Media release – BCA report confirms ANDEV’s warnings on project competitiveness

A Business Council of Australia report on the threat posed to major resource projects from high input costs is a welcome wake-up call for Australian policy-makers, according to John Shipp, Director of the ANDEV/IPA North Australia Project.

The BCA report Pipeline or Pipe Dream? Securing Australia’s Investment Future shows that local projects bear a cost premium of 40 per cent relative to the United States.

The report sounds a warning that Australia is not engaging in reforms that will prepare the country for future economic growth and increased competition.

“The BCA’s data confirms what ANDEV has been saying for two years: that the cost of doing business in Australia is higher than in other countries, both developed and developing, and this is adversely affecting our international competitiveness,” Mr Shipp said.

Mr Shipp warned: “Unless the Australian government acknowledges the need to seriously address labour shortages and green-tape, the major resource projects currently driving national growth will be under threat.”

The BCA report says ‘Australia’s governments should continually aim to set internationally competitive regulatory and tax regimes.’