Business bemoans The Abbottalypse

From yesterday’s reporting season, Suncorp CEO Patrick Snowball said it is:

“depressing we have wallowed in political uncertainty for the 5½ years I have been running this company…Big capital-intensive businesses like ours rely on some political leadership, which just isn’t there right now. We’ve wasted good opportunities.”

Commonwealth Bank CEO Ian Narev said:

“Weak confidence is a significant economic threat…Businesses need the certainty to invest to create jobs, and households need a greater feeling of security. That requires implementation of a coherent long-term plan that clearly addresses target government debt levels and timeframes, infrastructure priorities, foreign investment, business competitiveness policies and, above all, job creation.”

Boral MD  Mike Kane reckoned:

“The problem I have is how Labor governments oppose major projects that create jobs…The need for major projects is not going to go away. How is it Labor governments can oppose job creation through public-sector investment?”

AGL CEO Michael Fraser , moaned:

“One of the big issues for the industry during my time in the chair is that it has been a political football between the carbon debate, the RET debate, the CSG debate, solar feed-in tariffs…This just adds to the political instability we’ve got and I think that’s a major challenge for the ­industry. This is an industry with long-term investment horizons that needs long-term stability and certainty from both sides of polit­ics in terms of the policy settings. This week has highlighted how far removed we are from that.”

Goodman Fielder CEO Chris Delaney said:

“Stability in government would be very helpful, it would continue to allow a government to be looking at what are the long-term solutions they want to put in place instead of trying to preserve the government of the day.”

While each of these businesses is talking its book in its own way, in aggregate it is hard to disagree!

David Llewellyn-Smith
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Comments

  1. Give it a rest. Political uncertainty is job of labor. Separate the chaff from the wheat and don’t blame a leadership challenge on this countries woes when you know full well it starts with a commodities decline! And it is backed up by a over exerted banking sector.

    How many new pieces of legislation did Gillard/Rudd slam threw parliament during their time? A record number i recall. Thats not stable that erratic knee jerk stupidity.

    I for one dont not Believe government is suppose to wipe a nations ass and the very people who made comments who you listed benefit greatly from ass wipe labor.

    • Simply

      Your comments, are so much like the comments of our leader (so called) both yours and Tony’s statements are a disjointed and incoherent load of swill.

      Your comments don’t even qualify as opinion, so no respect is due.

      • Firstly I’m not even liberal.

        Secondly, Revert2idiot needs to shut his idiotic mouth in regards to religion. (There’s no need for it here, totally inflamitory) I’m not even religious.

        All I’m saying is this countries “problems” is not one based on leadership squabbles…

        Its problems is based on fruitless arguments and lack of realistic dreams and aspirations. A total “she”ll be right mate” attitude.

        Last month we debated over a royal getting the AK and this month over leadership issues.

        Where was the debate about shaping this countries future post mining boom?

        Where in politics is their any realisation that our lending in unsustainable moving forward especially when its only used to prop house prices up and not fruitful /productive business.

        Innovation, production and efficiency is what this country needs but no one wants to debate about how to really get there. How to sway this country from houses and holes.

        Anyway those below somewhat prove my point.

      • Simpleton, wasn’t it you who brought religion into it? (“I am a Christian” you said elsewhere on this site). If you brandish your faith-based outlook, get ready to be judged for it.

        You’ve also made it plain that you are a conservative voter.

        And your climate denial ties the two neatly together in an odious package.

      • Revert2idiot if you read the context of said comment made by myself then you will understand.

        Instead you chose the easy path to make assumptions and revert to your feble minds default thought process. All to discredit me and not what I was actually saying.

        Let me try again. What I’m trying to get into your thick skull is that your beleifs in climate change are akin to the over zealous religious nut cases. (I’m not criticising religion only the loonies who take their beleifs too far) thats my point.

        Yes I’m a christian, but I’m not a loonie i don’t preach, I don’t go to church and I’ll be damned if anyone prevents me from eating meat on whatever day.

        Your a climate extremist, you preach, you practice. If someone doesn’t follow your lead you will act like their some “idiot” native that must be converted or fought with.

        You fail to see anyone elses view aside from your own predetermined war path caused by your visions of a approaching apocalypse called global warming.

        You are slightly delusional like every apocalypse nut case before you.

      • And I’m not a climate change denier what I’m saying is repeatedly is that the world has time to wait and see what actually happens outside of the laboratory and act as much or as little if and when its required.

        And certainly not when the modern economy the modern world is at its knees.

        Now for us to calm down beacuse i bet me and you aside from this squabble actually have a lot in common. I’m actually very much a greenie.

    • Labor wasted the boom revenue, plain and simple. Billions handed out to programs that return nothing. Simple handouts because they could.

      I hate Liberals, I side more with Labor but both parties have atrocious leadership skills.

      • GunnamattaMEMBER

        Lets get this narrative right

        1980s and early 1990s – ALP (under Hawke Keating) basically reconstruct the economy, and largely deregulate banks.

        Late 1990s – 2007 – JWH & Costello – LNP introduces of GST, economy performs quite nicely with external competing sectors. 1999 Tories decide to halve Capital Gains (stimulating increased interest in housing speculation), banks commence borrowing offshore to finance mortgage on shore (feeding housing bubble). Circa 2004-2005 with mining investment boom starting to become apparent and prices rising Tories front load budget outlook with major taxation cuts, paring revenue side. Major revenue windfalls from there on revenue side because of rising mining product prices and volumes cover this. Dollar is allowed to rise, denuding export facing sectors of competitive position.

        Rudd/Gillard – 2007-2013 – ALP continues previous government line of boom lasts forever. in 2008 spends its way out of GFC collapse by projects ranging from silly (pink bats) to worthy (school infrastructure) at the same time as doubling first home grants (supercharging property speculation). Allows mining lobby to decapitate first term elected leader and is locked into not touching windfall mining profits after that. Introduces carbon tax to reduce emissions, which works. introduces some social programs (eg Gonski and NDIS) which are expensive, under pressure to implement some traditional ALP reforms, without touching major economic reforms. Gets wind of end of mining boom in last year and tightens budget to some extent, though leaving longer term budget rebalancing to someone capable of coming up with narrative acknowledging this. Comes to office with housing reform acknowledged but backs away from it and refuses to acknowledge issue thereafter.

        Abbott – 2013 – ??? Removes carbon tax, without removing offsets, begins process of recognising declining mining related revenues. Completely cocks up budget with narrative blaming younger and older and sicker members of community, not addressing tax cuts and middle class welfare mainly put in place by Howard and Costello. Refuses to acknowledge role of revenue side factors in budget position. Increasing electoral scepticism circa late 2014 becomes factor in economic planning at corporate level. First leadership challenge Feb 2015.

      • +1 gunna. Too looks of surprise, I’ve been introducing many to the concept of structural deficit and that it started under JWH…

      • Great summary Gunna.

        HRHolden I’ve been doing the same. It is astonishing how many believe Howard/Costello were great but I believe this to be because they became “rich” over that period rather than anything of substance. Perception is everything.

      • Agree nor,

        I just like to add that those stimulus measures by kevin showed up as a little blip on this countries economic radar. It did nothing adverted nothing.

        The trillions of dollars dumped by PBOC onto stimulus projects showed up like a 747 crashing thru the same radar screen.

        Point being its laughable to think rudds stimulus did anything substantial. 0.25% for one quarter

    • Simplicity – This sort of one-eyed rubbish belongs on the comments section of Fairfax or News Ltd. No one here is saying Labor is amazing and the Libs are the problem.

      Open your mind or move along.

    • I for one dont not Believe government is suppose to wipe a nations ass and the very people who made comments who you listed benefit greatly from ass wipe labor.

      Ignoring your partisan diatribe (protip: Labor aint been in Govt for 18 months now), didn’t you read the quotes? It’s Big Business that expects the Govt to look after them in this country! It’s written there right for anyone to see!

    • Alandrew Jolts biggest fan/parrot right here.

      We have 2 polished turds in Australia; the one wearing the red tie is ever so slightly shinier.

  2. They both stink, because they both wasted the boom. They’re both clueless when it comes to fixing tax distortions or the housing ponzi.

    However, the current Liberal government to my mind stink more (How many boats arrived? No one knows! How much of the 2014 budget will spill over into the 2015 budget? No one knows!)…

    … and most importantly they’re the goons in power at the moment, so they deserve the attention.

    Those claiming to be responsible adults should not be surprised, or keep blaming the other mob (trust me, the current crop of Libs will NEVER stop blaming Labor, no matter how long they’re in government), when people rightly pin the effects of uncertainty caused by crap policy on them.

    Leaders stand up and actually own problems. Tony and Smokin’ Joe have been doing the opposite.

    “Anyhow it’s all Labor’s fault and my leg hurts and… ” – Joe Hockey depicted in First Dog on the Moon.

  3. Don’t know about that Gunna.

    and largely deregulate banks

    So Labor was looking after its core constituency, or really helping out the country, with that move were they?

    • GunnamattaMEMBER

      well someone deregulated the banks, and I reckon the major reforms were in place before Howard Costello.

      It helped the ALP’s core constituency access debt (whether that is a good or not I will leave to others)

      • Tassie TomMEMBER

        Or as Keating would put it: “It enabled the working class to access capital”.

        It’s funny how much nicer it sounds when you use a thesaurus.

      • Yes… Capital… And just look at what capital capital gains that capital has put in in 30 years!

        Thanks PJK

      • Really is a pity we didn’t have a PM Abbott and Treasure Costello to really complete the comical chaos.

    • Mig and Gunna

      I think the banking deregulation by Keating was with the power of hindsight, the beginning of the decline into the economic abyss.

      I believe the intention was that deregulation would lead t greater competition, but this translated into giving a bigger loan not charging less interest as had been intended.

      So good idea but naive to have left this issue to the discretion of the banksters.

      The rest as they say is ‘history’ as is the Australian economy.

  4. poor bankers and energy bosses they only managed to make all time record profits during this uncertainty

    maybe government should give them few billions of tax payers money for damages caused by this uncertainty and to show appreciation for their social role of being charitable job creators (they clearly create jobs to help community not to exploit its members).

    • I know! “oh poor little us, all this uncertainty means we’re not sure who to bribe, and it’s costing too much to have to bribe all sides at the moment…”

  5. Sigh.

    Becker, we need that flag back mate.

    The Swiss government on Wednesday proposed a draft law to limit immigration from the European Union following a referendum, but said it was seeking talks with the EU in order not to violate other treaties including on the free movement of people.

    The proposed law follows a successful referendum launched by the right-wing Swiss People’s Party (SVP) to impose strict quotas on immigration. The measure was strongly opposed by the government as well as Swiss banks, drugmakers and other industries that rely heavily on skilled workers from the EU.

    Stephen Morris 1 – 0 Selective Psychopath Academy

    http://www.reuters.com/article/2015/02/11/swiss-immigration-idUSL5N0VL4PK20150211?feedType=RSS&feedName=usDollarRpt

    • reusachtigeMEMBER

      Go proper democracy! I wonder how long before the elite snuff it out in favour of their preferred form of democracy, ie, the sick system the rest of the west have?

      • Pity how its the US that obsesses about exporting “democracy” to the world.

        Imagine if it had been the Swiss!

        I can’t see the Swiss getting too mixed up in Middle Eastern affairs, probably would just sell them a bunch of watches with Camel bell rather than Cow bell motifs that would be the end of that…

  6. It took more than 30 years for the scientists to accept the fact from one person research prove that human brain grows new cells after birth. I wonder how many years are needed for people to understand and accept the true nature of capitalism and its own governments.

      • Segway

        trademark name (Segway Inc., Bedford, New Hampshire, U.S.), in use from 2001; according to the company, chosen for similarity to segue on notion of “a smooth transition from one place to another,” with probably influence of way (n.).

      • Mining BoganMEMBER

        I knew a guy who used to do segway tours. Reckoned it was the best way to get a bunch of tossers together to be run down by a truck in one hit.

    • “..and accept the true nature of capitalism and its own governments.”

      Better to properly understand human nature first. It’s both our greatest enemy and best hope. Half the reasons economic and political theory fail in the real world is because they don’t adequately understand human behaviour.

  7. I think the issue was leadership mismanagement on both sides.

    Labor elected a known nutter in the form of KRudd and we know the outcome of that.

    The the libs went Howard-Nelson-Turnbull and then accidentally this Abbot f*ckwit – at the time they thought oh well he’ll be sacrificial anyway …

    But then Labor’s election of the known nutter plays out – political fear of leadership change – accidental idiot stays in power…

    This why I think to have the intestinal fortitude to switch to someone actually suited to the job might help. Quite a bit I suspect…

  8. “We will be a no surprises, no excuses government, because you are sick of nasty surprises and lame excuses from people that you have trusted with your future…” – Tony Abbott.

    You know, had he actually been serious about this then he could have avoided 90% of his problems.

  9. It’s quite simple. Compare the last two Liberal PMs. John Howard, for all his faults, was a grown up. Tony Abbott is not. He is still at heart a student politician who lives to troll his opponents.** Getting constructive things done is not on his agenda and never has been. His modus operandi is to bait, to provoke, to enrage and to destroy. You can see the gleam in his eye when he proudly says his greatest achievement is to abolish the carbon tax.

    Compare the last four Labor PMs.

    Hawke and Keating tried and largely succeeded in making Australia a better place.

    Rudd had Hawke’s narcissism but unlike Hawke narcissism is all he had.

    Gillard in other circumstances could have been a good, well, good-ish, PM but was out-thought, out-fought and out-played by Abbott.

    Prospectively, we have either Turnbull or Shorten, both of them also terrible narcissists.

    No wonder the business community is fed up.

    ** Evidence: Abbott wears a blue tie, in fact the same shade of blue, every single day. Why? Because once Julia Gillard made a comment about conservative men in blue ties. This is classic student politician behaviour, circa 1979, by Abbott.

    • ” Tony Abbott is not. He is still at heart a student politician who lives to troll his opponents”

      *cough* Hockey the ginormous boviated hypocrite student union leader

      Also pity for Abbott it’s not 79 and no one cares.in fact we’re wondering why anyone still wears a tie! Seen any bowler hats lately?

      • Ha! Too right.

        Whenever I see someone in a tie talking to me, I automatically assume I’m being lied to. They’re basically a liar’s uniform at this point.

        (unless of course the person is a dandy and actually likes ties, but then it won’t be a black or grey business suit and a blue tie).