Additional comments from Coalition Senators


Additional comments from Coalition Senators

Introduction

1.1        It was the Coalition who first proposed a Small Business and Family Enterprise Ombudsman with real powers before the 2010 election.

1.2         In the 2010 Coalition Small Business election policy, it was indicated that the Ombudsman was to be a statutory office tasked to ensure that the interests and concerns of small business people were embraced and responded to on a whole-of-government basis, as "a single access point... promoting the interests of small business in the halls of government."

1.3         The Ombudsman’s role, supported by legislative backing, was set out in that document as being a "policy activist within government, empowered to ensure small business and family enterprise interests and concerns are registered and understood across all levels of government and the bureaucracy."

1.4         It was designed to "implement a comprehensive action plan which will make a real difference to the small business sector"  by enabling our ‘pay small business accounts on time’ commitment, dispute resolution with the Commonwealth and its agencies, improved consultation, red-tape reduction agenda and referral options for early and affordable dispute resolution.

1.5        This approach was to guide aggrieved small businesses to distinguish between commercial misfortune and legitimate commercial disputes fit for mediation/ADR or for referral to the ACCC as a legitimate competition or misconduct allegation.  It would also support ‘fair competition’ education.

1.6        The Coalition’s policy sought  to consolidate various existing mediation and business-to-business industry code dispute resolution mechanisms sponsored by the Commonwealth (for example, the Office of Franchising Mediation Adviser) and information and advisory services (for example, the FairWork inquiry service) intended for small business across portfolios for improved efficiencies and effectiveness.

1.7        Since 2010 the Government has paid little concern to the needs of small businesses that have since faced some of the toughest economic conditions, which last year alone saw over 10,000 small businesses close their doors.

1.8        It wasn't until 2012 that the government responded to these needs.

1.9        In March 2012 shortly after the Government appointed another Minister for Small Business, a sector which has today had five Ministers in 15 months, the Government announced a ‘Small Business Commissioner’ would be appointed. This position had no defined role or legislative backing. 

1.10      The Government's announcement was welcomed cautiously by small businesses and industry bodies. The sector however, remained fearful that nothing would ultimately change under this new government initiative, that it was yet another example of a policy announcement motivated by press release rather than meeting the needs and expectations of the small business community.

1.11      Overwhelmingly industry feedback has been that the Government created a largely symbolic role for the Commissioner to act as a mouth-piece for itself, rather than creating a truly independent position, that can act independently.

The Greens Bill

1.12      After showing little interest in the small business sector and none in terms of this specific policy area, the Greens introduced its Small Business Commissioner Private Members Bill 2013 on 25 February.

1.13      The Greens’ Bill responds to the Coalition’s longstanding criticisms of the Government’s ‘toothless’ approach and the Coalition’s call for ‘clear purpose and real powers’ by providing for a statutory appointment with legislated powers.

1.14      The Bill however, contains a number of significant flaws, including:

  • Limited ability to provide assistance to the sector;
  • Limitations on the types of business that might be able to be assisted;
  • A lack of integration with the roles of other agencies (including the ACCC); and,
  • Duplication of state Small Business Commissioner activity.

1.15      While the Coalition has called for legislative backing for the position of Small Business Commissioner, the approach of this bill is problematic. Specifically, the Coalition is concerned that:

  • The bill uses the definition of small business of 0-19 employees as used by the ABS. This definition limits the operational capability and reach of the Commissioner and is inconsistent with state-based Commissioners.
  • The role described in the bill is prescriptive without supporting tools and is inconsistent with the State based Commissioner's roles.
  • The bill provides little information on how the Commissioner would deal with resolving business-to-business issues, beyond powers to demand information and access to documents, where a party to a dispute ignores guidance.
  • This bill provides no scope to give the Commissioner enforcement powers nor how its conclusions might be referred to agencies with enforcement powers.
  • The bill fails to account for the interaction between the role and the ACCC’s industry Codes, anti-competitive and unconscionable conduct provisions.   
  • The bill makes no mention of industry codes of conduct and what role the Commissioner will have in implementing Codes and ensuring compliance.
  • The bill fails to consolidate existing Commonwealth-sponsored mediation mechanisms or streamline functions or service delivery.
  • The measures contained in the bill are not costed.

Summary

1.16      The Coalition remains the only advocate with real solutions for Australia's vital small business sector.

1.17      Under this Labor-Green Government and its Labor predecessor, taxes have increased and operating costs have soared and as a result small businesses have closed all around the country.

1.18      The Coalition has remained a consistent advocate with real solutions for small businesses.

 

Senator David Bushby
Deputy Chair

 

Senator Scott Ryan
Senator for Victoria

Navigation: Previous Page | Contents | Next Page