Long election lead time caused slowdown: Paul Bloxham, Adam Richardson

The long election lead time of nine months has largely been the cause of a slowdown across the country, according to HSBC Bank Australia Limited’s chief economist Paul Bloxham and economist Adam Richardson.

In Bloxham and Richardson’s HSBC report Australian Election Observer noted that the long lead time has potentially held back business confidence in recent months, keeping the entire market slow.

“As such, whoever wins, a reduction in tax and regulatory uncertainty postelection, could provide a boost to confidence,” the report states.

“Julia Gillard, the former Prime-Minister and leader of the Labor Party, took the unusual option of announcing the 2013 election nine months in advance. While her replacement by Kevin Rudd changed the election date, businesses have now sat through around eight months of uncertainty over the postelection regulatory environment.

“This has been one factor that may have held back business confidence and conditions recently. In addition, firms have likely held of hiring and investment until they have more certainty over the political landscape.”