Prime Minister Kevin Rudd is faced yet again with another issue just one week after being the new prime minister.

Major environment group threatened Mr Rudd that they will assemble all their members to protest against Mr Rudd's possible cut of green tape, following suggestions from the business sector.

According to a report from The Australian, the business sector proposes changes that all environmental approvals and reforms should be done by the states. Mr Rudd can possibly agree to this proposal since it was in his agenda to streamline commonwealth-state relations and he wants to prioritise re-establishing a good relationship between the Australian Labor Party and the business sector.

Officials from the business sector said that green tape enforced an impartial burden to most of the multibillion-dollar projects. This was discussed Tuesday during Mr Rudd's meeting with the Business Council of Australia (BCA).

In a report from The Australian Financial Review, NSW Premier Barry O'Farrel and BCA Chief Executive Jennifer Westacott agreed that the green tape issue should be dealt with as soon as possible.

The attendees of the meeting were BCa president Tony Shepherd, Finance Minister Penny Wong, Resources Minister Gary Gray and Workplace Relations and Education Minister Bill Shorten.

BCA officials look forward to Mr Rudd's sincerity about improving productivity since he delegate Mr Shorten the task to drive the productivity agenda with business and unions.

As remembered, Mr Rudd said in his first speech as prime minister that "bill is not there as some spokesman for the Australian trade union movement. I wouldn't cop that and he wouldn't either. He is there to drive productivity agenda which brings us together."

Although Mr Rudd did not divulge the details of the commitments that he will be giving the BCA, Ms Westacott said that more than anything else, what they want from Mr Rudd is action and not words.

Ms Westacott said, "Streamlining complex and inefficient environmental approvals processes is essential to ensure successful delivery of the major projects that underpin Australia's productivity. Repealing the recent amendments to the EPBC Act and tackling the costly double-handling and delays in the current process are among the decisive early actions Prime Minister Rudd can take to restore business confidence and ease the cost of major investments."

"The Commonwealth should set appropriate standards and develop bilateral agreements with the states and territories to undertake approvals and assessments to remove the duplication and overlap while not compromising environmental outcomes."

The issue on 457 visas that Mr Rudd put through parliament legislation was also questioned during the BCA meeting. During the first week of Mr Rudd's prime ministership, he had already placed limits on the use of 457 visas for temporary overseas skilled workers. This decision prompted the business sectors to think that Mr Rudd is already acting in bad faith as far as their relationship is concern.

Previous reports revealed that after Ms Gillard was overthrown on Thursday night, there was an attempt to pull the green tape legislation. However, it was put back as an internal fight within the party ensues. In order not to cause worry to the business sector, they were advised that changes will be reviewed in coming days.

However, the business sector saw a sudden shift with Mr Rudd's mood when he made it clear that the business sector will not have its way, saying that if they can always have it their way, then the country would have gone broke ten years ago.