THE Federal Government should introduce a publicly supported venture capital (VC) fund to enhance the entrepreneurial environment in Australia, according to the Institute of Public Accountants (IPA).

“We acknowledge that the Government through the National Innovation and Science Agenda is considering measures to increase the availability of VC funding in Australia,” said IPA chief executive officer, Andrew Conway.

“The VC fund could be established by either providing a significant proportion of funds to assist VC managers to attract other institutional investors to publicly supported VC funds or by becoming an institutional investor in a range of individual VC funds.

“This level of support by government to small business equity finance will improve the entrepreneurial environment in Australia and act as a catalyst in identifying and overcoming hurdles to successful and profitable investment.

“Many young firms face funding problems, particularly in uncertain technological or new knowledge environments because of their unattractiveness to bank lenders.

“It is a lost opportunity to the Australian economy when innovative firms with high commercial potential are constrained by the absence of external finance.

“Any government with a strong commitment to economic growth via research and development and investment which facilitates greater enterprise and innovation activity must ensure that early-stage venture capital finance remains available to high potential, young firms.

“Otherwise, we risk a reduction in new commercialisation opportunities stemming from national investments in science and technology,” said Mr Conway.

These recommendations form part of the IPA’s pre-Budget submission.  For more information go to: http://bit.ly/2jxoU7L

publicaccountants.org.au

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FOLLOWING the Opposition Leader’s cryptic response to new ACTU Secretary Sally McManus’s controversial comments, Australia’s resource employers are calling on Bill Shorten to clarify which ‘bad’ workplace relations laws he intends to change if made Prime Minister.

Ms McManus yesterday outlined the union movement’s ‘wish list’ of changes, intending to damage the economy and take Australia’s workplace relations system back to the 1970’s, including:

• Ability for unions to take strike action at any time, over any issue;
• Having the Fair Work Commission, a tribunal headed by an ex-union boss, arbitrate disputes;
• Reducing the bargaining power of employers;
• Restricting employers from hiring part-time, casual or contract employees;
• Preventing the Fair Work Commission from terminating expired, uncommercial enterprise agreements.

In response to Ms McManus supporting law-breaking by unionists in pursuit of these goals, Mr Shorten said he "believes in changing bad laws, not breaking them”.

“Ms McManus’s comments are terribly timed given last week, militant unionists led by the CFMEU illegally walked off worksites around the country, sucking millions out of the national economy,” AMMA chief executive, Steve Knott, said.

“It is extraordinary for the new ACTU leader to suggest the current workplace laws are ‘unjust’ given we are still operating under the legislation co-written by Julia Gillard and Bill Shorten at the behest of the union movement.  These are Labor’s workplace laws, smothered in the fingerprints of the ACTU.

“Does our alternate Prime Minister support a scenario where unions can strike at any time, over any issue? Does he support providing the Fair Work Commission, a body he helped set up and placed an ex-ACTU boss at its head, with arbitration powers over disputes?

“The current legislation already provides unions with the legal ability to strike when enterprise agreements expire. It provides unions generous powers to enter worksites, to run union membership campaigns in employee lunchrooms, and to insert themselves into agreement-making despite having a minority of employee support.

“Resource employers are deeply concerned with what the Opposition Leader’s real workplace relations agenda might be.  If he indeed does intend to ‘run Australia like a trade union’, Mr Shorten must clarify his position on key workplace relations issues and rule out supporting the damaging, regressive notions put forward by the ACTU’s new secretary.”

AMMA is campaigning for ‘Five Urgent Reforms’ to restore balance to Australia’s workplace relations system. Visit our campaign page and watch our animated video on union workplace entry laws.

www.amma.org.au

THE Australian Retailers Association (ARA) supports a two-stage transitional pay arrangement of the Sunday penalty rate reduction.

This phased approach will allow retailers to implement the benefits of the penalty rate reduction in terms of additional hours of work and employment opportunities in a reasonable manner. 

The ARA proposes the Sunday penalty rates reduction for permanent and casual employees be reduced to 175% from 1 July 2017. The second stage of this transitional arrangement proposes Sunday penalty rates for permanent employees be reduced to 150% from 1 July 2018.

ARA Executive Director, Russell Zimmerman, said phasing in these changes will assist retailers across the industry in creating more jobs, offering additional work hours and increasing levels of service to the community.

"After speaking with our members and legal providers, we propose the Sunday penalty rate reduction be phased through a two-stage pay arrangement,” Mr Zimmerman said.

“Based on the evidence presented to the Commission during this industry-wide case, employees in the industry would experience no, or very marginal, negative impact, as a result of this phased approach.”

The ARA has carefully examined the feedback received from retailers across the country and strongly believe Take Home Pay Orders will be an unsustainable process moving forward.

“Modern Awards needs to be simple, steady and easy to implement,” Mr Zimmerman said.

“Take Home Pay Orders will add an unnecessary level of administrative complexity to this transition which will be superfluous.”

The retail industry supports a phased penalty rate reduction process provided this does not impact negatively on retailers’ capacity to increase employment rates across Australia and sustain growth in the retail industry.

“Implementing a two-stage transitional pay arrangement for the reduction in Sunday penalty rates will allow retailers to roster additional staff on a Sunday, and give more employment opportunities to young workers seeking both extra hours and new employment over the weekend,” Mr Zimmerman said.

“With 725,000 people out of work, including 259,000 young people, the ARA believes the reduced penalty rates will make it easier for employers to hire staff.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $300 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Institute of Public Accountants (IPA) is urging the Federal Government to introduce a state-backed loan guarantee scheme for small business.

“On average, 28,000 Australian businesses per annum face a binding finance constraint, whilst 118,000 face some access to finance issues,” said IPA chief executive officer, Andrew Conway.

“To help increase the availability of much-needed affordable loan finance to the small business sector, the Federal Government should introduce a state-backed loan guarantee scheme.

“Australia is one of the only countries in the developed world without such a scheme.

“A limited state-backed guarantee would encourage banks and other commercial lenders to increase loan finance available to small business.

“Evidence presented in the Australian Small Business White Paper suggests that by international standards, the cost of debt for Australian small businesses is high and risk-adjusted lending is not the norm in Australia.

“There is a strong case for designing and implementing a loan guarantee program in Australia to help remedy the specific problems of smaller and younger start-ups unable to finance new investment opportunities through normal commercial channels.

“Access to responsible and affordable finance will help many small businesses reinvest in their businesses and help create new ideas, new capacity and new jobs.

“When appropriately designed and administered, loan guarantee programs can deliver value for taxpayers through their support of employment, growth, productivity, innovation and exporting,” said Mr Conway.

The IPA’s recommendation for the small business loan guarantee scheme forms part of the IPA’s pre-Budget submission for 2017-18. For the IPA’s complete pre-Budget submission go to http://bit.ly/2jxoU7L

publicaccountants.org.au

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