Australia’s hung Parliament after Saturday’s election has Australian businesses fearful that any compromise struck by either major party to take power will result in uncertainty and a focus on short term outcomes, not reform.
Australia’s election result gives no clear mandate to any party to proceed with long term policy reforms and places the focus on brokering short term deals with independents and the Greens for both Tony Abbott and Julia Gillard to form minority government says Australian Industry Group Chief Executive Heather Ridout.
“The prospect of a hung parliament and a Senate where a minor party holds the balance of power in its own right, is a worrying outcome for business. It will potentially lead to instability, uncertainty and short-termism in policy development, all of which poses risks and challenges for the economy,”
Independent MPs Rob Oakeshott, Bob Katter and Tony Windsor last night held a phone hookup to settle their position, the three independent MPs place stability of Government high on their agenda when looking to negotiate with both the Labor and Liberal parties which is a reassuring position for business.
“Should they need to be called upon, we would urge the independents to commit above all to supporting stable government and we are encouraged by their early reassurances to this effect.” said Mrs Ridout.
“Beyond that, business and industry is looking for a government committed to dealing with the hard issues and dealing with them competently and that takes a positive and long term approach to lifting our productivity and securing our long term prosperity.
“Australia is one of the few developed countries in the world, which, while facing challenges, also has a range of positive choices and growth opportunities available to it. Our essentially sound fiscal position, strong terms of trade and proximity to Asia, the emerging centre of world economic growth, means that we can approach the future with confidence. ” Mrs Ridout said
