The days are going faster than I expected but I'm developing a slight sense of dread as our tour director seems to be softening us up for some unpleasant news regarding possible changes to our itinerary. I'm also developing a theory based on the demographic on board. The travel company is Australian so no great surprise that the majority of guests are Aussies. It seems that the more dire the economic circumstances of the State of origin, the more strident the support for the people who delivered that outcome. An almost Stockholm Syndrome state of mind manifests itself among some Victorians, who one might expect would know better. I'm having a lot of fun albeit the MD says I'm just a sh*t stirrer. She might be right.

Of even greater surprise are the number of seemingly sane passengers who argue that out of control electricity prices are a sure sign that renewables are the cheapest form of energy. Their inability to grasp that government subsidies distort actual costs is a constant excuse to steer conversations toward the many positive attributes of communism. On this the Victorians can all agree.

And speaking of which…

As our nation lurches from one crisis to the next it's hard to focus on any particular challenge, much less contemplate solutions. To some degree I am comforted by the clear and present evidence that those in power are similarly challenged when it comes to devising positive outcomes. Surely the ruling class are smarter than the rest of us, so perhaps we just need to accept that some problems are indeed intractable.

Or maybe not.

In the many debates that range across the vista of public discourse one objective measure appears to be missing. When politicians, bureaucrats and their many many advisors spell out policy positions, they seem to miss one vital ingredient…

The oft quoted but rarely spotted endangered species known colloquially as common sense.

The term can be traced back to a 1776 essay by Thomas Paine in support of American independence from Great Britain. Since then, the broadest interpretation seems to be an ability to make sensible decisions in daily life. A capacity to use knowledge and intuition to come to reasonable conclusions. You can see why our political class have trouble here so let's try and help.

But where to start? Given everyone is entitled to my opinion I guess I could start anywhere, but let's zoom in on a current buzz word. Productivity it is but what is it?

Economists tell us it's a measure of efficiency whereby we look at inputs like resources, time and labour and the ultimate outputs achieved. Sounds a bit abstract and here's where common sense comes to the fore. To me it's simply being able to do more with less or at least do the same with no more.

Rather than attempt to form a vision of productivity failures and possible solutions via the medium of obtuse economics or policy speak, let's examine a few practical examples. Perhaps even apply a bit of common sense. As luck would have it I've uncovered a spectacular example of a productivity and efficiency killer. And even better, I can guarantee you that you have first-hand experience of this most evil blight on society.

In 2024 Australians spent about 123 million hours on hold in call centre and government contact queues or waiting for businesses to answer the phone. All the while we are subjected to recorded messages extolling the virtues of the company or government department that thinks so little of us as to value our time at zero. Depressingly, the 123 million hours represented a 15% increase over the previous year. It is estimated that the negative value impact on GDP as a result is circa $1.28 billion dollars per annum.

Of course, the businesses and government departments that deliver these appalling outcomes will bask in the cost savings and resulting bonuses that result from sacking staff and passing the pain on to taxpayers and consumers. Even so, wasting $1.28 billion dollars a year might be a good place to start if we are looking to improve productivity. Oh, and by the way corporate Australia. Having me work for you as a check out chick doesn't save the economy any money, it just shifts the cost from you to me. I await my Xmas party invitation and annual bonus with bated breath. Common sense says I should not hold that breath.

Let's move on to an emerging threat to productivity. While it's too early to tell, I predict that the work from home trend will make call centre productivity impacts look like chicken feed. How can this be Mike, you ask? The overwhelming majority of workers and unions support WFH. So what I say! If a two-day working week for a five-day pay packet was proposed I bet the workers and unions would be delighted. Doesn't make it a good idea as most businesses would be broke within 12 months, and there'd be no pay packet at all.

Work from home might be manageable if a job could be tightly defined and performance metrics set at a highly accountable level. Good luck with that when it's near impossible to sack even the most incompetent and lazy employees or public servants under current IR laws. In my experience over many years working in groups within a corporate structure, it's hard enough to get some people to do the minimum under direct supervision. God help us when these same employees don't even need to get out of their PJs on a work day. In the absence of live supervision and peer group pressure, I can't accept that many employees will maintain reasonable output levels. The data will be interesting, but common sense suggests WFH is hardly likely to improve productivity.

BTW, I know people who work from home and do insane hours with an ongoing challenge of being able to switch off. For them WFH may well present an entirely different challenge.

Of course, all this pales into insignificance when compared with the impacts of over regulation and IR laws. The productivity costs of dealing with an ever-increasing bureaucracy, a growing raft of legislative and compliance demands, and a union movement that pays lip service to matching improved worker benefits with improved productivity, are truly eye watering. In 2025 the Dexus Group undertook research that suggested most major construction projects in Queensland were productive for about 2.5 days per week. More broadly, growing regulatory burdens and union activity have been identified as key contributors to this appalling outcome. The most recent data suggests an economic impact circa $160 billion dollars per annum in reduced GDP as a result of red tape in Australia.

That $160B is the tip of an eye watering iceberg. It doesn't include lost investment opportunities, stifled entrepreneurial activity or the broader malaise that comes from dealing with mindless regulation and rule by legislation. Almost none of our lawmakers has ever started or run a successful business. Maybe that needs to be a prerequisite when running for public office.

The red tape solution was most magnificently proposed by the late Kerry Packer in 1991 while giving evidence to a parliamentary tax enquiry. He suggested that before any new legislation could be passed at least one existing law should be repealed. Considering the blizzard of legislation and regulation now being piled on to existing laws, his words were prophetic indeed. I highly recommend a look at Kerry in full flight via YouTube. His commonsense schooling of his inquisitors is wonderful to behold and shows them for the clowns they are. Nothing has changed.

A few closing thoughts. The next time a politician carries on about the cost of housing crisis ask them why it takes so long to get residential projects off the ground. If a developer has to acquire and hold a site and take years to obtain the necessary approvals, guess who pays for that added cost? If a construction project feasibility factors in 2.5 days productivity out of 5, guess who pays for that. If some poor punter spends their entire lunch break sitting on the Telstra call queue, guess who pays for that?

The entire system is simply punishing the end user, and I think we need to do something about it and fast. The economic outcomes of our current course are not going to end well. It's not too late and we have the resources to regain our prosperity. We just need the resolve and determination plus a very large shredder for all those regulations. It's common sense really.

Disclaimer: Not everyone who works from home is lazy. Not everyone who turns up at work is productive. Some corporations are bastards and there is most certainly a place for organised labour in any society. Victorians are not all bad and some seem openly hostile to their Premiers past and present, which is refreshing. Telstra isn't the worst call queue performer but they are making every effort to be so. Not every finance broker who turns up drowned in the Danube slipped accidentally.

And finally, if you are new to this column, I'm just taking the p*ss. No insult intended but feel free to be offended. It's all part of the service, no call centre necessary.

"It is not enough to be busy. So are the ants. The question is: What are we busy about?" – Henry David Thoreau

Mike Phipps F Fin
Director | Phippsfin Pty Ltd

No AI or ChatGPT has been used in the writing of this article.