News story

Business buoyed by election outcome

Thursday, 12 September 2013 ( #633 ) - Canberra, ACT, Australia
Prime minister Tony Abbott says Australia is under new management.
Prime minister Tony Abbott says Australia is under new management.
In his election victory speech, Australia's 28th prime minister, Tony Abbott, told supporters that Australia is under new management. "Australia is once more open for business." The business sector has expressed its support for the Coalition win. Australian Industry Group (AiG) chief executive Innes Willox says the election outcome has the potential to deliver a much-needed period of political stability and certainty and lay the groundwork for strong gains in productivity and competitiveness. Peter Anderson, chief executive of the Australian Chamber of Commerce and Industry (ACCI), says he welcomes Tony Abbott's intimation that the private sector is central to meeting the country's national challenges. In the forklift industry, Steve Takacs, executive vice president and COO of Toyota Material Handling Australia, tells Forkliftaction.com News that he believes the business community and the general public will react positively to the change in government. "This will be shown through additional business capital and infrastructure spending. I don't think we will see a spike in activity, more a slow climb over a few years." Stuart Walker, MD of Manitou Group, says the Coalition win should be positive for business. "We are looking to see an improvement in business confidence that will flow through to the general market and businesses' decision making process." Lencrow chief executive Ross Grassick tells Forkliftaction.com News that he feels the change in government will have a positive effect on the business sector that, in turn, will stimulate equipment sales and hire. "Many projects were put on hold when the election was announced. I trust these will now proceed. I feel ... it will take till halfway through the third quarter to show any real positive growth numbers." Nick Perdelis, executive chairman, NTP Forklifts Australia, says the last eight months after the Gillard announcement of a September election stopped confidence in the market. "I have been told on many occasions that most business people were ready for a change and for responsible management of the country. I think you will certainly see a lift in confidence across the board which will see activity and certainty going forward. "If you see responsible managers of the country with little waste, you don't mind the hard work ahead to grow your business which creates employment and growth. I look forward to the next three years as stable and positive." Richard Hammond, CEO of Clark Equipment, tells Forkliftaction.com News that the Coalition government will have a significant impact on business. "It is evident that the political uncertainty has restrained capital spending; simply the resolution of this uncertainty will free up capital expenditure and business confidence." He adds that many industries such as mining have been adversely affected by mining and carbon taxes. "The change in government will encourage more investment in that area." Hammond says the change in confidence will augment other positive changes in economic fundamentals, namely the depreciation of the dollar and the lowering of interest rates. "While economists are largely forecasting an improved business environment from 2014, we are a little more optimistic and see a modest recovery in the last quarter of 2013."