Election 2010: Dry landscape for SMEs.

The main policies offered by the parties, as assessed by COSBOA, sees the Coalition well ahead on points, a spokesman said today (August 20) ahead of tomorrow's Federal Poll.

COSBOA executive director Peter Strong said this was for the depth of their policies and the fact that they have addressed issues that COSBOA has always considered to be important.  "But the NBN has certainly given many small business people a reason to support Labor," he said.

The Liberal/Nationals have offered:

• A Minister in Cabinet which is something COSBOA has been seeking for over a decade and gives small business a voice at the highest level of decision making.
• A small Business Ombudsman which would give the individuals running a small business the same type of support as other individuals in the community.  Workers have the Fair Work Ombudsman as their source of support, small business owners currently do not have someone they can access with issues to do with government policy or unfair treatment from government agencies
  
• Protection from unfair contracts. Currently small business people are treated as having the same skills and abilities as the whole negoatiating team in a large company when it comes to contract law.  This proposal from the Coalition will give the same protection from unfair clauses in a contract as given to other individuals in the community.

COSBOA said the Labor Party's biggest winner is the National Broadband Network (NBN).  The NBN will provide a communications network that will assist small business owners in Australia access new markets and take advantage of emerging technologies. 

"While there are many small business owners who do not see the NBN as important there are others who believe they cannot operate their business without this network," Mr Strong said. "This has created excitement in many regional communities and is seen by most as essential to the maintenance of a healthy growing economy.  It is certainly very expensive but is less complicated than that offered by the Coalition. 

"It seems that for small businesses it comes down to a choice between the Labor Party's NBN and the increased voice in decision making and increased contract protection offered by the Coalition," Mr Strong said. 

"A person renting a shop in a shopping centre owned by one of big landlords would be right in picking the protection from unfair contracts as their key issue.  An independent contractor would also favour the Coalition's policies. 

"A person running a business in an area with poor communications infrastructure would probably favour the NBN, unless they were also in a shopping centre and then they would have to make a choice between the NBN or protection from a greedy landlord."

A detailed review of the parties' policies against the needs of COSBOA:

COSBOA Policy need: To have governments treat small business as individuals and not expect them to have the same skills, knowledge, resources and capacity of big business

The Liberal Party has responded to this with the proposed appointment of a Small Business Ombudsman and the extension of protection against unfair contracts to small business owners.

Labor has no policy that refects these needs


COSBOA Policy need: Decrease red tape and compliance costs on small business owners

No party has committed to specific changes in red tape.  

All parties are fiddling with company tax and have offered cuts, with the Coalition's offer better than Labor's.  But it does seem to be of marginal importance to most small businesses, many of whom are not incorporated.

The Labor Party's proposal for the increase in superannuation will have a negative impact on small businesses and less of an impact on big business.


COSBOA Policy need: Create a fairer market place for the owners of small business:

No Party has truly committed to creating fairness for small business owners.  Small  business impact statements are needed to provide a true assessment of the impact of big business and government decisions on business families. 

The Coalition's protection from unfair contracts goes some way towards this outcome. 


COSBOA Policy need: Provide support to small business owners who are in crisis or who are ready to grow.

Labor has continued with the funding of the BEC network.

THE GREENS

COSBOA has also anaysed the Greens policies from the small business perspective:

"As we know the Greens will more than likely hold the balance of power in the Senate and will be in a position to get their way on a some policy issues," Mr Strong said. "Most of their policies are not small business friendly.

"On the positive side they are proposing to introduce a Portable Bank Account Number for businesses. COSBOA supports this concept and has been proposing this for some time as it would create better competition in the banking sector and make changing banks easier and far less costly.  We like that idea.

"The Greens have also proposed that paid annual leave is increased from 4 weeks to 5 weeks.  This is palpably ridiculous. We checked with Greens head office and that is indeed what they are proposing.  In our estimation this would result in the closure of up to 80,000 small businesses, mainly in retail and in the hospitality industry.  It would have a negative effect on productivity and the economic health of the nation.  It would require small business owners to work extra hours to make up for the extra leave offered to employees.

"The Greens also propose eliminating the  Independent Contractors Act, removing the construction industry cop and forcing small businesses into the unfair dismissal processes.  This is not good for the men and women who run a small business.

"Saving trees is well and good but destroying small businesses won't help anyone," Mr Strong said. "COSBOA will continue to meet with the Greens and try to convince them that small business owners add more to the Australian economy, culture and community life than any other group and we need to be shown the same respect as shown to other groups of individuals within our society."

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