The Demise Under Corporate Australia’s Watch:
As the Federal and State governments fail to rein in their excessive spending, inflation based on anyone’s basic understanding of economics, will rise. Productivity does not appear to come into the equation with Governments hell-bent on hiring more in the public sector and raising remuneration in significant double digits. Yes, it does gain votes and change the dynamics of the voting population, but it also creates a DNA of Australia, far removed from the once risk-taking, hardworking and industrious proud nation it was not so long ago.
The lack of productivity, a national disgrace has been accepted, the abuse of the public purse a matter of normality, and a quality of senior political players on all sides, uninspiring, and insipid.
So, when we hear about the increase of inflation by the Treasurer, it will be blended in with the fighting in the Middle East, the issues, and all the constraints of the oil supply. An over-indexed and over-weighted excuse. There will be no accountability.
So where is the business leadership, where has it been?
Businesses, still appalling, swamped in red tape and inordinate amounts of governance, are paying a price for lacking the fortitude of not standing up and prosecuting their case against the lack of clear long term business incentivised policy. They barely spoke up at the Federal election; they raise their voice to a murmur after the results. Too little, too late and too often.
Governments are allowed to get away with mismanagement at a destructive and potentially irreversible level. We can all see what’s playing out, rising inflation, rising interest rates, rising unemployment, rising cost of capital and declining investment.
We are reaffirmed, by those in political power, that it’s worse in other countries, or is it reasonable compared to the late 80’s and early 90’s? But what about the missed opportunity for this country, for the business sector, for the entrepreneur of tomorrow, for those not seeking employment with bureaucratic government institutions?
Why are we listening to the most average of a political class, destroying potential and enormous opportunity?
No doubt it’s arguably better for business to express their ideas or concerns via the back channels, but that has delivered very little in terms of economic stewardship nor creation of a positive base for investment, whether it be organic, acquisitive, traditional, or hyper scale.
Instead, we brace for Boards and Executive leadership to lean heavily to conservative decisions and risk aversion. Growth, particularly real growth, halts and to reiterate we will see rising Inflation, rising Interest rates and rising unemployment. All poor ingredients for a less-than-palatable experience.
This country has an opportunity to grow markedly, and Iran is a poor excuse for poor leadership across the board, in Government and Business. There is no reason why businesses can’t flourish, employment increase, and people live a prosperous and opportune life. The country is sitting on an abundance of opportunity, led by Governments who struggle to grasp that strong business means strong employment and strong tax revenue. Business leadership has the opportunity to turn the tide, influence the agenda and become a major stakeholder.
Instead, Business leadership have turned inward, deferring to “not my problem” because “If I stand up, there will be consequences, or “ It’s simply too hard” and I ‘ll leave it for the next CEO’s watch.” Representation of Business has been lame, and the opportunity to Partner with Governments and reinvigorate the economy is slipping through our fingers.
It is time to end the complacency, create industries and shift the narrative. It may mean having some courage by Business leadership, to come together to address the issues publicly and collectively. At the moment Business is being picked off at ease, Governments are having a field day knowing a little bit of pressure applied will guarantee silence. Hardly conducive for the betterment of the nation.
For too long Business has stood back and watched the Country’s demise under successive Governments. We are witnessing capitulation, fatigue and an absence of character by Business when one could argue that if ever in our history, Business leaders are required to stand up and show the way….now is the day.
Gregory W. Robinson
Managing Partner, Lead of the Board and CEO Practice