THE Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent will support the retail industry to achieve $45 billion in pre-Christmas sales, representing a 4.3 percent increase year on year.

Peak retail industry body the Australian Retailers Association (ARA)  Executive Director Russell Zimmerman said the current stability of interest rates has translated into a promising start to pre-Christmas trading.

“While retailers didn’t receive their Christmas wish of an interest rate cut today, the industry remains optimistic that the festive trading period is well and truly underway.

“With only three weeks until Santa arrives, foot traffic has increased in shopping precincts across Australia and retail tills are ringing.

“It seems the stable cash rate has encouraged consumers to let go of their purse strings a little earlier than usual this year, but in order for sales to continue building momentum as Christmas approaches (and for the retail industry to return to a growth of six percent) the Federal Government and RBA must do all that they can to ensure that retail trade is fully supported as consumers start their holiday shopping.

“This time last year the ARA forecast $42.2 billion would go through retail tills during the pre-Christmas trading period and this figure was later confirmed at an actual pre-Christmas spend of $43 billion. The ARA’s forecast was almost bang on, so it’s fairly safe to say the retail industry is optimistic for a cracker Christmas this 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.

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VECCI Chief Executive Mark Stone has congratulated Victorian Labor on its election to government.

Mr Stone said, "VECCI congratulates the Hon Daniel Andrews MP, Leader of the Labor Party, and Victorian Labor on their election to government.

"Many of Victorian Labor’s pre-election commitments are consistent with VECCI’s recommendations and we call on the incoming Labor Government to build on Victoria’s strengths with responsible economic management and pro-business policies over the next four years.

"In this context, we look forward to the progression of the plan to remove 50 level crossings and other measures that will create 100,000 jobs over two years. The Labor Government’s commitment to the metro rail tunnel construction, Port of Melbourne privatisation and Tullamarine Freeway widening is welcomed by business.

"So too are the strong commitments to apprenticeships and training, given their role in creating a job-ready workforce. It is important that clear timelines are established to undertake the promised review of the vocational education and training system.

"We also look forward to the implementation of commitments to boost Victoria’s international engagement through expanding the inbound and outbound trade missions program and the establishment of new government business offices in South America, Singapore and Turkey.

"This agenda must be progressed as a priority given its significance to the Victorian economy and wider business community," Mr Stone said.

"In keeping with VECCI’s pre-election agenda, we will urge the new government to lift the payroll tax threshold from $550,000 to $850,000, in order to keep Victorian business competitive and support new job creation.

"VECCI looks forward to working constructively with the Labor Government and supporting business to capitalise on opportunities for growth in 2015 and beyond."

* 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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The Victoria Tourism Industry Council (VTIC) Chief Executive Dianne Smith has congratulated the Hon. Daniel Andrews MP, Leader of the Labor Party, and Victorian Labor on their election to government.

"On behalf of our members across the state we look forward to the implementation of the following commitments that will benefit the tourism and events industry," Ms Smith said.

These include:

- Funding for Sovereign Hill’s “Blood on the Southern Cross” experience.

- Support for the Ballarat Station precinct upgrade including proposed hotel and convention centre.

- Investment in upgrades to Geelong’s Simonds Stadium, Geelong Performing Arts Centre and St Kilda’s Palais Theatre.

- Support to further develop the Grampians Peaks Trail.

- Funding to grow Victoria’s wine industry through increased cellar door visitation.

- Commitment to widen the Tullamarine Freeway.

- Commitments to apprenticeships and training to support the creation of a well-trained, job-ready tourism workforce. 

"We urge the new government to make progress on this agenda as a priority, given its significance to the Victorian economy and wider business community," Ms Smith said.

"VTIC looks forward to working with the new government to ensure that Victoria’s tourism industry can continue to offer exceptional visitor experiences, create thousands more jobs and achieve the ambitious targets detailed in Victoria’s 2020 Tourism Strategy."

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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  

ILLEGAL tobacco use in Australia continues to grow with a new report revealing around one in every seven cigarettes consumed is illegal, exposing the fact that plain tobacco packaging has proved only a burden to retailers rather than encourage Australians to quit the habit.

Plain packaging has also lead to a shift from retailers who once regulated sales of legal product to an increasing amount of illegal unregulated sales.

The latest in a series of reports by KPMG LLP in the UK, Illicit Tobacco in Australia, shows that illegal tobacco use in the last 12 months has increased from 13.5% to 14.3% of total consumption.

Australian Retailers Association (ARA) Executive Director Russell Zimmerman said the change to plain packaging has been a waste of retailers’ time and resources.

“According to the report, had that tobacco been sold legally, the Australian Government would have received an additional $1.2 billion in tobacco excise. Instead of paying tax to the Australian Government, criminals are profiting from this illegal tobacco trade at the expense of local law-abiding retailers who could keep tobacco out of the hands of minors.

"The ARA has long argued the change to plain packaging was an unnecessary burden for small to medium retailers, and it is now further evident that this initiative has had absolutely no effect.

“We are very concerned that illegal tobacco products are swamping the market, and this has only been made worse by plain packaging which has seen product move out of well-regulated legal distribution through retailers.

“The ARA will be making the point to the government that action needs to be taken to address the illegal tobacco trade. The government must consider how ever increasing regulation - whether on cigarette packaging or tax - creates additional incentives for tobacco smugglers. It's not only in their best interests but also in the best interests of Australian 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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