Introduction

This chapter focuses on how business associations in Australia engage in public policy analysis and how this role has evolved over recent decades. Business associations in Australia are voluntary associations that rely on subscriptions from member firms or subordinate associations to pursue their roles. Such associations range from industry-specific or sectoral associations servicing or representing a particular industry, to broader cross-sectoral or umbrella associations covering a wider range of industries or businesses across the whole economy. Business associations offer information, services and advice to members to help improve company performance and regulatory compliance in a competitive economy. Business associations also operate in the political and public policy arena, and research and monitor political and policy developments of relevance to members. In their policy advocacy role, they also attempt to influence government policymakers, as well as the wider public and the media. Business associations also act as governance interlocutors with governments. They offer policy advice and sometimes assist governments with policy formulation and implementation. They sometimes play a key intermediary role in industry self-regulation schemes (Bell, 1995; Bell and Hindmoor, 2009). Business associations also often work with firms or other business associations or interest groups in pursuing their activities.

For much of the 20th century in Australia, the ‘bread and butter’ work of many leading business associations was derived from service-to-member functions, especially in helping members deal with the complexities of two of the country’s major public policy frameworks: the centralised industrial relations system and the tariff system. These policy regimes have now been substantially wound back, a process that began in the 1980s. Bell (1994) has argued that business associations have since attempted to reorient themselves by expanding member services in areas such as taxation advice, trade promotion and industrial relations, skills and training. Another avenue of expanded endeavour has been to boost public policy capacities, both in policy analysis and in advocacy and lobbying. Firms sometimes engage unilaterally in politics. However, firms often prefer to join together and work collectively under the auspices or leadership of a business association. In policy advocacy, firms may also seek to reduce their exposure to potential political counter-attack by working collectively and hence more anonymously through an association.