Business-government relations in Australia: Cooperating through task forces

Executive Overview The relationship between businesses and government in Australia is examined in this article by considering how government can provide a stable set of rules for business players to act within, and adapt them to changing conditions. The coopetition paradigm of simultaneous competition and cooperation is illustrated by two case studies of government intervention in the Australian wool and financial services sectors, in which government periodically uses independent task forces to review and propose future directions for industry policy. The task forces are independent of both business and government, attempting to find policy solutions that will be acceptable to the range of players in the game, including government. In recent cases, government has attempted to achieve step changes by using independent task forces that examined technological progress and the needs of the business in each industry to evolve and become more competitive. The challenge for government is to develop a set of rules and regulations that provide a stable basis for businesses to set strategy and operate in, yet at the same time keep policy up to date as forces such as technological change and globalization affect economies. For business executives, their opportunities are to lobby government and influence the frequency and nature of task-force processes in the pursuit of step changes.