It's not too long a read. The key findings fit into a few pages, and provides enough of a helicopter view to get a clear view of the direction the Productivity Commission believes agencies should take.
There's implications for every area of government, with many underlying potential impacts on how government operates, how our society functions and how government, businesses and citizens interact into the future.
Some of the recommendations include more assertively addressing risk aversion in government, properly considering the emerging skills needed for public servants and how to train or acquire them, taking a more flexible, iterative and adaptable approach to policy development to address the issue that technology is outpacing decision-making and improved collaboration and sharing throughout government and with external players to ensure the right mix of ideas and skills is in the room for complex decision making.
To make it quickly review, I've included the key findings below:
Impacts of disruption on markets and competition
Finding 2.1
- the importance of scale in production
- the types of capital firms need
- how much work happens within the firm and how much is outsourced
- the types of jobs that will be created and replaced
- the dynamics of the business cycle.
Finding 2.2
Finding 2.3
- secure movement of data across borders
- regulatory requirements for delivery of service exports in other countries
- barriers to outsourcing imposed by differential treatment across industries and products in bilateral and regional trade agreements and in behind the border policies
- workability of rules of origin with many disparate sources of inputs to production.
Finding 2.4
Finding 2.5
- The length of time and extent to which firms can exercise market power is highly uncertain, requiring active monitoring rather than pre emptive action.
- New regulatory tools may be needed to address these very different sources of market power arising with the digital economy. Aspects of third party access regimes could be explored as a relevant approach.
Finding 2.6
Finding 2.7
- consumers may capture a larger share of growth in productivity where this is delivered in terms of higher quality products, and where enhanced competition drives down prices
- some digital products can be difficult to monetise
- the value of data and networks can result in a winner take all model in some digital services.
Impacts of disruption on workers and society
Finding 3.1
Finding 3.2
- changes to workplace relations regulations are required to accommodate a growing category of employment
- the income support system needs to be changed to ensure it is not a barrier to workforce engagement and helps reduce income volatility for low income workers.
Finding 3.3
Finding 3.4
Finding 3.5
Implications of disruption for how governments operate
Finding 4.1
- adopt a 'wait and see' approach to new business models and products rather than reacting quickly to regulate what may be unrealised risks
- where relevant regulations already exist
- adopt fixed term regulatory exemptions for innovative entrants that maintain overarching regulatory objectives (as recommended by the Business Set up, Transfer and Closure inquiry)
- use the opportunity of disruption to reform markets where there have been undue regulatory restrictions by removing restrictions that impose a competitive disadvantage on incumbents rather than extend existing restrictions to new business models
- where regulation is needed to manage negative externalities, take a proportionate approach (that is, balance the benefits and costs) and regulate outcomes not technologies.
- take an evidence based approach drawing on Australia's scientific agencies in making assessments of the risks to the community from new technologies
- regularly review regulations affected by digital technologies, especially where an increasing share of activity is mediated through digital platforms
- assign the responsibility for reporting to the parties best able to comply at least cost, and design transparent mechanisms for dealing with complaints.
Finding 4.2
- are the minimum necessary to achieve regulatory objectives
- maximise interoperability
- follow international standards where practicable and relevant, unless use of standards based on Australian technology would deliver higher net community benefits
- are developed in consultation with the private sector.
Finding 4.3
- removing disincentives for universities to work collaboratively with business and encouraging the sharing of knowledge
- ensuring transparent policy objectives and predictability in those areas most affected by developments in technologies
- improving the functioning of cities to attract and retain highly skilled workers and innovative firms.
Finding 4.4
- reduce regulations aimed at the provision of information on a product or service, where consumers are more effectively able to get this information through another avenue (such as an online rating system)
- encourage digital platforms to develop industry standards to improve the reliability of feedback and right of reply and prevent the use of gag clauses on consumers
- encourage industries to develop a common or standardised language around product offerings to assist consumers in making comparisons
- ensure existing broader governance structures for consumer complaints are sufficient to give consumers and businesses confidence in the use of digital intermediaries.
Finding 4.5
- protect individuals privacy
- prevent the unlawful use of information
- maintain the integrity of digital networks.
Finding 4.6
Finding 4.7
- allowing consumer choice to play a greater role in the delivery of human services
- using linked information on services and customers to better target service delivery and introduce more integrated services
- reducing the cost and improving the safety of people involved in areas such as environmental management and emergency services.
Finding 4.8
- assess infrastructure usage and the responsiveness of demand to pricing and to introduce efficient pricing technology
- augment and maintain public infrastructure in ways that minimise disruption to its use
- optimise investment in public infrastructure, better matching the build requirements to evolving needs.
Finding 4.9
- A risk averse culture in the development of policies that are wide reaching within the relevant jurisdiction could be assuaged by measures such as: greater use of policy trials, relying on precedents from other jurisdictions; and drawing on recommendations and advice of independent agencies.
- Skill sets within the public service need to evolve in tandem with technological change. The capacity of agencies to recruit staff with relevant skills and shed those with inadequate skills could be enhanced by more flexible performance management and termination conditions in agency enterprise agreements.
- A sharing of data and cooperation between agencies would improve capacities to solve complex problems that do not fit neatly into the competencies of a single agency.
- Governments need to find ways to:
- exploit, in their program delivery and policy making processes, the increased transparency that comes with digital technologies
- avoid locking in details of policy responses at early stages without scope for genuine re evaluation 'en route' to the end objective.