Back the Right Man

By Andrew Brennan

The Prime Minister often speaks the praises of being ‘agile’ and ‘innovative’, so what is Andrew’s take on what the government is doing to bring this to light?

Malcolm Turnbull is certainly a man who knows risky business. Since developing his successful investment bank, Malcolm doesn’t need to worry too much about whether his income needs a fall back. The same can’t be said about the Australian economy. Our current growth rate is sitting under 0.9% and with international markets failing and fluctuating and other f words coming to mind, what is Australia’s fall back to prevent recession? Our new budding Prime Minister needs to stick on some big boy pants and figure out how to keep the engine running on something other than natural resources. The name of the game? Innovation.

Malcolm intends to bring about the era of risk as a sort of the evangelist of change. In order to make the most of innovation, he needs one billion dollars over the next four years. Its probably about the same amount Gina Rinehart makes in a year or what Doctor Evil ransomed the USA government for. Either way it’s a ton of money and a ton of cuts.

The CSIRO is expected to receive 200 million to support spin-off and start-up companies, with an extra $20 million to commercialise research outcomes. You know, dressing up science like it’s prom night. It’s a nice gesture seeing as the Abbott budget cut $111 million over 4 years to the CSIRO in 2014. Better late than never!

For the “ideas boom”, the government will spend $84 million over four years on upgrading teachers’ skills and introducing new computer coding programs for some young whippersnappers in years 5-7. At least half of which is expected to be spent on Minecraft upgrades. Employment is expected to improve due to all this surplus spending, especially to companies that are “agile” and “have a sense of optimism”.

“He is being pushed out of his conservative, money-tightening ways in order to release his inner revolutionary.”

Industry and Innovation Minister Christopher Pyne appears to be the current facilitator of industry change. He is being pushed out of his conservative, money-tightening ways in order to release his inner revolutionary. Being the driver of the economy of the future, Pyne is expected to guarantee the refunding of some longer-term projects such as the Australian Synchrotron nuclear facility ($520 million) and the Square Kilometre Array multination radio telescope project ($294 million).

On top of all the cutting and spending, some important bankruptcy legislation is expected to change in order to reduce the stigma that losing isn’t all in all a bad thing. The new law would allow trading while insolvent where the business appoints a reconstructing adviser to work on a turnaround plan. In an attempt to Americanise the bankruptcy system, Malcolm wants to make Australians be more confident with their risks, especially the profit making type. Other than this, there will be new tax breaks for start ups and offsets for investors who want to get aboard the change train.

Overall, the Turnbull government is looking forward to a high wage, high social safety net economy, moving away from the Abbot-Hockey cuts to try and deliver our nation to a new world. However, with so much freedom to fail, will the “new Australia” bring a proper return or fall short on its repayment plan? Only time will tell.

 

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