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NSW Boxing Day trade Bill a windfall for retailers

THE Australian Retailers Association (ARA) has praised NSW Premier, Mike Baird, and the NSW Government for the successful passing of a Bill that will allow all retailers across the state to trade on Boxing Day this year.

NSW has been one of the only states in Australia to enforce Boxing Day retail closures, with only stores in the Sydney CBD and tourist areas allowed to trade.

Russell Zimmerman, Executive Director of the ARA, said the new ruling to allow all retailers to trade on Boxing Day is a fantastic outcome and will eliminate the uneven playing field that was fostered by the previous law.

“The passing of this Bill is a windfall for the majority of NSW retail businesses. It will allow those who would like to trade on Boxing Day outside of tourist areas and the Sydney CBD to cash in on this lucrative day of consumer spending,” Mr Zimmerman said.

“The previous law was a draconian decision which left NSW, the largest economy in Australia, behind the rest of the country and blocked thousands of retailers from opening on the biggest sale day of the year.

“We now live in a seven day consumer economy, and shoppers are demanding to be able to shop whenever and however they want. This is a common sense decision that will benefit retailers and consumers alike.

“The ARA thanks the Government, and Premier, Mike Baird, for his work in pushing for this change, and Fred Nile’s Christian Democrat Party for its support, which will see the NSW economy benefit from the huge profits that can be made by retailers opening on Boxing Day,” said Mr Zimmerman.

It is important to note that in 2015, as Boxing Day falls on a Saturday, both December 26 and Monday December 28 will be classified as public holidays and penalty rates of 250 percent will apply for employees rostered to work on these days.

The ARA is currently engaged in a review of General Retail Industry Award 2010 (GRIA) with the view to lowering of penalty rates to reduce the costs for retailers trading on Sundays and public holidays, with an outcome expected in the first half of 2016.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

For more information, visit www.retail.org.au or call 1300 368 041.

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VTIC calls for Shipwreck Coast upgrade masterplan to be backed-up by significant state funding

THE Victoria Tourism Industry Council (VTIC) has welcomed the Andrews Government’s recently released masterplan to upgrade the Shipwreck Coast, but has called for the strategy to be supported by further funding for the implementation of the plan’s measures.

“The tourism sector is pleased to see the masterplan to improve this iconic visitor destination, however we want to see significant funding for these much-needed initiatives,” said VTIC Acting Chief Executive Erin Joyce.

Industry was pleased to see the announced $4.4 million to improve the sewer facilities at the Twelve Apostles Visitor Centre, as called for by local tourism operators. However, VTIC calls on the Andrews Government to commit significant funding in the coming months to the $174 million upgrade.

Stage 1 priorities include:

$10 million to improve the interpretation facilities and amenity at the Twelve Apostles kiosk site;

$100 million over two years to commence infrastructure improvements throughout the masterplan region, such as:

  • Establishing both a Visitor Experience Centre and Park and Ride Transport Hub in Port Campbell;

  • Upgrading the Port Campbell, Princetown and Peterborough townscapes;

  • Commencing construction of the Twelve Apostles Trail, linking to the Great Ocean Walk trail;

  • Establishing Visitor Hubs at Princetown and Peterborough; and

  • Planning for the proposed Glenample Visitor Experience Centre. 

“This funding will attract private sector investment in walking trails, eco-lodges and larger scale accommodation, as well as adventure, and health and wellness developments in appropriate areas,” said Ms Joyce.

In addition, $500,000 is needed to develop an implementation plan for the rest of the projects, to give business certainty regarding the full implementation of the masterplan.

Due to the strong international demand to visit the area, all projects included in the masterplan must be completed within 10 years, rather than 20 years as currently planned.

“The masterplan forecasts that, when fully implemented, the projects will add $214 million per annum to the regional economy and create over 1,000 jobs in the area,” said Ms Joyce.

“Given this significant potential and the fact that the coast is one of Victoria’s greatest tourism drawcards, we call on the government to allocate significant funding as a priority for 2016.”

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 more than $20 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au

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COSBOA backs ACCC on Woolworths ruling

THE Council of Small Business Australia (COSBOA) today congratulated the Chairman of the ACCC Rod Sims on again showing the mettle to confront the appalling behaviour of dominant businesses and taking them to court.

The ACCC has taken action against Woolworths for unconscionable conduct and the mistreatment of suppliers. This follows similar successful action taken in 2014 against Coles.

Peter Strong, CEO of COSBOA, stated: “The recent Innovation Statement from Malcolm Turnbull and Christopher Pyne will become hollow unless we as a nation can confront and defeat the enemies of innovation and the parasites of the business community, Wesfarmers and Woolworths.

“We need to give the regulator the power required to ensure this behaviour is stopped before it has time to cause greater damage and that can be achieved by strengthening Section 46 of the Competition and Consumer Act.  What is called ‘the effects test’ must be introduced with more rigor than what the Harper Report has recommended,” concluded Mr Strong.

COSBOA knows that individuals are suffering from this behaviour, people’s health is affected and ultimately Australian consumers suffer as retail diversity is removed. Due to the bullying by a very few big businesses the nation’s productivity is declining further as suppliers are inhibited from growth.

Peter Strong added: “This action shows again what COSBOA, its members and many others have said for decades, the behaviour of the duopoly is destroying businesses, people and productivity. The fact that Australia finally has an ACCC that does its job and doesn’t tug the forelock to big business is a godsend to innovation.”

Mr Strong concluded, “COSBOA will hold round table discussions on Section 46 early in the new year. We assure our members and the small business community that we will be firm, and where necessary very aggressive, to get fairness in place. We will match the bullying behaviour of these appalling companies with our own aggression and we will confront their misinformation with facts. Enough is enough.”

www.cosboa.org.au

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ARA: October retail growth sets pace for Christmas

AUSTRALIAN retail sales grew 3.8 percent year on year to $24.6 billion in October 2015 according to the Australian Bureau of Statistics, with the Australian Retailers Association (ARA) hopeful this level of growth and beyond will continue into the seasonal shopping period.

ARA Executive Director, Russell Zimmerman, said that retail sales growth is tracking at a steady pace ahead of the all-important Christmas shopping period, with October’s growth slightly higher than September’s 3.6 year on year growth.

Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. October 2015 sales rose 0.5 percent over September 2015.

“Despite the ARA being disappointed not to have seen a rate cut earlier this week by the Reserve Bank of Australia which would have provided a strong spending incentive in the lead up to Christmas, retailers are well placed to meet our Christmas growth predictions,” Mr Zimmerman said.

The ARA and Roy Morgan Research predicts Australian shoppers will spend $46.8 billion this Christmas in the six weeks from November 15 to December 24 – a record result.

Household goods and department stores were the big winners in October 2015, with growth of 5.9 percent and 4.7 percent respectively.

“The growth of household goods and department stores bodes well for Christmas. We hope this growth can be replicated in the coming weeks as Australians hit the shops to stock up on Christmas gifts.

“The start of warmer weather seen by most states in October was undoubtedly a contributor to some of this growth, while the popularity of television renovation shows continues to boost the household goods sector,” Mr Zimmerman said.

On a state basis, Tasmania showed it is small, but mighty, with an impressive 5.4 percent growth, closely followed by Victoria at 5.2 percent, and NSW, 4.2 percent

 

YEAR ON YEAR RETAIL GROWTH (October 2014 to October 2015 seasonally adjusted)

By category:

Food, three percent; household goods, 5.9 percent; clothing, footwear and personal accessories, 4.6 percent; department stores, 4.7 percent; other retailing, 2.7 percent; cafés, restaurants and takeaway foods, 3.6 percent.

By state:

NSW, 4.2 percent; Victoria, 5.2 percent; Queensland, 2.9 percent; South Australia, 2.8 percent; Western Australia, 2.1 percent; Tasmania, 5.4 percent; Northern Territory, 1.6 percent; and Australian Capital Territory, 2.3 percent.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Exporting to support ADF capability

THE Parliament’s Joint Standing Committee of Foreign Affairs, Defence and Trade today tabled the report for its inquiry into Government support for Australian defence industry exports.

The committee has recommended the Department of Defence recognise that elements of industry are essential to Australian Defence Force (ADF) capability and take steps to identify them, and establish long-term partnerships with industry to sustain them.

Chair of the Defence Sub-Committee, Senator David Fawcett (SA), said, “The recent First Principles Review of Defence has confirmed the Committee’s view that elements of industry essential to the ADF should be recognised as a Fundamental Input to Capability (FIC).  Defence therefore has an interest, indeed an obligation to find appropriate ways to work with industry to ensure that these capabilities can be developed and sustained. Defence exports are just one additional way that the industrial base linked to the ADF’s key capabilities can be sustained.”

The committee recommends specific areas where Defence will need to revise its approach to procurement to allow for long-term partnerships with industry, to drive innovation and maintain Australia’s sovereign capability.

Defence will need to find a new approach to identifying and managing risk to encourage the development of indigenous Intellectual Property (IP).  They need to adapt their policies to recognise that for complex capabilities that are FIC, value for money is more likely to be found through ongoing partnerships with industry, rather than through open competition. “In the past, there has been a sizeable gap between statements of policy and the experience of the defence industry. This must now change,” Senator Fawcett said.

This report’s recommendations aim to make FIC areas of industry more sustainable and more innovative. This innovation will be the basis of increased exports and more clearly define those areas where it is demonstrably in the national interest for the taxpayer to be funding support for defence exports. 

Other recommendations in the report include that the Department of Defence:

• revise the role of defence attachés;
• enhance the role for the Australian Military Sales Office;
• task ADF personnel to attend trade shows and events alongside industry;
• have active ministerial advocacy on behalf of the Australian defence industry; and
• improve processes within the Defence Export Control Office.

A copy of the report and information about the inquiry, including submissions, can be obtained from the committee’s website at www.aph.gov.au/jfadt.

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