PM's business adviser warns on growth
Maurice Newman was until 2012 chairman of the ABC and is a former chairman of the Australian Stock Exchange.
Addressing the Committee for the Economic Development of Australia in Sydney on Monday night, he spoke of losing his "political virginity" by throwing his lot in with the Coalition after years having "voted for and worked for both sides".
"Openly declaring support for one side before an election shows clearly where your sympathy lies," he said. "However having watched five long years of reckless spending, economic waste, class warfare particularly aimed at business and the mindless destruction of Australia's international competitiveness, I thought I had a civic duty to stand up."
"I have seen and heard nothing since the election to question that judgment," he said. "Indeed I am shocked that so much economic damage can be inflicted in just six years."
"Labor's commitments to its 'better schools' plan and the national disability insurance scheme were made in the clear knowledge of a budget already under serious and continuing pressure."
Mr Newman said growth in real gross national income was about to collapse. "Having become accustomed to better than 2 per cent annual growth for 22 consecutive years, we are now facing the prospect of growth with a zero in front of it. That will feel like hitting a brick wall," he said.
Australia could no longer afford corporate welfare in the form of support to the car industry and ailing food processors. "Giving taxpayer subsidies to ailing companies has proved to be like giving aspirin to the terminally ill. It temporarily relieves the pain but does nothing to combat the underlying disease of being uncompetitive."
But Australia should consider relaxing competition laws in order to allow Australian companies to "acquire the necessary critical mass" to become national champions winning business abroad.
Industrial relations should be reformed, even if the idea brings forth "screams of outrage and the spectre of WorkChoices".
"We cannot hide from the fact that Australian wage rates are very high by international standards, and our system is dogged by rigidities," he said.
Mr Newman said he was speaking in a personal capacity.
Frequently Asked Questions about this Article…
Maurice Newman warns that Australia is facing a severe collapse in the growth of national income, which he describes as feeling like 'hitting a brick wall.'
Maurice Newman criticizes corporate welfare, such as subsidies to the car industry and food processors, because he believes it only temporarily relieves financial pain without addressing the underlying issue of being uncompetitive.
Maurice Newman suggests that Australia should consider relaxing competition laws to allow companies to acquire the necessary critical mass to become national champions and compete internationally.
Maurice Newman believes that Australia's industrial relations system is plagued by rigidities and high wage rates compared to international standards, and he advocates for reform despite potential backlash.
Maurice Newman criticizes the previous government's economic policies, citing reckless spending, economic waste, and class warfare that have damaged Australia's international competitiveness.
Maurice Newman warns that after years of consistent growth, Australia is now facing the prospect of growth with a 'zero in front of it,' indicating a significant slowdown.
Maurice Newman argues that corporate welfare is ineffective because it acts like giving aspirin to the terminally ill, providing temporary relief without solving the fundamental problem of uncompetitiveness.
Maurice Newman openly supports the Coalition, believing it is his civic duty after witnessing years of economic mismanagement, and he has seen nothing since the election to question this judgment.
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