Reward those who take risks: James Packer

James Packer has lashed Australia’s tall-poppy syndrome, saying risk-taking by businesses needs to be rewarded.

James Packer: ‘We are going to have to be the smart country to stay prosperous.’ Picture: Jonathan Ng

Billionaire casino magnate James Packer has lashed Australia’s tall-poppy syndrome, saying calculated risk-taking by businesses needs to be rewarded and failures should not be punished.

Speaking to The Australian to mark the 10th anniversary of the death of his father, Kerry Packer, on December 26, 2006, James Packer warned that while Australia was a large nation, “sometimes we think incredibly small’’.

“Australia is an incredibly lucky country, but with the resources boom over, we are going to have to be the smart country to stay prosperous,” he said.

“That means having the best possible education system, embracing technology, science and high quality teaching at every level. Australia is geographically big, but sometimes we think incredibly small.

“We need to instil in our kids an entrepreneurial spirit, reward risk-taking in our businesses and understand that failure is acceptable and — if the lessons are learned — only temporary and part of the overall journey we all take in life and business’’.

The comments are the first by Mr Packer since Malcolm Turnbull’s $1.1 billion innovation statement that promises a shake-up of the tax system and business laws.

As well as encouraging entrepreneurship and risk-taking, a range of measures in the statement promote science, maths and computing in schools. “When Prime Minister Turnbull said we are living in exciting times, I couldn’t agree more,” Mr Packer said. “Technology is still moving ahead rapidly and the commercial opportunities for those willing to innovate are outstanding.”

His comments on the tall poppy syndrome back those of Qantas chief executive Alan Joyce, who recently claimed Australians needed to be more willing to celebrate success and encourage risk-taking by business and blamed elements of the investment community and the media for too readily punishing failure.

BHP Billiton chief executive Andrew Mackenzie recently urged Australia to leverage its unique position on Asia’s doorstep to be at the heart of the region’s affairs and a catalyst for its growth and stability.

Mr Joyce, Seek chief executive Andrew Bassat and other executives have also accused institutional investors of being too risk-averse, short-termist and too demanding that capital be returned by companies instead of investing it on growth initiatives.

Mr Packer lists his residence as Tel Aviv in Israel, one of the innovation capitals of the world, where he has made investments and plans to make more in industries such as cyber security.

He also spends time in Los Angeles, where his former wife Erica Baxter and their three children, Indigo, Emmanuelle and Jackson, live.

Asked if he missed Australia, he said: “Of course I miss it, but at this time of my life I need to be close to my kids and my business is now global. I may not live there, but I visit often — Australia is my home and always will be.’’

He reiterated that the development of a new casino in Sydney continued to be the most important project globally in his Crown Resorts Casino empire, which is also developing properties in Perth, Melbourne and Las Vegas.

He is examining plans to partner with a private equity firm or global pension fund to cut Crown’s debt and take the company private. Negotiations are said to be ongoing with several firms including US group Blackrock Private Equity Partners.