Combet tells business to lift its game on economy

Q: What did Industry Minister Greg Combet say about business contributing to the national economic debate?

Greg Combet urged business to lift its game by contributing more to national economic policy debates. He said some industries and large companies have focused narrowly on their own commercial interests rather than the national interest, and called for broader engagement from business on policy issues raised at forums like the National Press Club.

BUSINESS must "lift its game" in contributing to the national economic debate, Industry Minister Greg Combet said yesterday as he delivered a tough message warning companies they needed to adjust to a new economy.

By InvestSMART · 23 Feb 2012

By InvestSMART ·
23 Feb 2012

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In a question-and-answer session following his speech at the National Press Club in Canberra, Mr Combet said there had been glaring occasions lately in which business had narrowly focused on its own commercial interests.

"Personally I think business needs to lift its game in contributing to national economic policy debate," he said. "What is in the national interest? I think we've seen some very high-profile instances of self-interest at work.

"That's not illegitimate, but there's been a pretty big focus on the part of some industries and some large large businesses in their own commercial interest."

His remarks followed a speech in which Mr Combet indicated there would be tough love for business, warning that the government could not help companies battling with the high dollar and said that financial assistance would be given only to companies that could make a case for their viability.

The government would continue to support the auto industry but only if it showed it was viable, Mr Combet said.

"It must at the end of the day have a viable business case, and that's the approach that we'll take."

He also pointed out that aluminium smelting and other sectors had ageing capital stocks.

"There are significant swaths of heavy industry and manufacturing where the capital stock is of immediate post-World War II vintage," he said.

"Pockets of our modern economy have been starved of capital investment, leaving us with ageing technologies and inefficient energy supply and consumption."

The carbon price would help drive investment in these areas, he said.

Mr Combet singled out workplace relations as one area where business had put its interests before those of the nation, but also alluded to issues he had raised in his earlier speech, including the carbon tax.

He rejected suggestions the embattled aluminium sector was doomed and said it could continue to thrive using clean energy.

"We want to see aluminium grow in this industry, but you don't achieve these things by pretending there is nothing else happening," Mr Combet said.

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Frequently Asked Questions about this Article…

What did Industry Minister Greg Combet say about business contributing to the national economic debate?

Greg Combet urged business to "lift its game" by contributing more to national economic policy debates. He said some industries and large companies have focused narrowly on their own commercial interests rather than the national interest, and called for broader engagement from business on policy issues raised at forums like the National Press Club.

How will the government decide which companies receive financial assistance, and what does that mean for investors?

Combet said financial assistance would be given only to companies that can make a credible case for their long‑term viability. For investors, that signals the government will favour supporting businesses with clear, sustainable business cases rather than subsidising firms struggling solely due to short‑term pressures.

Will the government continue to support the Australian auto industry?

Yes — Combet indicated the government would continue to support the auto industry but only if the industry can demonstrate it is viable. Support is conditional on showing a viable business case, so ongoing assistance is not guaranteed without clear prospects for competitiveness and sustainability.

What did Combet say about the outlook for the aluminium sector and clean energy?

Combet rejected the idea that the aluminium sector is doomed, saying it could continue to thrive by using clean energy. He suggested the sector can grow if it adapts and invests in cleaner energy solutions rather than ignoring broader economic and policy changes.

How does a high Australian dollar factor into the government's stance on helping businesses?

Combet warned the government could not simply rescue companies battling a high dollar. While recognising the pressure a strong currency places on exporters and trade‑exposed firms, he made clear government assistance would be tied to viability rather than providing blanket help for currency‑related difficulties.

What did Combet identify as problems in heavy industry and manufacturing that investors should watch?

He pointed out that significant parts of heavy industry and manufacturing have ageing capital stock — in some cases dating from immediately after World War II — and that pockets of the economy have been starved of capital investment. This has left technologies and energy supply/consumption inefficient, creating both risks and potential investment needs for modernization.

How might the introduction of a carbon price or carbon tax influence investment opportunities?

Combet said a carbon price would help drive investment in areas with ageing or inefficient technologies, particularly where cleaner energy and efficiency upgrades are needed. For investors, that signals potential opportunities in companies and projects focused on energy efficiency, clean energy adoption, and decarbonisation.

What does Combet's comment about workplace relations mean for investors watching corporate behaviour?

Combet singled out workplace relations as an area where business sometimes put narrow interests ahead of the national interest. For investors, this highlights the importance of monitoring corporate governance and labour relations, since public disputes or perceived self‑interest can affect reputation, regulatory attention, and long‑term value.