Yes definetely broad questions. I quite like National Competition Policies (because they appear in 3 of my subjects
) so I may give you a quick backdrop.
National Competition Policy
-. Competition is good ( ↑ efficiency, competitiveness, innovation ect ect). However, Perfect Competition is unlikely - a situation where there are large numbers of producers producing homogenous products. So governments aim for workable competition (not too extreme but enough to achieve all the benefits said).
-. Competition reform comes under the Competition Policy Reform Act 1995 - based on the Hilmer Report. I think you only need to know the major reform areas which include:
1) ACCC - established by this. Now acts as a 'watch dog' and prevents anti-competitive behaviour from Busniesses. Helps to regulate the TPA 74.
2) PTE reforms - giving PTE equal footing with Privately Own Enterprises.
3) State Government - State government also provided reforms for non-Federal areas such as gas, electricity ect.
4) Professions - Professions such as doctors, layers ect were under reform. New work practices.
5) National Competition Code - applies to everyone
6) Access To Infrastracture - basically all firms have access to basic infrastructure at a fair price (even if the infrastructure is owned by your competitiors). For instance, Telstra can't be specially mean to Optus in its services that it provides to Optus ...if that makes sense.
NAIRU
-. Know what it stands for.
I keep forgetting.
-. Well its just saying that in an economy there will always be a portion of people unemployed. And no amount of economics growth (or inflation really) will solve it. This can be explained by say the number of diable people within our society or those who aren't able to work beacuse lack of skills.
-. NAIRU can only be solved by further education and training.
-. As someone said, it refers to the Phillips curve where there is a trade off between Inflation and Unemployment. According to this curve, increase in inflation will mean decrease in unemployment. However, once the NAIRU (an unknown percentage) is reached, no matter how much you increase inflation, it won't do anything to unemployment.
-. NAIRU is an estimated percentage. It was thought some time ago that the NAIRU was 6-7% however our unemployment rate is now...5 something% hence economists are estimating that NAIRU is around 5%.
Prices And Incomes Policy
-. Prices Policy. It hasn't really reformed much because its nenver been in the picture very much. This is because the Australian Government does not have the constitutional power to directly influence price.
-. Some indirect influence over price is through the ACCC (and its predecessor The Price Surveilance Authority) - regulating businesses. But that's all.
-. Incomes Policy. Basically there is a centralised system and a decentralised system. Basically the reforms include from a centralised system ---> decentralised system. (that of course is the whole entire chapter cut down to 1 sentence).
-. Reforms include
1) Howard's individual contracts
2) WorkPlace Relations Act 1996
3) emphasis on Certified Agreements and AWAs
4) Abolishment of compulsory unionism (thus deminishing the role of Unions)
5) Giving less power to the AIRC
Okay that's it really. Everything in short.
