Productivity Commission

Productivity Commission

Agency overview
Formed	1998
Preceding agencies	Industry Commission, Bureau of Industry Economics, Economic Planning Advisory Commission
Type	Statutory Agency
Jurisdiction	Commonwealth of Australia
Headquarters	Melbourne
Employees	165[1]
Annual budget	$AU 33,476,000 [2]
Minister responsible	Scott Morrison, Treasurer
Agency executives	Peter Harris, Chairman Nina Davidson, Head of Office
Parent department	Treasury
Key document	Productivity Commission Act 1998
Website	pc.gov.au

The Productivity Commission is the Australian Government's principal review and advisory body on microeconomic policy, regulation and a range of other social and environmental issues.

The Productivity Commission was created as an independent authority by the Productivity Commission Act 1998, an Act of the Australian Parliament.

The Commission operates within the Treasury portfolio and its core function involves responding to references from the Treasurer, which can request a commissioned study or a public inquiry. References to the Commission stipulate the length and terms of the project and may cover any sector of the Australian economy; address a particular industry or cut across industry boundaries; and involve wider social or environmental issues.

Most projects are specified for nine or twelve-month duration, although some may be six or fifteen months. Both studies and inquiries accept submissions from members of the public and involve the public release of a draft and final report, although inquiries are additionally required (under the Act) to undertake formal public consultations.

In addition, the Commission acts as the secretariat to the intergovernmental Review of Government Service Provision, and produces regular reports on Overcoming Indigenous Disadvantage and Indigenous Expenditure that contribute to a better understanding of the effectiveness of government services provided to Indigenous Australians.

The Commission can also self-initiate research on industry and productivity issues, and operates as the Australian Government's competitive neutrality complaints mechanism.

Productivity Commission reports often form the basis of government policy. However, the Commission does not administer government programs or exercise executive power and governments are not required to act on its recommendations; although in practice more recommendations have been accepted than rejected.

History

The Commission traces its lineage back to the Tariff Board, which was established in the 1920s. On 1 January 1974, the Tariff Board became the Industries Assistance Commission and then in 1989 it became the Industry Commission.

The Productivity Commission was created as an independent authority in April 1998 by the Productivity Commission Act 1998, and replaced the Industry Commission, the Bureau of Industry Economics and the Economic Planning Advisory Commission. These three bodies were amalgamated on an administrative basis in 1996.

The Commission’s remit may extend beyond Australia, such as when the Commission worked jointly with the newly formed New Zealand Productivity Commission on a study into Trans-Tasman Economic Relations in 2012.^[3]

Operation

The Commission is headed by a Chairperson and between 4 and 11 other Commissioners, who are appointed by the Governor-General for periods up to five years. Associate Commissioners can be appointed by the Treasurer on a full or part-time basis. Commission staff are Commonwealth public servants. The average number of employees in the 2015–2016 financial year was 165.^[4]

The Commission reports formally through the Treasurer to the Australian Parliament, where its inquiry reports are tabled. Final inquiry reports must be tabled in Parliament within 25 sitting days of the Government receiving the report.

What makes the Commission unusual, if not unique, among public sector institutions around the world, is the combination of three core principles which it embodies:

• Independence — The Commission operates under the protection and guidelines of its own legislation. It has an arm’s length relationship with the Government. While the Government largely determines its work program, it cannot tell it what to say and the Commission’s findings and recommendations are based on its own analyses and judgments.
• Transparency — The Commission’s advice to government, and the information and analysis on which it is based, are open to public scrutiny. Its processes provide for extensive public input and feedback through hearings, workshops and other consultative forums, and through the release of draft reports and preliminary findings.
• A community-wide focus — The Commission is obliged under its statutory guidelines to take a broad view, encompassing the interests of the economy and community as a whole, rather than just particular industries or groups. Environmental, regional and social dimensions of its work are also considered, informed by public consultation and the Commission's own research capability.

References

External links

• Productivity Commission website
• Productivity Commission twitter feed