PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent for the ninth consecutive month, did little to ease retail struggles after last month’s sluggish retail trade figures and low consumer confidence.

ARA Executive Director Russell Zimmerman said today’s decision while expected, left retailers disappointed yet again.

“Retailers have been doing it tough after concerns raised following the Federal Budget announcement and after experiencing unexpected warm weather affecting retail trade, retailers need to see some form of light at the end of the tunnel.

“What we need is steady Government support to give retailers a positive boost into the new financial year and as such, the ARA urges the RBA to cut interest rates in August given the struggles retailers have been enduring.

“From the concerns raised following the Federal Budget to low consumer confidence due to unexpected warm weather confirmed through last month’s retail trade figures, retailers are feeling the pressure to compete with the sudden winter weather.

“Retailers are running out of time with winter stock and sudden winter weather will leave retailers anxious. It will be interesting to see how retail trade figures released this week will confirm the hiccups in consumer confidence.

“Interest rates must be lowered to give retailers much deserved support and consumer confidence, especially the SME sector,” 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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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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 THE resource industry strongly endorses technical changes to the Fair Work system which will allow a third party which is impacted by damaging strike action to apply to the Fair Work Commission (FWC) to suspend or terminate that action.

Steve Knott, chief executive of resource industry employer group AMMA, says the Commonwealth’s changes this week will provide much-needed industrial powers for the Western Australian Government as well as employers facing crippling strikes.

“The new regulation will allow a minister of a state which has not referred its industrial relations powers to the Commonwealth, to apply to the Fair Work Commission for the suspension or termination of protected industrial action,” Mr Knott says.

“Such a power exists presently for the ministers of all the states except for Western Australia, where industrial action often threatens both state operations and international trade activities of great national significance.

“The change fixes this anomaly which Labor did not address, despite calls from the WA Government to allow it the same legal capacities as its counterparts in other jurisdictions.”

Importantly, the new regulation will also allow innocent third parties directly impacted by damaging strike action to pursue relief through the FWC.

“This move recognises that strike action sometimes has far broader impacts than just the direct parties, including hurting employers and employees on both sides of the supply chain and disrupting economic activities more widely,” Mr Knott says.

“A current example is the Teekay Shipping dispute, where a small group of well-paid tug boat employees are threatening to halt the $100 million per day export operations of Port Hedland.

“At a state level, such a stoppage would cost Western Australian taxpayers around $7 million per day in revenue foregone in lost iron ore royalties. Over three days that is the entire state budget for homeless support or the cost of building a new primary school.

“Ultimately, the Fair Work Commission will decide how it deals with these matters on a case-by-case basis, but clearly any workplace system that allows a third party to be so heavily impacted by strike action should be amended so they can state their case to the tribunal.”

While a small change to the Fair Work Act 2009, the move also provides much-needed scope to apply to stop strike action where it is threatened, and before it can wreak economic havoc.

“It is well recognised that threatening to take industrial action can inflict as much commercial disruption as the action itself. This has been exacerbated under the Fair Work Act, where union tactics has often seen notice given to strike and then withdrawn at the last minute,” Mr Knott says.

“There is also a greater cost to consider to our international reputation as a reliable supplier of resource commodities. This reputation has been hard won but can be easily lost.

“Australia does not have a monopoly on such exports and provisions such as those introduced by the government this week will assist in minimising the impact of unnecessary strike action on our national reputation and global competitiveness.”

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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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VECCI Chief Executive Mark Stone said the State Government’s announced 4,000 additional weekly train, tram and bus services is welcomed by VECCI, as a strong economy is depend on a reliable, user friendly and efficient public transport system. 

"The boost to services will move more commuters and improve service frequency across these important, interconnected transport modes," Mr Stone said.

"Improved reliability will benefit commuters, including employees transiting to and from work, shoppers and tourists.

"Employers whose staff are dependant on public transport can expect less risk of employees being delayed due to service cancellations or bottlenecks.

"The increase in services will be of particular benefit to existing high population suburbs that are reliant on public transport, including Dandenong, Pakenham, Cranbourne and Frankston.  

- It is also positive to see improvements to regional services, with V/Line’s Ballarat, Bendigo and Traralgon lines to operate on new timetables that will help increase service frequency and reliability. 

"Improvements to our public transport system make Victoria an even greater place to live, invest and work and we welcome this announcement."

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

www.vecci.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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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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THE AUSTRALIA Institute has outdone itself with an economic analysis of the Queensland resources sector that would embarrass the North Korean government.

‘TAI has produced some howlers in the past but today’s effort takes the cake,’ said Queensland Resources Council Chief Executive Michael Roche.

‘The report details all manner of state government business expenditure but completely ignores the other side of the balance sheet.

‘Almost every capital project undertaken by government-owned businesses for resources sector power supply and distribution, water, rail and port capacity gets a headline.

‘Studiously and fraudulently avoided is acknowledgement that these projects were executed on a fully commercial basis, with resources companies entering into commercial contracts that underwrote the capital expenditure and provided commercial returns to government-owned businesses.

‘Not only were these projects undertaken at no cost or risk to taxpayers but their commercial returns were served up as government-owned business dividends in successive state budgets.’ 

In 2009-10 the then QR National coal freight business reported earnings before interest and tax (EBIT) of $224 million. The associated coal network (track) business reported an EBIT of $277 million, with a dividend to the Queensland Government of $215 million.

A search of the document for the word ‘dividend’ will produce a nil return.

Mr Roche said the TIA report was remarkable for turning out an instant collection of howlers such as:

• A barge landing at Aurukun (there is no mine at Aurukun).
• The capital cost of expanding the Meandu coal mine (supplying Tarong Power Station) is being recovered through electricity charges. The government owns the mine and the power station.
• Rail infrastructure concessions totalling more than $1 billion over 2012-13 and 2013-14 were not for the benefit of resources companies (who pay full commercial rates for track use and freight services) but essentially a budget subsidy for passenger transport and unprofitable regional freight services.

‘Virtually the only accurate account of state government expenditure is that by the Mines Department, which is tiny compared with the royalties returned to the state government each year,’ Mr Roche said.

‘The current State Budget forecasts that royalties of worth some $15 billion will be collected from the Queensland resources sector over the next four years, but that’s only part of the equation.

‘Last financial year, resources sector companies spent almost $38 billion in Queensland on wages, goods and services and communities.

‘That direct spending injection is calculated to have generated total spending of $76 billion – one quarter of the state’s economy.’

Mr Roche said the latest TAI report comes as no surprise, given that the organisation’s executive director is a founding member of the anti-coal and gas movement trying to shut down Queensland’s leading export industries.

‘TAI is a sausage machine for reports that deliver the same answer every time, regardless of the question,’ Mr Roche said.

www.qrc.org.au

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