Growth policies better than taxes: Woolies

23 Oct 2012, 4:00 pm   -   Source: AAP
Woolworths' CEO says the government should develop growth policies rather than taxing businesses. (AAP)

Woolworths' CEO says the government should develop growth policies rather than taxing businesses. (AAP)

Woolworths chief Grant O'Brien says the federal government should be focusing on policies that promote growth, not taxing businesses.

The federal government should develop policies that promote growth rather than taxing businesses to help fill budget shortfalls, Woolworths boss Grant O'Brien says.

In an update to the May budget Treasurer Wayne Swan announced on Monday that $16.4 billion in savings would allow Labor to reach a promised surplus in 2012/13 and the next three years.

It included plans to change the timing of company tax remittances to the government to monthly, rather than quarterly, basis from January 2014.

But Mr O'Brien has criticised the tax changes, telling a business lunch that paying tax on a monthly basis would be an additional burden for business.

"It's an additional cost for organisations because we've got to find funding for cash flow that's now changed as a result of what the treasurer has announced," he told an Australian Institute of Company Directors lunch on Tuesday.

Mr O'Brien said it would be preferable for the government not to rely on big business to fill budget holes.

"The environment that's going to be most favourable for growth long term is for businesses to be doing well," he said.

"I think if you're shackling businesses then you're tying the hands of the very things that are going to lead to the growth of this organisation in the long term.

"I'm looking forward to policies and thinking that move more in that direction than constantly coming back to business to balance shortfalls in budgets."

Mr O'Brien also expressed concern about moves to increase regulation in the retail sector, saying less red tape actually helped keep prices lower for consumers.

"In an environment where an electricity bill is as welcome as a tax bill lately I think there is a need for us to be more focused than ever in helping retailers lower the price of the goods and services they provide," he said.

"Not add any more red tape and obstructing the very real forces that are at work benefiting customers in this market."

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