The Prime Minister says he will speak with Unions about the possibility of imposing a productivity pact to increase national competitiveness.

Kevin Rudd has called for an agreement between businesses, unions and the federal government aimed at lifting national productivity. The pact would be based on seven reform areas, including plans for lower power prices and a smooth transition from mining to post-boom growth.

The Prime Minister told the National Press Club in Canberra, “The truth is, if we are to drive a new national competitiveness agenda we need to have government, business and unions working as much as possible together - pushing in the same strategic policy direction for the overall wellbeing of our national economy...  we've got to get around the table and get talking more effectively.”

Mr Rudd has embarked on his campaign for a tighter ship, meeting with the Australian Council of Trade Unions and the Business Council of Australia o four occasions since stepping back into his old job.

The PM said, “The discussions I have had in the last couple of weeks with both business and the unions have been useful in elaborating the possible content of a new national competitiveness agenda for Australia.”

Mr Rudd said that over the next week key cabinet ministers would meet with the BCA, other business groups and the ACTU to help work through key issues in each of the seven areas he had nominated.

Opposition leader Tony Abbott has called the plan “flim-flam”.