Our 30-year experiment with a low - labour-cost model has not worked. Many workers have suffered, but, equally, our rates of labour productivity have been amongst the worst in the world under that regime: lower than the OECD average, and lower than many countries that have a level of sector-based coordination for worker terms and conditions. A model based on wage-based competition is focused on the wrong things. FPAs will incentivise competition based on the right things. The quality of goods and services offered, investment in skills and training, R & D innovation—these are the things that will drive productivity and prosperity for our country. 