In the face of the worst global recession since the world wars, amid extraordinary grief with the COVID-19 carnage, there is real hope about the co-operation evident now between business, government and unions.
The reform agenda being flagged in Canberra is only possible in this new co-operative environment and insiders are express confidence it will last.
“The increased transparency and co-operation between governments and business is very welcome,” Mirvac’s Susan Lloyd Heurwitz said in an interview.
“Lets just hope it lasts.”
There will be periodic tests, like the perceived tension between NSW and Victoria, with the former getting more impatient about opening the economy and the latter keen to maintain lock downs.
No doubt there have been fights between the governments, but the National Cabinet process, and Prime Minister Scott Morrison’s leadership, of it has been stunningly successful so far.
Programs like JobKeeper, which is providing income to some 3 million people out of a workforce of 12.8 million, have been breathtaking in their scope and apparent success.
The impact is magnified by the fact there are another 1.5 million people out of work which means 4.8 million people, or 38 per cent of the working age population.
When Morrison was Treasurer he commissioned the Productivity Commission to prepare a five-year plan intended as a negotiating document with the states.
Not too late to shift the dial
Now three years old, the report known as “Shifting the Dial” appeared dead at the end of last year due to lack of support.
It has now reappeared on the national agenda at the most opportune time, with the feds and the states ready to look outside the box for changes.
So what will come of it?
Significant shifts can be expected in health and skills training with a big boost to vocational education to retrain workers mid-career.
In June, the Productivity Commission is expected to hand down its draft report on skills training, which will focus on just this issue, as well as short term courses to boost skills along a career path.
These are the sort of changes many have urged for some time but finally in this time of crisis they have a real chance of being backed.
The reformists optimism is at its highest right now, as the focus is still very much on saving lives. The trick is to maintain the zeal through next year when hopefully the health crisis will have eased but the reality of a deep global recession will be dominating business and government.
That is when strong leadership will be needed.
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