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Directors doubt parly can deliver reform

AAP logoAAP 24/08/2016

Australian company directors doubt the new federal parliament will be able to deliver long-term economic reform.

A survey of the nation's boardrooms finds directors have rated balance of power issues in the Senate as second most important economic challenge facing Australia, behind global economic uncertainty

Directors have grave doubts about the ability of the new parliament - which begins sitting next Tuesday - to deliver necessary reform, an Australian Institute of Company Directors (AICD) survey shows.

"Our results highlight serious doubts about government's ability to drive reform," AICD managing director John Brogden said.

"It's now up to all sides of politics to prove that this new parliament can deliver.

"Politicians are too focused on short-term issues and need to deliver a long-term reform plan for the nation."

The latest AICD director sentiment index shows overall sentiment has increased slightly over the last six months.

Directors rated infrastructure as the top issue for the government to address in the long term, followed closely by addressing the federal budget deficit.

"Despite the uncertainty directors see in the current parliament, they are emphatic in their calls for long-term policy and the need for significantly increased investment in nation-building infrastructure," Mr Brogden said.

DIRECTORS' SENTIMENT UP BUT THEY HAVE CONCERNS:

* Sentiment up 4.3 points, to reading of minus 17.5

* Almost 90 pct say Senate make-up likely to negatively affect business confidence

* 28 pct believe new parliament will deliver stable government

* 85 pct believe government infrastructure spending too low.

Source: Biannual AICD director sentiment index.

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