Productivity Commission chair Danielle Wood has bluntly warned governments not to undermine public trust by "playing politics with our institutions".
Author
- Michelle Grattan
Professorial Fellow, University of Canberra
Delivering the Centre for Public Integrity Oration in Sydney on Wednesday evening, Wood said, "In a world where 'cut through' is at a premium, throwing shade on the messenger can be simpler and easier than debating the finer points of the message".
Wood targeted the recent attack from Western Australian Premier Roger Cook on the Productivity Commission after the PC released a report strongly criticising the current GST distribution that overtly favours WA. Cook denounced the report as coming from "east coast clowns" who did not understand WA.
"My primary concern about comments like these that 'play the man, not the ball' is the impact on institutional trust," Wood said.
"There is an important distinction between arguing an institution 'got it wrong' on a particular issue and placing a question in people's minds about the impartiality and calibre of the organisation and its work more broadly".
Wood said the PC was "by no means the only institution to have been subject to opportunistic political attacks".
Climate scientists had "been through the wringer.
"Ongoing disparagement of science or expertise over time erodes trust," she said.
Wood said that in the United States, acceptance of facts and experts had decayed in recent years.
"It's nigh on impossible to have a reasoned debate without a bedrock of agreed fact. And it's hard to get those facts on the record when people dismiss expertise out of hand," Wood said.
"Thankfully, that's not typically the case here. Attacks on institutions remain rare and are not well accepted," she said.
Wood said she had been heartened by the support of the PC from everyone from Treasurer Jim Chalmers to members of the public when it had come under attack.
But we should absolutely not let it become part of our culture.
Robust debate on the issues? Absolutely. Periodic review of organisational performance and effectiveness? Perfectly appropriate.
But name calling instead of debating the evidence? Let's leave it for the school yard.
In her oration, titled "Growing trust and trusting growth: the economic case for integrity", Wood linked growth, productivity, integrity and public trust.
"Over the long run, our material living standards are determined by economic growth and specifically productivity growth," she said.
"Our ability to produce more with less is the reason that Australians have longer, healthier lives, less poverty, and more and better goods and services, and work five fewer hours per week than the Australians of the 1960s."
Corruption was bad for growth, she said. This was so even when it was "grey" corruption - which was a far more common problem in Australia than the more overt forms of corruption.
Grey corruption is a broad term that encompasses any actions where governments exercise their powers to favour private interests or political interests over the national interest.
This can include being influenced by money or favours, nepotism, and our old friend pork barrelling - where money is allocated based on a political calculus rather than a sound policy rationale.
This grey corruption can chill economic activity through many of the same channels as more traditional corruption.
Wood did not specifically canvass the debates about "pork barrelling" in recent years, such as the "sports rorts" affair under the Morrison government, and the controversy about the Albanese's government's grants based on election promises which included $6 million for a golf club in the prime minister's seat. The Centre for Public Integrity highlighted the political skew in this latter program.
Wood said governments should fund infrastructure and there were some legitimate cases for industry policy.
"But processes and transparency are crucial to ensure the laundry stays white."
"Clear criteria, open processes, independent assessments, budget rules, and transparency on the costs and benefits can all help reduce the long-term growth-sapping risks of wading in the grey," Wood said.
"One of the best safeguards against corruption and its insidious economic effect is strong institutions acting in the national interest."
Wood said her main message was that "public integrity matters".
It matters for trust between citizens, institutions and governments.
It matters for the ability of businesses to be dynamic and innovative.
It matters for the capacity of governments to deliver the services people expect.
"And for all these reasons it matters for productivity and income growth.
"Pointing out gaps in our integrity system might upset politicians from time to time but it keeps our democracy strong."
Michelle Grattan does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.
