A PARLIAMENTARY inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations will turn its attention to Australia’s export sector in a public hearing tomorrow.

Senator David Fawcett, Chair of the Parliament’s Foreign Affairs, Defence and Trade Committee, said many sectors of the export industry have been hit hard by COVID-19 although Government support to ensure freight capacity remains available has enabled some exports to hubs such as Singapore and Hong Kong to continue.

‘Like many other sectors of the Australian economy, Australia’s exporters have struggled during the pandemic,’ Senator Fawcett said.

"While much focus has been on supply chains that Australia draws from, it is also the case that we are a major supplier for other nations. At tomorrow’s hearing, we’ll explore what else Australia can do to support our export sector.

"Importantly, the Committee will explore any underlying weaknesses in global supply and export systems the pandemic has revealed.  In particular, the Committee will assess how the nation can enhance its role as a supplier of choice in resilient and transparent supply chains for critical goods and services with like-minded nations."

Witnesses from the Export Council of Australia and the University of Western Australia’s Perth USAsia Centre will talk about the trade and economic impacts of the COVID pandemic on Australian businesses and about how Australia can support its export sector during and after the pandemic.

Full terms of reference for the inquiry are on the Committee website. Submissions can be made until July 17, 2020.

Public hearing details

Date: Thursday 16 July
Time: 3pm – 4.30pm AEST 
Location: By teleconference

The hearings will be audio streamed live at aph.gov.au/live

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WITH ‘free childcare’ ending today, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell said many women in small businesses will be faced with difficult decisions.

“For small business owners – many of which are mothers – who have been working tirelessly to get back on their feet, childcare has just become unaffordable,” Ms Carnell said.

“Many of these young families working in small businesses are relying on JobKeeper, which will not cover childcare fees reinstated from today.

“This could force parents – mothers more often than not - out of their jobs, which is detrimental to their business, their families and even worse for the economy.

“We know women make up more than a third of Australia’s small business owners (38%) and more than 5 million women work in these businesses," Ms Carnell said.

“Recent ABS labour force data shows women have been among the hardest hit by the pandemic, with the female participation rate falling dramatically.

“The government should be monitoring this situation very closely and be considering innovative ways to increase the participation rates for women to ensure productivity gains and to help those in their efforts to get their businesses back on track," she said.

“Our COVID-19 Recovery Plan makes the point that childcare is an essential service for parents in small businesses and needs to be affordable.

“There are a number of ways the government can do this, including making childcare tax-effective or by phasing in an expanded subsidy scheme, which the Grattan Institute estimates would deliver an $11 billion economic boost.

“Economists have long referred to the ‘double dividend’ of childcare increasing workforce participation rates and providing early education," Ms Carnell said.

“Equally the government should be monitoring the impact that the reinstatement of fees is having on childcare centres, many of which are small businesses, which have warned of dire consequences of the so-called snap-back to the previous system.”

www.asbfeo.gov.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell says government investment in regtech would be an effective way to cut red tape for small businesses.

Appearing before a Senate Select Committee hearing today on Financial and Regulatory Technology, Ms Carnell said the emergence of regtech created an opportunity to make life easier for small businesses.

“Research shows us that a quarter of small businesses spend 11 hours a week or more on compliance and close to half estimate the annual cost of compliance is $10,000 plus,” Ms Carnell said.

“Regtech uses information technology to simplify regulatory processes for the end user. It’s a potential game-changer for small businesses trying to navigate Australia’s complex regulatory system.”

The Ombudsman has made a number of key recommendations in regards to key areas where regtech could be implemented including award simplification, tax requirements, skills and training, government procurement and OH&S.

“With effective use of regtech, the government could streamline processes and reduce the burden on small businesses to interpret and implement complex regulations,” Ms Carnell said..

“This would be particularly useful in the industrial relations space where regtech solutions could ensure small businesses are paying wages and entitlements correctly and on time. We’ve recommended the Fair Work Ombudsman accredit regtech solutions for this purpose.

“In addition, government procurement would be optimised with digitisation. Regtech could provide small businesses with easier access to panels and demonstrate ongoing compliance. It could also simplify the tender process for small businesses.

“Ultimately the government has an opportunity to modernise their systems now to reduce red tape so that small businesses can develop the skills and products Australia needs to remain globally competitive.”

www.asbfeo.gov.au

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THE FIRST HEARINGS for the Joint Standing Committee on Trade and Investment Growth’s inquiry into the need for Australia to diversify its trade markets and foreign investment profile will be held in Canberra on July 14 and 15.

George Christensen MP, Chair of the Parliament’s Trade and Investment Growth Committee, said it had become critical for Australia to review and assess its strengths and weaknesses in a context of growing international uncertainty and globalised economic interdependence.

"Adapting to and preparing for evolving market challenges is necessary to support Australian export businesses," Mr Christensen said.

"Australia needs to ensure any foreign investment is consistent with our national interest and not to the detriment of Australians."

The hearings will focus on the agricultural sector and business and industry groups. Programs are available on the inquiry website.

As part of its inquiry, the Committee is considering whether Australia is too reliant on foreign investment and any one market for exports, and the advantages and disadvantages of its current trade and investment profile.

The Committee will also examine how global crises and bilateral trade agreements affect Australia’s export and investment relationships, as well as its domestic market.

"Understanding Australia’s export capacity and foreign investment attractiveness will help Australian businesses remain competitive internationally. This supports a strong economy that keeps people in jobs," Mr Christensen said.

Further public hearings will be scheduled in August, with updates to be provided on the Committee’s webpage.

Submissions from interested individuals, businesses and organisations are invited by Friday, July 31, 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

More information about the inquiry, including the full terms of reference and details on how to lodge a submission, is available on the Committee’s webpage.

Public hearings details

Date: 14 July 2020
Time: 9am to 5pm
Location: Canberra

Date: 15 July 2020
Time: 9am to 12.30pm
Location: Canberra

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COMMISSIONERS of the Australian Securities and Investments Commission [ASIC] will appear before the Parliamentary Joint Committee on Corporations and Financial Services at a public hearing via videoconference on Wednesday July 15, 2020.

The committee will review the performance and operations of the corporate regulator, with a particular focus on ASIC’s performance during the COVID-19 crisis.

This will be the fourth public hearing with ASIC before the Corporations and Financial Services committee in this Parliament.

Committee Chair Senator Paterson said, “This hearing is an opportunity for the commissioners of ASIC to update the parliament on the measures they have taken in response to COVID-19 and their outlook for the financial sector in the months ahead.”  

Public hearing details

Date:  Wednesday, 15 July 2020
Time:  9:30am to 1pm
Location: Videoconference
The hearing will be broadcast live at aph.gov.au/live

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THE TEAM at SkyPoint are incredibly excited to throw open the elevator doors to their Level 77 Observation Deck and Climb experience in the heart of Surfers Paradise, from Friday tJuly 10.

SkyPoint will re-open with a COVID Safe Industry Plan in place to ensure the safety of its team members and guests remains a priority.

Guests are now able to dine, drink and enjoy the Gold Coast’s best 360-degree view from atop the Q1 building. For those who prefer a thrill, SkyPoint Climb will also re-open tomorrow, so guests can again take on Australia’s highest external building climb.

“SkyPoint is an iconic Surfers Paradise attraction and there is no better place to see the sights and surrounds of the magnificent Gold Coast. We look forward to welcoming both local and visiting guests back to the venue.” SkyPoint general manager, Dylan Hunt said.

SkyPoint opens at 10am on Friday and will be open seven days a week.

www.skypoint.com.au

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WHILE EALRY adaptation of on-site hygiene practices, including safety, physical distancing rules and staggered break times, were implemented on construction sites to provide safer workplace practices – the increase in community virus transmissions has necessitated further safety measures.

Michael Paynter, liaison officer for the Building and Construction Industry, will brief up to 200 construction Health and Safety (H&S) representatives to ensure they are armed with all guidelines for safe work practices.  

The briefing initiative will help ensure H&S representatives have the capability to assist the Department of Health and Human Services (DHHS) with workplace mapping of close and casual contact of workers who have tested positive to COVID-19.

Mr Paynter said, "By briefing on-site H&S representatives, we will be better positioned to assist with workplace mapping, all of which will further strengthen the health and safety platform for building and construction workers – and in turn – keep our Industry operational."

CFMEU officials closed a site in Melbourne’s inner west where 11 positive COVID-19 cases have been confirmed. The CFMEU in conjunction with site management immediately shut the site after the first case was confirmed (four days prior to the DHHS instruction) preventing any further opportunities for the virus to spread amongst workers. 

Yesterday, DHHS contacted the relevant site management to perform further contact tracing, instructing the job to remain shut for the next two weeks, with no workers to return to the site without proof of a negative test result. 

John Setka CFMEU secretary for Vic/Tas said, "Our commitment to the health and safety of our workers has always been paramount and we’ve done a great job so far; but we need to do more to look after each other, our families and the community.  So, if you or anyone in your household is unwell, stay home and get tested."

He said the CFMEU remained committed to the implementation of COVID-19 safety procedures to ensure the protection of all construction workers.  The current industry guidelines are first class, with daily on-site virus testing clinics.  To date, well over 6,000 workers have been tested at more than 100 construction sites around Melbourne.

"It is critical that the industry continues to move forward with health and safety testing clinics for all construction workers and expanding safety measures where and when required."

THE LATEST International Visitor Survey (IVS) results are just the first of a long set of negative quarterly results which will play out over the coming years, revealing the desperate future of Australia's export tourism industry.
 
“The March quarter IVS show the last gasps of our valuable export tourism industry as it once was,” ATEC managing director Peter Shelley said of the results.
 
“The last time we reviewed these IVS numbers we were looking at record inbound visitation of close to nine million visitors who delivered over $45 billion in spending to the Australian economy.
 
“While the industry is fully supportive of a strong health response, all tourism businesses have taken a battering in 2020, especially businesses relying on international visitors which were heavily impacted by mass cancellations off the back of the January bushfires, floods and then the pandemic which all rolled into each other," Mr Shelley said.
 
March quarter IVS figures still show some value delivered early in the year by international visitors before the borders officially closed mid March, but overall international spending was down by almost $4 billion in one quarter and visitor numbers down by 28 percent.
 
Mr Shelley said Australian tourism businesses which have traditionally had a heavy focus on catering to international visitors will need continued government support to ensure they remain capable of reigniting inbound tourism once borders reopen. 
 
“Not all tourism businesses are capable of embracing domestic tourism as their saviour as many have built their product specifically to service international visitors," he said. "Changing their business model requires investment and rebuilding that they simply either do not have or the risks outweigh the opportunity to embrace domestic tourism.
 
“ATEC’s industry survey shows 48 percent of tourism businesses derived 60-100 percent of their revenue from international visitors while 35 percent say the return of domestic tourism would make no difference to the desperate state of their business viability.
 
“We believe tourism businesses will need continued wage support along with support to manage ongoing business overhead costs in a period of zero revenue, plus stimulus restart grants. We need to retain support for businesses who are trying to starve off business failure while the international borders are closed which may be as long as a further 12 months, and then marketing funding to help restart our international trade once borders open," Mr Shelley said.
 
“Inbound tourism operators (ITOs) in particular will be a key to re-establishing an inbound visitor market and will play a vital role in supporting the delivery of international visitors to Australia in a COVID-safe way. 
 
“A ‘managed tourism’ approach using ITOs will give the government a strong framework for re-opening borders to specific markets in a controlled, safe and, most importantly, traceable manner which will be a priority in future international travel.
 
“Supporting the redesign or hibernation of these businesses will be critical in ensuring our industry maintains both the product and supply chain operations which are capable of taking us back to export success in the future and importantly, return thousands of jobs to a once valuable workforce around the country," he said.
 
“We know the government and the community understand the success of our export tourism industry and the significant economic value it can bring to our economy, and in that way will be keen to support us through this exceptionally challenging period.”

www.tourismdrivesgrowth.com.au

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