Politicians that mean business

Australian Chamber of Commerce Industry chief Peter Anderson has provided an interesting take on Australia’s much vaunted new political paradigm in his weekly bulletin to members by arguing that the new Parliament is short on crucial business experience.

“Of the 220 federal members and senators, at least 170 had no active business background in the period prior to entering the Parliament,” Anderson wrote.

“Even fewer have been direct business owners, managers and employers where their capital and savings were on the line each time interest rates rose, sales dipped, banks tightened credit, governments regulated or industrial tribunals ordered unfunded wage increases.”

It’s colourful stuff, but I bet reactions would be mixed to this sort of sentiment.

There would no doubt be many entrepreneurs nodding their heads, and rightly wondering whether many of our elected representatives really understand what it’s like to lie awake sleepless at night worrying about cashflow.

But there’s probably also a school of thought that says direct experience in something doesn’t necessarily make you an expert. As the saying goes, you don’t have to be a murderer to be a judge.

So what we need is a system where we get the best of both worlds.

If there are business people – and particularly SME business owners – who go into politics, they need to be encouraged, supported and, most importantly, listened to. This does appear to have happened in the Liberal Party, where former small business owner Bruce Billson seems to get a very good run.

But this needs to be balanced with the career politicians who understand how regulation and government works, and can steer reforms through the political process. Labor Small Business Minster, Nick Sherry, is certainly experienced in how Canberra works, and so should hopefully be well placed to drive appropriate change.

Most importantly, as part of both of these approaches there should be a commitment to constantly working with business on the key problems and challenges facing entrepreneurs, ensuring business feels part of the decision-making process, and listening to business owners and their representatives at all times.

It’s not perfect, but let’s face facts – can you think of an entrepreneur who would be prepared to give up their business and then go through the pain of becoming and then serving as a politician?