The Rudd Government and SME's

How important will the policy on improving education be to the global ‘brain drain’?

Gahan: It’s hard to say. The policy may prevent future brain drain, but it’s not likely to lure those who have already exited. It also needs to be remembered that we too benefit from a brain drain of highly educated workers from developing countries to Australia.

Hourn: We need to exploit intellectual capital, not compete on the basis of cheap labour. High-end services, technology and IP (particularly brand development) are examples. We have to invest funds in education and training, and provide tax breaks for R&D. The brain drain results from not pursuing these objectives on a scale comparable to other developed nations.

MacDonald: We welcomed the fact that the Workplace Relations and Education portfolios now come under the one Minister in Julia Gillard. Governments for too long have ignored the link between education and the productive needs and capacity of the economy. With some 182,000 job vacancies in Australia and worsening shortages ahead, Australia does need to understand it now operates in a global race for talent.

Ruthven: It needs to start with the ones who are falling through the cracks, so it needs to start at high school. Secondly comes their policy on tertiary education. I’d like to question the access to tertiary education and its cost. The big question is how do we get virtual education on the move, like it is in the US. And it’s here that government and parents really need an attitudinal change. The ability to do online degrees all comes down to access and cost. I reckon if you really want to learn you should join a really smart company in the area you want to practise; you’ll learn more there in a year there than you will in three years at university.

Will proposed policies go far enough to address the problems? What more needs to be done?

Evans: We are no longer in the industrial age, and yet many of our institutions and community structures still believe we are. The first step is recognition that past structures are too structured and don’t provide the flexibility needed for the modern economy.

Gahan: The evidence everywhere tells us that innovation policy has been one area where too little has been done, and too little traction has been achieved in government by those who advocate greater investment in innovative capacity. Innovation is not simply about science and technology, it’s also about business organisation, workplaces, and even our cities. The benefits should not only be economic, but social and ecological as well.

MacDonald: Governing is not just problem solving, it’s also about seizing opportunities. That’s why we have been advocating a very strong federalism reform agenda. Our friends at the BCA estimate that inefficiencies in federal/state relations are costing Australia about $9 billion a year. Vocational education and training, green tape and climate change issues and health and ageing issues are all prime areas where progress has to be made.

Edwards: They produced a pretty credible anti-inflation package, so far as what is under the control of the federal government as distinct from the reserve bank. And they’re obviously working on the big issue of climate change; we’ll see more about that mid-year. So it’s early days but there does seem to be a fair amount of work being undertaken and there is certainly, at this point, no initiatives which are prejudicial to business.

What role does business—particularly small business and retail—play in addressing climate change?

Evans: Small business and retailing will bear the brunt of superficial climate change needs. Issues like plastic bags and other so-called pollutants will be the focus of the media and the community. But the major pollutants are large industry and carbon guzzling personal items that individuals will refuse to give up. Small business will be required to meet over-enthusiastic compliance meant for major pollutants but, as usual, as with other compliance small business will be hit harder.

Gahan: It has to be significant. The big problem for policy in this area is that getting small business to move in a concerted way is like herding cats! This is going to be true here as well, partly because small business will be one of the first to really feel the pinch of any cost effects associated with climate change policy. So I suspect small business is likely to need extra incentive (ie money) to join this party.

Ruthven: It’s really a case of being prepared to follow the guidelines once they’ve been introduced. It’s like OHS; when it was introduced small business was perhaps a little bit tardy in adopting it, but they realised their moral obligation. And I guess that’s the best advice I can give them: pick up the moral obligations as the guidelines start to come out.