THE role of co-operatives and mutuals in the delivery of human services was today endorsed in the Federal governments’ response to the Competition Policy Review and support for a new set of competition principles to include ”choice and diversity of providers in human services.”

Mutuals peak body, the Business Council of Co-operatives and Mutuals (BCCM) welcomes the government’s response to the Competition Policy Review and its support for the choice and competition principles in the domain of human services delivery (Recommendation 2).

In the final report, the Harper Review recognised co-operatives and mutuals could play a greater role in delivering human services, meeting productivity and efficiency objectives whilst safeguarding the principles of consumer directed care.

Reacting to the government’s response, BCCM CEO, Melina Morrison said the government’s decision to establish a Productivity Commission review to explore how the principles can be applied in practice to the human services sector was an opportunity to research reforms in different jurisdictions that incorporate principles of choice, competition and contestability including multi stakeholder and consumer owned co-operatives and staff led mutuals.

“Co-operatives and mutuals already make enormous social and economic contribution to this country, particularly in regional areas that tend to be under-serviced compared to cities. We see important lessons to be learned from examples of privatisation on one hand, and over involvement in provision of services by government on the other and we see great opportunity for mutual organisations to play a larger role in delivering services to communities in a way that promotes self-reliance and accountability.”

“An alternative approach to traditional privatisation could be to transfer particular services for example social housing and the National Disability Insurance Scheme (NDIS) infrastructure to a mutual structure where the assets become community assets deployed for the benefit of the relevant community and are run on a mutual basis.

A mutual structure would facilitate governance for ongoing consumer benefit as opposed to shareholder benefit if services were privately sold”, added Ms Morrison.

www.bccm.coop

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THE Council of Small Business Australia (COSBOA) acknowledges the decision by the government to delay the implementation of changes to Section 46 (regarding misuse of market power) of the competition regulations pending a review.

COSBOA also acknowledges the decision to implement other recommendations from the Harper Review of Competition Regulations.

Peter Strong, CEO of COSBOA, stated today, “We are very pleased to see the major recommendations from the Harper Review back in the limelight where they belong.

“It is pertinent that we focus on developing competition in aged care, human services, intellectual property, roads and other key areas. However, it is of course disappointing that several dominant companies have created enough confusion and fear that we have to delay the important changes needed to Section 46.

“The fact is that the biggest companies Australia has ever seen and their union, the Shop Distributive and Allied Employees' Association (SDA), use their influence and resources to control competition policy to the detriment of productivity, retail diversity and innovation,” said Mr Strong.

"When two major companies have such far reaching influence on producers and manufacturers, innovation is stifled. COSBOA knows this and this is why the changes in Section 46 are vital to ensure we do not develop similar damaging domination in other areas, such as aged care.

“Minister for Small Business, The Hon Kelly O’Dwyer has contacted COSBOA and other key groups and industry bodies to set up a series of round tables to discuss the issues of Section 46 and determine the right changes to make. An outcome is anticipated to be achieved by March 2016,” said Mr Strong.

Small business people can be assured that COSBOA will continue to confront those who spread misinformation and false facts, he said.

“We know that the Business Council of Australia and several of its members, particularly WesFarmers, will now, to the detriment of Australia, attempt to ramp up their lobbying and secret manipulations to get their way. Fortunately we have been assured by the government that all discussions will be open and the decisions will be made with competition, innovation and choice in mind as the outcome.

“COSBOA and its members have said for decades that the current state of competition is unfair and the dominant businesses are killing innovation. Ignored for years, we were finally proven right in 2014 when the ACCC successfully prosecuted Coles for unconscionable conduct towards its suppliers. This is why we need to be heard – to ensure the same thing does not ever happen again. Our innovators need space to do their stuff.

“On the day Bruce Billson, the previous Minister for Small Business, has announced his retirement from politics, it is heartening to see one of his ground-breaking initiatives taken forward,” finished Mr Strong.

www.cosboa.org.au

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THE Tax and Revenue Committee today tabled its second report into the 2014 Australian Taxation Office (ATO) Annual Report. This follows the committee’s hearing in September with the Commissioner of Taxation, Chris Jordan.

The report covers a range of issues, including: the Tax Agent Portal, Single Touch Payroll, no-touch tax returns, measuring the tax gap, and tax implications of the sharing economy.

The committee found that changes to the online Tax Agent Portal had led to access difficulties and service outages for tax practitioners, making it harder for them to lodge returns for their clients.

The committee expressed concern that incidents like this affected the relationship between tax practitioners and the ATO.

Tax implications of the sharing economy were a new issue at the hearing. The ATO has established a view on the tax implications of this emerging sector, and has published guidelines to assist taxpayers with compliance.

The committee continued to focus on taxpayer perceptions of fairness in disputes and performance measurement and reporting. The ATO advised they would now report performance indicators on a quarterly basis. The committee viewed this as a positive development which will enable the ATO to better identify slippages in performance standards.

Committee Chair, Mr Bert van Manen MP, said that regular public hearings were an important part of the committee’s work in monitoring a modernising ATO.

“Bringing the ATO, scrutiny bodies and key stakeholders together in a forum like this ensures the ATO can explain the rollout of its change program as well as making sure that the ATO is responsive to the concerns of stakeholders, scrutineers, and accountable to the Parliament,” Mr van Manen said.

The report also listed a number of other key areas that the committee will discuss at its hearing into the 2015 ATO Annual Report, scheduled for early 2016.

The report can be found on the committee’s website: http://www.aph.gov.au/taxrev.

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THE provision of a regular and reliable air service to the Indian Ocean Territories is critical to residents and economic development.

The Australian Government underwrites the current scheduled Virgin Australia air services from Perth to the Indian Ocean Territories (Christmas Island and Cocos (Keeling) Islands.

Witnesses to successive committee inquiries into the Indian Ocean Territories have called for the establishment of regular air services to the north. The IOTs are physically closer to Asia than mainland Australia and many Indian Ocean Territory residents have close family and cultural ties with Asia. Increased air services to the north may also support increased visitor numbers.

Mr Ed Turner spent the 1980s and 1990s involved in air services provision to Christmas Island. This includes the period when the Christmas Island Casino was operational and there were additional services to the north serving casino visitors. Currently the Chief Operating Officer of Air Timor, Mr Turner will discuss the prospects of re-establishing a viable air service to Indonesia.

Committee Chair, Mr Luke Simpkins MP, said “the Committee is interested to learn more about Mr Turner’s proposal, including current impediments and ways to overcome these.”

PUBLIC HEARING 

Monday 23 November 2015

Committee Room 2R2, Parliament House, Canberra

PROGRAM                            

4:00 pm           Chair’s opening statement

4:05 pm           Air Timor (via teleconference)

4:30 pm           Close

All members of the public are welcome to observe proceedings.

The hearing will be webcast at www.aph.gov.au/live

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