Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Hansard source

In the latter part of the 1990s we had very strong productivity growth after the election of the coalition government. We exceeded Australia’s long-term average, which is around 2.3 per cent to 2.5 per cent. Labour productivity in 2005-06 was 2.3 per cent. In December it was 1.4 per cent, reflecting strong GDP growth and stable hours worked. Various cycles are determined and called by the Australian Bureau of Statistics over a five-year period. In 2003-04, the latest completed cycle, labour productivity was 2.1 per cent—so 2005-06 was a little higher than that.

Various things can and should be done in the Australian economy to lift productivity. One of those is to improve skills in the workforce. The government made a major announcement in relation to apprenticeships in the budget. But I do not think there is a productivity reform more important to the Australian economy than improved industrial relations. If you want, for example, an industry which can benefit from productivity then you do not have to go any further than the mining industry of Australia—and Australian workplace agreements have been absolutely critical to that industry.

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