Sam Rae (Hawke, Australian Labor Party) Share this | Hansard source

I share the concerns the member for Curtin raises in this motion regarding productivity growth. But I respectfully disagree with the motion's description of some of the drivers. I think the long-term realisation of productivity growth in our country will come down to a range of complex and interrelational factors that will play out over the long term.

When the Albanese Labor government came to office, productivity had already been in freefall for a considerable period of time. In the June quarter of 2022, productivity experienced the largest quarterly decline in 45 years—a staggering 2.4 per cent drop. And over the previous decade productivity growth fell to its slowest rate in 60 years, averaging just 1.1 per cent annually. This was of course no accident. It was the direct result of deliberate policy choices by the coalition—choices that suppressed wages, undermined job security and ignored the need for investment in the skills and industries of the future of our economy.

This government believes in a different approach. We understand that investing in workers is not just about fairness; it is also key to lifting productivity and driving sustainable economic growth. When workers are paid fairly, when their jobs are secure and when their workplaces are safe and supportive, they are healthier, happier and more productive. Fair wages and secure jobs reduce turnover, saving businesses the cost of recruitment and training. Workers who have access to paid leave, manageable hours and safe working conditions perform better and innovate more effectively.

By investing in workers, we're investing in the foundations of a strong and resilient economy. The Albanese government's commitment to this principle is reflected in our workplace relations reforms. We're ensuring that all workers have access to minimum standards and that wage growth is not just a hope but a reality for all workers. We're supporting collective bargaining, creating pathways to secure employment and addressing longstanding inequities such as the gender pay gap. Unlike the opposition, who prefer to pit workers against one another in a race to the bottom, the Albanese Labor government are focused on lifting everyone up.

Improving productivity is not just about policies for today. It requires a forward-looking strategy that ensures that the workforce is equipped for the challenges and opportunities of the future. That is why our government has made skills and training a cornerstone of our economic agenda. By expanding free TAFE and increasing support for apprentices in critical industries such as construction, aged care and clean energy, we're building a pipeline of skilled workers who will drive growth and innovation. Investing in skills directly addresses one of the most significant barriers to productivity. When businesses cannot find workers who have the right expertise, projects are delayed, costs rise and economic opportunities are lost. By equipping workers with the skills they need to excel in high-demand industries, we're ensuring that businesses can operate at full capacity, take on new challenges and adapt to a rapidly changing local economy.

By breaking down barriers for women in traditionally male dominated trades we're also expanding the talent pool, ensuring that industries can access the best and brightest minds, regardless of gender. This not only strengthens workforce participation but also fosters diversity, which has been shown to improve problem solving and innovation within teams.

Australia's economic success also depends on creating an environment where businesses can thrive. This includes reducing compliance burdens by abolishing unnecessary tariffs, streamlining environmental approvals and modernising merger regulations. We're also fostering investment in emerging industries where Australia has a natural advantage, such as renewable energy, advanced manufacturing and critical minerals.

This government understands that better pay and conditions are not just good for workers but also good for our economy. Fair treatment of workers leads to better retention, higher engagement and greater innovation. These are the building blocks of a productive and prosperous society. However, rebuilding productivity after a decade of neglect will take time. It will take more than one term of government to undo the damage caused by those opposite. But we are making progress. Business investment is now above levels seen during the mining boom. And we're creating the conditions for long-term sustainable growth.

Improving productivity is about shaping an economy where the efforts of workers, businesses and industries are translated into tangible benefits: higher wages, stronger economic growth and better living standards for all Australians. The Albanese Labor government is focused on addressing the structural challenges that have held Australia back for far too long. By targeting the root causes of sluggish productivity and prioritising strategic long-term investments, we are working to ensure that the benefits of a stronger economy are felt by all Australians.

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