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Small business needs a heavyweight in Cabinet, Julia

Frank Zumbo

by Frank Zumbo

29 Feb 05:40am

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Filed under: Business, Cabinet, Mark Arbib, Small Business, Small Business Commissioner

29 comments

With the ALP’s leadership tussle over for now, it’s time for the Federal Government to get back to the much needed policy work on competition, small business and consumer law issues.

It's been rocky times for small business

These issues are fundamental to the ALP’s re-election hopes as the sky-rocketing cost of living will make struggling Aussie families think twice at election time.

Those Aussie families are sick and tired of the gimmicks or, even worse, the lack of policy direction from federal Labor. Take, for example, small business concerns about the growing market and contractual power of larger businesses. And what about the concerns increasingly expressed by farmers about their dealings with food processors and the major supermarket chains?

While federal Labor has stood by and watched, the South Australian Labor Government has shown true policy leadership by establishing a South Australian Small Business Commissioner with real teeth to deal with ongoing abuses of market or contractual power.

Why hasn’t federal Labor established a federal small business commissioner? A federal small business commissioner would be very valuable in assisting small businesses to try and resolve disputes with larger businesses.

A federal small business commissioner could effectively enforce mandatory federal industry codes of conduct if the Government did the right thing and imposed financial penalties for breaches of these so-called mandatory industry codes. How can any industry code be mandatory if there are no financial penalties for breaching the code?

Surely, any federal small business minister concerned about promoting industry best practice would want all industry participants to fully comply with an industry code and would make sure it happens by imposing financial penalties for non-compliance with a code.

Take franchising for example. It’s an important sector of the economy, but its success can so easily be compromised or undermined by a franchisor that doesn’t fully comply with the federal Franchising Code of Conduct. There can be no doubt that imposing financial penalties for breaches of the franchising code would promote full compliance with the code.

Promoting full compliance with the franchising code would lift the franchising sector’s image and promote confidence in the sector. Promoting confidence in the sector would lead to greater investment in the sector which can only be a good thing for Australian franchising.

With Mark Arbib having announced his departure from Parliament there’s now a federal ministerial vacancy in the small business area. Let’s hope that we get a new federal small business minister that likes developing policy initiatives that help small businesses in their dealings with larger businesses.

After all, small businesses are the forgotten voters who like their small business ministers to spend time standing up for small businesses rather than giving them excuses for any Ministerial inaction that plays directly into the hands of the big end of town.

And while we are getting a new federal small business minister we can only hope that we’ll get a new minister in the competition and consumer area. There have been too many Labor mistakes and gimmicks such as FuelWatch and GroceryChoice and it’s time for a fresh policy perspective.

Maybe we need a new federal competition and consumer minister to spend less time in the Qantas Chairman’s lounge or counting numbers for a leadership ballot, and more time developing policies that increase real competition and empower consumers.

Not enough is being done to encourage new competitors into key sectors of the economy such as groceries, petrol and banking. Here the need for new competitors doesn’t just mean more Coles and Woolworths stores. Rather we need new independent competitors. Let’s start by lowering barriers to entry to get more independents into the market.

Let’s talk about empowering consumers. We hear about Woolworths’ strong push into online retailing over the next two years, but consumers can’t find online the shelf prices of all Woolworths supermarkets.

Why can’t consumers get onto their computer to find the cheapest Woolworths supermarket in their local area? After all, Woolworths will often seem to engage in geographic price discrimination where they charge different prices for the same product in different stores.

In an online world any consumer should be able to see all shelf prices online. Now there’s a policy initiative for any new federal competition and consumer minister. And with all of Woolworths’ proposed new investment in online retailing the price of any IT needed to provide consumers with online access to all supermarket shelf prices should now be even lower than before.

Maybe Woolworths and Coles will do the right thing and provide consumers with online access to all supermarket shelf prices. If they don’t, then a minister could propose a new mandatory industry code that could require Woolworths and Coles to do so.  After all, successful policy leadership by a Minister is all about convincing colleagues and Parliament of the merits of a proposed new policy initiative.

That logic extends to requiring the oil companies and major petrol retailers to each publish online all petrol prices at their respective outlets so that motorists can always find the cheapest service station. Surely any competent and enthusiastic new federal competition and consumer Minister could show such obvious policy leadership to empower motorists?

And what else should any new federal competition and consumer minister do? That’s easy. Have a close look at the ACCC. A good way to save money would be to abolish the ACCC Petrol Commissioner role. The motoring bodies around Australia already watch petrol prices so we don’t need an ACCC Petrol Commissioner to duplicate the price monitoring undertaking by those motoring bodies.

Abolishing the ACCC Petrol Commissioner would be simple. What would be more challenging from a policy development point of view would be to actually keep the ACCC Petrol Commissioner and give the person some real new powers to bring the oil companies and major petrol retailers into line.

Naturally the free market theorists would argue that the ACCC Petrol Commissioner shouldn’t be given any new powers and so obviously they will also be calling for the abolition of the ACCC Petrol Commissioner. Now that would be interesting to see!

Of course, there’s a real possibility that we won’t get a new federal competition and consumer minister this week and we’ll continue to suffer the long-standing policy vacuum in this all important area.

And then again with a federal election due next year we may eventually get a new federal competition and consumer minister as part of a new incoming government.

Given that a new incoming Federal Government may not be a Labor one, one would think that would be enough to quickly focus federal Labor’s attention on competition and consumer issues.

Now surely that’s something really constructive for federal Labor MPs to think about while sitting in the Qantas Chairman’s lounge or counting the numbers for the next leadership ballot.

Most commented

29 comments

Show oldest | newest first

    • Sony B Goode says:

      04:51am | 29/02/12

      The Australian Losers Party is only interested in power and its core policy of tax and redistribute.

      It is a grotesque ideology of prosperity destruction that has failed everywhere it has been tried. Krudd has claimed that Gillard is an ex-communist, this is false. Gillard is still a communist, as witnessed by her constant need to find targets to tax and the obnoxious waste of tax payer’s money. The very notion of a super profit is pure Marxism.

      Australia deserves better than this pack of archaic buffoons, who seek to reduce everyone to a common shade of grey, remove incentive and stifle prosperity where ever it is found.

      Reply

    • Chris says:

      03:52pm | 29/02/12

      The worst part is that Abbott is a fricken idiot, and Julia is dishonest, even for a politician.

      I really don’t want to vote next election

    • ALP Member says:

      04:55am | 29/02/12

      The Labor party has learnt nothing from the recent implosion. The faceless men of the factions are still in control and members have been even further devalued.  Since Arbib quit politics there has been lots of speculation on his Senate replaced.  What no one seems to have noticed is that members are being further ignored.  At least, in the pass, nominations were ‘called’ from members.  Even though everyone knew that they would never be considered for positions like these unless you were anointed.  However, in this case, they haven’t even bothered to call for nominations.  The decision is being made in a back room and members will be invited to cheer at their choice.

      Reply

    • Crassus says:

      06:28am | 29/02/12

      That is the problem with the ‘modern’ Labor party, it’s a retirement village for union bosses and lesser scabs.  Unlike their predecessors, the ‘modern’ Labor party have as much time for their members and the country as they now do for Kevin Rudd.

    • Mouse says:

      08:36am | 29/02/12

      Yes the factions still rule.  gillard’s choice to fill Rudd’s old FM position with Bob Carr has been vetoed by senior members of the cabinet. It appears that Smith wants his old job back.  Crean prefers to stay as Regional Australia Minister, but will “take his lead” from gillard! 

      “The Prime Minister is showing a new assertiveness - that will be demonstrated in the way in which she constructs the cabinet,” he said. “The healing process has begun; let her show the leadership that is necessary.”
      http://www.theaustralian.com.au/national-affairs/mutiny-kills-pms-bob-carr-plan/story-fn59niix-1226284538034

      That’s great! As long as she does what she is told…..... right?  :o)

    • Against the Man says:

      05:13am | 29/02/12

      I think it is really sweet that Frank would even think that JG cares about families or small businesses.

      Reply

    • RyaN says:

      12:43pm | 29/02/12

      @ATM: Sweet or delusional, either way its quite cute really!

    • Noms says:

      03:45pm | 29/02/12

      She is always shown at schools talking to those children things,maks her look all mummy and warm,so cute,so stage managed,71 people voted for you know

    • Old Fogey says:

      06:04am | 29/02/12

      Frank, are you floating the idea of a Small Business Minister to champion the cause of small business or just to name and shame the ripoff merchants that live at the bottom of every consumer’s garden?  Small business collectively is a huge employer in Oz anmd seldom gets the credit for the employment opportunities it creates.  Yet it faces a seemingly endless row of obstacles, including Fair Work Australia and an internet competition which doesn’t have to pay GST.  And if federal hurdles aren’t enough, we cop it from the state and local governments as well.  They’re the sort of issues I’d like a Small Business Minister to be examining.

      Reply

    • TrueOz says:

      06:18am | 29/02/12

      Ex union boss mark Arbib is absolutely no loss as small business minister. Neither were his two predecessors that where appointed by the watermelons that currently have control of Australia. You can make a safe bet that the next small business minister will be every bit as useless as the last three, simply because there is not a single member of Parliament within the ranks of the ALP that is even remotely qualified for job. All we can hope for is that resignation, death or some other factor takes down an elected ALP minister, sparking a by-election - and probably ridding Australia of these unelected clowns.

      Reply

    • Crassus says:

      06:58am | 29/02/12

      ;and probably ridding Australia of these unelected clowns.’  TrueOz, the members were elected, not to government as there weren’t enough votes to form one.  However Julia Gillard was able to ‘promise’ the independents whatever they wanted more assertively (for want of a better word wink ) than Tony Abbott was, to help her form government with their support.

    • Steve Putnam says:

      07:09am | 29/02/12

      Instead of making ignorant unsubstantiated comments, why don’t you give us a summary of the Coalition’s small business policies so we can form some basis for rational choice? You’d be doing them a big favour as they seem uttterly incapable of articulating their views on anything.
      Lets not forget it was the Tories that brought in that great big new tax the GST, which still a big bone of contention with small business.

    • Crassus says:

      07:16am | 29/02/12

      Steve, how is England?  Your posting on the wrong The Punch site.  If you are in Australia, I think the party you are referring to is the Liberals.  It’s so confusing for you poor rusties at times I know, as England has a Labor party as well.

    • Steve Putnam says:

      08:29am | 29/02/12

      @ Crassus Interesting you should bring up the UK. It was Ted Heath’s Tory government that brought in the much hated Value Added Tax in 1973, creating a whole raft of compliance costs for small business.
      Its amusing that someone who chooses to call himself Crassus sees fit to lecture me on nomenclature, though I concede it was unfair of me to imply a link between the Liberal-Conservative government of David Cameron and Abbotts band of self-interested careerists and light-weights.
      But why Crassus? I’m sure you are aware that is where the adjective “crass” comes from. Seriously though, what is it you admire most about him? His all-out efforts at enriching himself in the late Roman Republic based on the sale of confiscated land and loan sharking perhaps? Do you think he showed strong leadership when he had 6,000 slaves crucified along The Appian Way following the failed revolt of Spartacus?You must have some reason surely.

    • Crassus says:

      08:48am | 29/02/12

      Nice work steve, maybe i should change my
      screen nane to Blind Sheep, would that suit
      you?  Unlike you, I’m not a party hack, I enjoy
      thinking and voting for the party I believe will
      do what is best for the country and my family.
      Besides your attack was wasted, my question
      to you was, are you in Australia or England,
      as far as I know, I’ve never seen the Tories
      listed as a party here, but you it seems know
      better

    • SLF says:

      12:05pm | 29/02/12

      @Crassus If you want to be really pedantic, the UK does not have a Labor party.

    • Steve Putnam says:

      02:33pm | 29/02/12

      @ Aitch B Mere words on a page rhetorical devices; no more. Worth about a cup full of cold water.
      If The Coalition was serious about supporting small business it would have supported the Minerals Rent Resource Tax instead of playing politics with the issue. The furious opposition of The Liberals and a gang of bloated super-rich mining magnates defeated the original mining tax, which would have seen a 2% lowering of the tax-rate for small businesses.
      Even in its watered down form the MRRT has given small business a 1% tax cut and other significant improvements. Amongst other things it allows for small business to instantly write off all assets valued at less than $6,500 (up from $1,000 during the period of the Howard Government) and $5,000 for vehicle purchase. It also provides for a simplification in compliance proceedure.
      These reforms have been signed into law and are not mere promises like the “never-ever GST”.

    • acotrel says:

      06:38am | 29/02/12

      A business heavyweight is a sound idea but it will never happen.A savvy type would immediately find all the waste and fat the dead wood,which is the basis of this socialist government.Gillards style is to coverup waste not to account for it.The recent bunfight was about the control of the purse strings not about fiscal responsibility.Left Govts around the world are now reaping the result of massive waste and fiscal incompetence,Aust will be next unless a coalition is in govt

      Reply

    • Ozymandias says:

      12:39pm | 29/02/12

      Actually Acotrel, in my opinion what we are seeing around the world are the continuing aftershocks of bankers providing mortgage loans to people who had no capacity to repay them. The huge bailout which occured has left whole governments unable to provide basic services.

      At the very least, any bank in any country which needed to be bailed out by their Government should have been nationalised, so that the State then owned that bank. Australia, Spain, the United States, it doesn’t matter a damn which country the bank collapse happened in… instead, the operating principle appears to be ‘privatise the profits but socialise the losses’. It is utterly ludicrous that banks have been given massive funds without any requirement to pay it back. It is even more ludicrous that the people running these banks have not been charged with financial malfeasance. And finally, the truly AMAZING thing is, our Governments have completely failed to regulate the hell out of banks to ensure that the behaviour which leads to these global collapses (Great Depression and GFC alike) is completely illegal and never happens again…!

    • Mouse says:

      12:54pm | 29/02/12

      Hey! What have you done with the REAL acotrel?  :o)

    • Crassus says:

      06:38am | 29/02/12

      ‘Given that a new incoming Federal Government may not be a Labor one, one would think that would be enough to quickly focus federal Labor’s attention on competition and consumer issues.’ 

      They will eventually, but only after they have first found a way to introduce some more ‘levies’, ‘pricings’ or ‘contributions’.

      Reply

    • Mahhrat says:

      06:59am | 29/02/12

      “Those Aussie families are sick and tired of the gimmicks or, even worse, the lack of policy direction from EVERY POLITICIAN IN CANBERRA”

      Fixed that for you, Frank.

      Reply

    • FWG says:

      08:23am | 29/02/12

      You would have hard time finding anyone in the Labor government who.s capable of taking on the job ,not one of them has ever run a small business or anything for that matter this is part of there problem no experiance ,too many union bludders and party hacks.

      Reply

    • Bev says:

      10:45am | 29/02/12

      Unfortunately the majority of polies from all parties are in the same boat.
      Small business is the loser no matter what.  Either to the unions or big business.

    • Ozymandias says:

      10:58am | 29/02/12

      I am truly amazed that our Alleged Leaders have NOT imposed financial penalties on business who fail to comply with legal requirements. Surely this would result in an enormous income for government which could be used to pay off our overseas debt?

      Reply

    • Esteban says:

      11:49am | 29/02/12

      Assuming for one wild moment that the minister for small business is an advocate for small business, isn’t “ALP minister for small business” an oxymoron?

      A true advocate for small business would argue for derugulation of the labour market and no carbon tax. But how could someone in the ALP advocate for that?

      Who in the ALP is truly representing small business? If you don’t have business people you don’t need the workers.

      Reply

    • Robert S McCormick says:

      12:07pm | 29/02/12

      Electricity: Up, Gas: Up, Petrol: Up, Council Rates: Up, State & federal Government Fees & charges: All UP
      Now we have Tanya Plibersek, the oh-so-caring Minister for Health telling us that the cost of Private Health Cover is to rise by 5.06% - almost, if not exactly, Twice the CPI. If this was a once-a-year increase, tied to the actual CPI it would be acceptable but it’s not. This is, if memory serves, the 2nd or 3rd similar increase the Private Health Insurers have scored for themselves this year, every year.
      This doesn’t affect me, but we are told millions of people covered by Private Health are to lose the Federal Government 30% Rebate. This minimum, note that it is a minimum, average increase of $150 per annum for family cover will, no matter how much spin they put on it, fudge the stats to get the results they want, cause many of them to abandon Private Cover altogether . Then add those on low-to-middle incomes who are already struggling to keep this cover going who will, unwillingly but with no choice have to drop out.
      The likes of Tanya Plibersek etc., unless they follow Paul Keating’s path & refuse to take out Private Health Cover, will simply apply to the Politician-owned Remuneration Tribunal & tell it to give them yet another pay rise. A demand it will, as it always does, comply with.

      Reply

    • Against the Man says:

      05:13pm | 29/02/12

      Pilbersek like Roxon take directions from the Nursing Unions and lots of this cuts and removal of rebates are to boost nursing medicare rebate and indemnity cover. Even TChong agreed with me on this. ALP is as corrupt as they get.

 
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