Rebuilding consumer and business confidence starts today
17 December 2013
The release today of the Mid-Year Economic and Fiscal Outlook by the Government should mark the official start of the campaign aimed at rebuilding consumer and business confidence in our future, says the Australian Private Equity and Venture Capital Association Limited (AVCAL).
“The Government was always going to face a very difficult task in trying to balance the nation’s books,” said AVCAL’s Chief Executive Officer, Yasser El-Ansary.
“The economy is now in the midst of major structural change, and given the fragile economic climate right around the world, we have to manage the task of repairing the budget very carefully.”
“What we’ve seen today is a commitment that the Government is prepared to make tough decisions to wind back certain expenditure over time, but at the same time a recognition that we can’t afford to jeopardise the task of rebuilding consumer and business confidence in the marketplace,” said Mr El-Ansary.
“A more positive outlook for consumer and business confidence is vitally important to driving more activity across our economy.”
AVCAL has made a number of submissions to the Government over recent months encouraging a renewed focus on implementation of innovation policies that can act as the engine room of productivity gains across our economy, which will help to make businesses more efficient and more profitable.
“Today’s updated budget numbers bring into sharp focus the fact that we have to get on with the task of lifting productivity, and making sure that we have the right policy frameworks in place to support businesses to do that across our economy,” Mr El-Ansary said.
“Innovation is a core ingredient in lifting productivity, so there’s a very obvious opportunity right now for the Government to focus on encouraging more private sector investment in new technology and more efficient production processes.”
“Between now and next year’s federal budget, we need to see more urgency in implementation of policies that support investment in innovation, given the vital role that will play in driving the future of Australia’s economy,” said Mr El-Ansary.
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Author: Adrian O’Shannessy, Director, Greenwoods & Herbert Smith Freehills