Aaron Lane

Chapter 12

There is a popular perception that a culture of bureaucracy in the public sector is pervasive. Public servants have a reputation for being too preoccupied with following a strict interpretation of the rules to worry about satisfying the consumers that rely on their services. Many would consider the concept of public sector innovation to be an oxymoron. In this chapter, the connection between expenditure and regulation will be explored - using public education services as an example. Next, the observable increase in regulatory complexity over time is detailed. Finally, recent school autonomy initiatives are considered before offering some suggestions for future directions for reform.

Innovation is essential to the improvement of public sector services, yet restrictive regulations may constrain this process. This paper draws on the school autonomy literature to advance our understanding of the effect of regulatory constraints on public sector innovation, using Queensland's Independent Public Schools (IPS) program as a case study and example of regulatory change. The IPS program commenced operation in 2013. Schools are accepted into the program through an expression of interest application. Application forms require individual schools to outline the 'innovative educational programs or practices' the school will be able to implement if it is accepted as an IPS (Innovation Question). A textual content analysis was undertaken of the Innovation Question for a total of 127 successful applications in the 2013, 2014 and 2015 rounds. Coding was developed based on the Schumpeterian forms of innovation. Overall the results show that the Queensland IPS initiative will foster innovation according to principal's perceptions about the innovative practices that they will be able to implement as an IPS. The paper finds that the current centralised service delivery model is constraining innovation with respect to staffing flexibility, school partnerships, leasing and licensing of facilities and in managing school buildings, facilities and infrastructure.

Behavioural taxes, notably excise taxes, are a blunt instrument that is assumed to be an effective tool to influence behaviour. As a blunt instrument behavioural taxes are imposed on the public consistently, but the consequences on consumers are not always consistent. The most perverse, unintended consequences of behavioural taxes appear to result from alcohol taxation. The perverse consequences of alcohol behavioural taxation are likely a result of the nature of the product – it is broadly consumed and there is a complex matrix of applied excise taxes.
Recent data from the imposition of the Rudd government’s 2008 alcopops tax provides a clear indication of how a well-intended policy can lead to highly undesirable consequences. This paper considers the objectives, justifications, efficacy and equity issues associated with behavioural taxation.

This report examines the government school Enterprise Bargaining Agreements (EBAs) and awards across Australia, pointing to a highly inflexible and restrictive employment system. The conditions examined are due for renegotiation in all jurisdictions before the end of 2016. These negotiations should focus on returning labour market and employment flexibility to schools.  By reducing the scope and extent of current teacher provisions, schools would be able to more effectively
respond to student need.

n July 1 2012, the Gillard Government passed the most extensive suite of changes to coastal trading since the Navigation Act 1912 in the form of the Coastal Trading (Revitalising Australian Shipping) Act 2012 and its associated Acts. They come on top of the Fair Work Act 2009, which imposed Australian labour standards on foreign registered ships operating with foreign crews in the Australian coastal shipping trade.
The combination of these changes have negative effects for the Australian economy and for Australian businesses and consumers. These changes are aimed at encouraging the use of vessels that employ solely Australian resident crews. In doing so, the changes have the effect of significantly reducing the flexibility in the coastal shipping trade, and squeezing foreign-flagged ships out of the market. As a result of the 2012 changes alone, the net present value of the coastal shipping industry’s net economic benefit to the Australian economy is between $76 million and $150 million less than it would be in the absence of these changes. It is clear that the changes will increase transport costs. This could result in bulk commodities being sourced from cheaper overseas markets, thus negatively affecting Australian commodity producers. Increased transport costs could also be passed downstream to consumers. This paper examines the broader economic effects that seem likely to arise as a result of these changes. Finally, this paper asks what ought to be done about coastal shipping. It concludes that a market driven, open regulatory framework should instead govern Australian shipping, and it calls on the Abbott Government to implement changes as a matter of priority.