Stephen Glanz was admitted to practice as a solicitor in 1978 with Baker & McKenzie's New York office after completing his LL.M at Columbia University. Stephen held the position of Managing Partner of the Australian offices of Baker & McKenzie from 1991 to 1995. He is co-chairman of the Firm's Asia Pacific Mergers & Acquisitions Practice group and a member of Baker & McKenzie's Global Mergers & Acquisitions Steering Committee. Stephen's practice includes Australian Stock Exchange listings, capital raisings, securities issues, public company takeovers and mergers and acquisitions.

In his presentation to the Australian Business Foundation, Stephen draws on his international experience to highlight the perceived difficulties of investing and doing business in Australia. In a cautious global economic environment "how does Australia ensure that it's not a wallflower and that it has a reasonably busy dance card?" Below you will find the key messages from Stephen's presentation.

•  Factors such as small population and remoteness are beyond our control but issues such as the regulatory burden imposed on business by government are within our sphere of influence and need to be addressed if we want to enhance our economic performance and become more attractive to overseas investment.

•  The first major issue is the tax burden - a monthly quantum of legislation difficult to understand by virtue both of volume and quality. It is impossible to make an informed assessment as to the fate of your business under this legislation. The recent rules on consolidation are a classic example. Both legislation and compliance, when compared to other investment opportunities are unattractive for foreign investors and put Australia at a competitive disadvantage.

• Employment relations is another example of this phenomenon. There is a cottage industry that surrounds the whole issue of hiring and firing people where lawyers and consultants are significantly sustained by the dynamic that is created when someone is hired or fired by an organisation. The ritualistic dissolution of termination into litigation is unnecessary and unproductive - it needs to be streamlined.

•  The screening process undertaken by the foreign investment review board (http://www.firb.gov.au) is at odds with the market and the global economic environment in which we operate. The recent examples of Woodside shell and the Argyle diamond takeover are particularly relevant. These examples enhance and reinforce the perception overseas that Australia is a difficult jurisdiction in which to invest that involves heavy layers of regulation at all levels of government.

•  In terms of regulatory burden, the imposition of standards of corporate governance is increasingly emerging as an additional issue for businesses in Australia. There is a trend to inflexible adherence to prescribed standards of corporate governance. What we really need is to be creative and innovative within reasonable bounds of good conduct. In contrast to this, the corporate governance mindset turns the focus to an obsession of whether you are following rules rather than whether you are being competitive or productive.

• If we are going to be a competitive and attractive destination for investment there are a few things we need to do - the regulatory burden imposed on business is an area that would well deserve our attention.