Australians should be worried that the nation's unemployment rate was above the US, UK and New Zealand's, says the boss at fertiliser and explosives maker Incitec Pivot.
Incitec Pivot chief executive James Fazzino on Monday announced a 27 per cent lift in first half profit, saying a key part of that was productivity gains the rest of the nation wasn't prepared to make.
He said he feared the national debate ahead of Tuesday's federal Budget was being dominated by talk of tax hikes and services cuts, instead of productivity.
"Australia's record on productivity is dire," he told reporters.
"We have forgotten that in this country productivity is code for increased living standards, pay rises, raising taxes and providing services.
"Unless you drive productivity improvements then our living standards are going to stagnate or go backwards ... it will define the legacy we leave for our children."
Treasurer Joe Hockey said on Monday that the government would introduce laws on Tuesday to crack down on tax avoidance by 30 multinational companies.
Mr Fazzino said he backed the philosophy of US governor Bobby Jindal, of Louisiana where the company is building a $1 billion ammonia plant.
"He says he is not about more taxes but more taxpayers ... employing more workers who in turn pay more taxes," he said.
Australia's unemployment rate last month was 6.2 per cent, while the US, UK and New Zealand are all below six per cent.
Mr Fazzino said it was the responsibility of business to drive productivity, but government should enable a more flexible labour market in which people's jobs could change and adapt.
Incitec Pivot had done it, investing in its people and without having to spend big, increasing fertilisers production by 28 per cent at Phosphate Hill in Queensland and doubling output in Missouri, he said.
"It is far easier to have a conversation around what someone else should do rather than yourself and that's the question we asked a few years ago," Mr Fazzino said.
Incitec has been forced to cut costs as the mining customers it supplies explosives to have had to deal with the resources boom ending.
The mining downturn, plus a drought hurting northern Australian agriculture and higher gas prices are all expected to reduce second half earnings.
However falls in the Australian dollar, higher fertiliser prices and cost cutting drove the rise in first half profit.
The result included $16 million in earnings before interest and tax (EBIT) in manufacturing and supply chain efficiencies through its business excellence (BEx) productivity program.
Its shares closed 11.5 cents, or 2.95 per cent, down at $3.795.
INCITEC PIVOT BOOSTS PROFIT
* Half year net profit of $146.4m, up 27pct from $115.7m in 2013-14
* Revenue of $1.6b, up 6pct from $1.5b
* Dividend of 4.4 cents per share unfranked, up from 3.5 cents.
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