ONE COUNTRY. MANY VOICES.
ANNUAL REVIEW 2012 04 OUR MEMBERS 26 OUR ACHIEVEMENTS 08 PRESIDENT’S MESSAGE 28 ONE COUNTRY, MANY VOICES 11 CHIEF EXECUTIVE’S MESSAGE 30 PUBLICATIONS 14 ABOUT US 15 OUR VISION, GOAL AND VALUES 16 HOW WE WORK Cover: Yuyuya Nampitjinpa, 18 OUR STRUCTURE Women’s Ceremony, 2011 © 2012 Yuyuya Nampitjinpa licensed 24 OUR WORK PROGRAM by Aboriginal Artists Agency Limited
ONE COUNTRY. MANY VOICES.
The Business Council of Australia (BCA) has been talking with people and organisations from different parts of the community.
The intention, on all sides, has been simple: to fi nd common ground on goals for achieving national wealth for Australia. Not the fi nancial wealth of a few, but enduring prosperity for all. This means rewarding jobs, a better health and aged care system, world’s best education and training, and quality infrastructure to meet our needs into the future. Choices and opportunities that don’t leave groups of Australians behind. The BCA’s vision is for Australia to be the best place in the world to live, learn, work and do business. Our members bring their collective experience in planning, innovating, leading and inspiring. Working with others to develop interconnected policy responses, we can transcend limited short-term thinking to envision a future we would wish for the generations to follow. It’s time to show that together we’re up for the tough conversations, the planning and the collaboration needed to secure our nation’s enduring prosperity.
3 Our members
BCA membership details throughout this review are valid as at 1 October 2012.
Mark Adamson Scott Charlton Fletcher Building Limited Transurban Group Daisaburo Akita Mark Chellew Mitsui & Co. (Australia) Ltd Adelaide Brighton Ltd David Attenborough Anthony Claridge Tabcorp Holdings Limited ResMed Limited Ross Barker David Clarke Australian Foundation Investec Bank (Australia) Limited Investment Company Cameron Clyne Andrew Barkla National Australia Bank Limited SAP Australia and New Zealand Peter Coleman Gavin Bell Woodside Energy Limited Herbert Smith Freehills Tony Concannon John Bevan GDF SUEZ Energy Australia Alumina Limited Alan Cransberg John Borghetti Alcoa of Australia Virgin Australia J. Todd Creeger Graham Bradley AM ConocoPhillips Australia Honorary Member, David Crow Business Council of Australia British American Tobacco Australasia Terry Burgess Peter Crowley OZ Minerals GWA Group Limited Michael Cameron John Dashwood The GPT Group ExxonMobil Australia Pty Ltd John Carrington John W.H. Denton Ashurst Australia Corrs Chambers Westgarth Michael Chaney AO Mike Devereux Honorary Member, GM Holden Ltd Business Council of Australia
BUSINESS COUNCIL OF AUSTRALIA 4 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Craig Drummond Mike Hirst Bank of America Merrill Lynch Bendigo and Adelaide Bank Group Greg Ellis Lance Hockridge REA Group QR National Limited Ahmed Fahour Dean Holden Australia Post Bupa James Fazzino Rod Jones Incitec Pivot Limited Navitas Limited Grant Fenn Alan Joyce Downer EDI Limited Qantas Airways Limited Michael Fraser Gail Kelly AGL Energy Limited Westpac Group Richard Freudenstein Grant King FOXTEL Management Pty Limited Origin Energy Limited Elmer Funke Kupper Marius Kloppers Australian Securities Exchange BHP Billiton Greig Gailey David Knox Honorary Member, Santos Limited Business Council of Australia Roy Krzywosinski Kevin Gluskie Chevron Australia Hanson Australia Katie Lahey Tom Gorman Honorary Member, Brambles Limited Business Council of Australia Richard Goyder Gavin Larkings Wesfarmers Limited CSC Australia Pty Ltd Matthew Grounds Richard Leupen UBS Australasia UGL Limited Steve Harker Graeme Liebelt Morgan Stanley Australia Limited Honorary Member, Business Council of Australia
OUR MEMBERS 5 Geoff Lloyd Hugh Morgan AC Perpetual Limited Honorary Member, Business Council of Australia Ross Love The Boston Consulting Group John Mullen Asciano Limited Steve McCann Lend Lease Ian Narev Commonwealth Bank of Australia Mick McCormack APA Group Peter Nash KPMG Darryl D. McDonough Clayton Utz Catriona Noble McDonald’s Australia John Macfarlane Deutsche Bank AG Grant O’Brien Woolworths Limited Ken MacKenzie Amcor Limited Seán O’Halloran Alcatel-Lucent Australia Rob McLeod Ernst & Young Paul O’Malley BlueScope Steel Limited Mick McMahon SKILLED Group Limited Tony O’Malley King & Wood Mallesons Didier Mahout BNP Paribas John O’Sullivan Credit Suisse (Australia) Limited Paulo Maia HSBC Bank Australia Limited Lindsay Partridge AM Brickworks Limited Pip Marlow Microsoft Australia David Peever Rio Tinto Australia Kerrie Mather Sydney Airport Jack Percy Accenture Australia Rohan Mead Australian Unity Ann Pickard Shell Australia Limited Andrew Michelmore MMG Limited Geoff Plummer Arrium Limited Robert Millner Washington H. Soul Pattinson Neville Power and Company Limited Fortescue Metals Group Limited Nicholas Moore Anthony Pratt Macquarie Group Limited Visy
BUSINESS COUNCIL OF AUSTRALIA 6 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Rob Priestley Michael Smith OBE J.P. Morgan Australia and New Zealand ANZ Matthew Quinn Patrick Snowball Stockland Suncorp Group Douglas J. Rathbone AM Andrew Stevens Nufarm Limited IBM Australia and New Zealand Andrew Reitzer Chris Sutherland Metcash Limited Programmed Michael Rennie Giam Swiegers McKinsey & Company Deloitte Santo Rizzuto Catherine Tanna Sinclair Knight Merz BG Group Chris Roberts Guy Templeton Cochlear Limited Parsons Brinckerhoff Stephen Roberts David Thodey Citi Australia and New Zealand Telstra Corporation Limited Michael Rose Ian Thomas Allens Boeing Australia and South Pacifi c Simon Rothery Paul Thorley Goldman Sachs Australia Capgemini Australia and New Zealand Steve Sargent Hamish Tyrwhitt GE Australia and New Zealand Leighton Holdings Limited Charlie Sartain Paul Waterman Xstrata Copper BP Australasia George Savvides John Weber Medibank Private Limited Minter Ellison Luke Sayers Ian White PwC Australia Oracle Corporation Australia Pty Limited John Schubert AO Michael Wilkins Honorary Member, Insurance Australia Group Business Council of Australia Kim Williams AM Julian Segal News Limited Caltex Australia Limited David Yuile Tony Shepherd AO AAPT Limited President, Business Council of Australia David Zehner Ian Smith Bain & Company Orica Limited
OUR MEMBERS 7 President’s message
Members of the Business Council of Australia are very conscious of their responsibility in providing a clear, reasoned perspective on the road ahead for the Australian economy.
TONY SHEPHERD AO PRESIDENT
8 TONY SHEPHERD AO PRESIDENT
Our CEOs come from different industry sectors, offering the organisation a remarkably broad overview of economic circumstances. As I talk to each of our members, the underlying message is one of concern. Concern about productivity and costs. Concern about the global fi nancial environment and concern about government policies and regulation as they impact on business and investment. Our voice is a synthesis of many voices, all of them informed by everyday experience as employers, planners, wealth creators and members of the broader Australian community. As a highly visible, highly accountable business Volatile commodity prices make it plain that group, we recognise that we are one of many the days of allowing our high terms of trade voices speaking up for Australia’s long-term to mask weaknesses are over. The capital prosperity. We do not have a monopoly on investment pipeline on which our economy national concern and ambition and can only is heavily reliant is far from assured. succeed in achieving our goals by working Our costs are high, productivity is a problem with others, informing and persuading people and if we don’t work to turn these things around, with rigorous research, balanced argument they will further undermine our international and through the values and actions of individual competitiveness and living standards. CEO members and their companies. If we don’t address the fi scal sustainability of It is important as business leaders that we governments across the federation, we simply take a broad, non-sectoral view of the issues won’t be able to afford the level and quality facing business. It is important also that we of services we would wish for our diverse do not forget those who are being left behind population. We are seeing already the impact in the development and growth of our country. of fi scal pressure on the capacity of the states When we point to concerns about the to deliver public services. Australian economy, we have no interest in No doubt, Australia’s economic fundamentals scaremongering. It’s about squaring up to the are strong but there are worrying signs emerging, facts so we can do something about them.
PRESIDENT’S MESSAGE 9 and papering over them is no way to restore Australians expect nothing less than our business or community confi dence. The honesty and our ambition for Australia. confi dence we need to embrace a new digital They would not thank us in 10 years time economy that will transform every aspect for staying silent as problems appeared of our lives. The confi dence we need to and opportunities passed us by. capitalise on the Asian growth opportunity. All the while we will hold our elected In the coming year, the BCA will focus heavily representatives, whether federal or state, on innovation, which we see as a key driver of to account. We have to work just as hard to productivity and of wealth creation. Our activities change the perception of corporate Australia and the work of our committees will have a – by promoting the important contribution we strong emphasis on what we need to achieve make to this country, not only economically but in the policy and business environment to in many and varied ways, and by ‘walking the unleash Australia’s innovation. talk’ on values of enduring, shared prosperity. We need to build confi dence in economic On behalf of the board and our members growth itself, to paint a picture of what it I thank the staff of the Business Council, means for people’s living standards, and led by our CEO Jennifer Westacott, for an what it would look like to let our economic outstanding effort in the past year. We have competitiveness decline in an ever more produced some landmark reports on workplace competitive world. reform, major project costs and regulation. We have continued to engage wherever possible As long as people feel they’re not benefi ting with governments both federal and state and from growth, they will reject the policy reform have maintained a consistent and logical needed to lock in national prosperity. Wealth approach on all major policy issues. In the current creators in business, and governments that political environment this has its challenges. I also create the environment that either encourages thank our task force chairmen and members or inhibits wealth creation, have a collective who have contributed so much of their scarce responsibility to prepare Australia in the best time to our policy formulation. way they can. With a federal election due to take place next year, important decisions are going to be made with major implications for the Australian economy long term. The BCA will maintain a strong, reasoned voice for policies that support enduring national prosperity.
BUSINESS COUNCIL OF AUSTRALIA 10 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Chief executive’s message
Each year, the annual review is an opportunity to refl ect on what we have achieved, to signal our priorities for the year ahead, and to recognise the extraordinary contribution made to the organisation by its members. I continue to be enormously impressed by the time and effort members put in, and the commitment they make as a collective to progressing a prosperity agenda for the benefi t of all Australians. This is what they talk about and this is how they approach the formulation of our policy positions.
JENNIFER WESTACOTT CHIEF EXECUTIVE
11 JENNIFER WESTACOTT CHIEF EXECUTIVE
When I arrived at the BCA last year, one of the fi rst things members raised with me was the need to get a stronger message across about the importance of Australia staying competitive in a vastly more competitive world. We’ve used every opportunity to explain that: Our arguments are rigorously researched, clearly explained and mindful of the views » economic growth is a prerequisite for and interests of other groups and sectors. improving the living standards of all Australians Outcomes are ultimately what count and » staying competitive is a precondition over the past 12 months we can point to a for growth number of signifi cant achievements. » increasing productivity is the only way » Our 2012–13 Budget Submission for Australia to stay competitive and lock highlighted the challenge faced by the in living standards. government in delivering its projected surplus. We advocated a return to policy We’ve placed this thesis front and centre fundamentals and a fi scal strategy that in national economic policy discussion. better prepares Australia for looming We’ve argued that it’s time to stop talking international and domestic challenges. about the data and who’s at fault for » While the government informally took Australia’s productivity problem and start account of some of our suggested rules working collaboratively to deal with it. in the May Budget, the Opposition has The organisation’s views, and the research committed to undertake a full audit of that underpins them, are constantly referred government spending if it wins offi ce. to by opinion makers from all sectors and in the media. We have been an important voice in framing national debate.
BUSINESS COUNCIL OF AUSTRALIA 12 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. » Through the work we undertook for the The BCA will be developing a national inaugural Council of Australian Governments economic plan for Australia to offer a picture (COAG) Business Advisory Forum, we of where the nation is heading, different helped to reset the COAG agenda, with measures of community prosperity and COAG agreeing to all six priority areas we choices for achieving them. nominated. The Commonwealth’s decision I believe that the level of member engagement to virtually eliminate double handling in through the year and the extent of our impact environmental assessments and approvals refl ect the fact that over the BCA’s 30 years is an important win for the economy – with of operation, there has never been a more no adverse impact for the environment. important time for business leaders to » The modelling we undertook ahead of last advocate a convincing, inclusive case for year’s tax forum focused discussion around a growing economy. an unfolding fi scal challenge which, if left We seek to infl uence good public policy but unchecked, will make essential services, ultimately we are not responsible for decisions including the social safety net, unaffordable. only governments can make. » We used the review of the Fair Work Act to put forward a strong case for reform to give We work on the basis that if business and businesses the fl exibility to adapt quickly government play to their different strengths to rapid economic change and to refl ect the and work collaboratively, our expertise in reality of modern workplaces and the needs long-range vision and planning can inform and preferences of Australian workers. achievable, incremental change and secure Australia’s optimistic trajectory. » Our capital projects study, Pipeline or Pipe Dream, warned about the risks to My sincere thanks to Tony and the board for the successful delivery of the investment their leadership and support. Thanks also pipeline our economy is so reliant on. The to my talented and hardworking secretariat work has been hugely infl uential in focusing team, who share the commitment of members attention on practical steps to address to the role and responsibility of the Business Australia’s high-cost, low-productivity dilemma. Council of Australia. With the next federal election due to take place late next year, the disinclination of politicians to take on tough policy decisions gives the BCA a serious responsibility to do all it can to ward off short-sighted policy decisions.
CHIEF EXECUTIVE’S MESSAGE 13 About us
The Business Council of Australia facilitates the contribution of Australia’s most successful business leaders to the development of public policy that supports long-term economic growth for the benefi t of the nation and all Australians. Our CEO members are highly skilled men Through the council, members contribute and women who generate national wealth, their collective strength in long-term planning, create jobs and ensure Australia keeps up innovation and adapting to new challenges and with rapid, ongoing change. They operate in opportunities to picture and promote a future different sectors in different parts of Australia of enduring national prosperity for Australia. and internationally, giving the BCA a vast, The council will mark its 30th anniversary economy-wide perspective. in 2013.
IN 2011, BCA MEMBER COMPANIES IN AUSTRALIA:
» provided more than 1.1 million jobs » had revenue in excess of $830 billion » paid almost $34 billion in taxes » distributed shareholder dividends of almost $40 billion » had accumulated shareholder funds of almost $585 billion.
Announcement of the COAG Business Advisory Forum, March 2012 Photo: David Foote/AUSPIC
BUSINESS COUNCIL OF AUSTRALIA 14 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Our vision, goal and values
Our vision is ‘for Australia to be the best We are committed to freedom of choice place in the world to live, learn, work and as a fundamental principle that supports do business’. Australians to pursue their aspirations. Our goal is enduring prosperity for We believe in a globally connected all Australians. world where Australia plays a signifi cant, respected role in the international community, This goal is founded on a set of values that economically, strategically and morally. our members work towards as a collective and that we expect of each other. We are committed to maintaining honesty, trust and integrity in our public and private We believe in shared prosperity and that institutions. all Australians should benefi t from the wealth we create as a nation. We want safe, productive and rewarding workplaces that provide social and economic We advocate reward for effort, innovation, advancement, and a sense of identity and ambition and free enterprise. belonging. We believe in a society that encourages We value and respect Australia’s unique Australians to aspire to improving their environment and natural resources, and are own wealth and quality of life, and that committed to their effi cient and sustainable use. of their children.
We believe in shared prosperity and that all Australians should benefi t from the wealth we create as a nation.
OUR VISION, GOAL AND VALUES 15 How we work
Our members determine our work program and policy positions through their participation in four policy committees, three leadership task forces and the BCA Board. A record number of 67 CEOs are now actively involved in one or more of these groups. The full membership meets quarterly in different parts of Australia, and both the president and chief executive are in regular contact with individual CEOs.
KEY RELATIONSHIPS FOR THE DEVELOPMENT OF BCA POLICY
POLICYMAKING Policymaking COMMITTEES committees Policy development Economic Policy and Competitiveness
Members Effi cient Regulation Infrastructure and Sustainable Growth Task forces CEO & Labour Market, Skills Ideas and best practice Secretariat and Education
Members’ Liaison TASK FORCES Delegates Global Engagement Healthy Australia Board & President Policy signoff Indigenous Engagement
BUSINESS COUNCIL OF AUSTRALIA 16 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. DEVELOPING POLICY POSITIONS ADVOCATING POLICY POSITIONS We develop our policy positions based Members of the BCA have access to on rigorous research of domestic and government at the highest levels. international best practice. Our policy advice is delivered through We tap into the vast, on-the-ground submissions, research papers, tools and experience of member companies who resources, speeches and presentations, operate across the Australian economy, and day-to-day meetings with senior in different parts of the country and around policymakers at all levels of government the world. and in all political parties. We consult externally to allow our policy The council’s participation and advice are positions to be widely contested. sought in key national economic forums. Our policies and ideas generate constant media coverage as we seek to convey our views in ways that relate to the day-to-day experiences of Australians.
HOW WE WORK 17 Our structure
OUR BOARD Tony Shepherd AO Grant King President Managing Director, Origin Energy Limited Graham Bradley AM Vice President Graeme Liebelt Honorary Member, John W.H. Denton Business Council of Australia Partner and Chief Executive Officer, Corrs Chambers Westgarth Matthew Quinn Managing Director, Richard Goyder Stockland Managing Director and Chief Executive Offi cer, Wesfarmers Limited Jennifer Westacott Chief Executive, Gail Kelly Business Council of Australia Chief Executive Offi cer and Managing Director, Westpac Group
BUSINESS COUNCIL OF AUSTRALIA 18 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. OUR SECRETARIAT The BCA Secretariat is led by: The secretariat includes fi ve policy directors, working together with the policy and research » Chief Executive, Jennifer Westacott team, the communications team and the » Deputy Chief Executive, Maria Tarrant administrative support team. » Chief Economist, Peter Crone » Executive Director, Communications and Advocacy, Claire Tedeschi.
OUR STRUCTURE 19 OUR COMMITTEES AND TASK FORCES
Economic Policy and Competitiveness Committee “ Everything this committee does is concerned with advocating and explaining the importance of economic growth and competitiveness for Australia and how to support it.”
Ross Barker Ross Love Michael Rennie Australian Foundation The Boston McKinsey & Company Investment Company Consulting Group Ian Smith Cameron Clyne John Macfarlane Orica Limited National Australia Deutsche Bank AG Andrew Stevens Bank Limited Rob McLeod IBM Australia and Greg Ellis Ernst & Young New Zealand REA Group Peter Nash David Zehner Mike Hirst KPMG Bain & Company CHAIRMAN Bendigo and Adelaide Catriona Noble DAVID PEEVER, Bank Group McDonald’s Australia MANAGING DIRECTOR, RIO TINTO AUSTRALIA Marius Kloppers Geoff Plummer BHP Billiton Arrium Limited
Effi cient Regulation Committee “ An effi cient regulatory system is critical to a growing economy. Therefore, we are pressing the case that the processes for rule making in Australia need renovation as they are not currently getting the right balance for effective, relevant policy formulation.”
Ross Barker Lance Hockridge Andrew Reitzer Australian Foundation QR National Limited Metcash Limited Investment Company Darryl D. McDonough David Thodey John Borghetti Clayton Utz Telstra Corporation Virgin Australia Peter Nash Limited David Clarke KPMG Investec Bank John O’Sullivan (Australia) Limited Credit Suisse (Australia) Limited CHAIRMAN KIM WILLIAMS AM, CHIEF EXECUTIVE, NEWS LIMITED
BUSINESS COUNCIL OF AUSTRALIA 20 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Labour Market, Skills and Education Committee “ The committee looks at the kind of productive, successful, rewarding workplaces that will allow Australia to thrive with a different demographic base and in a vastly different competitive world.”
Gavin Bell Pip Marlow Steve Sargent Herbert Smith Freehills Microsoft Australia GE Australia and Craig Drummond Grant O’Brien New Zealand Bank of America Woolworths Limited Chris Sutherland Merrill Lynch Rob Priestley Programmed Rod Jones J.P. Morgan Australia Paul Thorley Navitas Limited and New Zealand Capgemini Australia Roy Krzywosinski Matthew Quinn and New Zealand Chevron Australia Stockland John Weber CHAIRMAN Mick McMahon Michael Rose Minter Ellison RICHARD GOYDER, SKILLED Group Allens Ian White MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER, Limited Oracle Corporation WESFARMERS LIMITED Australia Pty Limited
Infrastructure and Sustainable Growth Committee “ People will support economic and population growth if they can see and experience benefi ts in their communities through better infrastructure and living standards. We make the case for that kind of well-managed growth.”
Mark Chellew Steve McCann Ann Pickard Adelaide Brighton Ltd Lend Lease Shell Australia Limited Tony Concannon Kerrie Mather Charlie Sartain GDF SUEZ Energy Sydney Airport Xstrata Copper Australia Nicholas Moore Guy Templeton Alan Cransberg Macquarie Group Parsons Brinckerhoff Alcoa of Australia Limited Hamish Tyrwhitt Michael Fraser Paul O’Malley Leighton Holdings AGL Energy Limited BlueScope Steel Limited Limited CHAIRMAN David Knox Lindsay Partridge AM Paul Waterman GRANT KING, MANAGING DIRECTOR, ORIGIN Santos Limited Brickworks Limited BP Australasia ENERGY LIMITED
OUR STRUCTURE 21 Global Engagement Task Force “ In countries like Australia that operate as part of the global economy, the business community plays an important role in developing successful, international trading relationships. The task force facilitates and promotes this role, and also the policies needed to support it.”
Graeme Liebelt John Macfarlane Honorary Member, Deutsche Bank AG Business Council Didier Mahout of Australia BNP Paribas Ross Love Andrew Michelmore The Boston MMG Limited Consulting Group Ian Thomas Boeing Australia and South Pacifi c CHAIRMAN JOHN W.H. DENTON, PARTNER AND CHIEF EXECUTIVE OFFICER, CORRS CHAMBERS WESTGARTH
Healthy Australia Task Force “The health of a nation is critical to its overall wellbeing and prosperity. The task force promotes the importance of reforming the healthcare system so that Australians, now and in the future, have access to high-quality health care on a sustainable basis.”
Jack Percy George Savvides Accenture Australia Medibank Private Michael Rennie Limited McKinsey & Company Andrew Stevens Chris Roberts IBM Australia and Cochlear Limited New Zealand
CHAIRMAN ROHAN MEAD, GROUP MANAGING DIRECTOR, AUSTRALIAN UNITY
BUSINESS COUNCIL OF AUSTRALIA 22 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Indigenous Engagement Task Force “ BCA member companies are breaking new ground in supporting Indigenous employment and economic development. The task force supports, promotes and shares what’s being learned across different sectors.”
Richard Goyder Steve McCann Wesfarmers Limited Lend Lease Steve Harker Rob McLeod Morgan Stanley Ernst & Young Australia Limited Stephen Roberts Ross Love Citi Australia and The Boston New Zealand Consulting Group
CHAIRMAN MICHAEL ROSE, CHIEF EXECUTIVE PARTNER, ALLENS
OUR STRUCTURE 23 Our work program
Our vision is for Australia to be the best place in the world to live, learn, work and do business. Our primary goal is enduring prosperity for all Australians. Our work program consists of a number of streams. Each stream has a specifi c advocacy goal and a number of policy focus areas.
Long-term economic platform – the productivity and prosperity agenda
Economic growth, Effi cient regulation and Infrastructure and investment and good governance sustainable growth competitiveness
ADVOCACY GOAL ADVOCACY GOAL ADVOCACY GOAL Strong fi scal and economic A governance and regulatory Better planning of infrastructure policy that supports environment, underpinned to support growth, productivity Australia’s international by effective institutions, that and improved living standards competitiveness, community supports productivity and support for growth, and an minimises unnecessary » Infrastructure planning environment that promotes business costs and investment investment » Optimal systems for the » Optimal regulation system planning of cities and regions » Productivity and » Public policymaking competitiveness » Review of project costs processes including construction costs » Tax reform » Removal of poor regulation » Effective energy markets » Budget/fi scal policy » COAG Business and energy security » Engagement with Asia, Advisory Forum opening of markets and trade liberalisation » Foreign investment policy
BUSINESS COUNCIL OF AUSTRALIA 24 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Productive labour Health Indigenous engagement markets
ADVOCACY GOAL ADVOCACY GOAL ADVOCACY GOAL A modern labour market that A sustainable, world-class To identify, promote and share supports participation and health system the experiences of member the creation of successful, companies in supporting productive, fl exible and » High-performing economic development rewarding workplaces health system among Aboriginal and Torres Strait Islander Australians » Funding and governance » Participation, mobility reform recommendations and productivity » Economic capacity aimed at raising the building » Reform of the Fair productivity of health Work Act expenditure » Engagement with Indigenous leaders » Optimal workplace and organisations relations system to support high-performing » Disseminating models of workplaces of the future successful engagement efforts
OUR WORK PROGRAM 25 Our achievements
THESE ARE SOME OF OUR ACHIEVEMENTS DURING THE YEAR.
Growing the economy » Review of GST distribution: BCA » National tax forum: BCA frames discussion submission and related advocacy highlight with research showing the unfolding, fi scal imbalance as a major obstacle to the whole-of-nation fi scal challenge and why smooth functioning of the federation. comprehensive tax reform is essential » Effi cient regulation: BCA releases resource for Australia’s future wellbeing. on best practice standards for rule making. » Brotherhood of St Laurence Oration: speech » Cost–benefi t analysis: BCA releases ‘back by Jennifer Westacott highlights the BCA’s to basics’ resource for assessing major goal of enduring prosperity for all Australians. policy decisions, regulations and projects. » 2012–13 Budget Submission: federal » Restoring a high-performing public Opposition accepts BCA call and commits service: BCA presentation to the Institute of to a full independent audit of the scope Public Administration Australia highlights and size of government. far-reaching problems in policy, regulation » Prime Minister’s Economic Forum: BCA and decision making. opening statement frames discussion on competitive risks and the community’s joint Infrastructure for growth responsibility for lifting productivity. » Pipeline or Pipe Dream: landmark study » Australia in the Asian Century: submissions focuses national attention on the capital and advocacy highlight that successful investment pipeline and the leadership engagement in Asia will be led, in large part, needed to support its successful delivery. by the direct efforts of Australian businesses. » Carbon pricing: multiple BCA submissions » Business Tax Working Group: BCA submission highlight fl awed process, long-term economic provides detailed analysis showing short-term risk and the need for safeguards if economic savings options are more likely to harm than circumstances deteriorate and/or expectation support the Australian economy. of international action fails to materialise. » The case for well-managed growth: broad- Effi cient regulation and good governance based advocacy underlines the imperative » Council of Australian Governments of planning, funding and developing public Business Advisory Forum: BCA discussion infrastructure to ensure the community paper helps reset the COAG agenda on six recognises and experiences the benefi ts reform priorities, and the Commonwealth of economic and population growth. virtually eliminates duplicative environmental assessment and approval.
BUSINESS COUNCIL OF AUSTRALIA 26 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. » Construction costs: BCA study on risks to reducing duplication and overlap in energy the capital investment pipeline infl uences regulation, apprenticeships and further establishment of COAG review of education accepted. construction costs and productivity. Health Productive labour markets » National Disability Insurance Scheme (NDIS): » Tackling entrenched disadvantage: the BCA support for the establishment of an BCA, Australian Council of Trade Unions NDIS highlights its importance in terms of and Australian Council of Social Service enhancing workforce participation for people agree to develop a joint statement outlining with a disability, their families and carers, as their shared commitment to provide well as Australia’s capacity to afford disability opportunities for Australians who are care and support over the longer term. disadvantaged in the labour market. » Caring for Older Australians: BCA support » Review of the Fair Work Act: BCA for Productivity Commission report on aged submissions and advocacy reframe care services encourages government IR debate to argue that improvements are agreement on key measures. needed to align the workplace relations system with economic circumstances, Indigenous engagement modern workplaces, and the needs and » Policy lessons: project partnership with the preferences of Australian workers and federal government explores achievements consumers. in BCA member company engagement with » Unemployment allowance: BCA advocacy Indigenous Australians. that the rate of the Newstart Allowance » 2012 Indigenous engagement survey: is inadequate and may be a barrier to record 81 per cent response rate, with employment attracts wide community 76 per cent of respondents recording interest and support. formal engagement activities. » Gonski review of school funding: strong » Employment and training: 2,000 additional support from the BCA, among others, that Indigenous staff and 700 additional trainees all students should receive a basic level of taken on by member companies in the last funding – regardless of which school they 12 months. attend – is refl ected in the fi nal report. » Expert panel on constitutional recognition: Vice President Graham Bradley represents Lowering business costs the BCA in advising the government on » New South Wales and Victoria business options for constitutional change. cost initiative: BCA suggestions on
OUR ACHIEVEMENTS 27 One country, many voices
As a prominent organisation representing some of Australia’s most experienced and successful business leaders, the Business Council of Australia serves alongside other organisations in contributing to important national activities.
Photo by Matthew Wren, courtesy Photo by Jessica Jeeves, of the Brotherhood of St Laurence courtesy of Reconciliation Australia
28 ThisThi iiss a sampleplf of acctivitiestii iiti i BCA reprepresentativesp ttii participatedpparticitiipateditdidi ipg in duringgyg th the yearyear.
COAG Business Advisory Forum National Urban Policy Forum Commonwealth Government Tax Forum Infrastructure Finance Working Group Business Tax Working Group Migration Council Australia Standard Business Reporting Board International Education Advisory Council Independent External Reference Group Skills and Workforce Development for the 2012 Treasury Forecasting Review Roundtable Mutual Recognition of Imputation and Industry Employment Pathways Franking Credits Research Project for Disadvantaged Job Seekers Steering Group Steering Committee Industry Roundtable on Strengthening Consultative Forum on Mature Economic Relations between Australia Age Participation and New Zealand Indigenous Governance Awards Australia in the Asian Century White Jawun Indigenous Corporate Paper Advisory Panel Partnerships Executive Leadership Asialink Taskforce for an Asia Visit to the East Kimberley Capable Workforce
Photo courtesy of Photo courtesy of the Australia–Israel Woolworths Limited Chamber of Commerce
ONE COUNTRY, MANY VOICES 29 Publications
Economic growth, » Submission in Response to the Business Tax Working Group investment and Discussion Paper competitiveness » BCA Budget Submission 2012–13: Preparing for a Better Future » Submission to the Treasury GST Distribution Review » Submission to the Board of Taxation on the Tax Studies Institute » Submission to the Australia in the Asian Century White Paper: Assessing Australia’s Trade and Investment with Asia » Submission to the Treasury Review of Transfer Pricing Rules
Effi cient » Policy Essentials: Standards for Rule Making regulation and » Policy Essentials: Cost–Benefi t Analysis good governance » Submission to the Treasury GST Distribution Review: Primary Submission, and Response to Interim Reports » Submission to the Commonwealth Financial Accountability Review Discussion Paper » Discussion Paper for the COAG Business Advisory Forum » Submission to the Joint Select Committee Inquiry into the New South Wales Workers Compensation Scheme » Submission to the Senate Inquiry into the Equal Opportunity for Women in the Workplace Amendment Bill 2012 » Submission to the Attorney-General’s Department on the Consolidation of Commonwealth Anti-Discrimination Laws » Submission to the Productivity Commission on the Role of Local Government as Regulator
BUSINESS COUNCIL OF AUSTRALIA 30 ANNUAL REVIEW 2012: ONE COUNTRY. MANY VOICES. Infrastructure and » Submission to the Climate Change Authority Review sustainable growth of the Renewable Energy Target » Submission to the Senate Select Committee on Electricity Prices » Pipeline or Pipe Dream? Securing Australia’s Investment Future » Submission to the Department of Climate Change and Energy Effi ciency regarding the Draft Clean Energy Legislation Amendment (International Emissions Trading and Other Measures) Bill 2012 and Related Bills » Submission to the Tasmanian Climate Change Offi ce Responding to Part Two of the Review of the Climate Change (State Action) Act 2008 » Submission to the Department of Climate Change and Energy Effi ciency regarding the Price Floor for Australia’s Carbon Pricing Mechanism » Submission to the Department of Sustainability, Environment, Water, Population and Community on the Environment Protection and Biodiversity Conservation Act Cost Recovery Consultation » Submission to the Department of Resources, Energy and Tourism regarding the Draft Energy White Paper » Submission to the Department of Infrastructure and Transport on the Exposure Draft of the Coastal Trading Bill 2012 » Submission to the Joint Select Committee Inquiry into Australia’s Clean Energy Future » Submission to Infrastructure Australia on Infrastructure Financing Reform
Productive » Submission to the Senate Inquiry into the Protecting Local Jobs labour markets (Regulating Enterprise Migration Agreements) Bill 2012 » Submission to the Senate Education, Employment and Workplace Relations References Committee Inquiry into the Adequacy of the Allowance Payment System for Jobseekers and Others » Submission to the Australian Law Reform Commission Inquiry into Commonwealth Legal Barriers to Employing Older Workers » Submission responding to the International Education Advisory Council Discussion Paper for the Development of an International Education Strategy for Australia » Submission to the Department of Immigration and Citizenship Review of the Student Visa Assessment Level Framework » Submission to the Review of the Fair Work Act, and Supplementary Submission to the Review of the Fair Work Act: Employment Security and Alternative Working Arrangements
Indigenous » Submission to the New South Wales Ministerial Taskforce engagement on Aboriginal Affairs » Submission to the Expert Panel on Constitutional Recognition of Indigenous Australians
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