Paltry $2m payment is not justice for Kathleen Folbigg
The Minns government is mean in awarding Kathleen Folbigg just $2 million for her wrongful imprisonment for a significant part of her life. In 1992, Lindy Chamberlain received a $1.7 million payment for three years' wrongful imprisonment. In today's terms, this is worth more than $560,000 a year. Thus, rightly, Folbigg's compensation should be significantly greater than the amount offered. Hasn't she already been through enough without having to fight the government for just compensation? Meg Pickup, Ballina
My 13-year-old son just did the quick calculation of a correct and fair compensation for Kathleen Folbigg in line with what Lindy Chamberlain received after her release in 1988. Adjusted for inflation, the figure was $19 million. Benjamin Rushton, Birchgrove
How was it that former political staffer Brittany Higgins received a $2.4 million compensation payout – on the balance of probabilities that she was raped – and Kathleen Folbigg received only $2 million after a gross miscarriage of justice and 20 years' false imprisonment? Where is the justice here? Pastor de Lasala, Seaforth
AI's lies no surprise
Waleed Aly says nobody knows why AI is starting to tell outright lies (' Hard to stay calm in face of AI storm ', August 8). The likely cause is 'lies in, lies out', to paraphrase an old aphorism. AI models trained on content produced by humans will have many examples of lies. For instance, feed AI the pronouncements of Donald Trump and you train it to lie. Ditto for material sourced from many other politicians, CEOs, influencers et cetera. We are surrounded by lies and AI will simply reflect or copy that. Also, AI is now being trained on content generated by AI. So we will be receiving lies based on lies. The promoters of AI want us to focus on jobs and productivity because the other effects of AI will be so socially ugly – false images, false attribution of statements and phoney research. Major technological changes such as the wheel, the steam engine and the light bulb generated social change through economic change, but they didn't create a world of lies, deceit and misuse of personal information. Steven Lee, Faulconbridge
Waleed Aly says researchers are mystified that AI is behaving in ways its inventors don't understand, most notably giving answers that are untrue, and which it knows to be untrue. Despite being an inferior form of AI myself – Average Intelligence – I believe I know the cause: AI has been trained by humans, so why wouldn't it lie? After all, if another form of AI – Alien Intelligence – arrived on earth today and asked to be taken to our leader, who would they meet in the Washington White House? Paul McShane, Burradoo
Bang on target
What an outstanding article by David Livingstone (' Let's scuttle AUKUS before it sinks ', August 8). He tells us that, despite their best intentions, the UK's nuclear attack submarines are currently all being repaired or awaiting repairs, and that their military forces 'are so depleted that they could not repel an invasion of the UK itself'. On top of that, Trump's 'America first' policy makes any commitment from the US extremely doubtful. Among all his incisive comments about AUKUS, we also get humour, a good quote from Shakespeare and a perfect use of semi-colons. More David Livingstone, please. Virginia Howard, Mosman
What else in Reserve?
You report that the Reserve Bank of Australia supports think tank the Centre for Independent Studies. Is it appropriate for the RBA to donate to any such organisation? Indeed, is it legal? Would governor Michele Bullock let us know to which other politically partisan lobbyist organisations taxpayers are obliged to make donations channelled through the 'independent' RBA? Philip Bell, Bronte
Palestinian perspective
Penny Wong laid it straight when she said that if reluctant countries don't act soon, there will be no Palestine left to recognise (' Israel 'intends to' take over Gaza, Netanyahu says as security cabinet meets ', August 8). I don't believe a word of Netanyahu's claim that he doesn't want permanent control of Gaza. Truth is the first casualty of war; after that, it's mostly civilians, as we've seen to our horror. So come on, Anthony Albanese, forget about a Trump backlash and get on board with France, the UK, Canada and others in an official policy shift to recognise a Palestinian state. Meredith Williams, Baulkham Hills
I am bemused by Mervyn Cross' suggestion that 'instead of blocking the Harbour Bridge, if the 90,000 protesters each donated a minimum of $20 to an appropriate charity … this would have been a more practical way to relieve the starving in Gaza' (Letters, August 8). Sorry, but what about the blockade preventing food trucks and medical supplies from entering Gaza? How would sending money help? Please explain. Gay Shanahan, Glenbrook
I cannot more profoundly disagree with Mervyn Cross. Firstly, his characterisation of marchers as self-righteous is misguided and unkind. He does not know each of them or their motivations. Secondly, he seems to forget that the Israeli war machine will not let any aid into Gaza. Nevertheless, millions of Australians already regularly donate much larger amounts than $20 to charity. Kate Coates, Wangi Wangi
Pharma chameleon
The American healthcare system is rigged in favour of Big Pharma (' Trump flags 250% tariffs on medicines,' August 8). It's crony capitalism gone mad, with a tangle of obscene favours and special privileges surrendered to giant pharmaceutical corporations. In 2003, President George W. Bush signed legislation that prohibited even the US government from bargaining for drug prices, effectively giving Big Pharma a blank cheque. They aren't just making record profits to recover research costs: they're making record profits because they can price drugs exactly as they want to. In America, it's open season on the patient. If you're seriously ill and need life-saving medication, the choice is brutal: pay up or die. That's not healthcare, it's extortion. Does anyone in Australia really want to go down this path? Bruce Spence, Balmain
Commission's count
Is the law such an ass as to allow losing Liberal candidate Gisele Kapterian to have costs awarded against Independent member for Bradfield Nicolette Boele in the current High Court appeal (' The battle for Bradfield arrives in court – three months after the election', August 8)? If mistakes were made in the vote count, how is it not the fault of the Australian Electoral Commission? Surely, either candidate is an innocent victim – or victor – of the process, and cannot be held accountable for mistakes made by the AEC. Dick Clarke, Elanora Heights
Minns' hunting misfire
Is Premier Chris Minns losing his grip? His approach to the Gaza protests was untidy, and his capitulation to the gun lobby is shocking. Creating a 'right to hunt' will normalise the use of guns and knives and add to their prevalence in the community. Why should taxpayers fund a hunting agency controlled by hunters' appointees? Experts say recreational hunting is ineffective for pest control. How can visitors feel safe when shooters use high-powered rifles and silencers in state forests? Joan Reilly, Surrey Hills (Vic)
Heritage overlooked
I cannot agree with reader Jon King, who supports the Powerhouse Museum rebuild (Letters, August 7). The museum's award-winning Wran Building and the Galleria are only 37 years old, but according to Infrastructure NSW, the structure was at the end of its life and didn't meet current building codes and standards (' Powerhouse Museum rebuild accused of trashing heritage significance ', August 7). On this basis, the Powerhouse management has decided to demolish and rebuild both structures. This could set a precedent. Historic buildings such as Sydney's Town Hall and the Queen Victoria Building will need to be inspected and rebuilt if they do not meet current building standards. The reality, of course, is somewhere else. The current management is working to its own agenda that has nothing to do with what the Powerhouse Museum was. They have shown no respect for heritage as they already turned Parramatta's St George's Terrace into a facade and demolished the historic Willow Grove. Garry Horvai, Pennant Hills
Come to Boorowa
Almost everyone seems to agree that this country is sorely in need of more housing, especially for those people who work in essential public services. Yet, the announcement of every prospective housing project provokes strong public opposition, obviously from people who already have homes (' Backlash over 'unit city' plans,' August 8). It seems the opposition stems from those who fear the loss of any part of their privileged lifestyle. Perhaps people should be prepared to accept that choosing to live in a large city means a higher density and ongoing development. If more space is their thing, perhaps they should move to the country to take advantage of the clean air and the nice people who live there. Derrick Mason, Boorowa
The Inner West Council is proposing to remove the car parks that service the shops at Dulwich Hill and hand the land over to developers (' Plan to cram 31,000 more homes in Sydney's inner west splits opinion ', August 8). These car parks are full every day. Council might dream of a future where everyone walks to the shops, but the reality is that for many a walk to the shops is a walk too far, especially if carrying heavy grocery bags. Dulwich Hill shops is a vibrant community and is an asset we can ill afford to lose. If the car parks go, the shops will go and we stand to lose vital services like the bank and post office. Council needs to learn a lesson from Parramatta Rd. A lack of parking leads to boarded-up and graffitied shopfronts. Dulwich Hill shops must be saved and included in any proposed development of Marrickville Rd. Genevieve Milton, Dulwich Hill
It should bring comfort to older Australians who can't afford to rent a modest property of their own (' Housing crisis forces older people to share ', August 8) that on the opposite page we read that a Belleview Hill homeowner will be forced to rattle around in an oversized marble mausoleum without the benefits of a communal fridge and rostered chores (' Home has the same marble as Michelangelo's David', August 8). Thank goodness we no longer think much about class in this country – it would do our heads in. Colin Stokes, Camperdown
Shot to rot
No, Ron Driscoll, there is nothing 'humane' about the culling of horses in Kosciuszko National Park (Letters, August 7). The horses are shot from the air and are left to die where they fall, however long that may take. It is a sad and confronting image, seeing their bodies left to rot throughout the park. Damage by humans and development is far more detrimental to the park. Ann Anderson, Waverton
Lots of slots
Reading Tom Gurn's article (' Can Tetris help with mental health? Evidence is building', August 8) reminded me of the time I was having much difficulty packing a dismantled bed frame I had bought into my SUV. Along came the seller's young son who quickly and neatly fitted the pieces into the vehicle, no problem. I thanked him and complimented him on this skill, to which he replied: 'That's from spending too many hours on Tetris.' So yes, Tetris works. Manbir Singh Kohl, Pemulwuy
Tax(idermy) haven
Why indeed did Scots College spend $13,000 on a scruffy old stuffed camel (' Michelle finds a forever home', August 8)? Like its new home in the ridiculously expensive Scottish-style castle, it serves no educational purpose whatsoever. Is this another elevation in the interschool rivalry? Will we see Shore buying a stuffed elephant (white or otherwise) next? While private schools bleat about not being able to pay council rates like every other local user, purchases such as this do little to support their credibility. Peter Cooper-Southam, Frenchs Forest
If Scots College bought another camel or two and put them all in its fairytale castle, it would have its very own Camelot. Merilyn McClung, Forestville
Buffed bosoms
The distinction for the most highly polished bare breasts in the world must go to Juliet's statue in Verona, Italy (Letters, August 8). The elegant statue does not need Brasso to maintain its lustre – the willing hands of hordes of tourists line up daily to cheerfully undertake this task. Joy Nason, Mona Vale
Take flight, Mango
Is Mango the parrot safe, or has it moved into witness protection disguised as a flamingo (' Chatty parrot brings down drug gang ', August 8)? Lisa Clarke, Watsons Bay
Postscript
Sunday's march for Gaza brought Sydneysiders of all stripes together in what turned out to be an uplifting display of unity, regardless of its contentious beginnings.
Before the eleventh-hour court decision permitting the march, readers were divided on whether it should go ahead, for quite varied reasons. The practical Ron Field spoke for many. 'These people wishing to disrupt traffic on Sydney Harbour Bridge do not help the situation in any way.'
Ross MacPherson took it further. 'Everybody with an axe to grind will be after the same privilege.'
Hugh Wolfenden wasn't worried about the inconvenience. 'Protest marches with tribal flag-waving and potential violent escalation only divide our society,' he wrote.
As it turned out, the march came off well, if not a bit wet, with no violence or injuries reported. On the contrary, wrote Bill Munro, who quoted organiser Josh Lees: 'It was a beautiful, inspiring outpouring of humanity.'
The heavy police presence spoiled it for some, though, who objected to being directed hither and thither in what acting deputy commissioner Peter McKenna described as 'close to a catastrophic situation'.
'Police decided to trap the crowds in the confined space of the bridge with no way back or forward,' wrote David Snell.
'Poor planning, poor decision-making and poor communication,' Siobhan Mullany said.
But Carolyn Quadrio didn't know what all the fuss was about. 'The only danger I could see was a few piles of horse manure, courtesy of the police mounted unit.'
Premier Chris Minns' opposition to crossing the bridge added to his growing political challenges. As well as 90,000 people, 20 per cent of his caucus put their boots on and joined the march. Herald faithful Nicholas Triggs expressed many readers' sentiments: 'Backflips on regulating the gambling industry, watering down tenants' protections, and now opposition to the march – somebody should suggest it's time he spent more time with his family.'
With Gaza still under siege, no end to Russia's war on Ukraine and famine in war-torn Sudan, this week's 80th anniversary of the atomic bombing of Hiroshima and Nagasaki made Bernard Moylan wonder whether humanity would ever learn that there are no winners in war.
'Does the human species actually have an inherent death wish?' he pondered.
Michael Lowing summed it up: 'War is, and always has been, hell. If we don't remember the full scope of wartime suffering, we risk repeating it.' Now if only those in power would take heed.
Ivan Hemens, Letters editor

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The Age
20 hours ago
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The system for selling property is broken
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Jenifer Nicholls, Windsor Meaningless roundtable Despite continued calls for change, if Anthony Albanese insists there will be no major overhaul of the tax system, just what is the point of the economic reform roundtable? Annie Wilson, Inverloch Learn from history Benjamin Netanyahu is deluding himself in believing that he can defeat Hamas. The full force of the American military battled the Viet Cong and the North Vietnamese army for 10 years and was defeated. The same will happen in Gaza no matter how much destruction and killing the Israeli Defence Force wreak there. Reg Murray, Glen Iris How high the toll? Gaza. How many more will die? Malcolm McDonald, Burwood A military occupation So it's now official Israeli policy to turn Gaza into a demilitarised zone, except for the Israeli military, of course. David Robertson, Wheatsheaf This is not freedom Benjamin Netanyahu says he wants to free the population of Gaza. More likely he'll free Gaza of its population. 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Lila Malagi, Flinders Premier, do something Thirty years ago, Jeff Kennett sold off government assets to pay down the massive public debt incurred by the Cain and Kirner administrations. We were the rustbucket state going nowhere, largely because the (then) powerful transport unions, supposedly 'supporters″ of Labor, regularly shut down the transport networks. Since then Labor has enthusiastically followed Kennett's playbook, selling off the last remaining government-owned assets. Now Victoria is once again mired in debt but with no 'silver' left to flog to pay it off. Instead of moaning about what the Liberals did a political eon ago, the premier should focus her attention on how she is going to fix the state's dreadful finances. Perhaps she could start by selling off the reconstituted SEC, but would anyone buy it? Greg Hardy, Upper Ferntree Gully A timid country You have to wonder why Anthony Albanese is organising a talkfest about policy when he is spending most of his time ruling policy options out. No increase to GST; no tackling of negative gearing (even for investors with multiple properties); no reforms to capital gains taxes or dividend imputation policies; and importantly no consideration of a carbon tax – the most effective and efficient tool in the fight against climate change. Above all else multinationals continue to exploit our natural resources while paying minimal or no tax. Australia was once a model for reforms – particularly in democratic initiatives – now we are a timid country run by timid people. Noel Turnbull, Port Melbourne


7NEWS
a day ago
- 7NEWS
Kathleen Folbigg review push as $2 million compensation for wrongful imprisonment ‘plucked out of the air'
A $2 million offer to a woman wrongfully imprisoned for two decades will face further scrutiny as decision-makers blame budget constraints for a figure critics say was 'plucked out of the air'. NSW Premier Chris Minns and Attorney-General Michael Daley have been urged to reconsider the ex gratia payment offered to Kathleen Folbigg. Folbigg was jailed in 2003 over the deaths of her four children before being freed in 2023 after new scientific evidence cast reasonable doubt over her convictions, which were later quashed. Minns said the $2 million was taxpayer funds and did not come from a 'magic pot'. 'This was the most amount of money that we believed we could allocate ... without pulling it away from other important programs,' Minns said. Compensation has been paid to others in the past after legal action and Minns said Folbigg was free to sue the government. Daley announced the payment on Thursday, more than a year after a compensation claim was submitted. After telling reporters the payment was offered to close down a push for a parliamentary inquiry, Nationals MP Wes Fang said the government was seeking to avoid scrutiny. 'It wasn't a coincidence,' he told AAP. He said the $2 million was a 'round figure' and the government had not revealed any information on how it was calculated. 'That raises concerns that there's been no evidentiary basis for that offer - it's just been plucked out of the air,' Fang said. He said the push for an inquiry was more important than ever. 'Mainstream everyday Australians have found the figure to be quite an affront,' Fang said. 'There's a growing call to understand how there's been the assessment done, and what assessments have been done.' Greens MP Sue Higginson said the issue went beyond Folbigg. 'It's very rare you get such a serious failing of the legal system and you get wrongful conviction and incarceration to this degree, but to suggest it will never happen again is just wrong,'' she said. 'It will, and we need a system of credibility with a bit of integrity about how we are going to address these injustices.' Higginson accepted the budget had constraints. 'But I know there's room in the budget right now to give Kathleen something more than $2 million, something more commensurate with the harm that the justice system has perpetrated,' she said. Higginson wrote to the premier and attorney-general on Friday, saying it remained 'immensely challenging' to understand how the figure was calculated and urging them to review it. 'I also implore you to meet with Folbigg and her team in negotiating an offer of ex gratia payment that reflects the extraordinary nature of this case,' she wrote. The premier and attorney-general are due before budget estimates later in August while calls for an inquiry into the payment could be furthered when parliament resumes in September.


The Advertiser
a day ago
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At this rate, the only outcome from this summit will be making us poorer
As we approach the productivity summit to end all summits, the various players have begun to stake out the propositions they wish to advance when Jim Chalmers' roundtable begins in just over a week. The various union representatives want to advocate for higher taxes, and further restrictions on businesses: this time in relation to potential AI job losses. Meanwhile, the various business groups are focused on achievable reforms, especially in relation to regulation and red tape. Though more united than in the lead-up to 2022's disastrous "jobs and skills" summit, business leaders should be very nervous about the prospect of being cornered and pressured into accepting a "compromise" that is anything but. Specifically, business leaders should outright reject any compromise that increases taxation in order to close the budget deficit. Increasing taxation, especially tax increases that also increase the progressivity of the tax system, will be terrible for productivity. Nor will it actually fix the budget deficit problem which, as my colleague Robert Carling argues in his recent research, is driven entirely by increases in government spending. History has shown that attempts to close budget gaps with additional taxation will only lead to more spending. The deficit remains and the size of government ratchets up again. Of course, whether the roundtable achieves anything tangible will depend on the extent to which the government will use the gathering to push its economic agenda. Unfortunately, most of the Treasurer's economic ideas are unlikely to increase productivity. If anything, his government-centric view of capitalism, and the broader left's obsession with redistribution over growth, will reduce productivity growth. That said, there is no reason for the government not to do so. It is riding high after a thumping electoral victory and the opposition is in disarray. The ALP previously outmanoeuvred the same groups to gain cover for its industrial relations re-regulatory program, and productivity remains a subject poorly understood by the public at large anyway. Worse still for those actually concerned about the inevitable decline in future living standards that will come from poor productivity growth, the Labor government is the only one attempting to explain how their economic agenda fits into a broader vision for Australia. This is where the true battle should be for the summit. Labor's view of the economy is one with government at the centre directing the economic and social priorities of society in favour of unions, super funds and interest groups. These are the core left constituencies, although they claim to represent broad swathes of society - a claim that could be the subject of substantial dispute in practice. Over time, as their direct constituencies have fallen away, they have tended to adopt a broader social focus. One specific area where the left has shifted focus is the rhetorical move away from "poverty" towards "inequality". At the same time that absolute poverty in Australia has fallen significantly, the focus on the need to increase the progressivity of the tax system has increased to the point where it drowns out all other concerns. Consequently, redistribution is no longer just about creating a robust safety net for those who need it but a broader project aimed at the impossible goal of making society "fairer" for all. As we have already seen, parts of the left can never be satisfied that businesses and high-income individuals have paid enough tax to meet their supposed "fair share". This has a direct and lasting impact on productivity. Higher taxes dampen incentives to save and invest. In a world where capital and high-income individuals are highly mobile, these incentive effects are amplified. Even the government has admitted that a big part of the problem has been a sustained investment drought in Australia. Yet, for all the focus on cash incentives to lure businesses to invest again, almost no focus has been placed on why investment dried up in the first place. Surely, at least in part, the constant increase in both the volume and complexity of regulation for decades now - together with the constant pressure for higher taxation on anyone who does make a decent return - has shifted the perceptions of risk and return? Moreover, the need to constantly rebalance society to combat inequality means the burden of regulation and taxation can only increase over time. A temporary focus on deregulation at this summit, and perhaps for a short time after, will not shift this direction. The risk of a summit like this is that business, government and unions will all get together and divvy up the economic spoils, without a thought for the interests of voters and consumers. READ MORE SIMON COWAN: In that sense, not only does productivity growth not need a grand bargain from this event, there is every chance that such a deal will reduce productivity growth! It is not just alternative policies that are needed: an alternative vision is needed as well. A vision of society where anyone can get ahead, not just those who belong to the right political group. A vision where personal responsibility and personal freedom are matched and prioritised. A society of low regulation and low taxation, with a genuine safety net for those who need it, not one that institutionalises envy, and pursues policies aimed at punishing people for being successful, (like taxing unrealised gains). This leads to an economy where the interests of the consumer are put above the interests of both business and unions. Such an economy is vibrant, innovative and productive. As we approach the productivity summit to end all summits, the various players have begun to stake out the propositions they wish to advance when Jim Chalmers' roundtable begins in just over a week. The various union representatives want to advocate for higher taxes, and further restrictions on businesses: this time in relation to potential AI job losses. Meanwhile, the various business groups are focused on achievable reforms, especially in relation to regulation and red tape. Though more united than in the lead-up to 2022's disastrous "jobs and skills" summit, business leaders should be very nervous about the prospect of being cornered and pressured into accepting a "compromise" that is anything but. Specifically, business leaders should outright reject any compromise that increases taxation in order to close the budget deficit. Increasing taxation, especially tax increases that also increase the progressivity of the tax system, will be terrible for productivity. Nor will it actually fix the budget deficit problem which, as my colleague Robert Carling argues in his recent research, is driven entirely by increases in government spending. History has shown that attempts to close budget gaps with additional taxation will only lead to more spending. The deficit remains and the size of government ratchets up again. Of course, whether the roundtable achieves anything tangible will depend on the extent to which the government will use the gathering to push its economic agenda. Unfortunately, most of the Treasurer's economic ideas are unlikely to increase productivity. If anything, his government-centric view of capitalism, and the broader left's obsession with redistribution over growth, will reduce productivity growth. That said, there is no reason for the government not to do so. It is riding high after a thumping electoral victory and the opposition is in disarray. The ALP previously outmanoeuvred the same groups to gain cover for its industrial relations re-regulatory program, and productivity remains a subject poorly understood by the public at large anyway. Worse still for those actually concerned about the inevitable decline in future living standards that will come from poor productivity growth, the Labor government is the only one attempting to explain how their economic agenda fits into a broader vision for Australia. This is where the true battle should be for the summit. Labor's view of the economy is one with government at the centre directing the economic and social priorities of society in favour of unions, super funds and interest groups. These are the core left constituencies, although they claim to represent broad swathes of society - a claim that could be the subject of substantial dispute in practice. Over time, as their direct constituencies have fallen away, they have tended to adopt a broader social focus. One specific area where the left has shifted focus is the rhetorical move away from "poverty" towards "inequality". At the same time that absolute poverty in Australia has fallen significantly, the focus on the need to increase the progressivity of the tax system has increased to the point where it drowns out all other concerns. Consequently, redistribution is no longer just about creating a robust safety net for those who need it but a broader project aimed at the impossible goal of making society "fairer" for all. As we have already seen, parts of the left can never be satisfied that businesses and high-income individuals have paid enough tax to meet their supposed "fair share". This has a direct and lasting impact on productivity. Higher taxes dampen incentives to save and invest. In a world where capital and high-income individuals are highly mobile, these incentive effects are amplified. Even the government has admitted that a big part of the problem has been a sustained investment drought in Australia. Yet, for all the focus on cash incentives to lure businesses to invest again, almost no focus has been placed on why investment dried up in the first place. Surely, at least in part, the constant increase in both the volume and complexity of regulation for decades now - together with the constant pressure for higher taxation on anyone who does make a decent return - has shifted the perceptions of risk and return? Moreover, the need to constantly rebalance society to combat inequality means the burden of regulation and taxation can only increase over time. A temporary focus on deregulation at this summit, and perhaps for a short time after, will not shift this direction. The risk of a summit like this is that business, government and unions will all get together and divvy up the economic spoils, without a thought for the interests of voters and consumers. READ MORE SIMON COWAN: In that sense, not only does productivity growth not need a grand bargain from this event, there is every chance that such a deal will reduce productivity growth! It is not just alternative policies that are needed: an alternative vision is needed as well. A vision of society where anyone can get ahead, not just those who belong to the right political group. A vision where personal responsibility and personal freedom are matched and prioritised. A society of low regulation and low taxation, with a genuine safety net for those who need it, not one that institutionalises envy, and pursues policies aimed at punishing people for being successful, (like taxing unrealised gains). This leads to an economy where the interests of the consumer are put above the interests of both business and unions. Such an economy is vibrant, innovative and productive. As we approach the productivity summit to end all summits, the various players have begun to stake out the propositions they wish to advance when Jim Chalmers' roundtable begins in just over a week. The various union representatives want to advocate for higher taxes, and further restrictions on businesses: this time in relation to potential AI job losses. Meanwhile, the various business groups are focused on achievable reforms, especially in relation to regulation and red tape. Though more united than in the lead-up to 2022's disastrous "jobs and skills" summit, business leaders should be very nervous about the prospect of being cornered and pressured into accepting a "compromise" that is anything but. Specifically, business leaders should outright reject any compromise that increases taxation in order to close the budget deficit. Increasing taxation, especially tax increases that also increase the progressivity of the tax system, will be terrible for productivity. Nor will it actually fix the budget deficit problem which, as my colleague Robert Carling argues in his recent research, is driven entirely by increases in government spending. History has shown that attempts to close budget gaps with additional taxation will only lead to more spending. The deficit remains and the size of government ratchets up again. Of course, whether the roundtable achieves anything tangible will depend on the extent to which the government will use the gathering to push its economic agenda. Unfortunately, most of the Treasurer's economic ideas are unlikely to increase productivity. If anything, his government-centric view of capitalism, and the broader left's obsession with redistribution over growth, will reduce productivity growth. That said, there is no reason for the government not to do so. It is riding high after a thumping electoral victory and the opposition is in disarray. The ALP previously outmanoeuvred the same groups to gain cover for its industrial relations re-regulatory program, and productivity remains a subject poorly understood by the public at large anyway. Worse still for those actually concerned about the inevitable decline in future living standards that will come from poor productivity growth, the Labor government is the only one attempting to explain how their economic agenda fits into a broader vision for Australia. This is where the true battle should be for the summit. Labor's view of the economy is one with government at the centre directing the economic and social priorities of society in favour of unions, super funds and interest groups. These are the core left constituencies, although they claim to represent broad swathes of society - a claim that could be the subject of substantial dispute in practice. Over time, as their direct constituencies have fallen away, they have tended to adopt a broader social focus. One specific area where the left has shifted focus is the rhetorical move away from "poverty" towards "inequality". At the same time that absolute poverty in Australia has fallen significantly, the focus on the need to increase the progressivity of the tax system has increased to the point where it drowns out all other concerns. Consequently, redistribution is no longer just about creating a robust safety net for those who need it but a broader project aimed at the impossible goal of making society "fairer" for all. As we have already seen, parts of the left can never be satisfied that businesses and high-income individuals have paid enough tax to meet their supposed "fair share". This has a direct and lasting impact on productivity. Higher taxes dampen incentives to save and invest. In a world where capital and high-income individuals are highly mobile, these incentive effects are amplified. Even the government has admitted that a big part of the problem has been a sustained investment drought in Australia. Yet, for all the focus on cash incentives to lure businesses to invest again, almost no focus has been placed on why investment dried up in the first place. Surely, at least in part, the constant increase in both the volume and complexity of regulation for decades now - together with the constant pressure for higher taxation on anyone who does make a decent return - has shifted the perceptions of risk and return? Moreover, the need to constantly rebalance society to combat inequality means the burden of regulation and taxation can only increase over time. A temporary focus on deregulation at this summit, and perhaps for a short time after, will not shift this direction. The risk of a summit like this is that business, government and unions will all get together and divvy up the economic spoils, without a thought for the interests of voters and consumers. READ MORE SIMON COWAN: In that sense, not only does productivity growth not need a grand bargain from this event, there is every chance that such a deal will reduce productivity growth! It is not just alternative policies that are needed: an alternative vision is needed as well. A vision of society where anyone can get ahead, not just those who belong to the right political group. A vision where personal responsibility and personal freedom are matched and prioritised. A society of low regulation and low taxation, with a genuine safety net for those who need it, not one that institutionalises envy, and pursues policies aimed at punishing people for being successful, (like taxing unrealised gains). This leads to an economy where the interests of the consumer are put above the interests of both business and unions. Such an economy is vibrant, innovative and productive. As we approach the productivity summit to end all summits, the various players have begun to stake out the propositions they wish to advance when Jim Chalmers' roundtable begins in just over a week. The various union representatives want to advocate for higher taxes, and further restrictions on businesses: this time in relation to potential AI job losses. Meanwhile, the various business groups are focused on achievable reforms, especially in relation to regulation and red tape. Though more united than in the lead-up to 2022's disastrous "jobs and skills" summit, business leaders should be very nervous about the prospect of being cornered and pressured into accepting a "compromise" that is anything but. Specifically, business leaders should outright reject any compromise that increases taxation in order to close the budget deficit. Increasing taxation, especially tax increases that also increase the progressivity of the tax system, will be terrible for productivity. Nor will it actually fix the budget deficit problem which, as my colleague Robert Carling argues in his recent research, is driven entirely by increases in government spending. History has shown that attempts to close budget gaps with additional taxation will only lead to more spending. The deficit remains and the size of government ratchets up again. Of course, whether the roundtable achieves anything tangible will depend on the extent to which the government will use the gathering to push its economic agenda. Unfortunately, most of the Treasurer's economic ideas are unlikely to increase productivity. If anything, his government-centric view of capitalism, and the broader left's obsession with redistribution over growth, will reduce productivity growth. That said, there is no reason for the government not to do so. It is riding high after a thumping electoral victory and the opposition is in disarray. The ALP previously outmanoeuvred the same groups to gain cover for its industrial relations re-regulatory program, and productivity remains a subject poorly understood by the public at large anyway. Worse still for those actually concerned about the inevitable decline in future living standards that will come from poor productivity growth, the Labor government is the only one attempting to explain how their economic agenda fits into a broader vision for Australia. This is where the true battle should be for the summit. Labor's view of the economy is one with government at the centre directing the economic and social priorities of society in favour of unions, super funds and interest groups. These are the core left constituencies, although they claim to represent broad swathes of society - a claim that could be the subject of substantial dispute in practice. Over time, as their direct constituencies have fallen away, they have tended to adopt a broader social focus. One specific area where the left has shifted focus is the rhetorical move away from "poverty" towards "inequality". At the same time that absolute poverty in Australia has fallen significantly, the focus on the need to increase the progressivity of the tax system has increased to the point where it drowns out all other concerns. Consequently, redistribution is no longer just about creating a robust safety net for those who need it but a broader project aimed at the impossible goal of making society "fairer" for all. As we have already seen, parts of the left can never be satisfied that businesses and high-income individuals have paid enough tax to meet their supposed "fair share". This has a direct and lasting impact on productivity. Higher taxes dampen incentives to save and invest. In a world where capital and high-income individuals are highly mobile, these incentive effects are amplified. Even the government has admitted that a big part of the problem has been a sustained investment drought in Australia. Yet, for all the focus on cash incentives to lure businesses to invest again, almost no focus has been placed on why investment dried up in the first place. Surely, at least in part, the constant increase in both the volume and complexity of regulation for decades now - together with the constant pressure for higher taxation on anyone who does make a decent return - has shifted the perceptions of risk and return? Moreover, the need to constantly rebalance society to combat inequality means the burden of regulation and taxation can only increase over time. A temporary focus on deregulation at this summit, and perhaps for a short time after, will not shift this direction. The risk of a summit like this is that business, government and unions will all get together and divvy up the economic spoils, without a thought for the interests of voters and consumers. READ MORE SIMON COWAN: In that sense, not only does productivity growth not need a grand bargain from this event, there is every chance that such a deal will reduce productivity growth! It is not just alternative policies that are needed: an alternative vision is needed as well. A vision of society where anyone can get ahead, not just those who belong to the right political group. A vision where personal responsibility and personal freedom are matched and prioritised. A society of low regulation and low taxation, with a genuine safety net for those who need it, not one that institutionalises envy, and pursues policies aimed at punishing people for being successful, (like taxing unrealised gains). This leads to an economy where the interests of the consumer are put above the interests of both business and unions. Such an economy is vibrant, innovative and productive.