March Appeal CIS Newsletter

Taylor pressed on trade, migration and the limits of government

Michael Stutchbury sat down with new Opposition Leader, Angus Taylor, as he laid out the economic reform agenda required to shore up Australia’s modern prosperity.

Angus Taylor came to the Centre forIndependent Studies (CIS) in February in very different circumstances from what had been expected. What had been scheduled pre-Christmas as an appearance by the shadow defence minister became his first major address outside Canberra as newly-elected Liberal leader. After his speech, our discussion turned to the questions that will shape the Coalition’s credibility on economic management, trade, immigration and the scope of government.

Open markets or protection?

On industry policy, there has been renewed talk by some about ‘sovereignty’ and rebuilding domestic manufacturing, including regret over the end of car making after tariff protection was removed. That debate cuts across the reform tradition that lifted Australia’s prosperity from the 1980s onward, a tradition CIS has consistently defended.  I put to Taylor that any drift towards protectionism would come at a cost. CIS research over five decades has shown that open markets, competition and lower barriers to trade are central to productivity growth and rising living standards.
Taylor’s answer was clear. He said he “intensely dislikes impeding trade because it is not good for us”. Australia must keep a strong predisposition to open markets. If we want more industry onshore, he argued, the task is to reduce taxes, energy costs and regulatory burdens, not raise tariff walls.
That position sits squarely within the reform principles CIS has long advanced.

Housing and structural reform

Housing was another pressure point. With affordability deteriorating, especially for younger Australians, I pressed the need for structural reform rather than short-term subsidy. For years, CIS chief economist Dr Peter Tulip has shown that restrictive planning rules are a central driver of high house prices, and that boosting supply is the durable solution. Taylor endorsed opening up housing supply to restore the path to home ownership. That aligns with the evidence. Without planning reform, no amount of demand-side spending will fix the problem.

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