Glenn Keys, Chair of the Canberra Business Chamber has written an article warning about the long term damage to the economy of Canberra that could be created by the 'tearing up of contracts' for political reasons. The Canberra Liberals have made it clear that is what they will do if they form government following the 2016 Assembly elections, in an act described by the Federal Liberal party as 'an act of economic lunacy'.
In his article Mr Keys refers to the importance of adhering to the law, and that political interference in the legal process will have expensive long term consequences for business and infrastructure investment in Canberra, damaging our future.
"However a business chooses to manage their contractual dealings, all will likely have one thing in common – a belief that a signed contract is inviolable.
It is this certainty that allows them to plan. Once a contract is agreed, a business can confidently employ and invest as needed. To spend and grow without this guarantee creates risk and uncertainty.
If a contract could be easily dishonoured without recourse, it would simply be a piece of paper and have no value to a business in terms of informing their future."
Many
companies have long-term contracts with governments. These contracts
can be for work that will take years or even decades to complete. It is
based on this assured engagement that businesses are built up in order
to meet their commitments.
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
Many
companies have long-term contracts with governments. These contracts
can be for work that will take years or even decades to complete. It is
based on this assured engagement that businesses are built up in order
to meet their commitments.
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
Many
companies have long-term contracts with governments. These contracts
can be for work that will take years or even decades to complete. It is
based on this assured engagement that businesses are built up in order
to meet their commitments.
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development.
- See more at: http://www.canberrabusiness.com/infrastructure-investment-vital-act-economy-planning-population-growth/#sthash.v0XH7rA0.dpuf
"...Many companies have long-term contracts with governments. These contracts can be for work that will take years or even decades to complete. It is based on this assured engagement that businesses are built up in order to meet their commitments.
Yet the political lifecycle is short, with it being possible a government will only be in power as little as three years. If government contracts were solely reliant on the government of the day being voted back in, businesses would think long and hard about getting involved in long-term projects, or change their pricing based on this risk.
The type of long-term projects the private sector usually partners with government on are major infrastructure projects. Infrastructure of all types – road, rail, convention centres, hospitals, schools etc. – are important to our economy. In 2012–13, 9.6 per cent of GDP was generated by Australian infrastructure industries.
Therefore, it is vitally important the private sector feels encouraged and confident about investing in infrastructure development."
"...Infrastructure does not get built without investment by governments and the private sector and it needs to be encouraged.
One major infrastructure project is now underway here in the ACT, with the signing last week of the light rail contract between the ACT Government and the prime contractor.
Local businesses will win work associated with this project; an effective public transport system will help attract visitors to our city, visitors who will spend in our restaurants, shops and hotels; if it results in shorter commute times, this translates to increased productivity; and we expect new skills and capacity to be developed by those involved in the project. Light rail has the potential to make Canberra more connected and liveable – two key planks of Canberra Business Chamber’s Destination 2030."
"...Threats to tear up the light rail contract now it has been signed, have the potential to hurt the ACT’s ability to attract inward investment for other infrastructure projects.
When political parties, or indeed members of the community, form a view on a project, I urge them to think about what it can contribute to our city and its residents as a whole. A strategic view of what is best for the Canberra Region must be taken."
Read the entire article Infrastructure Investment Vital to ACT Economy, Planning and Population Growth at the Canberra Business Chamber website.
As well as this website, the facebook group 'Light Rail for Canberra' carries frequent updates on Capital Metro and light rail related news.
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