VECCI Chief Executive Mark Stone said the organisation was urging the Parliament of Victoria to support the passage of the Back to Work Bill as a priority for the job creation benefit it will bring to Victoria.

"VECCI, Victoria's major business organisation, has consistently supported this important legislation as it will establish a $100 million fund to give payroll tax relief to businesses hiring unemployed youth, the long-term unemployed and retrenched workers into full time work," Mr Stone said.

"Employers will be eligible for a payroll tax rebate of up to $1,000 per employee to subsidise the cost of training, uniforms, transport and tools.

"We understand that the Upper House resistance involves the Greens being unwilling to support the Government’s attempt to facilitate job creation in Victoria, as well as minor resistance from the Opposition on reporting requirements; both of which should not be the main game here.

"Every attempt by any Government to improve the job prospects for young people should be debated on merit, not on red tape trivia. Debate over reporting only creates more regulation and cost for small business. Jobs and the ability to employ more people is what matters," Mr Stone said.

"Any opportunity to create jobs for young Victorians and reduce the red tape impost on business must be seen as a step forward.

"VECCI hopes the two major parties resolve their differences quickly to give the Back to Work strategy a chance to succeed."

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

vecci.org.au

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THERE is little point in the Reserve Bank of Australia cutting interest rates on Tuesday and a move could drive business and consumer confidence even lower. 

QUT financial economist Dr David Willis said the RBA would likely resist a second cut in consecutive months but tipped a rate cut further in the year.

In its February meeting, the RBA cut the cash rate by 25 basis points to 2.25 per cent after they had been on hold for 18 months.

"The quarter of a per cent cut could be described as a surprise and wishful thinking from the RBA about the effect such a cut would have on any investment decisions and consumer consumption," Dr Willis said.

"There is little point in the RBA using what is left in its monetary arsenal at this time."

Dr Willis said with interest rates at record lows, cutting them further risked damaging the housing part of the economy.

"On one side, the side the RBA hope for, companies see low interest rates as an opportunity to invest in new infrastructure and consumers cheer lower mortgage payments and, buoyed also by cheaper petrol, start spending and stoking the economy," he said

"However the other side, which seems to be playing out, is that the RBA is seen to be very worried about the wider economy and low wage growth, high unemployment and low consumer and business confidence.

"So rather than boosting confidence, another rate cut could cause business to be more pessimistic, stop spending and amass cash in the event of a recession. Meanwhile consumers are worried about unemployment so use any savings to pay down debt.

"Cutting rates further now will only have a very marginal effect in the medium term and may drive confidence even lower."

Dr Willis said the "only bright spot" for the RBA was the property market and rate cuts could also put this in jeopardy.

"The RBA is starting to place a lot of risk into the housing market and if this develops into a housing bubble, then, when interest rates rise again, it could mean a bust taking the entire economy with it.

"Therefore I think the RBA will do the responsible thing for this cycle and keep rates on hold, as a cut gives no appreciable gain for the economy as a whole."

But Dr Willis said the RBA would probably be forced to cut rates again later in the year.

"Government is presently looking to cut the budget, not spend, and the economy is already in adjustment from the end of the mining boom," he said.

"So the RBA will have little choice but to use everything at its disposal to try to stimulate the economy later in the year, even though it knows there will be only marginal or no effect on the real economy and it risks inflating a housing bubble."

www.qut.edu.au

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THE Australian Retailers Association (ARA) has continued to expand its physical presence by officially opening a Queensland office launching the ARA Queensland Division with Queensland based retailers.

The ARA Queensland Division is run by retailers, for retailers with our local board fully comprising Queensland retailers.

Following the collapse of smaller retail organisations over recent years which left local retailers with very little voice, the ARA has now officially opened offices in Brisbane with staff and board members working across Queensland.

ARA Executive Director Russell Zimmerman said the ARA Queensland Division looks forward to working with the new Queensland Government and will take a new bi-partisan approach to supporting retailers in the state.

“For some time now, Queensland retailers have reported they want certainty and security by having a stable government in place and an industry body that is accessible at all times to retailers which will advocate their issues to all sides of Queensland politics.

“In order to truly represent the retail industry and have a thorough understanding of the issues facing retailers on a day to day basis, an industry body must be run by those who know first-hand the opportunities and challenges that come with running a retail business. This is why the new ARA QLD division is proudly run by retailers, for retailers with nearly all key ARA staff also having retail backgrounds,” Mr Zimmerman said. 

ARA Queensland national board member and new Chair of the Queensland Division Ralph Edwards said Queensland-based retailers want to be certain their government is focused on creating jobs and improving business conditions.

“Retailers have told me they want clear direction from the new Queensland Government on jobs and costs for business. The ARA Queensland Division and Board will be working alongside the new government to ensure the retail industry and small business remain at the forefront of government initiatives,” Mr Edwards said.

ARA Queensland Division Board:

Ralph Edwards - Bright Eyes Sunglasses (ARA national board member and Queensland Chair)
Rowan Hodge - Battery World
Manjit Sadhwani - Dollars and Sense
Stuart Beechen - Aktiv Brands
Emmanuel Drivas - Coffee Club
 
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 Australian Retailers Association (ARA) Executive Director Russell Zimmerman today welcomed the NSW Government’s commitment to sort out the ridiculous trading laws in NSW.

ARA Executive Director Russell Zimmerman said that NSW retailers have been suffering for too long and gives full support to the government to take action.

“NSW has been a laughing stock within the retail sector for too long now due to the unreasonable trading laws that restrain small businesses to open outside a few areas on Boxing Day.

“I have heard retailers right across NSW expressing their concerns on how they miss out on one of the busiest trading days of the year because of these antiquated laws,” Mr Zimmerman said.

ARA members have said that there is no sense in opening their store as a small retailer because shopping centres remain closed as a result of larger retailers not trading. The ARA has seen an overwhelming number of both small and large retail businesses who are affected by the ban.

“Both Mr Constance and Mr Baird should be commended for this move to deal with the ridiculous trading laws and we look forward to the upper house’s support in making these changes following the election,” 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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