Sunday penalty rates, banking regulation and the looming Trump presidency are some of the top order issues for business leaders heading into the new year.
Fairfax Media surveyed executives and directors from some of the nation's biggest companies at the annual Couta Boat Classic sailing regatta at Sorrento on Wednesday on some of the pressing issues for the year ahead.
![JB Hi-Fi chief executive Richard Murray wants Sunday wages "aligned" with Saturdays.](/web/20170105083939im_/http://www.theage.com.au/content/dam/images/g/t/l/u/h/m/image.related.articleLeadwide.620x349.gtltyh.png/1483566820196.jpg)
Penalty rates was identified by many as an area ripe for reform ahead of a landmark Fair Work Commission ruling on the issue expected in coming weeks on whether Sunday rates should be brought into line with Saturday in the hospitality and retail sectors.
"From our perspective we're happy to pay penalty rates, we probably just see that Saturday and Sunday are more aligned," said JB-Hifi chief executive Richard Murray, who said his company hit $1 million in sales at a single store on Boxing Day.
Sunday not special
Former Reserve Bank of Australia board member and Nufarm chairman Donald McGauchie said there was no reason why Saturday and Sunday rates should vary.
"The days where the majority of people are going to church are no longer. We all accept the fact that for people working outside normal working hours there will be some additional payment, but those things need to be more balanced than what it currently is," Mr McGauchie said.
Medibank chief executive Craig Drummond said reforming penalty rates would boost the economy by increasing competitiveness.
"I think what we need is a genuinely flexible economy and that doesn't necessarily mean that we're looking to disadvantage workers but we need it to be flexible," Mr Drummond said.
![Peter Costello is concerned that "outdated" work practices are holding back the economy.](/web/20170105083939im_/http://www.theage.com.au/content/dam/images/g/t/l/u/k/1/image.related.articleLeadwide.620x349.gtltyh.png/1483566820196.jpg)
Future Fund chairman and Former Federal Treasurer Peter Costello also supported penalty rates reform.
"I think we should look at IR because there's still areas where outdated work practices are holding us back," Mr Costello said.
![Macquarie Group director Patricia Cross (left) says banks are generally well behaved.](/web/20170105083939im_/http://www.theage.com.au/content/dam/images/g/t/l/t/z/7/image.related.articleLeadwide.620x349.gtltyh.png/1483566820196.jpg)
Banks behaving
Westpac chairman Lindsay Maxsted praised the government for not launching a "costly" royal commission into the banking sector following scandals in the financial planning and the life insurance sectors.
"Over time hopefully banks can prove what they are – that they're a massive positive influence on the economy and on society," Mr Maxsted said.
"That doesn't in any way diminish those instances where banks don't behave well, but overwhelmingly banks behave very well and make a major contribution to society."
Mr Maxsted said the Australian Securities and Investments Commission's civil action against Westpac for allegedly rigging the bank bill swap rate was "misguided".
He also said that ASIC's more recent action against Westpac's super arm BT over allegedly unfair practices was a test case and that he believed Westpac had complied with the law.
Macquarie Group director and Commonwealth Superannuation Corporation chair Patricia Cross said the banking industry was generally well behaved and it would be difficult to completely stamp out bad behaviour in any sector.
"Culture underpins everything that we do and it's really important to make sure that culture is embedded throughout – not just at the top and not just people saying nice things about it, they have to believe it and live it," Ms Cross said.
"But it still doesn't guarantee that everyone will behave the way they must behave," she added.
Overseas focus
Meanwhile, AFL chairman and recently departed Rio Tinto board member Mike Fitzpatrick is keeping his eye on the US dollar, which he says could rise in the wake of Mr Trump's tax and infrastructure policy packages.
"I am pretty positive, I think the US will reflate and as long as the Chinese can keep going without a disaster, and they have managed it pretty well so far, for the first time in a while I am reasonably positive," he said.
Former PBL chief and current deputy chair of the Myer Family Investments empire Peter Yates is also keeping an eye on the China economy and commodity prices, and is tipping the Australian dollar to fall.
Mr Yates, a media industry veteran, said the recent scandal involving Seven West Media chief executive Tim Worner's allegedly improper relations with a junior employee - which he described as "governance issues" - could have happened in any industry.
"We've seen similar problems in other industries, its just a complication that flows from the listed environment and I don't think that's unique to media companies, it just gets more attention," Mr Yates said.
Medibank's Mr Drummond said the government had made a good start at reforming the health industry to keep a lid on costs incurred by consumers and insurance companies and improve transparency.
"The fundamental problem is we've got health care industry costs growing at about 6 per cent per annum and incomes in this country growing at 2 per cent, so it's unsustainable," Mr Drummond said.
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