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News Corp Business Columnist Terry McCrann says the reason Australia has “soggy wages growth” is because businesses are not allowed to develop productivity and “do the deals with their workers”.

Industrial relations reform continues to be a policy goal for the government, but former chief economist to the prime minister Andrew Stone says it requires “political capital” for it to be passed.

Mr McCrann told Sky News host Peta Credlin he is unsure the prime minister has “a lot of political capital coming into this coronavirus issue”.

He said the prime minister will lose a lot more capital when the government has to announce “in big red letters that budget surplus has disappeared”.

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