Dow chief Andrew Liveris: Australian politics an ‘embarrassment on world stage’

AUSTRALIAN politics is in a “scary’’ and unprecedented new paradigm that has seen it ­become an “embarrassment’’, says Dow boss Andrew Liveris.

Liveris

AUSTRALIAN politics is in a “scary’’ and unprecedented new paradigm that has seen it ­become an “embarrassment on the world stage’’ over the past six years, says the man considered to be one of the most successful Australian businessmen in the world.

Dow Chemical Company chairman and chief executive Andrew Liveris yesterday also echoed the recent call by NAB and Woodside chairman Michael Chaney for the Coalition and Labor to adopt a bipartisan approach to stop minor parties in the Senate derailing the government’s legislative agenda.

“I have never seen (the like of) the last six years of Australian politics before,’’ Mr Liveris said during a lunch in Brisbane yesterday hosted by the Australian Institute of Company ­Directors.

“We are in a complete new paradigm. The past five years before this last one were an absolute embarrassment on the world stage. The ‘yelling at each other’ routine I know well in Washington. And you actually copy the Americans very well.

“Instead of working together you just throw things at each other and yell at each other. That is really scary. I have never seen an Australia like that.

“Now to see it move into this other paradigm where there is more yelling but of a different kind — we should have got ­beyond that in terms of both sides of the aisle being for Australia instead of for being re-elected.’’

Last month Mr Chaney urged both major parties to work together to achieve necessary micro-economic reform across the economy.

“The Labor opposition has a lot more votes than Palmer,’’ Mr Chaney told The Australian and Deutsche Bank Business Leaders Forum in Perth.

Darwin-born Mr Liveris has worked with Dow for 38 years and is widely viewed as one of corporate America’s most powerful chief executives. He also sits on the board of computer giant IBM and is co-chair of Barack Obama’s Advanced Manufacturing Partnership steering committee.

His comments reflect the frustration in big business about the minor parties in the Senate — led by Clive Palmer’s party — opposing the government’s legislative agenda.

Nufarm chief executive Doug Rathbone this week warned about the dangers of a dysfunctional Senate, backing recent comments by the likes of Rio Tinto chief financial ­officer Chris Lynch and BlueScope Steel chairman Graham Kraehe.

Telstra chief executive David Thodey, BHP Billiton chief executive Andrew Mackenzie, ANZ chief executive Mike Smith and GE Mining chief executive Steve Sargeant have also called on the business community to back Tony Abbott to ensure Australia remains globally ­competitive.

Mr Liveris added a caveat that the first 12 months of the Abbott government could be viewed like those of the Howard government in 1996. While it struggled for the first year, that government went on to make sweeping reforms to the tax system and industrial relations.

“I am hoping this is just growing pains, learning on the job,’’ he said.

When it was suggested that Mr Palmer was not around in the Howard government era, Mr Liveris replied: “I did try not to say the name. I did try to say you are in a new paradigm.’’

Mr Liveris accused the Abbott government of backing away from investing in research and development, which he said would have devastating consequences. “I think that is tragic,” he said. “If you go down the scale of R&D investments from a public-sector leverage point of view to the universities and CSIRO, you will keep tumbling down that scale. I believe Australia punches above its weight but in this area it is falling behind in the intersection of innovation and production.’’

The government cut CSIRO’s funding by $111 million over four years in this year’s federal budget, which will result in 500 job losses.

Mr Liveris noted that 90 per cent of patent applications in Australia were filed by companies from outside Australia, while the latest OECD data placed Australia among the nations with the least innovation collaboration between public research institutions and industry.

Asked about turmoil in the Middle East and other regions, he said youth unemployment was the world’s greatest crisis.