Editor's note

A new Productivity Commission report has highlighted an interesting anomaly: industries such as manufacturing are getting a disproportionate share of government protection, but they are not creating many jobs.

More generally, as John Wanna points out, the commission is concerned about pork-barrelling in the form of poorly targeted government assistance.

Jenni Henderson

Editor, Business and Economy

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Manufacturing still receives 80% of net government assistance, largely due to the remaining small levels of tariff assistance, plus some budget measures. Dean Lewins/AAP

The government is backing the wrong industries, as our economy changes: Productivity Commission

John Wanna, Australian National University

Under current government policy we are penalising the sector of the economy where there is the largest proportion of existing employment and the best prospects for future growth.

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