Business News Releases

Victoria’s business community shows resilience in the face of continued tough trading conditions

DESPITE challenging trading conditions, business sentiment for the Australian economy improved by four percentage points during the September 2014 quarter, while the Victorian economic outlook remained relatively stable, according to a leading business survey released this week.

The latest VECCI - Bank of Melbourne survey of business trends and prospects has shed further light on business sentiment and the challenges it anticipates in the year ahead.

The state-wide survey of more than 400 businesses, across seven major industry sectors, found that trading conditions remain positive over the quarter with a number of sectors reporting an improvement in sales, with further growth forecast into December.

However, trends in profitability and employment showed little improvement over the quarter, largely due to continuing increases in wages and other labour costs.

The survey found regional respondents were more likely to have experienced increased business costs and weaker profits than their metropolitan counterparts.

Looking at the performance of individual industries, the survey found that service sector exports, in industries like finance, property and business services, were relatively healthy over the quarter.

This relatively strong performance in part reflects the influence of the falling Australian dollar and strong efforts by business to develop new products and markets in the competitive global marketplace.

“While business prospects in the lead up to Christmas are positive, the fact remains that many small businesses continue to experience tough trading conditions,” said VECCI Chief Executive Mark Stone.

"In the lead up to the state election, both major parties must commit to measures that reduce costs for business and spur employment.”

VECCI & Bank of Melbourne partnership 

VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly survey of business trends and prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.

Background – About VECCI

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers’ body in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

Background – About Bank of Melbourne

Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 93 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au

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VECCI supports Spring Repeal Day action

VECCI Chief Executive Mark Stone has welcomed the Commonwealth Government’s announcement that it will introduce legislation to repeal nearly 1,000 unnecessary pieces of legislation and regulations that will save individuals, businesses and the not-for-profit sector over $2.1 billion in compliance costs. 

"Creating a one-stop shop for environmental approvals will have particular benefits for Victorian businesses as it will remove unnecessary duplication and make the approvals process for major projects simpler and quicker," Mr Stone said.

"VECCI is also pleased with the inclusion of a number of measures targeting small business, including establishing the Fair Work Ombudsman’s Small Business Helpline, amending the Franchising Code of Conduct and improving tax office communication with small business.

"Business recognises that well-designed regulation can provide benefits for business and the wider community by improving economic stability, providing operational certainty and increasing consumer confidence.

"However, because regulations affect all facets of business, including inputs, prices, and output, unnecessary, complex and poorly designed regulations also constrain the ability of business to provide the best product or service at the lowest cost," Mt Stone said.

"The priority given to red tape reform by the Commonwealth Government is welcomed by VECCI and needs to be echoed by all governments."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers' organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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Melbourne Convention and Exhibition Centre expansion a win for Victoria’s business events and tourism

THE Victoria Tourism Industry Council (VTIC) applauded the Coalition Government’s Melbourne Convention and Exhibition Centre (MCEC) expansion announcement today for the significant benefit it will bring to Victoria’s business events and tourism sector.

“This expansion is a key recommendation in our state election agenda to create 9,000 additional jobs through tourism and we have also been a long-time supporter of the need for this project,” said VTIC Chief Executive Dianne Smith.

“Business events are responsible for 22,000 Victorian jobs and this will cement Melbourne's position as the Asia-Pacific’s leading business events destination.

“This year's AIDS Convention highlighted that Melbourne does large-scale conventions very well. The expansion of MCEC will ensure that we can continue to be a leader in this sector well into the future, and augers well for continued support of agencies such as Melbourne Convention Bureau.

“The benefits will be seen throughout Victoria, as over half of all conference delegates travel to regional Victoria and over a quarter of all delegates are accompanied by family or friends who undertake leisure travel to regional Victoria.”

Victoria Events Industry Council Chair Peter Jones also welcomed the announcement.

"The Victoria Events Industry Council is delighted with this announcement. Business events is a fiercely competitive sector that sees Melbourne competing not only with Sydney and Brisbane, but also Singapore and other Asian destinations. This expansion ensures we will remain the premier destination in the region,” said Mr Jones.

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.

vtic.com.au

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Self-interested state politics killing retailers on low value GST

PEAK retail industry body the Australian Retailers Association (ARA) said there is going to be no move on the LVIT GST issue unless self-interested state politics dramatically change in the near future.

ARA Executive Director Russell Zimmerman said politics had got the better of the process with Western Australia (WA), and the blame does need to be leveled at the WA State Government which is refusing to allow changes to the GST unless it gets a bigger share of the GST pie.

“Both the new and previous federal governments have been gradually, if sometimes reluctantly, moving forward on the issue. Ultimately, the final decision was placed on state governments that are not only the recipients of GST revenue but also any approve cost changes to collection.
 
“We know we have had heroes on this issue such as NSW Premier Mike Baird and Federal Small Business Minister Bruce Billson, but there now appears to be a villain in the mix.

“The villains working against the best interests of retailers, even in their own state, have been the WA Government.

“It has to be said this action tops the usual self-interested obscenity which has been witnessed over many years of federation by a number of state governments.

“The ARA, along with many of our members and associate association members, has been trying to get the WA Government to understand the impact this tax is having on its own local retailers. Unfortunately, the ARA and both our small and large retail members have so far failed despite many attempts to change minds in that state.

“What next? The only path to change is to never give up, and for that reason we will be re-engaging with all key stakeholders to once again push the case to change this unfair tax arrangement at all levels of government. We will also be sure to target those governments not acting in the best interests of their local businesses,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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Financial position shows opportunity for payroll tax relief - VECCI

VECCI chief executive Mark Stone claims the release of the 2013-14 Annual Financial Report for the State of Victoria shows aggregate payroll tax revenue was $19 million above the original budget estimate, largely reflecting growth in employment and earnings.

"Given that the total payroll tax revenue take is now almost $5 billion per annum – and forecast to rise by an average of 5.6 per cent over the next four years, the challenge for policy makers is to do what they can to keep Victorian business competitive," Mr Stone said.

"Business welcomed the recent cut in the payroll tax rate (from 1 July 2014), but reform should not stop there.

"VECCI’s Taking Care of Business state election agenda is calling on both major parties to increase the payroll tax threshold from $550,000 to $850,000 in order to encourage business and employment growth."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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NSW CBD and South East Light Rail a positive initiative for business - ARA

PEAK retail industry body the Australian Retailers Association (ARA) congratulates the New South Wales Government on moving forward with the CBD and South East Light Rail project but remains cautious over works scheduled close to Christmas in the Sydney CBD.

ARA Executive Director Russell Zimmerman said this initiative was a win for the business community and that retailers are pleased to know the capacity for the project will be larger than expected but reassurance is still needed over works disruptions and access for deliveries and services.

“The NSW Government is getting on with the job of delivering the CBD and South East Light Rail project, and the important work along George Street will help ensure utilities are protected. Ultimately, this work will help ensure that the community can begin enjoying the new light rail service as soon as possible and give the great global city of Sydney some of the same commuter access to retailers that other cities such as Melbourne enjoy.

“However, the ARA does have some concerns regarding certain dates outlined in the projects construction plan. We would caution the NSW Government to be wary of work disrupting retail business in the CBD, particularly on the dates closest to Christmas around Margaret Street, Hunter Street, George Street and King Street.

“The ARA is in consultation with the NSW Government and City of Sydney over impacts to its many members affected along the prime retail corridor around George Street.

“While proposed works are on Monday’s just before Christmas, their proximity to Christmas, (particularly on the last trading Monday before Christmas) does raise concerns over how vehicle and pedestrian movements will impact on retail trade on what are historically some of the highest trade days of the year,” Mr Zimmerman said.

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

Maritime Union continues its misguided attacks on valuable resource projects: AMMA

IT IS extremely disappointing to see the Maritime Union of Australia (MUA) continue its irresponsible and misguided economic attacks on some of the most important parts of Australia’s national resource industry, says AMMA, the Australian Mines and Metals Association.

"The MUA has today commenced its five-day strike at Mermaid Marine’s Dampier port operation in the Pilbara – one of the critical service and supply bases for the offshore oil and gas industry in the North West of Australia," said AMMA chief executive Steve Knott.

“For far too long the resource industry and the broader Australian community has put up with MUA threats to hold critical parts of our economy to ransom in pursuit of inflated wage increases, exorbitant allowances and attempts to control business operations,” says Mr Knott.

“In virtually every enterprise negotiation it is involved in across the resource and related sectors, the MUA has belligerently pursued unrealistic industrial claims well above those in other industries, with zero regard for the broader impacts of their actions and their impacts on working people.

“The offshore oil and gas industry has created thousands of employment opportunities and billions in economic value for Western Australia. The MUA’s ideological campaign against major project operators and their contractors and service suppliers is particularly flawed and misguided.”

In a separate matter also impacting the offshore oil and gas industry, AMMA continues to negotiate with the MUA for new agreements covering 21 vessel operator employers and about 2,500 employees in the maritime support sector.

“After more than 18 months, the union is still unable or unwilling to narrow its extensive shopping list of claims down to the core issues and give employers something to properly respond to. Rather, it has preferred to delay and frustrate proceedings to equip itself to take widespread strike action,” Mr Knott says.

“Whether it is threatening strikes against either of the Pilbara’s resource ports (Dampier and Port Hedland) or its disingenuous behaviour in the offshore maritime negotiations, the MUA must urgently reassess its approach and the wider impact it is having on one of the pillars of Australia’s economy.

“Our message to the MUA is drop the strike threats, drop the misguided campaigns against nationally important hydrocarbons projects, and get serious about working with resource employers towards sustainable and fair outcomes for the industry and all who work within it.”

www.amma.org.au

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COSBOA backs ACCC in latest proceedings against Coles

THE Council of Small Business Australia (COSBOA) is backing the Australian Competition and Consumer Commission’s (ACCC) Chairman Rod Sims today, after his announcement that the competition watchdog would be taking further legal action against Coles, amid allegations of engaging in ‘unconscionable conduct’ against suppliers.

Peter Strong, Chief Executive of COSBOA said he was very happy with the ACCC for their continued pursuit of a fair and just marketplace, not just for businesses, but consumers too.

“This can only have a positive impact on the productivity of the nation. Coles and Woolworths have been allowed to dominate and thwart any autonomy, innovation, free thought, fairness and new business ideas for too long.”

Coles is accused of forcing suppliers to pay for the cost of wastage and theft, fining for late deliveries and deducting fees without explaining the reason plus much more. The latest proceedings come just five months after the ACCC accused Coles of forcing about 200 smaller suppliers to pay extra rebates.

“We hope and expect that the final recommendations from Harper review, together with support from the ACCC and action from the Federal Treasurer, will help us stop this kind of behaviour once and for all!

“No doubt the highly paid and experienced lobbying army of Coles and Woolworths will now be mobilised in a campaign to maintain their dictatorship. COSBOA will actively support the ACCC’s current pursuit and continue to fight for equal rights and opportunities for small business people everywhere,” Mr Strong concluded.

http://www.cosboa.org.au/

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Productivity Commission report shines a spotlight on high cost of doing business in Australia

PEAK retail industry body the Australian Retailers Association (ARA) today welcomed the Productivity Commission’s Relative Cost of Doing Business in Australia report which highlighted several areas that require immediate government attention including occupancy costs and deregulation of trading hours.

ARA Executive Director Russell Zimmerman said the report highlighted labour costs and rent as a share of revenue are much higher in Australia than in the United Kingdom (UK) and the United States (USA).

“There needs to be an open and honest conversation within the industry about the impact of trading hours on retail businesses. The Productivity Commission report noted many industry comments regarding retailer’s reluctance and inability to open their stores on a Sunday due to the impact of penalty rates and crippling costs of labour.

“The ARA was pleased to see highlighted in the report that the deregulation of trading hours is expected to increase economic activity and lower retailer’s costs of doing business as well as increase choice and convenience for consumers. Further, it could enhance employment opportunities for younger and older workers and those working part time or on a casual basis (findings 5.2).

“The report also noted the high cost of doing business particularly within the clothing and footwear sectors (almost double that of USA/UK). Labour costs to revenue ratios were notably higher for clothing and footwear retailers operating in Australia (findings 4.2).

“Occupancy cost ratios as a share of sales revenue are also higher here in Australia than in the UK, USA and Europe. We urgently need to look at zoning and planning as well as accessibility to information for retailers regarding rents. In relative terms, rent as a share of revenue is higher in Australia than the UK and USA at a broad industry level. Other costs have also risen including electricity (36%), insurance (34%), air-conditioning (21%), cleaning (19%) and repairs and maintenance (13%).

“While the portion of businesses that receive orders via the internet is growing, the report indicated that 38 percent of Australian retailers that were assessed could be called digital commerce laggards which is of course a cause for concern.

“The ARA will certainly be working alongside the retail industry and government to ensure the cost of doing business in Australia is sustainable.

“We look forward to the government’s response to these matters - now the Productivity Commission report has been finalised it is time for actions, not words,” Mr Zimmerman said.

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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Mental health initiatives a priority for FIFO employers, AMMA tells government inquiry

MANAGING the mental health of fly-in, fly-out (FIFO) employees is a key priority of the wider workplace safety and wellbeing efforts of Australian resource employers, the Australian Mines and Metals Association (AMMA) has told a Western Australian parliamentary inquiry.

In its submission to the Western Australia Legislative Assembly Education and Health Standing Committee Inquiry into mental health impacts of FIFO work arrangements, AMMA is cognisant of objective data suggesting mental illness and self-harm is no more prevalent in the mining workforce than other industries.

However, chief executive Steve Knott says an awareness of mental health as an ongoing risk that must be carefully managed has seen resource employers invest in an extensive range of proactive initiatives to maintain the wellbeing of their workforces.

“One suicide in the resource sector or broader community is one too many,” Mr Knott says. 

“Resource employers have implemented a number of initiatives to combat any risks associated with FIFO work practices. They are committed to promoting awareness and embedding fit-for-purpose, risk-based policies and procedures to protect the safety of their workforces.

“While we note from the experiences of employers and employees that there is no causal link between FIFO work practices and mental illness or self-harm, this is an area where we need to remain forever vigilant and continue to improve awareness and communication.”

AMMA’s submission notes that a range of publicly available data suggests there is no evidence that mental health issues are more pronounced in the resource industry compared to other industries.

For instance, a recent Safe Work Australia report attributed 0.6% of all mental stress claims in the Australian workforce to the mining industry.

Notwithstanding this, Mr Knott says there is a range of unique factors to FIFO work that must be acknowledged and managed by employers as part of their ‘whole-of-business’ mental health and workplace safety policies and initiatives.

“Proper mitigation strategies need to be considered to ensure risks to workers are reduced to the greatest extent possible. Other risks such as fatigue and drug and alcohol use are those which employers continuously monitor and address,” Mr Knott says.

“A common theme of feedback is that FIFO work is not for everyone, and resource employers go to great lengths in the recruitment stage to ensure people’s suitability to enter this lifestyle.”

AMMA’s submission also reiterates that FIFO work practices are essential for numerous projects in the Australian resource industry that may otherwise be commercially unviable.

With such working arrangements often suiting both employers and employees, there is a need for sensible and informed policy making in this area.

Click here to read AMMA’s submission to the WA inquiry into the mental health impacts of FIFO work.

www.amma.org.au

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Government takes pressure off small business with revised Newstart plans, ACTU puts pressure on

 

THE Council of Small Business Australia (COSBOA) has congratulated the Abbott government and in particular Senator Eric Abetz, for listening to the concerns of small business and revising the proposal, featured in the budget, for job seekers to apply for 40 jobs per month down to 20 per month. 

Peter Strong, Chief Executive of COSBOA said that this change shows that the government has listened and responded to concerns of the small business community. 

“We’re very happy with the decision to change the number of applications job seekers need to complete. Due to the number of small businesses and the important role they play in our economy, it is important that the needs and concerns of small business are heard and considered in all national and state policy decisions,” Mr Strong said.

Despite this win today, COSBOA has also expressed great concern with a proposal from the ACTU for the mandatory conversion of casual workers into permanent positions.

“Casual workers choose to work as casuals for a variety of reasons and this decision should remain with them and the business owner. If a worker wants to be a casual, as it gives them more flexibility or a 25% loading on top of normal wages, then they should be free to do so,” Mr Strong said.

“There is also the real issue that small business owners are often reliant upon short-term contracts, seasonal variations in business or are at the mercy of Coles and Woolworths, and don’t have the certainty to employ  on a permanent basis; so it would be hard for them to give assurance  to their employees”.

“Small business in particular should not have all the problems associated with permanent employment thrust upon them, to do that would put businesses at risk and make employers think twice about employing staff. If we want more permanent employees we need to remove the fear of unfair dismissal from employers’ minds and make the paperwork easier,” continued Mr Strong.

http://www.cosboa.org.au/

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