National Reform Summit: Share plunge makes case for urgent revamp

The volatility in world sharemarkets is an added reason for more concerted action on economic reform.

National Reform Summit delegates Cassandra Goldie, left, Jennifer Westacott and Dave Oliver.

The volatility in world sharemarkets is an added reason to make today’s National Reform Summit the beginning of a more concerted action on economic reform, says Business Council of Australia chief executive Jennifer Westacott.

Business, union and com­munity leaders want today’s summit to be the beginning of an ongoing dialogue on a range of reforms needed to grow the Aus­tralian economy in the face of major structural changes and increasing concern about world markets.

It will bring together representatives of the BCA, the ACTU and the Australian Council of Social Service.

“This is the beginning of something, not the end of something,” Ms Westacott said in an interview with The Australian.

“It has to be part of an ongoing dialogue. We have to have some agreement that we want to grow the economy and lift the quality of life for all Australians, that we are focused on a reform agenda which is about growing the economy and not arguing over a diminishing size of the pie.”

Ms Westacott said this week’s fall in the sharemarket “shows how volatile the global economic environment really is”.

“Reform is urgent because we are living in very volatile times,” she said, but economic reform was not easy. “Reform is hard, tax reform is extremely difficult. There are trade-offs. Our job is to work side by side with government and with disparate groups to help the community and the constituents we represent to understand those trade offs — not to block them.”

ACTU secretary Dave Oliver agreed the summit should be an “ongoing dialogue”.

“We are always pleased to be engaging with the business and community organisations around significant issues which impact people across society,” he said.

“Hopefully this is not going to be a continuing dialogue about things that matter most to people.”

He hoped there would be further talks on areas of potential agreement “and the next steps around implementation”.

Mr Oliver said he hoped today’s discussion would take a “high road approach where we are talking about macro-economic reform, skills, innovation, research and development and infrastructure … We are not interested in a low road discussion talking about attacking wages, penalty rates and minimum wages. That won’t get us anywhere.”

He said any economic reform had to take a “holistic approach … It is not just about the economy. It is about society. We don’t accept that you can simply leave things to the market.”

Mr Oliver said he believed that most participants at the summit “were on the same page in respect to that … There is a role for government to play.”

ACOSS chief executive Cassandra Goldie said Australia could “no longer defer the task of reform … Australia faces a number of major structural social and economic challenges.

“ACOSS believes that economic growth should deliver for the broader community through quality, affordable services, a robust social safety net and jobs, training and adequate income support for people currently excluded from the labour market.”