Energy transition ‘a huge opportunity’, says incoming BCA chief Bran Black

The energy transition should be seized on as an opportunity rather than seen as a drag on the economy, incoming Business Council of Australia chief executive Bran Black says.

The energy transition should be seized on as an opportunity rather than seen as a drag on the economy, incoming Business Council of Australia chief executive Bran Black says, while stressing the need for productivity gains to address wages growth.

Mr Black put in his first day in the office on Wednesday, before formally starting in his new role on September 12, when veteran CEO Jennifer Westacott will step down after a dozen years in charge.

Mr Black, who was previously chief of staff to NSW premier and treasurer Dominic Perrottet, told The Australian he would be driven by a first-principles, evidence-based approach to policy, which has been at the core of the BCA philosophy.

He also said this meant that, from a political perspective, there needed to be courage to break the mould.

“We are at a point now in our economic cycle where I think it is more important than it’s been for a long time for us to be considering whether or not we need to take a slightly different approach to getting things done,’’ Mr Black said.

“And what I’m talking about in that regard is we’re seeing that real wages aren’t growing, we’re seeing productivity at a six-decade low.

“There is clearly a need for us to look at the levers that can be pulled to really set the country up for the future for our kids and our grandkids.’’

One of these productivity levers is the fraught area of energy policy, which brings ideological baggage from both sides of politics. But Mr Black says it also brings a huge opportunity.

“It’s important to remember, with respect to energy, that it’s not just a case of transitioning our economy for the sake of our own domestic production,’’ he said.

“It’s a question of what can we do to maximise the economic opportunity for the country – if we are able to transition in such a way that gives us a bit of a competitive edge over other countries that might be looking to export energy.

“And in that regard, my view is that if we can create that strong export market, and obviously that includes energy supplies but also extends to skills and also of course technologies themselves, then that helps position Australia for the future.’’

Mr Black has identified real wages growth as “the most pressing challenge facing the nation’’, with productivity gains key to solving this issue.

“We see many opportunities that Australia has to drive its productivity agenda, and we would like to pursue as many of those as we can, of course,” he said.

“If we’re able to do that, then the ultimate outcome and the outcome that we are certainly driving for is overall real wages growth for all Australians.’’

Mr Black’s other previous roles include chief of strategic initiatives at the University of NSW, chief of staff to the NSW attorney-general and minister for environment and heritage, and he started his career as a corporate lawyer, including time spent at Corrs Westgarth and Gadens Lawyers.

He said that, despite his background on the Liberal side of politics, he was confident he could work with all stakeholders, and said his variety of roles across the government, university and corporate spheres had prepared him with an understanding of what large organisations and businesses saw as important, as well as the reality of working at the coalface of policy development.

On a personal level, Mr Black said his aspirations for the nation aligned well with the BCA’s mission, which was a key motivator to take on the top job.

“At the end of the day the BCA is driven by the vision of creating a better Australia for current and future generations and the fundamental belief that you do that by ensuring that business’s success translates into Australia’s success,’’ he said.

“So I am personally very much aligned with that proposition.”

Ms Westacott will stay on at BCA to hand over the reins, with her last day on October 12.

Originally published as Energy transition ‘a huge opportunity’, says incoming BCA chief Bran Black