Not an era of change but a change of era
How do we secure the property industry’s social license to operate when scrutiny on business has never been greater? We must bring the community with us, says Property Council chief Ken Morrison.
Speaking at The Property Congress in Cairns last week, Morrison said the days when business groups boasted about their power and influence, and represented just the top end of town, were over.
Increasingly, power does not only flow from the top down, but also from the bottom up, Morrison said.
He pointed to the Australian Financial Review’s most recent ‘power list’, which included “Bill and Mary of Penrith” among its top 10.
“Bill and Mary represent the new populism. The new questioning. The yearn for Australians to see real, positive outcomes in their community.
“Bill and Mary must be persuaded. They are cynical and disillusioned but also realistic and pragmatic – and their influence is changing the course of public life.”
There is a deep sense of disillusionment about the way the country is being run, and this is generating new forces that threaten the long established political order. This point of view was later echoed by political commentator Peta Credlin and by Sir Bob Geldof.
“We are witnessing a loss of trust in institutions. Those who are big, those who are powerful, are witnessing their influence ebb away,” Morrison said.
We are living in the world of Brexit, Trump, of five prime ministers in a decade, of political fragmentation, of social media and an upending of traditional media. This is all contributing to a fear of outsiders, and of trade, Morrison said.
At the same time, we have witnessed real wages stagnate, productivity growth slow, a rise in household debt and a deep sense among many in the community that the cards are stacked against them.
“We ignore this at our peril,” Morrison said.
“One only has to look at the banking sector to see what happens when an industry loses its social license to operate.”
This process has been underway for some time. What has changed is that it is accelerating; and it’s now having major impacts on how decisions are made, and the shape of those decisions.
The Property Council has been contemplating how to best manage that change.
“Is our strategic direction aligned with what is happening in the community? How can we ensure that we don’t ever become as friendless as the banks?” Morrison asked.
Over the course of 2017, the Property Council has undertaken significant research into these questions, with focus groups and polling.
“We’ve been asking Australians what they think of us. The research has been sobering and it’s pointed to a pathway ahead.
“We discovered that the public distrust those who tell them they are big, powerful or influential. Frankly, the public want to punish anyone who they see as the big end of town – because they think the big end of town has the rule against them.”
But they have different views about jobs, and about businesses that are creating jobs, Morrison says.
“Our work now isn’t just about convincing politicians of the merits of our arguments – it is also to build a community coalition around it.
“So, our arguments must no longer only be about why a government’s actions are good or bad for the property industry – they must also be about why their actions will ultimately be good or bad for the community.
“Yes, we represent the property industry – but we will only be effective if we bring the community with us.”
In early 2018, the Property Council will be launching our industry campaign. Morrison promises it “won’t just be a tagline”. Instead, it will be a “realignment” with how the industry interacts with the media, the government and the community.
“It will be about putting the story of our members front and centre – about the benefits of a strong property industry to employment, liveability and the cities in which we live.”
Stay tuned for the Property Council’s campaign, which will be rolled out in early 2018.