THE political crisis that has engulfed the federal parliament for the past 18 months will lead Australia down a “road of economic despair”, the nation’s leading industry and business groups have warned in an unprecedented call to action.

With the Reserve Bank considering another interest rate cut today as a result of collapsing iron ore prices and fears the economy was stalling, the country’s largest employer groups have issued an extraordinary joint statement demanding all sides of politics start acting in the national interest.

BUSINESS GROUPS: IT’S TIME TO STAND UP FOR OUR FUTURE

EDITORIAL: THE SOBERING REALITY OF ECONOMIC DESPAIR

Warning that Australians’ standard of living was in jeopardy because of a lack of political courage to engage in reform, the statement petitioned all sides of politics to govern in the tradition of the “reform giants” — Hawke/Keating and Howard/Costello.

Taking aim at the Abbott government for signalling it would pull back from further reform in the May budget, the group of nine also criticised Labor for focusing solely on “budget fairness” and cited past senates as contributing to Australia’s economic welfare, rather than wilfully damaging it.

Rather than continue to focus on spending cuts — more than $20 billion of which Labor and the senate continue to block — Treasurer Joe Hockey is signalling regressive measures such as tax hikes to balance the budget, including cutting tax concessions for superannuation.

“With the Prime Minister signalling a ‘dull’ budget and the Opposition Leader continuing to focus almost exclusively on budget ‘fairness’ you could be mistaken for thinking there is no significant problem with the state of the nation’s finances,” the statement said.

media_camera Prime Minister Tony Abbott and Opposition Leader Bill Shorten in the House of Representatives Chamber, Parliament House in Canberra.

“It’s a comforting thought that growth is somehow automatic and that year in, year out, despite our many challenges we will continue to improve our lot.

“The reality of where prosperity comes from, however, is much more sobering and if neglected will set us on a path to economic despair.“

The joint statement was authored by business groups including the Australian Chamber of Commerce & Industry, Australian Food & Grocery Council, Australian Industry Group, Australian Pipeline Industry Association, Business Council of Australia, Minerals Council of Australia, National Farmers Federation, Property Council of Australia and Restaurant & Catering Australia.

They represent the largest employers in the country and the bulk of Australia’s economic and industrial activity.

“There is no escaping that reform is hard and often unpopular in the short-term, but Australians are vastly better off for the actions of a previous generation of leaders,” the joint statement said.

“ ... Our message to today’s leaders is simple: governing is not just the responsibility of government, it is the duty of all members of parliament, and we must stand on the shoulders of reform giants ­before it is too late.”

The group cited the fiscal disaster facing the government — spiralling debt and deficits — as even more reason for parliament to act.

A LITTLE HELP GOES LONG WAY FOR FOLKS LIKE THE NAZHAS

Naomi White

RANIA and Mehdi Nazha aren’t counting on an interest-rate cut, but they would ­welcome one if it came today.

“Anyone with a mortgage would hope for a cut,” Mrs Nazha said.

The couple took out a mortgage on their Seven Hills home seven years ago. Their repayments have remained relatively ­stable, although recent cuts had had a small but positive impact on their finances.

media_camera Mehdi Nazha, wife Rania with daughters Carrine, 4 and Serena, 12 / Picture: Jonathan Ng

“It’s definitely become easier for us (since the interest rates have been on hold or cut),” she said.

Mrs Nazha said their saving wouldn’t be huge but with two daughters — Serena, 12, and Carrine, 4 — every bit counted.

She said they would put any savings gained through a rate cut towards the household budget.

Ben and Katherine Bradey have been paying off the mortgage on their Castle Hill home for three-and-a-half years and have mixed feelings about a cut to interest rates.

“For us personally, we’re saving $400 a month since the start of our mortgage” Mr Bradey said. “It’s good and bad. With a rate cut you watch the dollar go down, so if you’re trying to import things (it’s not so good). It’s a balancing act — it always is.”