Wesfarmers chair Michael Chaney blasts politicians over lack of reform and ‘race to the bottom’ on immigration
Outgoing chair accuses the Federal Government and other politicians over a “race to the bottom” over immigration policy and a lack of action on tax and productivity reform.
Outgoing Wesfarmers chair Michael Chaney has blasted the Federal Government and other politicians over a “race to the bottom” over immigration policy and a lack of action on tax and productivity reform.
Mr Chaney, 76, one of Australia’s most prominent business figures, on Thursday said the Federal Government had failed to seize the momentum from last year’s economic reform roundtable, which had a focus on lifting productivity.
“Since then, though, we’ve seen limited, if any progress in productivity, backwards steps in business tax and none of the wholesale tax reform . . . which remains vitally important if we are to drive investment and remain competitive,” he said.
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By continuing you agree to our Terms and Privacy Policy.“Company and personal income tax rates are still too hight, and given the state of the budget, lowering them requires governments to stand back and restructure Federal and State taxes together.
“Governments have not found ways to work together, to take up that task.
“This economic and political environment has a significant impact on companies and their capacity to find and make investments where the numbers add up — to our long-term national detriment.”
Speaking at Wesfarmers’ annual general meeting in Perth, Mr Chaney said the ongoing political debate about immigration ignored its critical importance to economic prosperity.
“A concern about a different issue — housing shortages — is driving policy which would end up having the opposite effect to what was intended,” he said.
“As our skills shortages get worse, the casual workers on whom our care, hospitality and agricultural sectors depend are banned from entering, and our universities, on whom we depend for highly educated graduates, are faced with existential funding challenges.”
Mr Chaney emphasised that these were problems that went beyond the business world — if confidence stayed low and productivity remained weak, investment would stall and leave Australia.
“Wages growth will slow and governments will have less to spend on the services Australians value,” he said. “In the end, that will hurt us all.”
Mr Chaney has been chair of Wesfarmers since late 2015 and was its managing director from 1992 to 2005. He is also the chair of gold miner Northern Star, and is due to step down next month.
