The CTU believes that while a Productivity Commission could provide an integrated focus on major issues which will lift wages and living standards, the design of the Commission and the focus of its work will be crucial.

The CTU will make a submission on the Bill which will establish the Commission.

Peter Conway, CTU Secretary, said: "It looks like the Commission will have a measure of independence but the Government needs to ensure that the Commissioners, in addition to possessing the required skills, reflect a range of perspectives."

The CTU is also concerned that the Commission will become bogged down in regulatory issues rather than scope out innovative measures to lift investment in people, their skills and the technology and depth of capital at their disposal. The workplace must be a major focus.

Peter Conway said that although the word 'productivity' still raises major concerns in the workforce because of its connotations of fewer people working harder for less money, unions in recent years have run a major awareness raising programme on productivity and are increasingly involved in initiatives with employers that boost workplace productivity.