21 February 2012
Early election needed to clear air: Dick Warburton
The Australian
Labor's leadership turmoil is rapidly adding to Australia's reputation as a high-cost country for business, the nation's business leaders have warned.
Former Reserve Bank board member Dick Warburton declared that an election was needed "sooner rather than later" to avoid doing further damage to business confidence.
Mr Warburton, chairman of the Westfield Retail Trust, Citigroup, the Board of Taxation and Manufacturing Australia, said the situation was having an impact on investment and only an election would "clear the air".
"The sooner the better as far I'm concerned," Mr Warburton said. "I'd like to see something happen. It's just very frustrating at the moment, very frustrating."
Stockland and HSBC Australia chairman Graham Bradley, also the deputy vice-president of the Business Council of Australia, said that by stymying reform the political situation was raising business costs. "This is enormously distracting for companies, particularly those challenged by the structural changes in the economy to have uncertainty, to get the attention of ministers, and to have confidence that they are talking to people who will be there in those roles in six or 12 months time to see through the issues that need to be addressed," Mr Bradley said.
"Whenever there's a change of leader or a change of government, there's a loss of momentum in public policy while new ministers learn their portfolios...We have at the moment a highly destabilised business government policy environment. There are many sectors where policies are unresolved - the mining tax, royalties, GST across the states, the entertainment industry with poker machines - and all of these things are expensive for business because more effort has to go into government relations."
The BCA, whose president Tony Shepherd met Foreign Minister Kevin Rudd in recent weeks, said leadership was not discussed at that meeting. The talks were about a proposed Australia- China chief executives forum later this year, as well as Australia's engagement with other countries and regions.
John Poynton, executive chairman of investment and advisory firm Azure Capital, said Australia's competitors "aren't waiting for us to sort ourselves out; they are just getting on with it...I think there are a number of very significant issues to talk about -- the Dutch disease, the strength of the currency, the inflexibility of the workforce, the labour market," Mr Poynton said.
"They are all really important issues for the country that are not being addressed...When it becomes personal rather than concern for the country then you question the credentials."
Former Boral chief Rod Pearse said good leadership was crucial to investor and consumer confidence. "Without being party political about the thing...good leadership is a crucial catalyst in terms of getting the economy to run with good policies," he said.
ConnectEast chairman and Caltex board member Greig Gailey warned the crisis was "complete and utter distraction."