Lessons learned, now for growth

Lessons learned must be applied to generating sustainable growth in the economy.

CSR's chief executive Julie Coates at their office in North Ryde. Photographer: Adam Yip

The message to governments is clear: we have done well to escape the worst of COVID-19 but the lessons learned must be applied to generating sustainable growth in the economy.

Credit Suisse’s Richard Gibb said: “Our dispute with China is having an obvious negative impact on trade and the absence of offshore buyers could negatively affect the durability of the housing recovery.”

Tim Ford, from Treasury Wine Estates, one of the companies directly affected by the China tensions, noted: “Diversification and balance are more important than ever.”

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The message to government was it needed to handle China with a little more care.

News Corp’s Michael Miller expressed concern at the “leap in government secrecy” and noted “government’s individually have all worked hard and done well but as a collective it has been disappointing”.

Others were more supportive, with CSR’s Julie Coates saying this year underlined “the role of government in keeping people in jobs”.

Just how far this continues is one of the big uncertainties heading to the New Year, with business wanting “a switch from emergency to nation building” in the words of Lion boss Stuart Irvine.

It’s not all for the government to do, with many chief executives acknowledging their role.

Medibank’s Craig Drummond said: “Leadership across the country, not just politicians, must be more willing to accept contribution to reform.”

That said, he noted government could do its bit by removing overlapping regulation and focus on competition and tax policy.

Energy and climate policy topped the business to-do list, along with the old chestnuts like holistic tax reform, immigration and more focus on skills training.  Wesfarmers’s Rob Scott spoke for many, calling for holistic tax reform — not simply tax cuts but changes that influence investment behaviour.

Tax reform ideas include ways to make equity deductible for small businesses to boost investment. This would mean that if someone invested $1m in a business that could be tax-deductible just as interest costs are on debt.

Lower company tax combined with zero franking credits is another option.

Cochlear’s Dig Howitt said: “Australia ranks in the top 10 in knowledge and research but just in the top 75 for knowledge diffusion.”

WiseTech’s Richard White said: “We can be the digital drivers of the knowledge era but we need to move from being adopters to the technology creators.”

Origin’s Frank Calabria said: “National co-ordination of energy policy is needed.” He added that “energy companies will not only be producers and suppliers of energy but also aggregators”.

Aware Super’s Deanne Stewart called for “an end to the divisive commentary and policies around climate change”.

Gary Wingrove of KPMG called for reform to the energy market “to align carbon usage with energy costs”.

Energy Australia’s Catherine Tanna said “most Australians are rightly tuned up or turned off by climate wars and energy debates. It’s now up to us to come up with the best possible policy in the interest of all consumers … Maximum productivity will come from a national policy framework that encourages private sector investment,” Ms Tanna said.

IFM’s David Neal said there should be “better harnessing of superannuation to build new infrastructure”.

Elders’s Mark Allison said “stimulation and encouragement of regional and rural regions will boost light industry development”.