Queensland’s company directors lack confidence in the state’s economy with red tape and taxation topping their list of concerns.
The biannual Australian Institute of Company Directors (AICD) sentiment index reported that 43 per cent of Queensland directors rated the local economy as weak in the second half of this year compared to only 19 per cent who rated it as strong.
AICD chief executive Angus Armour said that while directors were somewhat confident about the current state of the Australian and global economies, they were less optimistic about the year ahead.
“Directors in Queensland rated too much regulation and red tape as the top economic challenges facing Australian businesses followed by rising global protectionism and the taxation system,” said Mr Armour.
What’s happening in Canberra?
There was increasing pessimism around the Federal Govenment’s impact on business, with 54 per cent of Australian directors saying the performance seen in Canberra had a negative impact on their decision making.
Number 1 Issue – Climate Change
For the first time, directors nominated climate change as the number one issue they wanted the Federal Government to address in the long term, following by the ageing population, energy policy, taxation reform, and infrastructure.
Mr Armour said directors also realised they had to rebuild trust in society with a focus on respect for customers, leadership and improving corporate culture.
“Over 80 per cent of directors supported stronger penalties for misconduct and 56 per cent support an increase in funding for regulators. Almost 90 per cent of directors are also working on cultural change within their organisation.”