Business on budget: reform or risk despair

Business groups are concerned the politics surrounding the federal budget and reform will leave the nation in economic despair.

The 2014/15 federal budget papers

Business groups are concerned the politics surrounding the federal budget will harm the economy. (AAP)

A call by business groups for a more bipartisan approach to economic reform and budget repair appears to be falling on deaf ears.

The nation's political leaders have been told by nine peak business bodies they need to think beyond the short term or risk economic despair, leaving future generations of Australians with trillions of dollars of government debt.

As Treasurer Joe Hockey prepares his second budget for a May 12 release, the political response to that call is not encouraging.

Opposition Leader Bill Shorten says he understands business frustration over "bungled reform", which he claims the government is putting in the too-hard basket.

While Labor would support fair reform, it would fight measures that were unfair to ordinary Australians, he said on Tuesday.

Social Services Minister Scott Morrison was not impressed with the opposition leader or business groups.

"(Mr Shorten) ordered the meal and then did a runner on the bill and he left us with the bill," he said, referring to Labor's time in government.

As for business, Mr Morrison suggested business was missing in action during the NSW state election campaign, when Liberal premier Mike Baird took his controversial reform of electricity privatisation to voters.

"The coalition is getting on with business of fixing the budget ... we will keep doing it with or without the support of the business community," he said.

Independent senator Nick Xenophon said history showed the successful reforms of the Hawke-Keating and Howard-Costello governments were the result of consultation, not confrontation.

The business groups, which include the Australian Chamber of Commerce and Industry, Minerals Council of Australia and Australian Food and Grocery Council, say the government's rhetoric about a "dull" May budget is worrying.

It should have the guts to push difficult budget policies, they say.

ACCI chief executive Kate Carnell cited as an example the release of a government discussion paper for its tax review, which suggested changes to the GST.

They were ruled out by Labor and others before "morning teatime".

"Something has got to change if we are to get the country back on track," she said.


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Source: AAP


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