Albo’s “fools errand” manufacturing subsidies shock economists


The inaugural chair of the Productivity Commission, Gary Banks, has joined the pile-on against the Albanese government’s “Future Made” subsidies for low-emissions manufacturing.

In a speech to the Centre for Independent Studies (CIS), Banks described the subsidies as a “fool’s errand” that would embed waste and lower the nation’s productivity:

“Seeking to obtain benefits to society through subsidies for particular firms or industries, including in the form of tax concessions, has proven a fool’s errand, particularly where the competitive fundamentals are lacking”, Banks said.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.