BCA Chief Executive Bran Black interview with Kirsten Aiken, The Business, ABC
05 February 2025
Event: BCA Chief Executive Bran Black interview with Kirsten Aiken, The Business, ABC
Speakers: The Business, Host Kirsten Aiken; Business Council of Australia Chief Executive Bran Black
Date: 4 February 2025
Topics: Big Five Questions, deregulation, tariffs
E&OE
Kirsten Aiken, The Business Host: I spoke to the BCA's Bran Black. Welcome. The BCA is calling for the next federal government to implement budget control. Do you see that as something similar to Elon Musk's US Government efficiency drive?
Bran Black, Business Council Chief Executive: Well, I think it's important to note here that around the world, we're seeing an increased focus on deregulation. We're also seeing, though, that there is an increased focus on how we can be more competitive, generally, how jurisdictions can be more competitive.
And by that, I mean what they can do to try and attract investment. Now, deregulation is a big part of that, but equally important is our settings with respect to workplace relations, our settings around taxation, our settings around property and approvals and so forth.
Also important in that context is the kind of assistance that we provide to industries that we're seeking to develop, and that's one of the key reasons, for example, that we've been so supportive of the Future Made in Australia and the Production Tax Credits as well.
Kirsten: You mentioned deregulation, the push to slash red tape, the BCA is also very keen to slash what it calls wasteful spending. What does the BCA categorise as wasteful spending?
Bran: I'd say a couple of things on that point. In the first instance, we think that a deregulation agenda is a good way of reducing government spending. Ultimately, deregulation is about finding ways in which you can deliver increased efficiency in the provision of government services.
We're not for a second suggesting there shouldn't be any regulation. We're suggesting that we need to make sure we’ve got the right regulation. Another key area is what you can do in terms of federal and state overlap. There are numerous examples that you could point to in the healthcare space, childcare, for example, all areas where there is regulation on two different levels, if not more.
Kirsten: The Business Council is calling for a cap of real spending growth at two per cent. Is that realistic given the intergenerational challenge Australia faces, not to mention the push to net zero?
Bran: We see that the intergenerational challenge that the country faces is that we are ultimately going to have an increasingly aging population. So right now, there are about 3.8 people working in the economy for every one person who's retired and over the age of 65. 40 years ago, in the 1980s it was about 6.5 and by 2060 it's projected that that number will drop to about 2.7, that's according to the Government's Intergenerational Report.
What that means, in a nutshell, is fewer people working in our economy to pay for more and particularly, more people who are retired, who are increasingly elderly, and who have more complex and costly care needs. So in order for us to account for that challenge as we see it, the critical thing that we need to do is make sure we can grow the size of the pie, and by that, I mean growing the economy.
Kirsten: But in the meantime, can we continue to look after our aging population to a standard that Australians would like if we're capping spending growth at two per cent?
Bran: Well, we think that there are things that we can do in terms of looking at, for example, our healthcare system and trying to find ways to deliver it more efficiently and more effectively.
Some of the things that we've noted in our report include, as I mentioned before, finding areas of overlap as between the state and federal governments, looking at how we can invest a little bit earlier in terms of preventative care. Some jurisdictions overseas have a greater reliance on preventative care than we do, rather than focusing on the treatment of illnesses or concerns once they arise down the track.
And then we've also seen that there's scope to invest now in technologies so that we can try and reduce the overall system cost.
Kirsten: Is the BCA concerned about the Government's headcount?
Bran: Our focus is very much on the best regulatory outcomes. So to our mind, headcount and issues associated with the size of the public service should follow what is reasonably necessary in order to manage the regulatory requirements that we need.
So go back to that point that I made before, we want to see a focus on deregulation, because we want to see a genuine look to considering what is it that Australia needs in order to be a properly regulated modern economy, and what regulation can we dispense with, or what regulation can we change or alter in some way. The function should ultimately follow, or rather, the headcount should follow our assessment of the function.
Kirsten: The Trump tariffs are creating a lot of policy uncertainty. Is Australia doing enough to prepare for the possible imposition of a universal tariff?
Bran: I think what's very clear from the engagement that we've seen so far as between Australia and the United States is that the Australian Government is very much taking a precautionary approach. We have every reason to believe that Australia should be in a position to avoid the imposition of tariffs directly as between the United States and Australia, and there are numerous reasons for that.
Our trade deficit to the United States stands out, our long standing cultural, military and also, family ties, as between Australia and the United States, and of course, our commitments through AUKUS and our commitments in relation to future defence spending. They're all points that set us in good stead in terms of not having tariffs imposed.
But I was in Washington recently, and the point that was made to me is that nobody can assume that you're not going to have tariffs applied. So you need to work to make sure that you absolutely won't have that outcome. As far as I can see, the Foreign Minister and the Trade Minister are doing precisely that.
Kirsten: Bran Black, good to speak to you.
Bran: Thanks so much for your time, appreciate it.