Action on inequality can boost economy

Zak Kirkup Published July 28, 2023 at 1.00pm (AWST)

As he dropped the mic with a few "lack of political will" lines in facing the challenges of the future, the outgoing governor of the Reserve Bank of Australia got a lot of attention and gave us a lot think about in his final official international speech.

Whilst Philip Lowe's swipe at pollies got the headlines, what he said about the lack of structural productivity in Australia deserves much more attention.

"I want to make one point. I want to emphasise the importance of doing what we reasonably can on productivity growth," he said to the G20 Finance Ministers assembled in India last week.

"Low productivity growth means economic and social problems," he said before going on to cite slow wage growth and increased public tension around income inequality.

In a cruel irony, it is Indigenous Australians who are both the most victimised and biggest source of opportunity in our country if we are to act on Dr Lowe's concerns.

Economically speaking, Indigenous Australians are disproportionately disadvantaged already, let alone the impact of the rising levels of income inequality, inflation, interest rates, a slower expansion in public services and access to education and opportunity.

It undoubtedly needs to remain a priority of government and business, together, to ensure that there are measures in place to make good on what has been a legacy of inaction.

This too though is where the opportunity lies.

Nearly half of Indigenous Australians are unemployed. Access to training and opportunities, as we've seen with the recent announcement by the Commonwealth Government over funding for Indigenous university places, remains sorely behind where they need to be.

As the Gap fails to close, it's obvious to everyone that there is so much more upside economic potential if we support our First Nations brothers and sisters.

As a country, we don't have time to decide whether or not we want a Voice to address the concerns raised by the RBA Governor.

It's up to business and government to make the improvements now, tackle Indigenous employment, productivity and economic inclusion not just for the good of our people but, as Dr Lowe alluded, for the good of our entire country and our future economic stability.

Zak Kirkup is of Yamatji heritage, is the former leader of the Liberal Party in WA, and owner of Kolbang.

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National Indigenous Times

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