The breakfast was a stimulating discussion on the future of capital attraction in Queensland. The speakers highlighted their key policy issues and big changes impacting on accessing capital. The overall view is that there is no shortage of capital but there is a shortage of demand.
Local Government can play a critical role by providing infrastructure (e.g. water infrastructure), but it needs to be supported with a stronger infrastructure grants investment program, funded by the State Government.
Investors are increasingly concerned about the sovereign risk posed by Governments at all levels changing policies and programs that leave investors exposed. Having a bi-partisan infrastructure vision in Queensland for the next 10 years is crucial for investor certainty.
Queensland is not as resource heavy as many foreign countries think and changing that perception would help attract more/diversified capital. Tax policy is a key and we need to have a more competitive tax environment.
Investors consider Queensland/Australia as a safe destination for capital, however uncertainty in government policy is one of the biggest constraints to attract capital.
Queensland should focus on attracting capital for the industries in which there is a competitive/natural advantage.
The key sectors for the next three years are: agriculture; education & training & research; health, mining, property and tourism.
Agriculture in particular received special mention in terms of recently attracting institutional investors. Australia is well recognised as leading the innovation in this sector.
It was noted that climate change and renewable energies will eventually start to play important roles in investment decisions. This will become an increasingly important issue for those investing in coal mines and coal fired power stations.
Thank you to our speakers and moderator.
Tim Crommelin, Executive Chairman, Morgans
Damien Frawley, Chief Executive Officer, QIC
John Nesbitt, Chief Executive Officer, Suncorp Banking and Wealth
Moderator – Peta Tilse, Managing Director, Sophisticated Access
QFI thanks its series sponsor