"The real issue is that Australian business is not creating jobs for the future" said Mr. Richards. "Australia is in its eighth consecutive year of economic growth and pre-tax company profits are up by a staggering 44.5% for the year ended June 2000. However investment in Research and Development, the engine for future jobs, is falling."

Business investment in R&D has fallen from $4.3b in 1995/6 to $4b (nominal dollars) in 1998/99. Australia now ranks 5^th lowest in the OECD for business expenditure on R&D ( as a percentage of total R&D spending), slightly above Turkey, Hungry, Poland & Iceland. At the other end of the scale are the successful countries such as USA, Japan, Korea & Switzerland.

Mr Richards also said "for over a decade now Australian battlers have been prepared to do it tough, losing health, education and other government support services, while wages for many have been falling and employment certainty diminished. Battlers have done more than their share, it is now up to Business and Government to capitalise on current prosperity by investing in R&D and in higher value / higher pay jobs now and for the future"

"Failure to invest NOW for future industries and future jobs will see Australian Industry become irrelevant in the global economy. Alternatively we can be a major "Brain based Economy" in the Asia – Pacific region, with good jobs" concluded Mr Richards "the challenge is for Australian Business to invest in Research and Development".

Stephen Richards
Chief Executive Officer

Mark Henley
Senior Policy Officer