Australia should do more to diversify economy – BHP CEO

PERTH (miningweekly.com) – Australia cannot wait for another once-in-a-century commodity boom and has to do more to diversify its economy, the CEO of global mining group BHP Billiton said on Wednesday.

Andrew Mackenzie told delegates at a summit in Melbourne that the country had to be more globally competitive.

“Commodities will always have a place in Australia, that’s part of this country’s heritage. The natural resources that this country is endowed with are fundamental to life. But the future is not certain,” Mackenzie said.

He added that the Australian economy needed to grow across other sectors.

“The time has come for this nation to renew its commitment to creating a stronger future, cast its ambitions beyond the horizon again and plan, invest and act to create a more prosperous and resilient Australia.

“An Australia that has the skills and industries to profit from the long boom in services that Asia’s middle class will certainly demand, an Australia that remains open to new ideas and new people, an Australia that rewards those who are prepared to innovate and build new businesses and industries.”

Mackenzie noted that because one of the by-products of the digital global economy was that Australian businesses were now competing on a global stage, there was no alternative but to become globally competitive.

“People have to be engaged, enlisted and empowered to become more productive and engaged in the selections of their leaders. That means investing in skills, education and preventative healthcare. That means investing in infrastructure to make sure our cities remain liveable as they grow.”

Mackenzie pointed to a number of factors which could improve Australia’s global competitiveness, including simplified workplace agreements, taxation reforms, and debate on the revenue challenges facing governments, as well as the growth opportunities that tax reform could provide.

“Reform is never easy, but it has never been more necessary than now. The responsibility to lead reform belongs to all of us,” he added.