Danielle Wood’s blunt message to politicians: don’t undermine public trust by attacking institutions

Productivity Commission chair Danielle Wood has warned governments against undermining public trust by attacking institutions. In her Centre for Public Integrity Oration in Sydney, Wood argued that "playing politics with our institutions" can be easier than debating the finer points of the message. She cited the recent attack from Western Australian Premier Roger Cook on the Productivity Commission, which strongly criticized the current GST distribution.

Cook called the report from "east coast clowns" who did not understand Western Australia. Wood emphasized that attacking institutions can erode public trust, especially when it comes to the impartiality and calibre of organizations. She noted that climate scientists and science experts have also faced disparagement, which can have long-term negative effects on trust.

Wood highlighted cases in the United States where acceptance of facts and experts has declined, making it difficult to have a reasoned debate without a bedrock of agreed facts. She also noted that attacks on institutions remain rare in Australia but should not become a part of our culture. Instead, Wood encouraged robust debate on issues and periodic reviews of organizational performance and effectiveness.

She linked growth, productivity, integrity, and public trust, arguing that over the long run, economic growth and productivity growth determine living standards. Corruption, even in its grey form, can harm growth by favoring private or political interests over the national interest. Wood urged governments to fund infrastructure and implement clear criteria, open processes, independent assessments, budget rules, and transparency to reduce risks associated with corruption.

Her main message was that public integrity matters for trust, businesses, governments, productivity, and income growth.