CEOs of the nation's biggest companies will join state and territory leaders on a new Business Advisory Forum being established to advise on deregulation.
Cutting red tape is a key priority for the Gillard Government, as excessive regulation lowers business costs and hinders productivity.
The Council of Australian Governments has identified 27 areas of priority when it comes to cutting red tape. Of these 27 priorities, 16 have been implemented.
Senior business figures on this Forum will have two main roles:
• To advise Governments on how best to coordinate and progress the remaining areas of competition and regulatory reform; and
• To nominate new areas of regulatory reform that will help lift productivity and drive investment, therefore growing businesses and creating new jobs.
Small business will also be directly represented on the Forum, given smaller firms often disproportionately feel the impact of regulatory burdens.
Business leaders are best placed to advise on these matters because excessive red tape is often experienced at an individual, business or industry level.
While COAG members often hold individual dialogues with business figures in their own state and territory, this Forum will allow business leaders to put their case on the national stage.
As a nation we have an interest in a flexible and efficient economy where resources are able to move to where they can make the greatest economic contribution.
COAG's reforms, which were agreed to by all States and Territories in 2008, aim to deliver a seamless national economy.
As we build a new economy in response to the structural changes being driven by our high dollar, these reforms are more important than ever.
The Prime Minister will chair the Forum and its inaugural meeting will be held on 12 April 2012 prior to the next meeting of the Council of Australian Governments.
The Prime Minister has written to all State and Territory Premiers and Chief Ministers and will shortly write to business figures, inviting them to participate.
The Forum is supported by the Business Council of Australia. The BCA will prepare submissions for the Forum based on consultations with the Australian Chamber of Commerce and Industry and all state-based Chambers of Commerce.
The Forum will complement the existing work being undertaken by the Business Regulation and Competition Reform Working Group.
Through the Forum, the Commonwealth looks forward to working with business and the states to advance a new deregulation agenda over the coming year.
The Productivity Commission recently looked at 17 of the deregulation reform priorities and estimated that those reforms alone could lower business costs by about $4 billion a year and, through improvements to productivity, increase GDP by over $6 billion in the longer term.