Labor's dubious leadership 'bad for business'
Business leaders contacted by BusinessDay failed to find the bright side of the leadership challenge that wasn't, with some calling for a snap election and warning that consumer and business confidence would pay the price for continued political uncertainty.
Departing BC Iron chief executive Mike Young watched events unfold from a conference in Hong Kong and said: "It's so bizarre that I can't be bothered commenting on it."
Bill Wavish, who heads the consortium that bought retailer Dick Smith, said: "The sooner we can get this election out of the way and get on with real life the better."
Myer managing director Bernie Brookes warned that distractions prevent proper governing.
"We rely on an elected government to manage and strategically direct everything from fiscal policy to social programs. Such actions require focus and direction."
Harold Mitchell, executive chairman of Aegis Media Pacific, said Australia needed a "clear leader with the strong support of their own party".
"Anything less than that will of course have an impact on confidence and affect everyone," Mr Mitchell said.
Ian Carson, chairman of partners at corporate advisory firm PPB, said Australian businesses had endured "a long period of uncertainty".
"Like the cardinals in Rome, what we need is some white smoke," Mr Carson said. "We need some certainty at federal government level so companies can get on with creating jobs, making investments and move ahead with important business decisions."
Billionaire miner Clive Palmer said there was a "whole heap of people who really have been shut out of government and the Labor Party" under Ms Gillard's leadership and said Labor needed a new approach to taxing the mining industry.
Perpetual director Sylvia Falzon said Labor needed to improve its consultation with business and give Australians "confidence about what they stand for rather than being an inward-looking government".
"This whole political environment has held organisations back - from employing people, capital investments, all those issues," Ms Falzon said.
Chris Whitehead, chief executive of the country's biggest credit union CUA, said the leadership instability tended to make people less confident. "When there's uncertainty people are reluctant to make big decisions and big investment decisions," he said.
Dr Andrew Wilson, senior economist with Australian Property Monitors, said: "With confidence rising, the last thing the market needs is to have a left-field issue such as significant political uncertainty."
The chief executive of PwC Australia, Luke Sayers, said political instability was discouraging foreign companies from purchasing Australian assets.
"Forgetting Labor, forgetting Liberal, Julia Gillard and Tony Abbott, business is looking for stability, looking for clarity, decision and leadership that promotes investment and drives business," he said.
Frequently Asked Questions about this Article…
Business leaders in the article say political leadership instability undermines both consumer and business confidence. They warn that uncertainty makes companies and households reluctant to make big decisions, slows hiring and capital spending, and generally holds organisations back from moving forward.
Several executives quoted in the article argued a clear outcome—such as a snap election or a settled leadership—would remove uncertainty. For example, Bill Wavish said getting an election 'out of the way' would let businesses get on with real life, and others said Australia needs a clear leader with strong party support to rebuild confidence.
Telstra chief executive David Thodey described it as 'an unsettling day in Canberra.' Other leaders — including Myer’s Bernie Brookes, PwC’s Luke Sayers and Perpetual’s Sylvia Falzon — warned that political distraction and instability reduce focus on fiscal and strategic decisions and discourage investment.
Yes. Luke Sayers, chief executive of PwC Australia, said political instability was discouraging foreign companies from purchasing Australian assets, indicating that ongoing leadership turmoil can make Australia less attractive to overseas buyers.
Multiple leaders in the article said the political environment has 'held organisations back' — from employing people to making capital investments. CUA’s Chris Whitehead noted that when people are uncertain they're reluctant to make big investment decisions, which can delay hiring and large projects.
Yes. Billionaire miner Clive Palmer is quoted saying many feel 'shut out' under current Labor leadership and that Labor needs a new approach to taxing the mining industry. This highlights that mining tax policy and leadership direction are areas of particular concern for miners and investors in the sector.
The article suggests investors should look for clear political outcomes such as a settled party leader, an announced election or clearer policy direction from government. Ian Carson used the metaphor of needing 'white smoke' — meaning a definitive resolution at the federal level that allows companies to proceed with jobs and investments.
Business leaders’ comments are signals about the real economy: they indicate that executives see risk to planning, investment and foreign interest when politics is unsettled. For investors, those comments are a reminder that political uncertainty can influence corporate decisions and market sentiment, especially in sectors sensitive to policy and investment flows.
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