Innovation key to economy's future: Hartzer
Amid signs mining investment is near its peak, the chief executive of Westpac's Australian financial services division, Brian Hartzer, said public debate had failed to consider what would fill the gap.
Despite the woes facing many manufacturers, Mr Hartzer said the sector had a viable future. But he said the nation needs to focus on encouraging business owners to use technology - such as the $37 billion national broadband network - to become more productive.
He also called for greater debate on how to support entrepreneurial activity among business people, as opposed to calls for government to prop up struggling industries.
"We spend an awful lot of time talking about the mining boom," Mr Hartzer said. "It's been a great ride and Australia is now wealthier than ever before. But are we thinking hard enough about what happens next? I don't think so."
He said the nation should back sectors such as advanced manufacturing, medical devices and information technology. "The bottom line is that we should not give up on manufacturing here in Australia, but we do need to look hard at where we can use technology and our natural advantages to compete in new ways."
Mr Hartzer's comments came as figures show business investment fell 4.7 per cent in March. At the same time, the numbers also show a small lift in mining company spending expectations over the year, which economists said suggested the investment peak was near.
While Mr Hartzer said there was a valid policy debate over what could be done to support growth, he said the "bigger picture" was that Australia needed to encourage "energy and entrepreneurialism" in the business community.
Frequently Asked Questions about this Article…
Brian Hartzer, chief executive of Westpac's Australian financial services division, said the massive wave of mining investment looks to be near its peak and that public debate hasn’t focused enough on what will fill the investment gap as mining spending declines.
Hartzer argues that as mining investment wanes, Australia should back sectors like advanced manufacturing, medical devices and information technology so the economy can keep growing by using technology and natural advantages to compete in new ways.
According to Hartzer, business owners should adopt technology — he used the $37 billion national broadband network as an example — to boost productivity, modernise processes and allow Australian manufacturers to compete more effectively.
The article notes business investment fell 4.7% in March and that mining company spending expectations suggest the investment peak is near, signalling a shift in the investment cycle that everyday investors may want to monitor when assessing sector exposure.
No — Hartzer called for more debate on supporting entrepreneurial activity among businesspeople rather than simply propping up struggling industries with government support.
The article highlights advanced manufacturing, medical devices and information technology as sectors Hartzer believes Australia should back as possible sources of future growth.
He means policy and business culture should foster innovation, risk-taking and practical support for entrepreneurs so companies adopt new technologies and create new growth, rather than relying on government intervention to save uncompetitive firms.
Hartzer noted the mining boom has made Australia wealthier than before, but he warned investors and the public to think about what comes next, implying the need to consider industries and technologies that could sustain future economic growth.
Call 1300 880 160
Start a chat
Schedule a call
