As Australia enters the post-mining boom era it’s central challenge is to lower the real exchange rate to restore competitiveness to the economy. The Government appears focused upon this challenge with a number of policies aimed at reducing costs and inefficiencies for business. But how this is done is just as important as is getting it done and despite occupying the right ground there is further evidence today that Abbott Government is looking in the wrong direction. From the AFR:
Federal cabinet has approved a “competitiveness agenda” that will lead to government support for parts of the economy where Australia is strongest and require greater collaboration between businesses, schools, universities and training colleges.
The policy change, which underpinned the government’s decision to back away from its promise to build 12 submarines in Adelaide, will result in industry and other policy priorities being targeted towards agribusiness, energy, mining technology, medical technology and advanced manufacturing.
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