I was quoted in the AFR earlier in the week:
RMIT economics professor Sinclair Davidson suggests criticisms of the government could go further, saying that sluggishness in the economy should be fully placed at the feet of Canberra. He sees the anti-business sentiment, and lack of control over various government agencies, including ATO, ASIC, ACCC and APRA, as driving the lack of investment. Taxes are too high and red tape too constraining. Moreover “the rule of law is being eroded by rolling protests and protesters who are not being adequately policed”.
This morning I read this:
“Overseas institutions do not want to invest in Australian financial services due to the regulatory environment,” said one person briefed on the meetings.
“There were lots of questions about ASIC and APRA and the royal commission, and views that regulators are populist. Several investors said they liked the company but asked why should they take the regulatory risk and they are not close enough to Australia to assess it.”
That is a problem – “views that regulators are populist” – we saw earlier this week Josh Frydenberg engaging in populist bank bashing. Our friends in Canberra need to start getting serious about the economy. There is a lot of work that needs to be done if they want to secure our economic prosperity. Right now all this talk about eleventy zillion quarters of uninterrupted growth smacks of complacency.