Queensland directors losing confidence
QUEENSLAND company directors lack confidence in the state's economy with red tape and taxation top of the list of concerns.
The biannual Australian Institute of Company Directors sentiment index found that 43 per cent of Queensland directors rated the local economy as weak in the second half of this year compared to only 19 per cent who rated it as strong.
That compares to the first half of 2018 when 44 per cent of directors rated the Queensland economy as weak and 11 per cent as strong.
AICD chief executive Angus Armour said directors were concerned about the global environment, amid rising protectionism and economic uncertainty.
While directors were generally confident about the current state of of the Australian and global economies, they were much less optimistic about the outlook for the year ahead.
"Directors in Queensland rated too much regulation and red tape as the top economic challenges facing Australian businesses followed by rising global protectionism and the taxation system," said Mr Armour.
There also was increasing pessimism around Canberra's impact on business, with 54 per cent of Australian directors saying the Federal Government's performance had a negative impact on their business decision making.
For the first time, directors nominated climate change as the number one issue they wanted the Federal Government to address in the long term, following by the ageing population, energy policy, taxation reform and infrastructure.
Mr Armour said directors also realised they had to rebuild trust in society with a focus on respect for customers, leadership and improving corporate culture.
"In this uncertain environment, directors are conscious that they need to drive change to enhance public trust in institutions," Mr Armour said.
"Over 80 per cent of directors supported stronger penalties for misconduct and 56 per cent support an increase in funding for regulators. Almost 90 per cent of directors are also working on cultural change within their organisation."