UK economy returns to sustainable growth

That was the principal message of Permanent Secretary at the Department of Business, Innovation and Skills, Martin Donnelly, when he visited Australia last week. He said that the UK’s GDP growth was expected to reach around 1% this year and perhaps 2% next year. Australian economists and business people he met shared this positive assessment.

He met groups of high tech entrepreneurs in Melbourne and pension fund managers in Sydney, who were either existing investors in the UK, or currently planning to make investments. He also had many opportunities to discuss the Australian economy with business leaders like Tony Shepherd, Chairman of the Business Council of Australia, and with representatives of British multinationals active here.

It is clear that, although the Australian economy remains strong by western standards, whoever wins the 7 September election here is going to have to address some serious challenges thrown up by the slowing of the resources boom.

Martin also had the chance to pursue the Science and Innovation aspects of his department’s portfolio with his opposite number Don Russell, Secretary of the Department of Innovation, and Ian Chubb, Australia’s Chief Scientist. Martin and Ian both addressed a seminar on skills in STEM (Science, Technology, Engineering and Maths) at the Committee for Economic Development of Australia in Sydney.

I took Martin to visit Monash, one of Australia’s leading Universities, in Melbourne, where Pro-Vice Chancellor Abid Khan briefed him on their very close partnership with the UK’s Warwick University. This involves joint-professorships, shared degree courses, and integrated centres of research excellence and is one of the most intense university tie-ups anywhere in the world.

Martin also gave a well-attended lecture at the Australia New Zealand School of Government in Canberra, on the subject of UK civil service reform. The public sectors in both countries face many similar challenges and have much to learn from each other.

It was particularly good to see Martin here on his first visit to Australia, as we have been friends since both joining the civil service together more than 30 years ago.