A TASMANIAN business leader says a free market economy provides the best solution for recovery from the impact of the global financial crisis.

Executive chairman of the Tasmanian Chamber of Commerce and Industry Andrew Scobie said through history, there was no better system than a market economy to reduce poverty, raise productivity, improve health standards and integrate the people of the world.

He said it was important to remember these facts and avoid the very real current threat of protectionist views, brought about by the prevailing economic conditions.

Addressing the Australian Chamber of Commerce and Industry, Mr Scobie said business should not, through its silence be judged to be supportive of moves to abandon rationalism, evidenced based policy, prudent fiscal management and open markets.

“We must also avoid the real and present threat of protectionist views - overt through tariff barriers or subtly disguised as subsidies for unsustainable businesses.

“Tasmania’s only Austalian Prime Minister Joseph Aloysius Lyons is a role model of how Australia can do the unfashionable thing and avoid the worst of the great recession by once more choosing not to follow the downward spiral into a protectionist fantasy.”

Mr Scobie said Australia and Tasmania in particular, were holding up relatively well through the great recession of our time

He said by comparison, the United Kingdom, one of the world’s most over-regulated jurisdictions had fared worse and would take much longer to recover.

“Keynesian economic levers and consumption led stimulus don’t work.

“For the sake of our children and grandchildren let’s not mortgage our nation’s future.”

Mr Scobie said every child in the United Kingdom owes £20,000 before they were born.

“Do we really want to be remembered for leaving a similar legacy to our children?

“Let us instead consider economic history and focus on the fundamentals of value creation to rebuild the balance sheets of our economies and ultimately lead toward sustainably prosperous communities.”

Mr Scobie said Australia and the world must be careful not to replace imperfect markets with ever more imperfect government intervention.