MONDAY, 24 FEBRUARY 2020
SUBJECTS: Australia’s stagnant economy; the cost of climate change inaction.
ANNELISE NIELSEN: Now we're joined by Andrew Leigh, Shadow Assistant Minister for Treasury. Andrew, thank you for your time.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Pleasure, Annelise.
NIELSEN: Now we haven't been talking too much about an economy lately. It’s all been emissions targets, but it's obviously a huge issue especially leading up to the federal budget. You're saying that when you take a longer term look at the Australian economy, things aren't looking as good as we might be led to believe.
LEIGH: Annelise, I'm really worried not only about the fact that growth is down and wage growth is down and investment is down, but also that productivity actually declined in 2018-19. Australian firms are less innovative than they were. We're seeing less job mobility, less geographic mobility. All the signs are pointing towards an Australian economy that's more stultified and less dynamic than it should be.Read more
PARLIAMENT HOUSE, CANBERRA
MONDAY, 24 FEBRUARY 2020
SUBJECTS: Prime Minister snooze; Economic stagnation; Cost of inaction on climate change; Integrity Commission; Coalition division; Bettina Arndt.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good morning. My name is Andrew Leigh, the Shadow Assistant Minister for Treasury. The Australian economy faces significant challenges. Productivity fell in 2018-19. On many indicators the Australian economy is more stagnant than it was and is underperforming many advanced countries. We know we have challenges in meeting the Closing the Gap targets, on meeting our international commitments on climate change. On test scores, Australian school students are a full year of achievement behind where they were two decades ago.
Yet the government doesn't have a plan to deal with these issues. Scott Morrison had a plot to become prime minister, but no plan as to what to do when he got there. He doesn't have a plan for the economy. He doesn't have a plan for growth. He doesn't have a plan for climate change. Scott Morrison likes to talk about pulling the doona over your head, but when it comes to leadership, he is captain snooze. He has absolutely no ability to deal with the big challenges. He just wants to sit back, pull the doona over his head and not worry about the big issues.Read more
WE NEED TO REV UP AUSTRALIA'S STAGNANT ECONOMY
The Canberra Times, 24 February 2020
On many of the standard measures, the Australian economy is in a bad way. Since 2013, economic growth has slowed. Wage growth is the worst on record. Household spending is growing at its slowest pace since the Global Financial Crisis. Retail is amid its deepest downturn since 1990, with Harris Scarfe, Dimmeys, Bardot and Jeanswest among those to hit the wall. New car sales last year fell 8 percent, with fewer vehicles sold than at any time since 2011. Construction is now shrinking at its fastest rate since 1999. Business investment is at its lowest level since the 1990s recession.
But that’s just the surface metrics. It is a sad fact is that Australia’s economy is less productive, less nimble, and less dynamic than many other advanced countries. Indeed, on many indicators, the economy has become more stagnant over time.Read more
AUSTRALIA’S STAGNANT ECONOMY
JOHN CAIN FOUNDATION
19 FEBRUARY 2020
I acknowledge the Wurundjeri people, on whose lands we meet today.
It’s less than two months since John Cain left us, and just over a week since the outpouring of public recognition that his memorial service evoked. As a child of the Cain era, his passing still feels raw. My parents grew up in Melbourne, and we visited regularly. I recall the sense of fresh possibility when the Cain Government’s 1982 election ended three decades of Liberal rule. The Cain Government was a reformist government – reforming liquor laws, investing in public health and education, taking on the gun lobby and the tobacco lobby.
Unlike the showponies and charlatans of today, John Cain took public service seriously. ‘It’s no good being in office for three years, or four, or five’, he said. ‘I want to see long-term change’. He drew on evidence, reformed the public service, and worked with the caucus and the broader labour movement. ‘It’s hard to make decisions on complex issues’, he noted. ‘It’s is more difficult if the process is defective.’Read more
HOUSE OF REPRESENTATIVES, 13 FEBRUARY 2020
It has been 17 years since the 2003 Canberra bushfires but the memory loomed large over the capital in the recent summer months. Emergency services battled multiple fires in record-breaking heat. My constituents in Jervis Bay were evacuated as the fires closed in.
One blaze still burns, despite the rain. The Orroral Valley fire, which started in Namadgi National Park on 27 January and burned out of control for more than a fortnight, is now contained, but it has burned more than 86,000 hectares, around 30 per cent of the land area of the ACT.Read more
HOUSE OF REPRESENTATIVES, 12 FEBRUARY 2020
When Megan was seven years old her dad lost his job. Megan told me that she kind of enjoyed it at the time. Rather than having to go to work every day, he would stay home and help her organise her toys. She'd get to walk to school with him, which she only realised later was because the family couldn't afford the petrol. Megan's dad had been the victim of phoenixing in which a dodgy director had shifted the assets out of the company, shut the firm down and caused him to lose his job.
The impact of phoenixing on the Australian economy is massive. PwC estimated that in 2016-17 the impact was at least $5 billion a year. That's $3.2 billion in unpaid bills, $300 million in unpaid employee entitlements, $1.7 billion in unpaid taxes and compliance costs. The stories of phoenix activity are legion. There were suggestions that phoenixing was one of the reasons for delays in the building works recently conducted at Parliament House. I have spoken to tradies on the Gold Coast, in Canberra, in Melbourne, in Sydney and in Western Australia who've told me they've been the victims of illegal phoenixing activities.
Phoenixing erodes the very bedrock of business which is trust.Read more
Volunteering is one of the best ways people can express their care for our community. Your role supporting volunteers and encouraging volunteer participation has a direct benefit in assisting with your mission but it also has a general benefit for community cohesion.Read more
HOUSE OF REPRESENTATIVES, 11 FEBRUARY 2020
Periodically in this House, we have a serious conversation about who's standing up for consumers and who's standing up for vested interests. We had that conversation in 2012, when Labor moved the future of financial advice reforms, opposed by the coalition. As the Hayne royal commission highlighted:
There must be recognition that conflicts of interests and conflicts between duty and interest should be eliminated rather than 'managed' …
Yet, when it came to office, the coalition set about winding back the future of financial advice reforms, ensuring that no longer did a best interest duty need to be followed. It would seem to be fundamental that a financial advisor needs to act in the best interests of their client, yet the coalition somehow thought that that ought not be the law of the land. Part of this wind-back involved the creation of a loophole affecting units or shares in listed investment trusts and listed investment companies. That has led to a significant increase in the market, with the LIC and LIT market doubling in size to $45 billion since 2015.Read more
Coalition commitment on beneficial ownership register remains unmet - Speech, House of Representatives
HOUSE OF REPRESENTATIVES, 10 FEBRUARY 2020
The Hayne royal commission's final report observed ASIC's 'deeply entrenched culture of negotiating outcomes rather than insisting upon public denunciation of and punishment for wrongdoing.' Commissioner Hayne raised a number of concerns about the policies and culture of ASIC and these were issues that our committee's deliberations went directly to.
We spoke to ASIC about their optimal litigation success rate. They advise that in the five years to 2018-19 their enforcement litigation success rate has been above 90 per cent. That does suggest that while they're having a good record in court, they may not be sufficiently aggressive in taking cases to court. The conversation over the optimal litigation success rate will be an ongoing one between our committee and ASIC.Read more
PARLIAMENT HOUSE, CANBERRA
MONDAY, 10 FEBRUARY 2020
SUBJECTS: Climate change; the economic benefits of renewable energy; Llew O’Brien quitting the Nationals; Scott Morrison’s lack of leadership.
ANDREW LEIGH, SHADOW ASSISTANT MINISTER FOR TREASURY AND CHARITIES: Good morning. My name is Andrew Leigh, the Shadow Assistant Minister for Treasury. Australia is the advanced economy that is most at risk from dangerous climate change. We know that if climate change is left unchecked, we could lose the Great Barrier Reef. We know the extreme weather events will get more and more frequent. Ross Garnaut’s report in 2009 warned of increased flooding, hailstones, fires, lightning strikes. So we know that Australia ought to be leading global efforts on climate change, that we have a unique interest in increasing the speed at which the world moves. This excuse that we’re a small share of global emissions misses the fact that if every country with less than 2 per cent of global emissions did nothing, a third of global emissions would not be acted upon.
Australia has been experiencing severe weather events already. We've gone from an extraordinary bushfire season to immediate floods. This is not normal. Extreme weather events like Australia has been experiencing are not normal. Here in Canberra we've been experiencing record temperatures. Successive days over 40 degrees. From the 1970s to the 1990s, we had a 25 year period in which the Canberra temperature never once went over 40 degrees. Now it seems to have become the new normal.Read more