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Ombudsman launches Review of Discretionary Mutual Fund proposal

THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson has today launched a Review of the Discretionary Mutual Fund proposed for small businesses in the amusement, leisure and recreation sector unable to secure essential insurance coverage.

Mr Billson said the self-generated review would build on ASBFEO’s Insurance Inquiry as well as ongoing feedback from the Australian Amusement, Leisure and Recreation Association (AALARA) on behalf of its members – many of which face imminent closure without adequate insurance coverage.

“Our country shows that we all love so much are facing a bleak future because small businesses, such as ride-operators, cannot get insurance coverage,” Mr Billson said.

“Closure of these small businesses will mean significant job losses and hurt local economies.

“Our review will be a deep dive into the inaccessibility of insurance for amusement, leisure and recreation businesses, so that we can provide further advice to the Australian Government on what measures could help these small businesses secure the insurance products needed to remain in operation.

“At the core of this review, my office will independently examine AALARA’s proposal to establish an industry-owned and operated Discretionary Mutual Fund as the most effective and durable solution to the sector’s insurance crisis," Mr Billson said.

“We will consider if this proposal will resolve the insurance issues in the sector, the responsibilities and obligations it would impose, its adequacy in satisfying regulatory requirements as well as other options that may assist these businesses.

“This review will use the Ombudsman’s internal expertise and seek external expert advice on complex issues, such as specialist legal, financial sustainability and actuarial matters.”

AALARA president Shane McGrath welcomed ASBFEO’s Review of its proposed Discretionary Mutual Fund, which it is seeking to establish in partnership with Aon.

“The amusement, attractions, leisure and recreation industries are facing catastrophic consequences without necessary insurance coverage,” Mr McGrath said.

“ASBFEO’s review will provide vital information to the Australian Government about the challenges our members are up against regarding insurance accessibility, as well as what that means for these businesses and what support could help address insurance issues faced by the sector," he said.  

A final report is expected to be completed in August.

www.asbfeo.gov.au

 

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Committee focuses on infrastructure procurement

A NEW parliamentary inquiry will examine procurement practices for government-funded infrastructure.

Committee chair of the House of Representatives Standing Committee on Infrastructure, Transport and CitiesJohn Alexander OAM MP, said, "This is an important and timely inquiry as Australia focuses on its economic recovery."

The Australian Government has committed $110 billion to a 10-year infrastructure pipeline, as part of Australia’s Economic Recovery Plan. This includes $15.2 billion in new commitments to infrastructure projects in the 2021-22 Budget.

"Given the size of this investment, it is important that procurement practices for these government-funded infrastructure projects provide the best value for tax-payer dollars and support developing Australian industry capabilities and Australian jobs," Mr Alexander said.

"The committee will examine challenges and opportunities to enhance Australia’s sovereign industry capability, including for Australian-owned businesses. We are keen to hear about: what is working well here and internationally; opportunities to improve procurement practices; and how governments at all levels can better cooperate on infrastructure procurement."

The committee has invited submissions from stakeholders and interested parties. The full terms of reference are available on the committee’s website.

Submissions are being sought by Friday, 16 July 2021. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

 

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New rule paves way for collective bargaining by small businesses

THE Australian Small Business and Family Enterprise Ombudsman, Bruce Billson said small businesses, franchisees and fuel retailers can join together to enhance their bargaining power, under new rules in place under the Australian Competition and Consumer Commission (ACCC).

Mr Billson said under the new arrangement, small businesses could collectively negotiate with the larger companies that buy their products.

“This strengthens the position of small businesses at the negotiating table considerably,” Mr Billson said.

“Collective bargaining is a potential game-changer for small businesses as it boosts their purchasing power and mitigates the risk of predatory tactics sometimes used by larger companies to financially squeeze their small suppliers.

“It also saves time and money for small businesses in contract negotiations, as they can share the cost and resources.

“The ACCC previously only allowed collective bargaining on a case-by-case basis, but now small business groups choosing to engage in collective bargaining simply need to provide a one-page notice to the regulator, that’s free of charge," Mr Billson said.

“In addition to the cost savings and red tape reduction, the new provisions better accommodate the dynamic pace of the small business economy by allowing participants to enter and exit the group without the need for a new approval. 

“Importantly, the arrangement – known as a class exemption – applies to businesses with an annual turnover of less than $10 million per year. It covers 98 percent of Australian businesses.

“It’s an initiative that will help small businesses remain competitive and viable, at a time when it is needed the most.”

More information about the ACCC’s small business class exemption can be found here.

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Orcoa rolls out its Smart Poles project to energise regional communications

ORCDA LIMITED has entered into a memorandum of understanding (MoU) with several delivery parties for implementing the design, development, and roll-out of its Smart Poles Project.

This MoU involves five parties: Wagners CFT Manufacturing, Future Meridian, RC Birili and Betta Power Services.

Wagners CFT Manufacturing Pty Ltd is responsible for the composite smart pole manufacture and hardware integration into the Smart Poles.

Future Meridian Pty Ltd's role is to act as government liason, responsible for the grant process, assisting with sales and infrastructure funding needs.

RC Birili Pty Ltd is responsible for digital systems delivery, hardware sourcing and Indigenous engagement in the project.

Betta Power Services is responsible for managing a state and, if successful, a national installation roll-out. Betta's role also includes transporting Smart Poles from factory to the relevant installation points.

Orcoda Limited is handing contract management, management of digital platforms and connectivity into Orcoda existing transport technology platforms. 

The Smart Pole is an integrated road-aligned eco-system for enhancing technology across data transportation grids and to support special purpose access by multiple parties and licencees, such as government transport departments, municipalities, private entities, telcos, law enforcement groups.

The company's strategic goal is for the Smart Pole to leverage real-time system reporting, data, and for special purpose sensors to be built into the Smart Pole, based on the relevant needs and product demand. The Smart Pole is intended to facilitate roads and highways with intelligent management, vehicle flow detection, vehicle monitoring, road maintenance, road safety, emergency rescue, and support intelligent messaging and intelligent payment systems.

Orcoda said it intends to be at the forefront of developing a new generation of connected poles. linked to our existing transport logistics software for supporting existing and future transport infrastructure and logistics projects with each pole across a network generating multiple revenue streams once installed.

Importantly, the Smart Poles are intended to leverage 5G base stations for enhancing signal strength and interconnectivity across urban and regional areas.Orcoda's vision for the Smart Poles Project includes ultimately combinig all these capabilities with inbuilt video capabilities so operators and licencees are able to utlise internet connectivity, AI processing, and AR across large geographical areas where big data can be utilised to reduce costs and improve services.

Orcoda managing director, Geoff Jamieson said the company believes the benefits of this vision will eventually benefit the bottom line of every Orcoda business division.

“Our Smart Poles Project represents significant opportunities to substantially grow our recurring revenues into the future and our team is excited about benefits that our technology can deliver to transport services and infrastructure both nationally and internationally," Mr Jamieson said.

"Our next steps, now we have an expert team together, will be to apply for Federal Government grants to support the funding of a pilot program to demonstrate the potential capabilities and benefits of an Orcoda Smart Pole network.

“We look forward to updating the market on grants and other milestones for rolling out our Smart Poles Project," he said.

"I want to also thank our shareholders for continuing to support us and also thank and acknowledge the many other key business stakeholders, including employees, clients as well as our old and new commercial partners.” 

 

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ACCC fails in 'cartel' case against Country Care Group

COUNTRY CARE GROUP and founder Rob Hogan today prevailed in the landmark Federal Court action instigated by the Australian Competition and Consumer Commission (ACCC) and brought by the Commonwealth Director of Public Prosecutions (CDPP).

The jury unanimously dismissed all charges against the regional business.

Country Care Group founder, Rob Hogan, said, "“This is a resounding victory for Country Care Group and myself with a full dismissal of all charges brought against us. Throughout the long process of defending these charges, dating back more than five years, I have consistently maintained my innocence.

"Today that innocence has been clearly confirmed by the jury with the ACCC and the CDPP unable to persuade a single juror of their case.

“While I am naturally pleased with today’s outcome, it should never have come to this point," Mr Hogan said. "This trial exposed the ACCC’s deeply flawed processes in investigating cartel allegations, particularly with respect to the ACCC’s approach to immunity witnesses.

"During the trial the ACCC and CDPP’s key immunity witness was exposed as a disgruntled individual who held a grudge against me and Country Care Group. He admitted under cross examination that he had misled and withheld important information from the ACCC and lied to the jury.

“Questions should be asked as to how it can be that the ACCC did not identify the obvious issues with this witness, particularly given the defence was able to uncover significant untruths in this witnesses statement from documents which had been in the ACCC’s possession for years.

“This is more than just a win for Country Care Group and me, it’s a win for all Mum and Dad style businesses around Australia, who are the lifeblood of this country. The ACCC and the CDPP need to be held to account for the significant failures in their investigation and approach to these criminal proceedings.

“It is a disgrace, but for us it’s finally time to move on,” he said.

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