REFORM PUSH FOR SERVICES; NO SUBS ‘TAX’
Productivity report zeroes in on services sector
A major report to the Federal Government has called for substantial reforms to improve productivity in Australia’s service sectors. The Productivity Commission’s five-year inquiry into advancing prosperity said that almost 90 per cent of Australians worked in the service industries, including education, health, hospitality, retail and finance. Its report submitted to the Treasurer said education was one government service that had itself seen low productivity growth; while years of education had been added, future gains would need to come from higher quality education. Included in the PC report are recommendations to adopt a demand-driven model for Commonwealth-supported places for domestic undergraduate university students, and expand student loan eligibility across the vocational and educational training sector. In addition, the federal agency has called for an expansion of temporary skilled migration, and of default recognition of international occupational licensing.
PM rules out taxes, levies to pay for submarine program
Prime Minister Anthony Albanese has confirmed that no new taxes or levies would be introduced to pay for the estimated $368 billion AUKUS submarine program. The PM said there would be neither “hypothecated revenues” nor cuts to programs such as Medicare or the NDIS to pay for the defence project. Further defence measures would be included in the May Budget, after the Federal Government released the report of the Defence Strategic Review. Mr Albanese told a media interview that the review would consider what defence assets were needed, where they were needed, and their timeframe.
No civil nuclear industry, says Marles
Deputy Prime Minister Richard Marles says that Australia will not establish a civil nuclear industry, nor will it serve as a repository for nuclear waste from other countries. Mr Marles said Australia would be a responsible “nuclear steward” for the nuclear material used for the specific purpose of naval propulsion, under the AUKUS submarine partnership. The Defence Minister confirmed that a purpose-built facility would be established for nuclear waste disposal, with the first reactor to be disposed of in the mid-2050s. He said “everything we are doing” was consistent with Labor’s party platform, on all stages of the nuclear fuel cycle.
SA secures Federal deal on submarine infrastructure, training
South Australia has moved quickly to secure investment under the AUKUS submarine program, signing an agreement with the Federal Government to deliver infrastructure, training and research opportunities. Defence Minister Richard Marles signed a co-operation agreement with SA Premier Peter Malinauskas to secure land for a new submarine construction yard and to establish a skills and training academy campus. The Federal Government has also agreed to provide an additional 800 places to SA universities over four years, focusing on STEM disciplines in professional engineering, computer science, mathematics, chemistry, physics and psychology.
International student arrivals well below pre-pandemic levels
Almost 60,000 international students arrived in Australia in January to start the academic year, according to official figures. Australian Bureau of Statistics show that the international education cohort is steadily re-building after Covid-19 disruption, with a doubling of January 2022 figures. But the overall number of international students who arrived in January was still 34 per cent lower than the pre-pandemic levels of January 2019. In January 2023, higher education students comprised more than half of the international intake.
King defends economic role of natural gas sector
Resources and Northern Australia Minister Madeleine King has defended and promoted the role of natural gas in Australia’s economic and export activity, in a major industry speech. Ms King said natural gas was needed to ensure the reliability of an electricity grid increasingly dominated by variable renewables, as well as being a critical feedstock for fertiliser and feed manufacturing that underwrote global food security. She attacked calls for an immediate ban on future gas or the cancelling of long-term international contracts, saying the resultant sovereign risk would be untenable and economy-wrecking. Ms King said Australia accounted for about 20 per cent of global LNG exports.