Stuart discusses next month’s Economic Reform Roundtable and asks the question: What does the productivity agenda mean for caravanning?
Another roundtable? Productivity is the name of the game this time. From jobs and skills or the 2020 vision under Prime Minister Rudd, all sectors are coming together to chat about our country’s biggest challenge of the last couple of decades. How, as a country, do we help industry and its greatest asset, its people, to be more productive? It’s a noble pursuit; the clock is ticking, the economy continues to track sideways, and now we have a freshly minted Assistant Minister for Productivity — another title that means nothing unless they’re armed to bulldoze the red tape throttling business. In plain terms: more meetings won’t lift productivity — only an industry-led agenda backed by de-risked investment will.
Lessons from the summit
Consider the September 2022 Jobs and Skills Summit: its $1 billion for nearly 500,000 fee-free TAFE places sounded bold, yet two-and-a-half years on overall VET enrolments are 8.3 per cent lower, trade starts are down almost 14 per cent, fewer than half of the new cohorts are on track to finish and regional employers still struggle to lure apprentices. If that summit couldn’t fix the skills crisis, why believe a productivity roundtable will cure an efficiency one? No wonder the next roundtable lands with a thud.
So, here is my wish list for the government if it truly wants to get our country moving again. First, put industry at the front of the line. No more consumer-demand driven policies — we have made it far too difficult in this country to do business and boosting productivity starts by levelling the playing field. Our manufacturers are under pressure from soaring energy prices, supply-chain risks due to geo-political tensions, and ever-rising labour costs and regulations.
Rising operating costs, global uncertainty and complex red tape are forcing too many viable businesses to focus their attention on areas that are providing nothing to their businesses other than box ticking exercises or undue costs that shut out any hope of innovation or investment. Our sector sits at the sharp edge of this reality, bridging metropolitan showrooms and regional workshops, and we understand better than most the practical barriers domestic manufacturers face in building resilient, onshore supply chains. Let industry help set the course, and we can start removing those barriers at speed.
Second, reward the businesses willing to invest and modernise, because their gains lift the whole economy. Australia often celebrates ‘world-class’ manufacturers, yet the tax system still makes major upgrades and local sourcing expensive. Whether it be tax breaks for manufacturers that invest in physical upgrades, or tax offsets for businesses that continue investing in their own research and development, giving tangible support to innovators will tip the scales the right way. Our sector feels the issue from every angle; caravan parks rely on weekly deliveries of supplies and our manufacturers need a steady flow of materials and electronics. When any link in that chain weakens, costs rise for everyone. Recognising and incentivising the businesses that keep those links strong is the fastest route to higher productivity and resilient supply lines.
Third, underwrite risk. Serious innovation demands serious capital, and no board will sign off on a multimillion-dollar upgrade if one market wobble could wipe them out. A targeted government guarantee — covering a slice of the downside — turns bold ideas into bankable projects. Provide investment certainty for established industry leaders and extend targeted risk-sharing support to high-potential SMEs prepared to innovate and scale into the next tier of major manufacturers. Without that safety net, investment stays on the whiteboard and productivity stays flat. This safety-net doesn’t need to be a handout or even a co-contribution for that matter, all that is required is a strategy and a plan — that we stick too. One that is practical and pragmatic that allows industry and business to thrive through certainty, not ‘hope’ or idealistic rhetoric. We need to challenge the status quo, meet challenges with a curious mind that is prepared to accept all possibilities, or at the very least try them out.
Focus on practical action
I remain optimistic. Both Treasurer Jim Chalmers and Assistant Minister for Productivity Andrew Leigh have signalled that productivity and economic transformation will sit at the heart of policy in the years ahead. If government and industry work side by side — on concrete actions with clear milestones — we can secure sustained growth for decades. But goodwill will not be enough. The partnership must deliver measurable results, not more press releases.
Australia’s economic story is littered with missed moments. Enduring prosperity hinges on tackling the real constraints businesses face — not next year, but now. When our sector is forced to slow, consumers and employees shoulder the cost. Industry is ready to act; the remaining question is whether government will partner with us. Put the right policy settings and risk-sharing mechanisms in place and we will convert potential into productivity and higher wages. So, let’s roll up our sleeves and get stuck in — our best days are still ahead.
Stuart Lamont
Chief Executive Officer
THE NEXT STEP
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