Remarks by Mathias Cormann,

Secretary-General, OECD

Prime Minister, Scott,

A warm welcome to the OECD.

Ambassadors, Colleagues,

We have the privilege today of welcoming the Australian Prime Minister Scott Morrison during this special session of the OECD Council – and during the week when we are celebrating the 50th Anniversary of Australia joining the OECD.

Scott Morrison is a remarkable Leader. I had the privilege of working very closely with him over many years. In fact we were elected to the Australian Parliament in the same year and worked together directly, in different combinations, on 7 Budgets and 7 half-yearly Budget updates.

Earlier today the Prime Minister and I had the opportunity to discuss future opportunities for OECD-Australian cooperation.

Scott is a strong and passionate supporter of the work of the OECD and the invaluable contribution our work here makes to the quality of multilateral cooperation.

Prime Minister, we hope this will be the first of many visits!

Australia is a thriving multicultural nation, rich in natural resources, blessed with pristine coastal and country areas and home to ten percent of the world’s species.

While the many natural advantages Australia enjoys have supported its growth and development – Australia would not be in the position it is in today without good policy choices and a commitment to reform opening Australia up to the opportunities and pressures of the competition in a global economy.

Over the past 50 years, sound economic and fiscal management and continuous structural reforms have helped ensure low inflation, moderate public debts, a stable financial system and higher productivity growth which has led to a substantial increase in living standards.

Prime Minister Morrison, building on the work of his predecessors, has driven a strong reform agenda, which positioned Australia comparatively well to deal with the health and economic impact of the COVID-19 pandemic.

When the pandemic hit, the Australian government set a target of zero community transmission and established a “National Cabinet” – comprising all State Premiers and Chief Ministers across Australia – to ensure an effective and well coordinated response across federal and state governments. The National Cabinet received such strong public support, it will now replace the previous arrangements that governed Commonwealth State relations.

The Australian government also provided one of the largest immediate fiscal responses in the OECD.

Key regulations were revised to ensure the smooth functioning of the health system and the economy. Professional requirements were adjusted to allow nurses to re-enter the workforce, telehealth services were strengthened and international standards for hand sanitiser were adopted very quickly.

Businesses were protected through temporary revisions to insolvency regulations, and electronic signatures and online shareholder meetings were permitted. Labour market regulations were temporarily relaxed to provide greater flexibility in terms of working hours, tasks and leave entitlements.

The Australian economy bounced back more strongly than other OECD countries. Our latest Economic Outlook projects growth to reach 5.1% in 2021 and 3.4% in 2022. GDP growth in Q1 2021 rose by 1.8%, which was stronger than expected by the OECD, the Australian Treasury or almost any market participant.

Output levels and GDP per capita are back above pre-pandemic levels, and the private sector recovery is well underway.

While the employment rate in Australia fell during the crisis, by Q1 2021 it was less than one percentage point below pre-crisis levels.

Both during and before the pandemic, Prime Minister Morrison spearheaded important structural reforms. For instance, a significant round of tax reforms is ongoing, which will help shift the tax burden away from personal income taxation – a recurring recommendation in the OECD’s biennial Economic Surveys of Australia.

Just last month, Prime Minister Morrison also announced a substantial increase in aged care funding in preparation for an ageing population, and in response to a Royal Commission into Aged Care Quality and Safety.
Yet, like all countries, Australia faces some important policy challenges.

Legacies of the pandemic will remain for some time, in the form of higher public debt, reduced monetary policy space and labour market scarring in particular cohorts.

In the coming years, Australia can count on the OECD to advance its strategic priorities, from revitalising global trade and building strong bridges to the Indo-Pacific region, to supporting sustainable infrastructure through the Blue Dot Network and harnessing our new International Programme for Action on Climate to advance ambitious and effective action on climate change.

Chers Ambassadeurs,

Plus tôt cette année, lors de la commémoration de la Journée de l'Australie, le Premier Ministre Morrison déclara que « les Australiens ont toujours démontré une vraie capacité à surmonter. À s'élever au-dessus. Pour améliorer l’histoire de l’Australia. Pour créer un avenir meilleur.» La gestion efficace de la crise du COVID-19 par l'Australie est un exemple puissant de ces qualités.

Prime Minister, Scott, thank you again for being with us today.