Calvary takeover lowers ACT business confidence 2023

The Canberra Business Chamber (CBC) is concerned that the ACT Government’s decision to acquire Calvary hospital will reduce business confidence and impact negotiations regarding crown lease arrangements.

Chairman of the CBC Archie Tsirimokos stated, “As the voice of business in the ACT, the Chamber supports all efforts to improve health facilities, whether they are privately or publicly operated.”

“However, the premature termination of legally binding contracts exposes the ACT to sovereign risk, which undermines investor confidence and retards economic development.

The Calvary acquisition has damaged ACT’s reputation in the corporate world.

“Investment must be enticed by a stable and predictable business climate. By disobeying any established agreement, the government risks undermining this environment and discouraging future private sector participation in contracts for infrastructure or other services that may be performed by the private sector.

This stability provides the foundation for businesses of all sizes to collaborate with the government without concern of arrangements being altered or contracts being terminated.

Mr. Tsirimokos stated that the Chamber respects the ongoing discussions and is closely monitoring the development of any potential precedents or risks for other government commercial agreements and Crown Leases.

Mr. Tsirimokos stated, “From a business perspective, this is about confidence and perception.” “This forced acquisition of an ongoing arrangement does not inspire confidence in conducting business in the ACT and Australia in general.

“The Chamber would welcome the opportunity to learn more about the rationale and reasoning behind the decision to take over the management of Calvary, as well as the decision’s process and potential effects on healthcare, other government agreements, infrastructure, and business activity in general.”

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