The uncertainty surrounding the next Australian government will have short-and-long term impacts on the Australian M&A market, Mallesons Stephens Jaques M&A partner Robert Jackson has told ALB. The Brisbane-based Jackson said that in the short term there would be impacts on the Australian dollar and stock market, but in the long term there would be ongoing uncertainty because of the power of the independent MPs. “When you have independents in the mix it’s going to be hard for a party to undertake big issues such as climate change and superannuation reform, because they will be dealing with every issue one by one, to please the independents,” said Jackson.
The winning party will have to negotiate with independent MPs Bob Katter, Rob Oakeshott and Tony Windsor to get legislation over the line in the lower house. “All of their (Labor and Liberal) proposed agendas are now in limbo,” said Jackson, who added that Australia’s image as a safe and stable place to invest has been tarnished for a number of months because of the resource tax and ousting of Kevin Rudd. “A number of resource clients we deal with are trying to come to grips with the resources tax. They would like some certainty but at the moment they don’t have any. If Labor gets in there will be a tax with noticeable changes, negotiated by the independents; if the Liberals get in there will not be a tax, but, the Greens will control the Senate and their view of the world is they would like to see an increase in the resource tax. So there will be lots of negotiations around the resource tax,” Jackson predicted.
Jackson added that once a party does take control of the government, the small margin of power will mean another election in the near future. “A hung parliament creates instability. There needs to be stability for investors to return with confidence,” he said.
Election success for some
ALB reported last week that 16 lawyers were looking to enter federal politics for the first time this election. Four of those candidates were successful, including Sydney-based lawyer Michelle Rowland, formerly of Gilbert + Tobin, who won the seat of Greenway for Labor.
Founding partner of Gilbert + Tobin, Danny Gilbert, said Rowland had been a “great” lawyer at the firm over a long period of time. “Michelle always had a great passion for Labor politics,” he said. “She is very well liked and many of her former colleagues went out to help her during the election manning her booths on Saturday. She has great potential.”
Other successful lawyers were Slater & Gordon partner Adam Bandt, who is the new MP for the seat of Melbourne and the first Green member of the lower house; Josh Frydenburg, who won Kooyong in Victoria for the Liberals; and Labor candidate Laura Smyth, who won the seat of La Trobe, also in Victoria.
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More lawyers looking to enter politics this election 13 August 2010