Public education, the IRC and the public interest

PETER WILSON comments on the words that govern the Industrial Relations Commission.

Education Minister Dr Andrew Refshauge has said the Government's only argument against the Federation's claim is the government's incapacity to pay the claim.

It has also been stated that the Industrial Relations Commission is required under the Act to consider the state of the NSW economy in determining its judgment regarding teacher salaries.

It is important that we are aware of the actual words in the Industrial Relations Act because they are not all one way -- the issue is how the Commission will choose to interpret them. Section 146 (2) of the Act under the heading "General Function of Commission" states:

"The Commission must take into account the public interest in the exercise of its functions and, for that purpose, must have regard to:
"a) the objects of this Act, and
"b) the state of the economy of New South Wales and the likely effect of its decisions on that economy.
"This subsection does not apply to proceedings before the Commission in Court Session that are criminal proceedings or that it determines are not appropriate."

Section 3 of the Industrial Relations Act provides the "Objects" of the Act, one of which is:
"b) to promote efficiency and productivity in the economy of the State."

The term "public interest" is significantly more broad than a narrow focus on the impact of a new teacher award on a particular State Budget or Budgets over a number of years. Budgets are not locked in concrete. A Budget is created from the interaction between what is expected in terms of future costs and revenues and what is expected to happen and be needed in the period of the Budget. The political views of the people who draw up the Budget are then superimposed over this information and assumptions. Obviously people with different assumptions and political views will draw up a different Budget.

The level of expenditure by government on public education is a political decision. An Industrial Relations Commission that is required to take into account the public interest would not be able to only look at the implication of its decision on the State Budgets in ascertaining the public interest question. The State Budget is only one factor of many in the relationship between public education investment and the state of the economy. The effect of investment in public education has a longer lead time than the one year budgetary cycle. Investment in public education increases the knowledge capital of our community. As more highly educated students graduate, the economy and society benefits over a longer time frame because of the input from these more educated community members.

Public education investment promotes economic efficiency and productivity. Public education will improve the 'state of the economy' both in the short term (university and TAFE investment) and in the longer term (school, preschool and childcare).

"The task is to break the nexus that purely equates an improvement in the state of the economy with the delivery of a surplus State Budget."

Obviously public education investment does not only improve economic benefits, nor only the economic benefits as derived from employment. Public education creates a democratic, more fair and equal, pluralistic society which creates the stability and certainty for economic investment. Stability and certainty are key determiners for decisions about how much and where capital is invested internationally and nationally. Investment in public education also increases the social capital of our society. It increases the level of social cohesion and tolerance. Higher levels of education and retention in education reduce the likelihood of social alienation and aggression within society. These are ends in their own right as well as factors that benefit the 'state of the economy'.

The question before us and before the Industrial Relations Commission is whether the Commission is prepared to look at the broader and longer term picture of the relationship between investments in education and the state of the economy or whether it will constrain itself to follow the narrow, short term and economistic focus of the current Labor government.

The Carr/Egan Government has a blind obsession with the conservative economic and political ideology that attempts to judge "successful" government by that government's delivery of a "surplus Budget". Unfortunately, for at least the past 15 years both major political parties in Australia as well as the mainstream media have unquestioningly aligned "good government" with "Budget surplus". The alternate and broader perspective that must be re-established is to equate good government with the provision of quality public services that support people and the social aspects of our community.

A surplus Budget must be recognised for what it is -- it is where the government takes more out of the community in the form of tax than it is prepared to put back into the community in the form of services. The task before us is to break the nexus in the mind of the Industrial Relations Commission that purely equates an improvement in the state of the economy with the delivery of a surplus State Budget.

Peter Wilson is a Country Organiser.

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Last Modified: 15 Nov 2005