Committee Consideration of the Bills

PRODUCTIVITY COMMISSION BILL 1996
TABLE OF CONTENTS

Committee Consideration of the Bills

Evidence Received

The Committee received 11 submissions in relation to the Bills (Appendix 1). The Committee held one public hearing at Parliament House, Canberra (Friday 7 March 1997). Witnesses who gave evidence at the hearing are listed in Appendix 2.

General Issues Raised in Evidence

Emphasis was placed on the abolition of the Bureau of Industry Economics and EPAC leaving only one organisation to provide economic advice to Government. Concern was expressed that the Productivity Commission, as the sole advisory body, would therefore have a monopoly on advising Government on economic issues [7] and that governments receiving advice from only the one source would reflect the views of that agency. It was widely noted that sound economic and social policy requires a variety of credible sources of advice to Government [8] and that government is better served by having people who have some particular understanding and experience in the areas which they are called upon to investigate. [9]

The Productivity Commission will retain the functions of the Industry Commission and in addition be given full authority to examine restrictive labour market practices that retard productivity. [10] The ACTU believed that the Treasury's authority over the Industry Commission affected the outcome of Industry Commission inquiries. Concern was expressed regarding Treasury's influence over the Productivity Commission and that the Commission would report according to Treasury views. [11] The Public Transport Union requested that EPAC remain within Prime Minister and Cabinet to provide a separate line of advice from Treasury. [12]

"The Commission should be an independent, credible authority which receives input from the various interested parties, which will of course present their particular perspective and indeed vested interests for the Commission's consideration. The Commission should then objectively analyse these imputs and draw a balanced conclusion on the basis of the overall input received." [13]

The Industry Commission was heavily criticised regarding the ability of officers to conduct inquiries in various fields of expertise, where those officers may not have the appropriate knowledge to come to a satisfactory conclusion. [14]

"The reform process would be better served by inquiries involving those with credibility, expertise and knowledge of the specific industries than the ideologically driven 'one size fits all' approach of a body such as the Productivity Commission." [15]

The ACTU promoted an increase in non-profit research bodies within the community capable of providing advice to Government on economic issues.

The government has abolished the National Board of Employment, Education and Training, which was an advisory body to government specifically in relation to education. While the Australian Education Union, as an independent body, submits advice to the Government on economic issues, the ACTU believes the Productivity Commission will be ill equipped to provide advise in the educational field. [16]

The Australian Chamber of Manufacturers suggested that a Council of the Productivity Commission be established within the Bill. The Chamber argued that the establishment of the Council would overcome some concerns regarding the availability of advice from various industries. The Council could comprise representatives of business, academia and consumers appointed by the relevant Minister. [17]

Specific Issues

There were several specific issues raised at the hearing and in submissions to the Committee, including the following points.

The Federation of Parents and Citizens Associations of New South Wales, also expressed concern regarding the Productivity Commission's first report, stating that they believed it extended Competition Policy to school education even though schools are not within the business activity of government. [20]

"...The initial report on Competition Policy excluded education.....but now we seem to find education sneaking into this market theory, competition policy. Education is not a market. Education is about life that you have for all people in this country. It is not a competition." [21]

The ACTU stated that certain parties boycott the Industry Commission and its inquiries, due to their belief that the Industry Commission only reflects its own view despite evidence taken at public hearings. [23] If boycotting the Productivity Commission occurred for these reasons, the Commission could compel parties to provide evidence in support of its inquiry.

The current legislation provides for a defence, in relation to the withholding of information, if the action of the person may incriminate that person or make the person liable for forfeiture or penalty. [24] The proposed legislation excludes this provision.

RECOMMENDATION:

The Committee recommends that the Bill be passed.

A.B. Ferguson

Chairman

Footnotes

[7] Submission No. 2, Public Transport Union, Inquiry into Productivity Commission Legislation, 21 February 1997.

[8] Submission No. 1, Australian Council of Trades Unions, Productivity Commission Inquiry Submission, February 1997.

[9] Evidence, p. 65.

[10] A Competitive Australia, The Government's role in generating the conditions to make Australia a better place to do business and create jobs, Hon. John Howard MP, Leader of the Opposition, July 1995.

[11] Evidence, p.66.

[12] Submission No. 2, Public Transport Union, Inquiry into Productivity Commission Legislation, 21 February 1997.

[13] Submission No. 5, Council of Textile and Fashion Industries of Australia Limited, Productivity Commission Inquiry Submission, 21 February 1997.

[14] Submission No. 2, Public Transport Union, Inquiry into Productivity Commission Legislation, 21 February 1997.

[15] Submission No. 3, Australian Education Union, February 1997.

[16] Evidence, p. 66.

[17] Submission No. 6, Australian Chamber of Manufactures, Productivity Commission Bill 1996, 21 February 1997.

[18] Submission No. 1, Australian Council of Trades Unions, Productivity Commission Inquiry Submission, February 1997.

[19] Evidence, p. E 64.

[20] Submission No. 4, Federation of Parents and Citizens Associations of New South Wales, 21 February 1997.

[21] Evidence, p. 74.

[22] Submission No. 6, Australian Chamber of Manufactures, Productivity Commission Bill 1996, 21 February 1997.

[23] Submission No. 1, Australian Council of Trades Unions, Productivity Commission Inquiry Submission, February 1997.

[24] Evidence, p 64.

[25] Productivity Commission Bill 1996, Section 43 (6).

[26] Evidence, p. E 64.

[27] Evidence, p. E 64.

[28] Evidence, p. E 65.