A survey of Queensland resource company CEOs which shows concerns about harmful red tape at a near-five year high should be a wake up call for the Queensland and Commonwealth governments”, said Chris Berg, senior fellow at the free market think tank the Institute of Public Affairs.
The survey, published by the Queensland Resources Council on Monday, found that negative sentiment about “uncertain and/or poor regulation” eclipsed concerns about high input costs or insufficient government resources, and was the worst since June quarter 2011.
“This confirms the Institute of Public Affairs’ concerns that the red tape problem is worsening, and is the single most important burden on economic growth, entrepreneurship and prosperity.
“IPA research has found that red tape costs the Australian $176 billion a year – a more than $19,000 cost burden on each Australian household.”
“The Queensland Resources Council found that regulatory changes in Queensland like the Chain of Responsibility Bill are creating considerable uncertainty, and leading to difficulties raising capital for exploration,” said Mr Berg
The survey found that 44 per cent of CEOs considered Queensland red tape burden either somewhat heavier or significantly heavier than other states. A further 44 per cent found Queensland’s red tape burden comparable to other states.
“This shows that the red tape problem is a national one. Red tape imposed by Commonwealth, state and local governments affects small businesses and large resource companies alike. All levels of government need to focus on red tape reduction.”
“Australia’s economy has great potential and Australians are an entrepreneurial people. Cutting red tape would allow businesses deliver jobs and prosperity,” said Mr Berg.