News
Small Business Commissioner |
The Office of the Small Business Commissioner will be established in South Australia following the passing of the Small Business Commissioner Bill in State Parliament in October 2011.
As the Shadow Minister for Small Business I was the Opposition spokesperson on the Bill which was introduced into Parliament on 28 July 2011 by Minister Tom Koutsantonis.
The Liberal Opposition did not support the Bill in the form it was introduced as it was quite different to the draft version that went out for public consultation in March this year, primarily in that it included issues relating to franchising which were not covered originally. (Small business and franchising issues were to be dealt with via separate legislation – this did not occur).
As a result I received a lot of contact from people asking why full support was not given to the government’s Bill, particularly from newsagents and the farming community.
After much discussion and consultation with small business and industry the Bill was not supported for various reasons. The fact that the State Labor Government have continued to slash funding for Small Business since elected in 2002 byremoving the Small Business Advocate and Small Business Ombudsman support services, while imposing crippling taxes – the highest in the nation – that hamper growth and deter investment are just some of the reasons why it was felt small business in South Australia deserved much more than a mediation service through a Commissioner.
• Labor’s entire Budget for Small Business under the ‘Opportunities for Small Business Program’ is a meagre $1.9 million (2010/11 State Budget)
• For the 136,000 small businesses that exist in SA, that equates to less than $14 per small business – the State Government has shown a complete lack of respect for Small Business which is the driver of our economy
• To establish the Office for the Small Business Commissioner a commitment of up to $1.5 million was given in the Budget
• In recent years Labor has removed the Small Business Advocate AND Small Business Ombudsman roles
• Funding for essential start-up and support services has been abolished. From 1 July 2011 $1.35 million funding was withdrawn from the 9 Business Enterprise Centres ($150,000 per organisation)
• The need for “grass roots support” to identify the early causes of problems is more important than band-aid mediation (any service needs to be proactive rather than reactive)
• Small business needs support at the front end (mentoring for start-up concepts, business incubator funding, family business generational transfer advice and support, red tape reduction)
• The 8 Regional Development Australia (RDA) offices will lose their funding from 1st July 2013 ($4.083 million)
• Real reform for small business by Minister Koutsantonis would be TAX REFORM
• Federal Labor Minister for Small Business, Hon Nick Sherry expressed his concerns about South Australia including franchising in this piece of legislation.
While I have my doubts that the Small Business Commissioner will be able to deliver on the assurances of Minister Koutsantonis, I believe it is up to all Members of Parliament to make sure that the Commissioner, and the powers provided to it, operates effectively to benefit small business and franchises in South Australia.
I remain committed to Small Business – a key economic driver in our State.