is disappearing …
‘Tax the rich more to help the middle class, says OECD‘
–Middle-income households have experienced dismal income growth over the past three decades, says a new OECD report
Photo: TND: Think Tanks special report: Gina Rinehart’s Hancock Prospecting is one of the donors behind the IPA.