Economic reform urgent, says Business Council

The Business Council has sounded an alarm that yet another election will pass without any commitment to economic reform.

Business Council of Australia chief executive Jennifer Westacott.

The Business Council of Australia has sounded an alarm that yet another­ election will pass without any serious commitment to economic reform, and warning against the rise of an anti-business agenda.

Releasing a report outlining the council’s own policy priorities, BCA chief executive Jennifer Westacott said yesterday the lack of progress in tax and energy reform­ highlighted the political retreat from tackling difficult issues.

“For the last few elections, it has been a race to the bottom to take things off the agenda and limit options and choices,” she said, adding that elections should provide a positive vision for the nation.

She said the BCA believed there had been complacency in the face of slow economic growth and poor productivity, both of which were far below the levels needed to confront any truly difficult econo­mic circumstances.

“The idea that we can go for another­ 10 to 15 years without any major economic downturn is fancif­ul and naive,” she said.

Ms Westacott said the BCA was aware the community had lost trust in business, alongside many other institutions. “A blame game and an anti-business and anti-growth agenda are not going to solve the issues that Australia confront­s,” she said. The council argues that poor productivity is the main cause of low wage growth and says it cannot be fixed simply by the Fair Work Commission handing down bigger increases.

“We want to see wages go up but they are not going to if you don’t do the hard yards on prod­uctivity,” she said. “Increasing wages cannot be a quick fix, cost someone else’s job or force consumers to pay higher prices.”

The BCA was strongly opposed to any return to industry-wide wage settlements, which the ACTU is calling for.

She said the BCA was open to the Productivity Commission’s suggestion that the FWC be given tighter instructions about lifting minimum wages with the proviso that they do not flow through to awards.

The BCA report argues that reform is achievable if adopted in a planned and gradual manner.