Malcolm calls reform summit but is he ready?

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It appears Malcolm Turnbull has studied the consensus methods of the Bob Hawke prime ministership which is all to the good, from The Age:

Prime Minister Malcolm Turnbull has called a mini-summit for later this week, inviting leaders from the worlds of business, unions, community organisations and think tanks to discuss the state of the economy and the best way forward for long-overdue economic reforms.

…”Australia is a prosperous country with high wages, a high standard of living and a generous social welfare safety net. To secure and enhance our prosperity we must be more productive, competitive and innovative,” [PM Turnbull] said.

“Our government is focused on the opportunities arising from technological disruption and in creating an environment for strong, innovative industries to grow.

…In a significant speech on Monday, Finance Minister Mathias Cormann dashed hopes in sections of the business community for a slower return to surplus to protect growth and jobs by declaring all savings measures from the previous two budgets remained on the table.

He said any replacement measures identified would have to at least achieve identical fiscal improvements to be eligible.

It’s a good idea. PM Turnbull needs consensus for the tax and competition reforms needed.

I just hope that the new PM gives it an appropriately bearish framing because what is barreling down the pipe from China and the global economy is moving a lot faster than a high-minded discussion of reform. What is coming is deepening recession (already in income and soon to spread), and the cries for fiscal stimulus are going to grow much louder, very quickly.

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There is not much sign that the Government is aware of it. Perhaps MB should give the opening address.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.