Fears that business will sit on its hands Business investment decisions may hang on the election hopes of the big end of town. MAJOR multimillion-dollar business investment decisions could be put on hold until after the federal election in September, slowing economic growth. The nation's biggest business lobby groups yesterday warned that political uncertainty may further damage the already fragile confidence in the economy. Some believe the large and vocal number of anti-Labor figures in the business community could postpone decisions in the hope of a Coalition victory and the scrapping of laws such as the carbon tax. Business leaders yesterday called on both parties to provide clear plans aimed at alleviating the pain from the high Australian dollar, increased infrastructure investment, boosting growth in the non-mining sectors, lifting productivity and cutting red tape. "An eight-month election campaign will mean that some significant investment decisions by businesses may be put on hold," Australian Industry Group chief executive Innes Willox said. The business community hopes that the next election will produce a result that gives Australia policy and political stability for the following three years. The long campaign also doesn't give the government the licence to take its eyes off the ball, Business Council of Australia president Tony Shepherd warned. "Both major political parties will be tempted to make rash promises to simply win the election, but with rising costs and many businesses under pressure from the high dollar, policies must be economically responsible and support growth and jobs over the long term," he said. Having an election date doesn't give business or the community certainty or confidence. Only proactive and considered policy that addresses Australia's economic circumstances will do that. The Australian stock market and dollar were however largely unmoved by Ms Gillard's poll date announcement. Retailers traditionally complain that sales fall during election campaigns. And Wesfarmers managing director Richard Goyder was surprised by the timing of the decision. "It's going to be a long campaign," he said. But we do have plenty of issues to discuss and debate in this country and the election campaign is a good chance to do that. Opposition leader Tony Abbott yesterday responded to the election announcement saying there was a clear choice for business between more tax under Labor or less under a Coalition government. But the Australian Chamber of Commerce and Industry said the only major advantage was the knowledge the last quarter of the year will be uninterrupted by politics. Chief executive Peter Anderson plans to make sure the business sector's agenda is a bigger factor this year than it was during the 2010 election campaign.