“It is very encouraging that deregulation and red tape reduction are back on the agenda as economic reform priorities for the government,” said Daniel Wild, Director of Research with the free-market think tank the Institute of Public Affairs.
Tonight the Prime Minister addressed the Business Council of Australia annual dinner where he outlined the government’s deregulation agenda.
“The announcement by the Prime Minister of simplification of awards and moves to fast track environmental approvals for major projects are a good start, but much more work is required. The government must start to cut regulation, rather than just making it easier to comply with.”
“Cutting red tape requires constant vigilance, energy, and enthusiasm. Like a weed, red tape takes over the productive sectors of the economy if not aggressively cut every day.”
“The next step for the government is to deliver deep and sustainable cuts to regulation.”
“Red tape is the single biggest impediment to business investment, job creation, and economic opportunity in Australia.”
“Cutting red tape will boost business investment and productivity, and help get the cost of living down. Business investment is just 11.2 per cent of GDP which is lower than during the Whitlam years,” said Mr Wild.
IPA research estimated that red tape costs the Australian economy $176 billion each year in foregone economic output. This estimate captures all of the businesses which are never started, the jobs never created, and the pay rises which never occur because of red tape.