The Productivity Commission has condemned attacks on its integrity as “unacceptable” after its scathing assessment of Western Australia’s sweetheart GST deal as a costly mistake sparked a fierce political backlash and name-calling.
Angela Jackson, a productivity commissioner and co-author of the report, said the country’s leading independent economic advisory body welcomed criticism and comments on its work. But Jackson said comments from Roger Cook, the Western Australian premier, lampooning the commission as “east coast clowns” and describing the report as deceitful had “crossed a line”.
Premier defends his stance
Cook said in a statement: “I’m doing exactly what I’ll always do and putting WA first”, adding that “it is important we continue to present our economic arguments”. “To the Productivity Commission it may be academic but for Western Australians it’s our lives, and I’ll fight for every dollar.”
As Jim Chalmers, the treasurer, defended the “good people” at the commission and chided the WA Labor leader for his “inappropriate” language, Jackson said “we are used to public debate”. “In fact, we welcome it at the Productivity Commission, it’s why we have interim reports,” she told ABC radio before a meeting of national cabinet on Wednesday afternoon.
Commission calls out 'unacceptable' attacks
“We are aiming, of course, to inform public policy debate, which can often get heated. Our view is that a line was crossed in terms of the nature of those comments from the Western Australian premier.” Jackson linked the tone of the criticism and the language used “to attack our integrity” with “something that more broadly we are seeing in public debate internationally”. “We want to call this out as being unacceptable.”
When asked about Cook’s sledge, Chalmers told journalists on Wednesday: “I don’t believe that is appropriate.” “I think you can disagree with the conclusions of the Productivity Commission without denigrating them. I think it’s important that even when those conclusions are contested, as they often will be, that we continue to respect the people of the PC and the really important work that they do.”
Report findings and political reaction
The commission was asked to review the 2018 legislation put in place under the Morrison government. That deal fundamentally changed the way the commonwealth distributed the GST pool between the states and territories. The commission’s interim report found that the 2018 legislation had achieved none of its objectives, made the system less fair and had funnelled an extra $23bn in taxpayer money to the nation’s richest state.
The interim recommendation to reverse the deal was backed by all other states and territories, but was immediately declared dead in the water by Anthony Albanese. “What I believe is, very clearly, there will be no change to WA GST arrangements whilst I’m prime minister,” Albanese said on Monday. Jackson said Albanese’s comments were “disappointing at this point in the process”.
The PC will now do further consultation before a final report due by the end of this year. “It’s important for us to indicate that that process will not be influenced by the prime minister’s comments, that we are above politics,” Jackson said. “And that’s a very important position that we hold within the public policy landscape in Australia.”
Independent MP Allegra Spender said it was “frustrating” that Albanese had effectively ruled out any changes to WA’s GST deal before the independent inquiry had run its course. “When Roger Cook calls highly qualified and capable public servants ‘clowns’ he is seeking to disparage people tasked with giving government frank advice,” Spender said. “You may disagree with their views, but this kind of language directed at public servants is simply unacceptable from major public figures.” She added that it was also “disappointing to hear the federal resources minister [Madeleine King] describe these comments as ‘fair enough’ on radio yesterday”.
On Wednesday, the industry and science minister, Tim Ayres, said there were “strong views” about the GST issue in WA, and a “colourful contest” about the issue when asked about Cook’s comments. “The Productivity Commission has important work to do for Australia, and we’re not a government that gets reports that contest our view and has a glass jaw about that,” Ayres told the ABC. Ayres claimed WA was a state with “particular needs” and defended Albanese ruling out any GST changes even before the PC’s final report. “[Albanese] gets Western Australia, understands what Western Australians need and the contribution that they make. And everything he’s done has been completely consistent with that view and it should have surprised nobody.” Cook’s office has been approached for comment.
