The Coalition’s landslide win in the New South Wales election has created a potential problem for new Premier Barry O’Farrell – expectations are running high among business groups that O’Farrell can use his massive majority to make quick changes.
While counting is still continuing in some seats, the Coalition currently has secured 67 seats, with Labor holding just 19. Four seats remain undecided.
But while business groups have been quick to congratulate O’Farrell, the pressure is on for quick action.
Stephen Cartwright, the chief executive of the NSW Business Chamber, says the Coalition’s election victory will deliver an immediate improvement in business confidence in the state, but says O’Farrell must now work quickly to restore confidence in the Government.
“The challenge before the new Government is to deliver results that match the strength of the mandate,” Cartwright says.
“The new Government also has to shift the focus of decision-making away from the 24 hour news cycle to the longer term and bigger issues facing NSW.”
O’Farrell appears to appreciate the urgency.
“We have a mandate to deliver the real change to make people’s life better,” O’Farrell told reporters yesterday.
“We have a mandate to get on and clean up the mess that was government in NSW and restore confidence to NSW by clearing up the rorts and returning to honesty and accountability in government.”
O’Farrell is expected to release his first 100-day plan in the next few days, with business issues high on the agenda.
Among the first things he has promised to do is to establish a Commission of Audit to examine Government spending and establish a new body called Infrastructure Australia, which will evaluate, cost and prioritise major infrastructure projects.
Notable projects that are likely to be first on the body’s list include new rail lines to Sydney’s north-west and south-west, a new $700 million convention centre and new heath infrastructure.
“The establishment of Infrastructure NSW will ensure greater accountability and certainty around infrastructure decisions – and end the start/stop mentality to infrastructure projects,” Cartwright says.
There are also a host of priorities for small business, including a payroll tax rebate of $4,000 for full-time employees for the first 100,000 jobs created.
O’Farrell has also promised to ensure his Government pays its bills within 30 days and cut red tape by 20%, through a “one on, two off” rule that would force the Government to cut two existing regulations for every new one it creates.
But the big win for SMEs is the creation of a Small Business Commissioner, similar to the office that already exists in Victoria. The Commissioner will be responsible for advocating for small business within government, sorting out disputes between SMEs and government agencies and larger companies and monitoring the economic climate for SMEs.
“The Small Business Commissioner has the potential to become a real advocate for small business within government and a champion of and for the sector,” Cartwright says.
The Australian Industry Group also wants the new Government to focus on the vexed issue of housing affordability. O’Farrell has promised to release 10,000 new residential blocks for sale in the north-west of Sydney over the next four years and will rewrite the state’s planning laws, handing more power back to local councils.
Australian Industry Group NSW Director Mark Goodsell says the Government must also now take a leading role in the harmonisation of occupational health and safety laws across Australia. Labour leader Kristina Keneally had previously refused to sign up to the Gillard Government’s national OHS framework, which is to come into force in 2012.
O’Farrell has also signalled he will fight the Federal Government’s carbon tax and fight for a better share of federal health funding.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
