I refer to my earlier posting (“well done Murdoch shame on business”) regarding the current business advertisements and Steketee’s critique of them.
Peter Hendy, Chief Executive of ACCI, has a letter in the Weekend Australian claiming that Steketees criticisms were wide of the mark. Unwittingly, however, his letter concedes that the business ads were grossly misleading.
The ads state, for example, that interest rates would be 1.4 percentage points higher if workplace reforms were reversed. He now says that the ads were meant to be about the 1993, 1996 and 2006 reforms. But they failed to say so.
So what are we left with? Labor has said it has no intention of reversing the 1993 reforms which (according to Steketee) account for 2/3 of the 1.4% interest rate impact estimated by Econtech. Moreover, Labor has indicated that it will retain many the 1996 and 2006 reforms (such as in regard to trade unions).
This means that the maximum effect on interest rates of Labors proposed roll back of WorkChoices will be 0.25 percentage points – and that is if you believe the underlying Econtech modelling (which is well respected but based on many challengeable assumptions).