Business pushes reform agenda

Cutting taxes, improving infrastructure and tackling the skills crisis should be the top priorities for the Carpenter government, a survey of Western Australian business leaders by WA Business News has found.

Other issues that ranked highly in the survey were streamlining project approvals, ensuring prudent management of the state’s finances, and improving industrial relations.

Most business groups have been encouraged by the elevation of Mr Carpenter to the top job and particularly his decision to retain the state development portfolio.

“That’s a strong sign of his recognition of the continuing and future importance of the resources sector to this state,” Jubilee Mines executive chairman Kerry Harmanis said.

The state government has already put tax reform on the agenda by establishing the state tax review, chaired by Jackson McDonald partner Jonathan Ilbery.

The Chamber of Commerce and Industry is seeking extensive changes, including a lower rate of payroll tax and single rates for land tax and motor vehicle duty, while Property Council executive director Joe Lenzo wants stamp duty reduced to the levels applying when Labor took office in 2001.

CPA Australia director Ian Watt is also pushing for tax reform, with an emphasis on reducing business taxes.

Peet & Co managing director Warwick Hemsley said reductions in land tax and stamp duty would allow developers to pass savings to homebuyers.

The Urban Development Institute estimates that state taxes add about 20 per cent to land development costs in Perth.

The state government has acknowledged the need to develop a long-term infrastructure strategy and has appointed an advisory panel chaired by former Clough managing director Brian Hewitt to assist in that task.

The UDIA would like WA to follow the lead of Queensland, which prepares an annual infrastructure plan for south-east Queensland and updates funding in each budget.

Mr Hemsley said it was important to have a transparent process to ensure the provision of infrastructure serves the public in a fair and impartial manner.

Mid-West Chamber of Commerce president Rob Houwen said the unprecedented growth around Geraldton was creating a need for improved infrastructure.

Specific commitments he is looking for include funding for a heavy boat lifter for the marine services precinct and completion of the second stage of the southern transport corridor.

He also said the mining industry was keen for the government to clarify its position on the proposed deepwater port at Oakajee, north of Geraldton, and the associated road and rail infrastructure.

“Previous meetings with Premier Carpenter, in his role as state development minister, give us cause for hope as we believe his understanding of the requirements and potential of the Mid-West region are sound,” Mr Houwen said.

Wine Industry Association of WA president John Griffiths called for better roads, power and community facilities to support the wine industry, which is worth about $500 million a year to the state.

The CCI believes a key step in infrastructure provision would be to resolve funding issues between levels of government.

The issue of inter-governmental relations was highlighted by John Curtin Institute of Public Policy director Greg Craven.

He believes the Carpenter government needs to establish a strong capacity to handle federalism issues “at a time of increasing encroachment from Canberra”.

Professor Craven also wants to re-establish the office of public service commissioner “to restore morale and a sense of professionalism in the state public service”.

And he wants the department of premier and cabinet to have a strategic overview of the whole of state government policy.

Several business groups said the shortage of skilled labour should be one of the government’s top priorities.

The Gallop government has taken steps to tackle this issue but business groups say more reform is needed, including of the apprenticeship system.

Master Builders Association of WA director Michael McLean said many reputable builders were simply not able to take on more work because of a shortage of skilled workers.

Institute of Chartered Accountants general manager WA Con Abbott wants a focus on three areas: encouraging family friendly work policies, including through improved childcare; attracting more skilled migrants; and retaining international student graduates in WA.

CPA’s Mr Watt said the state also needed policies to promote increased workforce participation to deal with the effects of an ageing population.

This concern was shared by the Family Business Association, which said the infrastructure to support families providing elder care was not adequate.

Chamber of Minerals & Energy chief executive Tim Shanahan wants better coordination between state and federal governments to facilitate skilled migration, and a greater focus on minerals education.

The top priority for the resources sector was the project approvals process.

Mr Harmanis said there was still an urgent need to further streamline the permitting and approvals processes to boost exploration and get projects up and running more quickly, and with less red tape.

“There is often a strong will on the part of both exploration companies and Indigenous communities to see dollars spent in the ground, however the process of gaining exploration access is often difficult, costly and time consuming,” Mr Harmanis said.

Association of Mining & Exploration Companies chief executive Justin Walawski said WA was benefiting from mineral discoveries made in the 1980s.

There have been no major discoveries of any commodity in the past five years and no major discovery of gold in over a decade.

Mr Shanahan said the chamber supported the recently established office of development approvals coordination, chaired by former Argyle Diamonds chief executive Brendan Hammond.

He recommended improved alignment between agencies involved in project approvals and greater timeliness in decision making.

The property industry is also keen to see an improved planning approvals process.

Mr Lenzo wants the government to take a more strategic approach and speed up the creation of the state redevelopment authority to ensure more efficient approvals for major projects.

Business groups emphasised the need for the government to have prudent budget policies and maintain the state’s triple-A credit rating.

The CCI wants the government to arrest the unacceptable growth in general government spending and introduce a system to determine spending priorities on a more sustainable basis.

Business groups also raised industrial relations as an area needing reform.

“There is much that can be done by the new minister [John Bowler] in support of several initiatives recently introduced by the federal government,” Austal chairman John Rothwell said.

The MBA’s Mr McLean said WA needed genuine choice between individual employment contracts and union agreements.

“A more decisive and effective response to unlawful and inappropriate union behaviour would also be welcomed,” he said.

Law Society president Wayne Martin said the top priority should be improved access for ordinary Western Australians to the justice system, including through improved legal aid.

He also wants better resources for all courts and a new Supreme Court building, as planned more than 15 years ago.