Neil Mitchell recently engaged in a conversation with Shayne Elliott, CEO of ANZ Bank, discussing the economic impacts of COVID-19 and other pressing issues. The dialogue covered various topics, including the concept of "scarring" from the pandemic and its potential long-term effects on businesses and individuals.
Elliott remarked, "I think people's lives are shaped by their experiences. And this has been a long one and a damaging one for many people." He suggested that both young people and business owners might adopt more cautious attitudes moving forward due to lessons learned during the pandemic.
Mitchell drew parallels with past events, noting how his parents' experiences during the Depression influenced their cautious nature. Elliott acknowledged this comparison, stating that caution could dampen business optimism but emphasized the need for ambition: "We need business to take risks to be out there, and be bold and aspirational."
When asked about solutions to counteract these cautious tendencies, Elliott admitted uncertainty but stressed the importance of addressing it: "I don't know... whether that is the sort of thing governments and public policy makers should be thinking about for a long time."
The discussion also touched on challenges faced by small businesses. Elliott described a mixed situation where some sectors struggle while others thrive. He highlighted difficulties in accessing government support: "A lot of it can be overwhelming and really confusing."
Elliott noted an increase in cash reserves among small businesses: "The deposits that they had with us grew by 25 per cent over the year to about fifty-five billion dollars." This trend reflects cautious financial behavior as businesses prepare for uncertainties.
On vaccination efforts, Elliott expressed frustration at low uptake rates and advocated for convenience: "We have to make it easy... Employers have a really big role for onsite vaccinations."
The interview concluded with mutual appreciation between Mitchell and Elliott for their discussion on these critical issues.