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Housing must move to centre of economic policy - UNSW report

THE OVERWHELMING majority of Australia’s top economists and housing experts agree Australian governments pay too little attention to housing system impacts on productivity and growth, according to a new survey.

In the UNSW City Futures Centre study, led by honorary professor Duncan Maclennan and commissioned by the Housing Productivity Research Consortium, formed by a group of private sector and non-profit stakeholders, 84 percent of respondents agreed with the statement: 'Australian governments have paid too little attention to how housing outcomes also affect productivity and growth'.

And 80 percent agreed that 'Rising mortgage debt poses an economic stability risk to Australia'.

Only 12 percent of respondents agreed with the statement: 'Over-expensive housing for low-income renters has little impact on economic productivity'.

The survey analysed attitudes of 47 leading economists and 40 senior experts from government, industry and academia.

Speaking for the research team, UNSW City Futures Research Centre professor Bill Randolph said the study highlighted worries about over-reliance on ultra-low interest rates for housing, employment and productivity.

“The vast bulk of housing experts and economists surveyed are concerned that ongoing Treasury dependence on ‘cheap money’ policy will further ratchet up house prices and widen the gap between rich and poor,” Prof. Randolph said. “From a purely economic perspective, the informed expert view is that this will undermine productivity and economic growth.

“Among the best ways to broaden Australia’s economic recovery strategy would be a large-scale national social housing program. Minimal construction for most of the past 25 years means that national social housing supply has effectively halved since the 1990s .”[1]

The survey found a strong preference to direct Commonwealth stimulus to social rather than private housing. Almost seven in 10 (69 percent) of respondents agreed that 'Coming out of COVID, stimulating housing is best achieved through social/affordable housing investment rather than private market'.

Only one in 10agreed that 'In its 2020 Budget, the Federal Government rightly resisted calls for inclusion of social housing investment in its recovery stimulus package'.

Even in the past year, public housing waiting lists have grown another four percent, while high need applications have surged 11 percent. 

Everybody’s Home, a national advocacy campaign to end homelessness, said a powerful social and economic dividend was available if the Commonwealth chose to invest in social and affordable housing.

“A $7 billion dollar investment in social and affordable housing would unlock more than $18 billion in economic expansion, creating more than 18,000 jobs a year over four years, and making a serious dent in homelessness,” Everybody’s Home national spokesperson, Kate Colvin said.

“Longer term this would also boost productivity, by allowing people better access to jobs. Social housing can lift people out of poverty and put them on a path to prosperity.

“A better-balanced housing system is the right thing to do. It also happens to be the smart thing to do.”

Survey respondents were drawn from academic, industry and government sectors. The majority were trained economists, at least 15 of whom were members of The Conversation’s Economics Panel convened by the Economics Society of Australia. Respondents were mainly employed in senior positions such as Professor, Partner or CEO.

Further details are provided in the published UNSW research report.

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Adult literacy inquiry begins with evidence from Productivity Commission and Dept of Education, Skills and Employment

THE House Standing Committee on Employment, Education and Training will hold its first public hearing on Wednesday, February 17, 2021 as part of the committee’s inquiry into adult literacy and its importance.

The Committee will hear evidence from the Productivity Commission and the Department of Education, Skills and Employment (DESE).

The Productivity Commission’s review of the National Agreement for Skills and Workforce Development found there should be a coordinated national strategy to improve school education, ‘second-chance’ learning in the Vocational Education and Training (VET) sector and other adult education services.

This would seek to reduce the large number of Australians with low language, literacy, numeracy and digital literacy skills. The review also proposed improvements in foundation skills, better credit pathways, an expansion of VET Student Loans and a trial of a new financing instrument for mature-age Australians to reskill and upskill.

Committee chair, Andrew Laming MP said, "It is concerning that up to one in five adult Australians may have low literacy and/or numeracy skills, which limits their capacity to participate fully in employment, education and training, and social and civic life.

"The committee looks forward to examining the Productivity Commission’s findings and will seek evidence from DESE about a range of relevant Commonwealth-funded programs that support adult literacy and numeracy. These programs include the $1 billion JobTrainer Fund, Skills for Education and Employment, Foundation Skills for Your Future, Remote Community Pilots, and the Reading Writing Hotline," Mr Laming said.

Submissions to the inquiry have been requested by Friday, March 5, 2021. Further details about upcoming public hearings will be available on the Committee’s website as the inquiry progresses.

Public hearing details
Date: Wednesday, 17 February 2021
Time: 11.40am to 1.00pm
Location: Committee Room 2R1, Parliament House, Canberra
Witnesses: Productivity Commission and the Department of Education, Skills and Employment

The hearing will be broadcast live at aph.gov.au/live.

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Indigenous Business Australia to discuss participation pathways

THE Indigenous Affairs Committee will hear from Indigenous Business Australia (IBA) this Thursday as part of its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business.

Witnesses will be attending by conference call.

Committee chair Julian Leeser MP said IBA had played a significant role in providing investment support for Indigenous businesses over many decades and would provide valuable input into the inquiry.

"IBA has now been assisting Indigenous entrepreneurs for 30 years to start and grow their businesses. The committee looks forward to discussing ways to further promote economic self-sufficiency among First Nations people at this hearing," Mr Leeser said.

Public hearing details
Date: Thursday 18 February 2021
Time: 11.45am to 12.25pm AEDT

A live webcast of the hearing will be accessible at https://www.aph.gov.au/Watch_Read_Listen.

A full program will be available at the inquiry website.

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Valentine’s Day lockdown heartbreaking for Victorian small businesses

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said the Victorian Government needs to urgently compensate small businesses forced to close their doors on one of the busiest holidays of the year.

“Small businesses such as florists and restaurants currently have their storage rooms packed with supplies, ahead of what they thought would be one of their busiest trading days of the year,” Ms Carnell said.

“Unfortunately, this snap lockdown means thousands of Victorian small businesses need to shut up shop for five days without any notice.

“It is for this reason the Victorian Government needs to immediately announce a compensation package for affected small businesses who have lost stock such as flowers and food," she said.

“The compensation should also cover all other costs associated with running a business including staff wages and rent.

“It is impossible for small businesses to plan for sudden lockdowns and the timing of this one – coinciding with Valentine’s Day and Lunar New Year celebrations – could not be worse.

“Victorian restaurant owners are understandably frustrated, given this lockdown announcement came just hours after their additional supplies were delivered. Many were fully-booked all weekend.

“These small businesses are set to lose thousands of dollars worth of stock through no fault of their own. Given the nightmarish 12 months these cash-strapped small businesses have already been through, there’s a real risk this lockdown could break them.                     

“It’s absolutely critical these small businesses have the support and certainty they need from the Victorian Government to get through this.”

www.asbfeo.gov.au

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Coal miners strike a legal blow against the 'permanent casual labour hire rort'

THE Mining and Energy Union has struck a powerful legal blow against Australia’s "permanent casual labour hire rort", with a big win in the Federal Court for former employees of the Sub-Zero labour hire firm.

The court heard employees of Sub-Zero worked as permanents, but were engaged under a contract that described their employment as casual and offered a flat hourly rate of pay. This rate was claimed to incorporate a 25 percent casual loading. When Sub-Zero went into insolvency its employees made claims under the Fair Entitlements Guarantee (FEG) scheme. FEG recognised the workers were permanent, and not casual, but withheld the 25 percent casual loading from their claims.

The Mining and Energy Union has fought this through the courts, culminating in today’s Federal Court ruling that it is wrong to consider the 25 percent casual loading as an offset of the rights these workers had as permanent employees.

“This is yet another powerful legal blow to the shameful ’permanent casual’ labour hire rort in this country,” CFMEU mining and energy northern district president Peter Jordan said.

“It’s a fantastic victory for these mine workers who are now going to be tens of thousands of dollars better off on average. And we’ve also established a precedent that will apply to future labour hire companies that go into insolvency.

“This Federal Court victory follows on from our landmark Skene and Rossato victories that found the ‘permanent casual’ labour hire rort to be invalid. The Morrison Government should take the hint," he said.

“The courts have been loud and clear. In Australia, if you work somewhere permanently and predictably, then you’re a permanent. That entitles you to a package of rights and conditions. Employers can’t label you as a casual to strip you of those rights.

“The Morrison Government, instead of trying to legalise the rort through its IR Omnibus bill, should now move to stamp the practice out," Mr Jordan said.

“Mining companies in Australia can continue to make extremely healthy profits without resorting to these mean and tricky games. There’s no justification for their rort aside from base greed.

“Any decent Australian Government would now recognise the legal position, recognise the moral position, and tell employers the gig is up.

“If the government refuses to wake up, however, our union will keep fighting to ensure permanent workers are recognised as permanents and given the rights and conditions they deserve.”

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