Leading executives from some of Australia’s largest businesses are fleeing east in response to ongoing delays to re-opening the Western Australian (WA) border.
Rob Scott, CEO of AU$60 billion retail group Wesfarmers, will base himself out of the group’s Melbourne office for an “extended period” after saying it was “virtually impossible” to run the conglomerate—which owns national retail brands Officeworks, Bunnings, Kmart, and Target—from Perth.
“It’s no longer just an inconvenience, it’s a serious challenge,” he added.
“We’ve benefited in the past from attracting some great talent to WA, with families relocating to create a life here. This is becoming increasingly difficult and is currently almost impossible, and I am concerned that this sentiment will linger.”
Meanwhile, Wesfarmers will remain headquartered in Perth.
Richard Goyder, chairman at oil giant Woodside Petroleum, national carrier Qantas, and the Australian Football League (AFL) Commission is also heading east.
He also said it was unviable for AFL teams—hugely popular in the west—to continue operating under strict 14-day quarantine requirements.
“I don’t think there’s going to be a great appetite for players outside WA to be quarantining,” he said.
“There’s a very significant cost to the AFL in doing some of the things we’ve had to do over the last couple of years,” he added. “It’s a significant issue for both (AFL teams) West Coast and Fremantle because they need home games, and they need their crowds, but it’s also a big issue for the AFL.”
WA Premier McGowan’s decision to keep the borders shut, while popular among the public and some mining companies, has left business groups frustrated.
Peak industry body Australia Industry Group (Ai Group) accused the WA government of not engaging with business before shelving its plans to re-open.
“The decision was taken with no meaningful consultation with industry and with clearly little understanding of the strain that big parts of the state economy are already under given a lack of staff, virtually no labour mobility, deeply stressed supply chains, and the significant reputational damage as a place to do business that WA is already suffering.”
Of the 372 respondents to the survey, 82 percent said they would struggle with accessing workers, 82 percent said they would face wage pressures, 72 percent expected supply chain disruptions, and 71 percent expected rising input costs in production.