“I’m not challenging its role as a house of review, yet most reasonable people would say the political system needs to genuinely reflect the will of the people," he said. “As it stands, there is policy chaos where individuals, with very small percentages of the vote, are driving narrow, vested agendas."

“This impasse that has emerged in recent times is immensely frustrating for a business community that is seeking tax and business reform, together with policy stability to assist investment and economic growth."

Chief executives who want Senate elections changed include Macquarie Group’s Nicholas Moore, Tabcorp’s David Attenborough, Virgin Australia’s John Borghetti, Healthscope’s Robert Cooke, APN News & Media’s Michael Miller, GPT’s Michael Cameron, Bendigo and Adelaide Bank’s Mike Hirst and Wesfarmers’ Richard Goyder.

“I would reform Senate election rules so that preference gaming does not allow the election to high office of people who in their own right attract very few votes, and move to a four-year federal term," Mr Goyder said.

The Australian Industry Group reported on Monday that ­manufacturing contracted in December despite steep falls in the dollar to US85¢ that the Reserve Bank of ­Australia hopes will revive exports.

‘Strong case’ for voluntary voting

In the Senate, the Palmer United Party, independents, Greens, libertarians and a conservative Catholic have frustrated government plans to cut welfare spending, return the budget to ­surplus and deregulate university fees.

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“It is ridiculous that one rogue senator representing 40,000 people has the same voting power as one representing 600,000 people," Healthscope CEO Robert Cooke said.

Mr Cameron said the Senate logjam was an argument for voluntary voting: “It makes for a strong case to remove compulsory voting to stop people ticking the box for parties they simply like the name of. If you don’t care enough to turn up to vote about the issues, then you shouldn’t be forced to cast a vote."

Mr Hirst said federal governments had about 18 months to implement reforms before preparing for the next election. He wants five-year fixed terms.

“Our bank takes a 100-year view of the business and without doubt our three-year federal parliaments are too short," he said.

“Paul Keating famously called the Senate ‘unrepresentative swill’ and while I wouldn’t use the pejorative, I think he got the first bit right when you see people getting elected with less than 1 per cent of the primary vote," he said.

“How does that reflect the will of the people? And how can we expect good policy when a popularly elected government has to negotiate with a disparate bunch of single-issue politicians?"

Mr Attenborough said: “There is understandably a sense of frustration in the community when an elected government is unable to carry out its mandate and progress reform because of the influence of minor parties. All parties have an important role to play in our democracy. However, the fact is that some are exercising a much greater level of influence relative to the fraction of the primary vote they attract.

“That is not helpful to governments being able to deliver their agenda which is why Senate voting reform needs to be progressed."

Virgin Australia CEO John Borghetti backed a reform of the Senate voting system. “The current system allows preference deals between micro parties to elect candidates despite securing only a small number of primary votes. This does not actually reflect the true ­preferences of voters."

Mr Cooke said the Senate should only be able to reject bills for one or two years, after which they would be automatically passed. “At least this would see the Senate retaining some powers, but let the government of the day get on with the things they need to do."

Macquarie’s Mr Moore said: “Given recent history, the method of electing senators could perhaps be ­reconsidered."