The Canberra Business Chamber (CBC) is concerned that the ACT Government’s decision to take over Calvary hospital will lower business confidence and affect negotiations involving crown lease arrangements.

“As the voice of business in the ACT, the Chamber supports all efforts to improve health facilities, be they privately or publicly run,” Archie Tsirimokos, Chairman of the CBC, said.

“However, the early termination of legally binding contracts exposes the ACT to sovereign risk which damages investor confidence and stifles economic growth.

“A stable and predictable business environment is crucial for attracting investment. By disregarding any established agreement, the government risks undermining this environment and potentially discouraging future private sector involvement in contracts for infrastructure or other services which may be performed by the private sector.

“This stability provides the basis for businesses of all sizes to work with government without the fear of seeing arrangements change or contracts cancelled.”

Mr Tsirimokos said that the Chamber respects the ongoing discussions, and is monitoring the progress closely as to potential precedents, or risks that this may have on other government commercial arrangements and Crown Leases.

“From a business point of view, this is about confidence and perception,” Mr Tsirimokos said. “This compulsory takeover of an ongoing arrangement does not inspire confidence for doing business in the ACT and Australia more broadly.

“The Chamber would welcome engagement to further understand the rationale and reasoning for the decision to take over the running of Calvary, along with the process behind the decision and the potential impacts on healthcare, and other government agreements, including on infrastructure and business activity generally.”