THE Council of Small Business Australia (COSBOA) has called on major retailers Coles and Woolworths to voluntarily divest in order to free up competition and innovation in Australia.

The call comes as part of COSBOA’s submission to the Harper Review – the first comprehensive review of competition laws and policy in Australia in more than 20 years. The review panel, headed by economist Professor Ian Harper, recently released its Issues Paper and has asked for stakeholder submissions before the final report, expected to be released in 12 months.

"We have provided a range of recommendations and solutions, but the best way to solve this problem once and for all is to divest Coles and Woolworths,” says COSBOA CEO Peter Strong.

“We understand that involuntary divestiture is unlikely and difficult, so we call upon the boards of Woolworths and Coles to voluntarily break themselves up into several companies.

"They should do this in a way that benefits their shareholders and frees up competition and innovation.

“This is not just about competition between retailers; our submission highlights the negative effects on innovation and productivity that is currently occurring in Australia,” says Mr Strong.

“One major cause is the stifling impact on the great innovators of Australia, small business people, by the domination of a few large companies. Our standard of living will decrease unless we can liberate our innovative spirit from the chains of mental bondage created by the overly powerful duopoly and large landlords.”

Mr Strong points out that ACCC Chairman Rod Sims has also highlighted productivity as an issue that needs to be addressed and laments the loss of a pro-competition culture. Sims says innovation will come from competition, real competition, and the recommendations from the review must make competition free and fair.

Mr Strong adds: "There are many other negative outcomes that come from this domination by a few, including effects on our culture. Small business people can enrich and grow our culture through their activities, while the big end of town can often be predictable and cultivate consumerism rather than a culture of community."

See COSBOA’s full response to the Competition Policy Review HERE

See a copy of Rod Sims Speech HERE

www.cosboa.org.au

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QUEENSLAND’s peak resources sector body says a new underground operation at the Ernest Henry copper mine in the state’s North West demonstrates a high level of confidence in the sector by mine owners Glencore.

The $589 million dollar underground project, which transitions the mine from an open-pit operation, was officially opened today by the Minister for Natural Resources and Mines Andrew Cripps.

"This new kilometre-deep hoisting shaft is a significant milestone for the mine and will extend its life to 2026," said QRC Chief Executive Michael Roche.

"I congratulate Glencore and particularly the company’s local team lead by Chief Operating Officer Mike Westerman on this visionary project that will double copper production to 6 million tonnes per annum next year and eventually double annual metal production to 50,000 tonnes of copper and 70,000 ounces of gold in concentrate.

"It’s great news for the 500 employees and contractors and will ensure that Cloncurry remains a vibrant community.

"I also congratulate the Newman government for ensuring the region benefits from the prosperity it generates for Queensland by providing the Cloncurry Shire Council with more than $5 million for the construction of a heavy vehicle bypass and upgrades to the local airport from the Royalties for Regions program."

www.qrc.org.au

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THE Institute of Public Accountants (IPA) has been joined by a number of leaders and key stakeholders at a special roundtable discussion on June 25 of major issues facing Australia’s small business sector. 

The IPA’s first Australian Small Business White Paper Summit held today in Parliament House in Canberra, was designed to provide a credible and influential voice on key policy matters impacting small business.

“We have brought to the table, substantial research, practitioner insights and industry views to formulate the first industry-led Small Business White Paper,” said IPA chief executive officer, Andrew Conway.

“I am very grateful to today’s participants who echoed our passion for small business, with genuine debate on a broad range of key issues.

“However, this is just the starting point; the commitment made today is to facilitate ongoing discourse to ensure when small business speaks, it does so with the support of industry, evidence based research and on a platform that aims to boost productivity of our nation’s small businesses.

“The importance of small business growth as a driver of Australia’s productivity is growing rapidly and we must do what is in our power to develop economic policy that charts a sustainable future for small business,” said Mr Conway.

The Australian Small Business White Paper Summit covered six key areas of focus:

1.    Australia’s small businesses are appropriately regulated; providing a safety net without stifling entrepreneurship.

2.    Australia’s small businesses operate on a level playing field.

3.    Links to our regional trading partners are facilitated to open export markets for small business.

4.    Australia’s small businesses have access to responsible finance.

5.    Australia’s small businesses are encouraged to innovate.

6.    Australia’s taxation system serves to encourage small business growth rather than stifle it.

www.publicaccountants.org.au

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AFTER significant protest from the Victoria Tourism Industry Council (VTIC), the Federal Government has reversed its decision to cut funding for the long-running Survey of Tourist Accommodation statistics program.  

“This data is a vital business resource and without it we would not be able to gauge how accommodation businesses are performing. Abolition would have severely hampered the industry’s ability to learn, grow and realise its potential,” says VTIC Chief Executive Dianne Smith.

“In partnership with the Accommodation Association of Australia and the National Tourism Alliance, we called for the reinstatement of this crucial program and welcome this outcome.”

Ms Smith’s comments come after the Federal Government announced the continuation of the Australian Bureau of Statistics’ (ABS) Survey of Tourist Accommodation program – a reversal of a recent announcement of its abolition.

The announcement was made at the Coalition Friends of Tourism dinner in Canberra last night, attended by Ms Smith.

“The data provided over three decades is essential in informing policy and operational decisions across the tourism industry, as well as for building effective business cases for potential investors, both in the accommodation industry and the tourism sector more broadly,” says Ms Smith.

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute $19.6 billion to the state economy each year and employ more than 200,000 people.

www.vecci.org.au

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