Economic growth was likely to slow to less than 2.5 per cent after 2015 because of burdens on business, including overlapping state and federal environmental regulations, and Labor’s industrial relations system, which made the workplace less flexible, along with other problems, he told The Australian Financial Review.
- Alan Mitchell | There is a risk that the Chinese government will find itself continuing to over-invest. The problem for China, and for us, is that it also will build up problems for the future
“Every major project under evaluation, including Browse, has to confront this issue,” he said. “Unless you are highly productive in Australia, projects will go offshore and construction jobs will go offshore.”
A reported $20 billion blowout in the cost of Chevron’s Gorgon gas project in WA has raised concerns across the industry, and in the investment community, that Australia’s high costs, combined with lower gas prices, could lead to the cancellation of one or more of the $100 billion-plus of liquefied natural gas projects waiting for clearance.