THE Queensland Government has committed to establishing domestic procurement targets focussed on enhancing opportunities for small and local businesses, according to the Chamber of Commerce and Industry Queensland (CCIQ).

CCIQ  has been calling for a procurement policy, including setting a small business target.

CCIQ’s general manager of advocacy and policy, Amanda Rohan, said the announcement would give businesses some confidence in securing government contracts.

“Queensland is rich with diverse and capable small businesses. However, there are barriers when competing for government contracts,” Ms Rohan said.

“Today’s announcement is a positive first step in removing some of those barriers, and shows the government is serious about doing business with SMEs.

“We welcome the reduced payment terms, however would like to see this lowered more significantly. Many businesses are restricted due to cashflow and tighter payment terms will alleviate that pressure.

“We have been calling for a procurement framework for some time, but it is now more essential than ever," Ms Rohan said.

“Putting policies in place to support and enable businesses to succeed is crucial and needed to see economic growth and job stability around the state,” she said.

In February, CCIQ wrote to all Queensland MPs outlining the need for a procurement framework and asked for their commitment to working with the business sector in creating one.

CCIQ’s procurement framework includes:

• Setting up an open procurement platform across all government agencies;
• Breaking up government tenders to smaller components so small businesses have more opportunities to supply goods and services;
• Simplifying government tender documents and assessments criteria;
• Implementing payment terms of 5 business days for small suppliers.

The Labor, LNP, Katter and Greens parties all responded with agreement and commitment on working towards this framework.

www.cciq.com.au

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THE House of Representatives Standing Committee on Economics will hear from the General Insurance Code Governance Committee and the Insurance Council of Australia, as well as insurers at a public hearing via videoconference on June 3, 2020, as part of its ongoing Review of the Four Major Banks and other Financial Institutions.

The chair of the committee, Tim Wilson MP, said, "These hearings are an important mechanism for the Parliament to publicly scrutinise and hold Australia’s insurance sector to account.

"Insurance is an essential way that Australians and Australian businesses manage risk and protect themselves from financial loss after disaster strikes. Australians must be able to rely on the insurance sector to provide high-quality policies and respond quickly when claims are made.

‘The General Insurance Code Governance Committee’s recent findings regarding the substantial increase in code breaches is concerning. It is important that insurers have strong code compliance and governance frameworks in place to ensure that consumers are receiving the protections afforded to them by the code," Mr Wilson said.

"The COVID-19 pandemic has also raised a number of relevant issues relating to policy coverage ranging from travel insurance to lenders mortgage insurance that also need to be explored."

Public hearing details

Date: Wednesday, 3 June 2020
Time: 1pm to 4.30pm
Location: Videoconference

The hearings will be webcast at aph.gov.au/live.

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said childcare was an essential service for women in small businesses, calling for ‘free childcare’ to continue beyond the June 30 expiry date.

“Women make up more than a third of Australia’s small business owners (35%) and more than 5 million women work in these businesses,” Ms Carnell said.

“The latest ABS labour force data shows women have been hit hardest by the COVID-19 crisis, with the female workforce participation rate falling to 58.4 percent in April.

“Many of the women who are still working and running their businesses are relying on JobKeeper payments, which will not cover childcare fees if they are reinstated in full from July 1. This could force mothers out of their jobs, which is detrimental to working families and even worse for the economy.

“Now is the time for the government to be considering innovative ways to increase participation rates for women to ensure productivity gains and to benefit businesses," Ms Carnell said.

“There are a number of ways for government to do this, including making childcare tax-effective or by phasing in an expanded subsidy scheme as recommended by the Grattan Institute, estimated to deliver an $11 billlion boost to the economy.  

“Economists have often referred to the ‘double dividend’ of childcare increasing workforce participation rates and providing early education.  

“Equally, the government needs to look at supporting childcare centres, many of which are small businesses, which have suffered losses due to the structure of the current measures," she said.

“Despite the struggles some of these childcare centres have had with the current package, many are warning of dire consequences for their businesses if there is a sudden snap-back in a month’s time.

“Ultimately the government has a golden opportunity now to completely re-think the childcare system. Small business and the Australian economy depends on it.”

www.asbfeo.gov.au

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NEWS of the NSW Government’s imposition of a “pay freeze” has been met with dismay by Independent Education Union of Australia (IEU) members.

An IEU spokesperson said benchmarking of salaries, in any profession, is heavily influenced by public sector outcomes. IEU members will be directly impacted by the decision to freeze salaries in the public sector for 12 months.

"It is likely this freeze will be staggered. Agreements already signed off, should be delivered. The freeze will begin at the expiry of the current agreement," Pam Smith, assistant secretary of the IEUA NSW/ACT Branch said.

"In Catholic systemic schools, members are meeting and voting on action to help secure the overdue payments of 2.5 percent in both 2020 and 2021. From the NSW Government’s position, the freeze would take place in 2022 – effectively, it’s a pay cut set for 2022. This is what our state school colleagues can expect as well: pay parity and its consequent links to our sector is alive and well.

"It is unclear how the proposal will impact members in independent schools whose agreements expire in February 2021, but we anticipate an attempted freeze.

“Teachers, support staff and principals have served their communities with distinction in 2020," Ms Smith said. "To impose this freeze is an unreasonable response to a pandemic."

IEUA NSW/ACT Branch secretary Mark Northam said, “The extraordinary bushfire season and the coronavirus pandemic have impacted on heavily on schools. The glue holding communities together was the combined efforts of essential workers – our teachers and support staff. They made service provision possible.

“Schools stayed open and pivoted to online learning, with staff supporting students and families in all kinds of ways. They deserve immense respect,” Mr Northam said.

He said the NSW Government’s pay freeze was out of step with community expectations. It was also out of step with stimulus to enable spending.

"It is out of step with principles of sound economic management."

Economist Jim Stanford, director of the Centre for Future Work said, “This could turn a recession into a depression… Pay freezes are being imposed at the very moment when public sector workers such as healthcare workers, first responders, teachers and social service providers are performing vital tasks, at personal risk to themselves, to support Australians through the pandemic. 

"Freezing pay for these essential workers is not just morally questionable – it’s also a major economic mistake”.

Mr Northam said, “The Berejiklian Government must urgently reconsider its position and support essential workers, not thwart fair salary outcomes already constrained by its own legislation. The 2.5 percent cap on pay increases is the current NSW Government’s approach to negotiating industrial outcomes.

“To have yet another unnecessary legislated imposition is to unfairly constrain industrial outcomes.”

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AUSTRALIA’s peak industry representative body for innovation technology, the Australian Information Industry Association (AIIA), has  backed Prime Minister Scott Morrison’s economic roadmap to recovery.

In a speech delivered to the National Press Club this week, Prime Minister Morrison set out the recovery plan focusing on skills and training as a key target for reform in his JobMaker policy plan.

“We need Australians better trained for the jobs businesses are looking to create. It is that simple,” the Prime Minister said. 

The Prime Minister placed particular focus on digital technologies as one of the main pilots to grow - suggesting the need for a greater relationship between skills needed to fulfil a role in the workplace and education to meet this - with industries defining the qualifications needed.

Echoing the Prime Minister’s calls for greater focus on upskilling the workforce, the AIIA CEO, Ron Gauci said, “In order to protect jobs of the future there must be greater alignment with the digital industry.

"Re-skilling the IT workforce through investment, planning and greater education will not only benefit businesses and organisations requiring these services, but also encourage skilled jobs in Australia to flourish.

“I am encouraged by the Prime Minister’s plan for the labour market and the VET sector to support the economy post-COVID. As we begin to shift economic focus to rebooting and restoring our workforce, it’s important that we also allow for further investment and growth in our digital industries,” Mr Gauci said. 

AIIA agrees with comments previously made by Treasurer Frydenberg when speaking at an address to the National Press Club on May 5 over the need for a greater digital presence in the economy and the need to reskill those in the field.

“Reskilling those who may have lost their jobs, upskilling those in existing jobs to adapt to the enhanced digital and e-commerce environment and equipping those entering the workforce for the first time with the skills they need to get a job,” TMr Frydenberg said.

Digital technologies continue to be critical to the Australian economy and every level of business and government. During COVID-19, digital technology and its underlying infrastructure has supported the economy and will continue to be a crucial baseline for a successful modern Australian economy moving forward.

“The pandemic has also highlighted the need for sovereign capabilities in the digital supply chain. Australia must have the skills and innovation ecosystem to support a globally competitive economy as this step change into digital transformation occurs," Mr Gauci said.

“We are seeing current industry demand for digital skills around cyber security, cloud, applications development, AI, big data and analytics.” 

The AIIA is a not-for-profit organisation aimed at fuelling Australia’s future social and economic prosperity through technology innovation. 

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THE House of Representatives Committee on Tax and Revenue will be holding public hearings for its inquiry into the tax treatment of employee share schemes (ESS).

Chair of the Committee, Jason Falinski MP, said the Committee was interested to hear from a broad cross section of witnesses from government and the private sector about the operation of employee share schemes and the effectiveness of the tax laws surrounding them.

"In 2015 the Government made a number of changes to improve the taxation treatment and regulation of ESS," Mr Falinski said.

"This inquiry gives us the opportunity to understand why the use of ESS is still so incredibly low in Australia. It makes little sense. Giving employees, in both startups and established businesses, the opportunity to share in the growth of companies that they are helping build is a cornerstone of innovative economies around the world, like the United States and Israel.

"This is a unique opportunity for the Parliament to potentially transform the lives of a lot of good people," Mr Falinski said.

Further information about the inquiry is available on the Committee’s website.

Upcoming public hearings

Date: Thursday, 4 June 2020

Time: 9am to 1.30pm

Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)

Date: Friday, 19 June 2020

Time: 9.30am to 3pm

Location: Committee Room 1R3, Parliament House, Canberra (via video/teleconference)

The hearings will be broadcast live at aph.gov.au/live.

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THE Indigenous Affairs Committee has launched an inquiry into food prices and food security in Remote Communities.

Committee chair Julian Leeser MP said, "it’s important that people in Indigenous communities have reliable access to food that is reasonably priced.

“There have been significant reports of very high food and grocery prices in Remote Communities and issues around the secure supply of fresh food,” Mr Leeser said.

“The inquiry will look at the situation in remote Indigenous communities, and the effect of supply chains and local businesses on the cost of food. The inquiry will also look at the role of regulators in dealing with the situation.

“I strongly encourage Indigenous people and people in the food and grocery industry to make a submission to the inquiry.”

The Committee will consult with communities, community stores and supply chain businesses, Government agencies and other stakeholders to determine Indigenous communities have access to reasonably priced healthy food.

The Committee will present its final report by October 30, 2020.

For more information about this inquiry, including its terms of reference, details of upcoming public hearings, and instructions on making a submission, please visit the Committee’s webpage. Track the Committee to receive email updates on the inquiry by clicking the blue ‘Track Committee’ button.

The Terms of Reference of the inquiry are:

The House of Representatives Standing Committee on Indigenous Affairs will inquire into and report on the issue of food prices and food security in remote Indigenous communities (“Remote Communities”).

The Inquiry will identify and report upon factors contributing to higher prices and situations where prices are considered unreasonable and in particular investigate whether there is price gouging in any remote community stores.

This investigation should pay particular attention to the availability and pricing of fresh and healthy foods in remote community stores.

The Inquiry will also consider licensing and regulation as well as the governance arrangements for remote community stores across Australia, and what action, if any, that the Australian Government and States and Territory governments could take to address price gouging in Remote Communities.

The Inquiry should consider, report and where appropriate make recommendations on:

1. The environment in which Remote Community retailers operate;

2. The licensing and regulation requirements and administration for Remote Community stores;

3. The governance arrangements for Remote Community stores;

4. Comparative pricing in other non-Indigenous remote communities and regional centres;

5. Barriers facing residents in Remote Communities from having reliable access to affordable fresh and healthy food, groceries and other essential supplies;

6. The availability and demand for locally produced food in Remote Communities;

7. The role of Australia’s food and grocery manufacturers and suppliers in ensuring adequate supply to Remote Communities, including:

a. identifying pathways towards greater cooperation in the sector to improve supply;

b. the volume of production needed for Remote Communities;

c. challenges presented by the wet season in Northern Australia as well as any locational disadvantages and transport infrastructure issues that might be relevant;

d. geographic distance from major centres;

8. The effectiveness of federal, state and territory consumer protection laws and regulators in:

a. supporting affordable food prices in Remote Communities particularly for essential fresh and healthy foods;

b. addressing instances of price gouging in Remote Communities; and

c. providing oversight and avenues for redress.

9. Any other relevant factors.

The committee will resume its inquiry into pathways and participation opportunities for Indigenous Australians in employment and business once this new inquiry is completed.

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THE Prime Minister’s speech to signpost the Government’s approach to building economic recovery was encouraging on many fronts, according to Master Builders Australia CEO Denita Wawn.

“The Prime Minister’s recognition that there is much worse economic news to come is important especially as the building and construction industry braces for what some are referring to as a “blood bath” in the coming months as forward contracts fall a cliff particularly in the housing sector,” Mr Wawn said.

“The Prime Minister’s announcement that the Treasurer and the Minister for Housing are working on a plan to support the residential building sector is therefore extremely welcome. Time is of the essence as forward work is fast evaporating.

“Whatever measures are announced, they must result in building activity commencing immediately. Announcements on their own do not amount to stimulus and unless measures are put in place soon it will too late for thousands of small residential builders and tradies,” Ms Wawn said.

“The PM’s acknowledgment that the economic crisis results from the successful response of Australian governments to suppress COVID-19, and not from a market failure, is an important signal that the Federal Government is willing to act to give business the necessary tool-set to kickstart economic growth and ‘make the boat go faster’.

“Industrial relations and vocational education reform have long been areas of high priority for Master Builders and our members around the country,” Ms Wawn said.

“We support the Prime Minister’s call for employer and employee representatives to put aside “ideological posturing” and work together to ensure the viability of the businesses that employ Australians. In building and construction nearly 400,000 mostly small businesses employ 1.2 million people.

“While continuing to support the rule of law on construction sites we support the shelving of the Ensuring Integrity Bill in the interests of building a bridge to economic recovery provided that other measures are developed to combat unlawfulness on construction sites as the Prime Minister indicated will occur,” Ms Wawn said.

“Master Builders has forged a cooperative dialogue with the CFMMEU and the AWU to ensure the viability of the building and construction sector during the COVID-19 health crisis. We plan to do our part to continue on this track in the interest of achieving reforms to aid recovery from the crisis and meet the Prime Minister’s September deadline.

“We also welcome the Prime Minister’s indication that the recommendations of the Joyce Review of the vocational education and training (VET) system will be approached with new vigour. Master Builders is in one hundred percent with the Prime Minister when he says an effective VET system is crucial to increased productivity and growth,” Ms Wawn said.

www.masterbuilders.com.au

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