By Pip Hunter
In preparing the 1994-95 budget, the federal government received 57 submissions from business, community, professional, employer and employee organisations. These submissions have been published by the Economic Planning Advisory Council in summary form.
All contributors nominated unemployment as topping the list of priorities, but only a few detailed job creation programs and of those, all seemed quite modest.
The limited job creation schemes mentioned were mostly couched in the framework set out by the federal government in its green paper on employment: short-term traineeships with below-award wages, further tightening of access to unemployment benefits, further incentives to employers, make up the government's "Jobs Compact" strategy.
The federal government hopes to be able to create 200,000 jobs in 1993-94, mainly by encouraging economic growth in the private sector. It is assumed that unemployment (now 10.3%) will remain around 10% through the next financial year. However, the latest 0.2% dip in the March figures has since prompted minister for employment Simon Crean to project a much rosier picture.
The ACTU submission identifies five priorities for trade and industry development, which it says should generate an additional $5 billion of net exports and a minimum of 100,000 additional jobs by the year 2000. In line with the government's green paper, the ACTU recommends an increase in traineeships (with below award wages) to reduce the long-term unemployed. The ACTU is lobbying for a $3 billion "jobs levy" to fund additional job creation, training and work programs.
The Australian Conservation Foundation (ACF) talks up green production and green jobs, with a call for more help to private industry. "The Budget should be used as an instrument to encourage private investment", says ACF. State and federal governments must increase their infrastructure "to improve the climate for private investment". ACF is not opposed to the corporatisation or privatisation of public utilities provided there has been a "careful examination of the consequences of social equity, economic capacity and environmental control".
The ACF welcomes the government's focus on developing "a competitive industrial culture", but asks that it be accompanied by "an ecologically smart climate for economic activity".
ACF favours training and employment placements in renewable energy, conservation and restoration work as well as the introduction of an employment levy and more spending on labour market programs. It mentions the need for "strong public transport infrastructure" in the context of the development of satellite cities, and is in favour of a carbon tax, increases in fossil fuel excises and changes to diesel fuel rebates. ACF also wants a special fund for environmental clean-up operations.
The Australian Council of Social Services (ACOSS) has called for a five-year infrastructure program, which includes action to ensure "equitable wage restraint" to ensure a sustained recovery; expansion of community care to create 10,000 new jobs by 1996-97; measures to improve the attractiveness of part-time work; greater resources for the Commonwealth Employment Service "to strengthen the case management programs"; and increased flexibility in income and activity tests for unemployed benefits "to encourage the taking of options (part-time, casual work) which enhance employment prospects".
ACOSS has also endorsed the Jobs Compact, under which the long-term unemployed could work for below-award wages while undergoing some level of training. It says that payment rates for the single unemployed and unemployed young people should be raised eventually to pension levels.
Business groups endorsed the government's economic rationalist direction, although some, like the Australian Chamber of Commerce and Industry (ACCI) and the Australian Mining Industry Council, argued that it hadn't gone far enough with cuts to social spending. They are adamant that "growth" will come about only if indirect taxes are expanded, there is no increase in business taxes and charges and domestic savings are made available to finance private investment.
The ACCI wants to see the training guarantee (which obliges industry over a certain size to spend 1.5% of its wages bill on training) abolished and the superannuation guarantee either abolished or frozen until unemployment nears 8%. The ACCI is also pushing for enterprise bargaining "which increases the flexibility and efficiency of business operations".
Such proposals, echoed by the Australian Chamber of Manufactures, are supported by the international right-wing think-tank, the Organisation for Economic Cooperation and Development, in its recent glowing report on the federal Labor government's handling of the economy.
The report, released on April 6, praises the government for going further than any other OECD country in opening the domestic economy to international competition and deregulating the labour market. However, the OECD also urges the government to go further and suggests GST-type indirect taxes to close the budget deficit.
The government's budget deficit target is 3% of GDP in 1994-95, dropping to 1% by 1996-97. However, the National Farmers Federation, the Business Council of Australia and the right-wing Institute of Public Affairs have all urged the government to move faster.
In its submissions, big business backs many of the OECD's proposals on labour market deregulation, including the lowering of the wages of youth, the long-term unemployed and unskilled job seekers and the breaking up of the award structure, which it sees as slowing enterprise agreements. The OECD argues that Australia should follow the New Zealand example and "make a decisive break with the award system".
Progressive reforms urged by community organisations included: the introduction of an inheritance tax, a $150 cash grant as compensation for indirect taxes arising from the 1992-93 budget, additional support for pensioners and beneficiaries paying more than 50% of their income on rent and an increase in funding for public housing and a commitment to a national public transport policy, proposed by the Australian Pensioners and Superannuants' Federation; employment guarantees for youth participation in labour market programs, proposed by the Australian Youth Policy and Action Coalition; additional child-care places for long-term and occasional care, proposed by the Salvation Army; and an increase in funding for research into breast cancer and operational grants to women's organisations, proposed by the Women's Electoral Lobby.