Business must repair ‘fraught’ relationship with government: Suncorp

Suncorp’s Steve Johnston pleaded for big business to repair its ‘fraught’ relationship with government, as short-termism threatens.

Big business doesn’t “understand” politics and must do more to repair the “fraught” relationship with government, according to Suncorp chief financial officer Steve Johnston.

A day after Donald Trump’s shock US presidential win, Mr Johnston used a public speech to claim that the Coalition and Labor faced a “backlash from a cynical and anxious electorate” and politics in Australia had become “almost completely reactive”.

“Micro parties and individuals rise too easily on the celebrity factor, effectively harnessing community dissent to pursue narrow agendas with no requirement to detail a plan for the future,” he told a Trans-Tasman Business Circle event.

“Good public policy that is in the best interests of our nation, is being sacrificed for short-term vision — driven by populism like never before.”

But politicians weren’t entirely to blame, with Mr Johnston claiming business had also lost focus on its core responsibilities and weren’t immune from “short-termism” as they pandered to investors’ demands rather than make long term investments.

He said despite having shared common objectives, such as building a prosperous economy, the relationship between business and government had become “fraught”.

“Looking at the state of our nation today, I think you can’t argue with the notion that big business and governments of both major parties have taken our eyes off the ball.”

Mr Johnston, who has worked in various roles in the Queensland government, said business had for too long “addressed government with the sole intent of improving or protecting its revenues” on a reactive basis.

“The days of governments with big majorities for business to cosy up to are long gone. The composition of our parliaments means public policy can now emerge from many quarters,” he said.

“Consequently, business must expand its horizon from the elected government to the Parliament.

“Business must more genuinely and constructively engage across the broad spectrum of parties and individuals that make up the legislatures of today and the future. We must understand them and their agendas, not disregard them as we may have done in the past.”

Mr Johnston claimed that failure would see business face a “new and unpredictable corporate regulator — the Parliament itself.”

“The spectacle of the CEOs of our four largest financial institutions being summonsed to Parliament to explain themselves is just a precursor of what can be expected into the future,” he noted.

Mr Johnston said business should focus on five things, including doing a better job of serving customers — who are also voters — plus recognise when “disenfranchisement” is caused.

Business must also look to the bigger picture and not use political uncertainty as an “excuse for delayed or deferred investment”, he said. Finally, business should embrace a greater transfer of skills between the public and private sectors.

“It’s often said that government doesn’t understand business,” he said.

“Such a view was eloquently advanced by former US President Ronald Reagan who said: “The best minds are not in government. If they were, business would steal them away.

“I disagree. Instead, I argue that it is equally, and potentially more so the case, that business just doesn’t understand politics, public policy and the role of government.”