"Theannouncement today by the NSW Treasurer, Dominic Perrottet, of the creation ofa State Productivity Commission should contribute to making the State a betterplace to do business," the Head of Ai Group NSW, Mark Goodsell said today. "NSW needs a framework for generating wealth and jobs beyond theinfrastructure build that is currently dominating the State's economy. Now isthe time to do the thinking, not when the projects come to an end and awell-focused state PC would be well-placed to drive such an approach. "As well as helping us to better understand the economics behind ourability to address pressing community issues, a NSW Productivity Commissionwould shine a light on costly regulation and help make it easier to do businessin the State. Business surveys consistently rank regulatory burdens,particularly those that are duplicated, overly complex, unnecessary andoutdated, as ongoing impediments to investment and employment. "Areas which Ai Group would like to see high on the NSW PC agenda wouldinclude:
· Identifying a path to a world-leading approachto vocational education in NSW.
· Considering how to structure the NSW tax systemin a way that best encourages employment, investment and community well-being.
· Identifying key opportunities to lift thecost-effectiveness of NSW regulation and the quality of our regulatoryagencies.
"The Treasurer today also discussedthe system of federal incentive payments to drive state infrastructuredevelopment. This has been successful in the past and it is worth looking at asimilar scheme to drive overdue regulatory reform. "Our federated system of government sometimes means the states don't makenecessary decisions because the benefits will flow to the Commonwealth, or viceversa. Well-designed incentive arrangements can help address thatimbalance," Mr Goodsell said.
