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Taylor report: more frustration for business

Published on July 27, 2017

It seems that, after the efforts of Murray and Konta, tennis fever has taken hold in Government now . Issues are not resolved, rather knocked back and forth over the public’s heads. Take this example from the Taylor report:

“..given that this Review is only the latest in a series of studies to make the point about the differential taxing of employed and self-employed, we would encourage the Government to raise public awareness of this issue and engage in debate with stakeholders about potential long term solutions.”

So after years of consultations, and even with knowledge of the Mirrlees review in 2010 saying that employment taxes should not distort the way of contracting with people, the recommendation is to engage in debate. How does he suggest the Government do that? Maybe commission a report to look at the possible methods of reforming tax, consult with interested parties and submit the findings to Government. Ping…pong.

If there is one lesson to be taken from the last election campaigns surely it is that leadership needs to be decisive? The world has always been changing but it seems to me that the pace of innovation is increasing. Billions are entering the work place, largely in free economies; and artificial intelligence and genetic engineering are just around the corner. But those pressing issues are way down the agenda. Our leaders still haven’t addressed the mobility of capital (which reduces national tax bases), workers’ taxation (see above) or even how we trade with neighbours whom we traded with openly for 40 years (it’s already getting boring isn’t it).

Investment in infrastructure is now seen as a good thing. And I think that it is. How about investment in the infrastructure of Government? So that we can get these things done?

It’s said that business likes certainty so that it can invest. Well certainty for workers will improve productivity too. Let’s stop discussing and act.

  • Ensure that those on zero hours contracts would like a clear written statement of their contract terms on day 1 (which is required but currently honoured in the breach) and the right to request fixed hours after a year, at the average level they worked in that time.
  • Provide clarity to those in the gig economy who need to know whether they are employees, dependent contractors or self-employed; and that their competitors are the same, that they don’t have an unfair advantage because they are deemed self-employed and so can charge less because they pay less tax.

Uber was devised in 2009 and launched in 2010. It went international in 2011, since when we’ve had TWO Olympic games, and THREE plebiscites. Business leaders get sacked for failing to innovate (Woolworths, Kodak, Blockbuster) and sometimes castigated for innovating too quickly (Segways, Google Glasses and, erm, railway manning). But at least we try to move the world forward and make it a better place.

Is that not the primary role of Government too? Or is it still a talking shop beside a Victorian paper factory that doesn’t have enough gigabytes for the gigs it has to play?