Directors’ confidence in Coalition wanes

Business directors’ confidence in the coalition has fallen dramatically as the Abbott government’s first budget looms, according to a new survey.

The Australian Institute of Company Directors found less than 30 per cent of directors believe the federal government’s performance is having a positive impact on both their business decision making and consumer confidence.

The results are from a survey of 525 chairmen and directors of companies and not for profits in Australia, taken between March 31 and April 13.

The confidence figures mark a significant drop from the last survey taken after the federal election, which found almost 70 per cent of directors expected the government to have a positive impact on their business decision making, and 80 per cent expected it to boost consumer confidence.

The number of directors who believe the government understands business has also slipped, to 48 per cent from 55 per cent previously.

AICD chief executive and managing director John Colvin said the results suggested the honeymoon period was over.

AICD New South Wales president Kathleen Conlon said the backlash was due to businesses expectations not being met.

Ms Conlon said the government had campaigned it would be ‘open for business’ but had not yet delivered on its promised reductions of red tape, had not increased consultation with businesses, or delivered policies that made Australia more competitive.

“The third thing ... is consistency of policy. What was said during the election versus what’s been delivered,” Ms Conlon said.