The latest OECD Economic Outlook should be a warning shot for Australian retailers on the exorbitant cost of another three years of Labor’s failed economic plan claims Shadow Treasurer, Angus Taylor, while Australia’s largest retailer has called for reform.
Taylor a key minister in the opposition claims that the National Accounts released this week, showed the Albanese Labor Government has delivered the longest household recession on record and the biggest collapse in living standards in 50 years a situation that now has retailers concerned as to how consumers will spend money during the peak holiday period this year.
The potential of a further downturn in spending by Australians is of “Paramount concern” with retailers now having to compete with brands who are selling direct and overseas owned web sites that are sucking revenue away from Australia retailers who according to the Australian Retailers Association are already under pressure due to rising operational and employee costs.
The OECD report confirms there is not a lot of no light at the end of the tunnel for the economy under Labor, with questions now being raised as to whether Australians will vote in a Coalition Government with the power to make decisions or whether Australia will be at the beck and call of minority parties next year which observers claim will be a disaster for retailers.
Angus Taylor reacts during Question Time in the House of Representatives
Several major retailers that ChannelNews has spoken to claim that the Country needs a Federal Government with a clear mandate to fix up the economy. “We need a new Government” claims a board member of a major appliance and CE retailer.
The leader of Australia’s biggest group Rob Scott, from Wesfarmers, claims that he supports the kickstart of a private sector-led economic recovery that he claims is held back by onerous IR laws and an uncompetitive tax system introduced under Labor that are impacting retailers and pushing up the costs of goods in stores.
New ABS data reveals that annual gross domestic product growth unexpectedly slumped to 0.8 per cent in September,
Treasurer Jim Chalmers admitted the private sector was the only sustainable source of medium-term economic growth.
“The golden goose that produced our fair and prosperous society is gasping for air,” McKinsey warned in a recent report.
Australia is now ranked 30th out of 35 wealthy countries in the OECD in terms of productivity growth.
Wesfarmers chief executive Rob Scott said the latest national accounts figures were very concerning.
“If there’s anything positive coming out of a negative set of numbers, I hope that it is that in the lead-up to the federal election, there’ll be much greater focus on what we can do to encourage greater private sector investment,” he said.
Rob Scott Wesfarmers
“What can we do to reduce regulation and red tape? Because the latest accounts demonstrate that … relying on government funding to support growth is … not in the future interests of the country.”
Angus Taylor claims that the OECD forecasts show Australia’s economy growing below the world and G20 average over the next three years and slower than advanced economies in 2025 including the United States, Spain, Canada, Denmark and South Korea.
Next year Australia is forecast to have higher inflation than Germany, Spain, Japan, France, Canada, Korea and the United States.
The OECD’s Economic Outlook is clear: governments need to rein in spending, reduce debt and deregulate their economies to boost investment, innovation and economic growth.
Instead, Labor is strangling businesses in red and green tape through bad workplace laws, job destroying environmental regulation and higher taxes.
The Mid-Year Economic and Fiscal Outlook (MYEFO) is an opportunity for Labor to admit its mistakes and change course by restoring strong fiscal guardrails, ending wasteful spending and red tape and charting a path back to a structural budget balance.
This is the only way to bring down inflation sustainably and restore Australians’ living standards. Australia needs solutions to our collapsing economy not more subsidies and more big government.
Australia is on the wrong track under Labor’s failed economic management. Labor’s combination of higher taxes, reckless spending and big government is keeping prices high and making Australians poorer.
The Coalition will rebuild our economy by boosting investment, increasing competition, cutting government waste and red tape, rebuilding business, lowering taxes and delivering secure, low emissions energy.
Only a Peter Dutton-led Coalition Government will restore strong budget management and get Australia back on track said Taylor.
