Nine leading Australian business groups have attacked...

Nine leading Australian business groups have attacked Prime Minister Bob Hawke’s Labor government, accusing it of political expediency in delaying two large projects to ensure that the environment is protected.

The government has refused to give the go-ahead for two large, export-earning projects: a $780-million pulp and paper mill in Tasmania and a gold, platinum and palladium mine in the Northern Territory.

In a joint statement released in Canberra, the nine groups said recent government decisions had sent a clear message to Australian business. “That message is: Resource development and business investment are subject to short-term political expediency.

“The greatest threat to business investment is uncertainty. The uncertainty created by a government that goes back on its undertakings is undermining business confidence.”

The government’s decisions have not ruled out the projects altogether, but they face lengthy delays, and the participants are unsure whether the projects will ever begin. The groups said it was a fallacy for politicians and bureaucrats to assume that deferral of investment proposals was costless.

“Business cannot confidently invest in the current climate,” the groups declared. “We urge the government to renew business confidence by establishing and abiding by clear and firm guidelines for investment and environment protection.”