Turmoil taking toll on business: bosses

Eric Johnston and Mark Hawthorne February 23, 2012

Australia's business leaders have hit out at the political infighting that has gripped Canberra, saying it has sapped consumer confidence and affected the economic management of the country.

Business bosses called for an urgent resolution to the leadership saga in the face of a tough global economy and high Australian dollar.

Myer chief executive Bernie Brookes criticised the nation's leaders for ''poor economic management''.

''All of our politicians have diverted their attention and energy in the past few weeks to a potential leadership challenge rather than running the country,'' he said.

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''I could not imagine a board or a business putting up with continual diversion from the economy, the consumer, raising taxes and running the country, to less important things.''

Mr Rudd acknowledged last night the affair was becoming a distraction for business and investors. ''It is important that business confidence is maintained. The economy and jobs are core to what any responsible government is about,'' he said.

Suncorp Group chief executive Patrick Snowball yesterday said ''political uncertainty'' was causing a headwind for business.

Aussie Home Loans executive chairman John Symond called for a fresh election, saying Labor has governed ''appallingly''. ''Both Rudd and Gillard have been awful leaders, allowing poor policy for the sake of self-interest,'' he said.

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Specialty Fashion Group chief executive Gary Perlstein said the government's war with itself was having a direct impact on the confidence of customers and their spending habits.

''A country where politicians are fighting about themselves and not looking after the country … is just ridiculous,'' he said.

The chief executive of the Australian Chamber of Commerce and Industry, Peter Anderson, said Labor's infighting was undermining business sentiment. ''We continue to be concerned about the ongoing impact of leadership instability on business confidence,'' he said.

''It's a distraction for our political system, it's a distraction for our economy and we want governments and ministers to be able to get on with actually looking at some of these very serious issues.''

With CLANCY YEATES and SEAN AYLMER

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