Business News Releases

Retail sector proves its resilience says ARA

RETAIL has proved resilience according to the Australian Retailers Association (ARA), with the Australian Bureau of Statistics revealing year on year Retail Trade figure growth of 4.6 percent for August 2015.

It is the seventh month in a row of more than four percent growth, with July 2015 retail sales showing 4.2 percent.

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. Month on month growth for August 2015 over July 2015 was 0.4 percent.

Russell Zimmerman, ARA Executive Director, said the rise was the result of the tail end of winter sales, evidenced by the significant increases in department store and household goods sales.

“The half yearly sales period has triggered a flurry of activity which has provided a nice boost to the retail industry,” Mr Zimmerman said.

“Department stores, which have been experiencing yearly growth of around one to two percent for the past 12 months, have seen a 6.9 percent rise. This will be music to the department store chain’s ears, coming off the back of a long period of static growth.

“The household goods category has also been a beneficiary of the retail spending increases, recording the largest rise at 9.6 percent.

“Clothing, footwear and personal accessories has now seen six consecutive months of above average growth, indicating this category is back on track following an earlier lag in sales,” said Mr Zimmerman.

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

By category:

Food,  3.1 percent; household goods, 9.6 percent; clothing, footwear and personal accessories,  6.5 percent; department stores, 6.9 percent; other retailing, 2.3 percent; café restaurants, 3.5 percent and takeaway foods, 4.6 percent.

By state:

NSW, 6 percent; Victoria,  4.8 percent; Queensland, 3.7 percent; South Australia, 4.8; Western Australia, 3.1 percent; Tasmania, 2.8 percent; Northern Territory, -0.8 percent; and Australian Capital Territory 4.8 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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Grand final eve public holiday costs tackle Victoria’s tourism sector

THE Victoria Tourism Industry Council (VTIC) expects tourism businesses in both Melbourne and regional Victoria to be hit hard by Friday’s grand final eve public holiday.

“The cost to pay Victoria’s almost 2 million full time employees not to come to work this Friday could reach $543 million, at a time when many tourism businesses already face significant cost pressures,” said Acting VTIC Chief Executive Erin Joyce.

Regional tourism businesses are highly sceptical of claims that increased costs will be offset by additional business over the weekend.

“Business will be worse-off as any benefit from additional visitation, above normal school holiday levels, will not exceed the extra costs incurred by employers as a result of the public holiday,” said Ms Joyce.

Due to public holiday penalty rates and expected negligible increases in customers, throughout the state many businesses will be forced to:

  • Employ a skeleton staff
  • Roster on inexperienced junior staff
  • Open for reduced hours
  • Close for the day; or
  • Pass on some of the increased labour costs to customers by way of a surcharge 

VTIC warned that a compromised visitor experience on grand final eve could have a longer term effect on the competitiveness of Victorian tourism.

“Visitors from interstate or overseas may find many retailers, cafes, bars and restaurants closed or operating with reduced services levels. These experiences could damage Victoria’s global reputation as a leading tourism destination,” said Ms Joyce.

“We will continue to tell the government that the decision to introduce the grand final eve holiday is the wrong one and must be retracted for future years.”

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 

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Falling resource forecasts confirm the urgency of workplace reform

URGENT reform to laws governing industrial relations on new resource projects are needed to help encourage greater investment into this country following a significant drop in the forecast value of our resource and energy exports, warns Australia’s resource industry employer group, AMMA.

The federal government’s new Resources and Energy Quarterlyreveals that the forecast value of our exports for 2016-19 has been revised down by $113 billion.  This is 14% lower than the value forecast just 12 months ago.

“This means lower taxes and royalties than previously expected and further pressures on business spending and jobs. Just as employers are already having to trade on higher volumes to make money, it will be in the national interest to increase our share of global resource exports in a lower commodity price environment,” says AMMA executive director, Scott Barklamb.

“Lowered export earnings forecasts underscore the need for our policy makers to take urgent action to improve Australia’s attractiveness as a destination for global resources investment.

“One key way to help increase investor confidence is to improve the laws governing employment agreements for new (greenfields) projects, which currently require employers to accede to union demands before a single person can be hired, or a sod turned on a new project.

“The ‘veto power’ our existing laws give unions contributes to delays and high costs that are dragging down Australia’s reputation to deliver complex, multi-billion dollar resource projects on time and on budget.

“International investors are marking Australia down as a place to do business because they cannot rely on our industrial relations system to deliver reliable, timely and cost effective employment arrangements.” 

The Senate looked close to a breakthrough on some useful reforms to greenfields agreement making in September, but they were not passed, and unions are doing all they can to oppose any changes to their current preferential veto powers.

The need for reform was recently recognised by the Productivity Commission, in its draft recommendations which include:

  • A ‘life of construction’ agreement option (on top of a maximum five-year agreement length).
  • Providing alternatives to making a deal with unions where negotiations stall.

 This needs to go further, including: 

  • Scope to roll over greenfields agreements with employee support.
  • Head contractor greenfields agreements that other contractors can then follow.
  • Ensuring tests for greenfields agreements do not entrench already inflated wages and conditions.

“Consensus for urgent reform in this area is growing. The Opposition should not continue to filibuster and block reform as evidence mounts that Australia needs to attract more resource investment to help grow our long-term export capacity, drive our national economy and create jobs,” Mr Barklamb says.

KPMG research commissioned by AMMA found that it can often take two years to secure a greenfields agreement that will only run for four years. However, shortening the delay to negotiations by just two months would increase an average resource project’s net present value by $4.6 million.

www.amma.org.au

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Victorian business to be hit by cost of grand final Friday public holiday

VECCI Chief Executive Mark Stone warned today that, at a time when Victoria will welcome a significant number of interstate and international visitors, parts of Melbourne’s CBD will be like a ghost-town this Friday, as the public holiday will make it uneconomic for many businesses to open.

"The cost to pay Victoria’s almost 2 million full time employees not to come to work could reach $543 million for the day," Mr Stoe said.

"As a Victorian business, this holiday will cost VECCI over $120,000 through lost revenue, paying people not to come to work and operating our advice line service to members and clients.

"The impact will be felt throughout Victorian business."

Mr Stone said examples include:

  • Additional wages costs of $14,000 for a supermarket operator due to penalty rates.
  • A building materials supplier paying $9,500 for its 50 full and part-time staff not to come to work.
  • Some health sector operators will pay over $200,000 in additional wages for the day and, given the industry they operate in, must remain open.
  • An adult casual shop assistant will now be paid $52.21 per hour instead of their regular Friday hourly rate of $23.73.
  • A full time security officer working at an event will now cost 2.5 times their ordinary hourly rate to work on Friday, earning $46.17 an hour instead of $18.47. 

The taxpayer will pay over $20 million to cover extra public sector employee costs for the day.

Local governments throughout Victoria have to bear the burden of increased costs of operating services such as aged care facilities, rubbish collection and recreational centres.

Businesses across both Melbourne and regional Victoria have contacted VECCI asking us to see if we can have this decision retracted. We’ll continue to campaign on their behalf to see these holidays are not repeated in coming years.

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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ASIC reports on decisions to cut red tape: Feb-May 2015

ASIC has released its latest report outlining decisions on relief applications covering the period February 1 to May 31, 2015.

Businesses frequently approach ASIC for assistance to help make the law work better for them. ASIC uses its discretion to vary or set aside certain requirements of the law where there is a net regulatory benefit or where ASIC can facilitate business or cut red tape without harming other stakeholders.

This is a key part of ASIC's function and between February 1 to May 31, 2015, ASIC approved 372 relief applications.

Report 449 Overview of decisions on relief applications (February to May 2015) (REP 449), aims to improve the level of transparency and the quality of publicly available information about decisions ASIC makes when asked to exercise its discretionary powers to grant relief from provisions of the:

  • Corporations Act 2001 (Corporations Act), or
  • National Consumer Credit Protection Act 2009 (National Credit Act).

REP 449 also discusses the various relevant publications released by ASIC during the four months.

The report summarises examples of situations where ASIC has exercised, or refused to exercise, its exemption and modification powers under the Corporations Act. The report also highlights instances where ASIC has considered adopting a no-action position regarding specified non-compliance with statutory provisions.

Finally, the report provides examples of decisions that demonstrate how ASIC has applied its policy in practice which ASIC thinks will be of particular interest for capital market participants and for participants in the financial services industry. The report includes an appendix detailing the publicly available individual relief instruments referred to in the report.

BACKGROUND

ASIC can modify or set aside certain provisions of Chapters 2D (officers and employees), 2G (meetings), 2M (financial reporting and audit), 5C (managed investment schemes), 6 (takeovers), 6D (fundraising) and 7 (financial services) of the Corporations Act.

ASIC also has powers to give relief under the provisions of Chs 2 (licensing) and 3 (responsible lending) of the National Credit Act and from all or specified provisions of the National Credit Code, which is in Sch 1 to the National Credit Act.

In limited situations, ASIC may also consider providing a no-action letter when instances of non-compliance with certain statutory provisions have been brought to ASIC’s attention.

A no-action letter states to a particular person that ASIC does not intend to take regulatory action over a particular state of affairs or particular conduct. The factors that ASIC will consider when dealing with a request for a no-action letter is set out in Regulatory Guide 108 No-action letters (RG 108).

ASIC publishes a copy of most of the relief instruments issued in theASIC Gazette. Credit instruments are available from the ASIC website under credit relief.

APPLYING FOR RELIEF

Applications for relief must be in writing and should address the requirements set out in Regulatory Guide 51 Applications for relief (RG 51) (and any other regulatory guides relevant to the application).

Applications can be submitted electronically toThis email address is being protected from spambots. You need JavaScript enabled to view it.. Fees are applicable for relief applications.

ASIC is streamlining the process for considering applications for relief to ensure that applications are assessed as quickly and efficiently as possible. As part of this, ASIC will be more strictly enforcing its policy to refuse applications for relief where information needed to make a decision is not provided.

Where ASIC has asked for additional information within a specified time period—and a reasonable explanation is not provided for any delay—an application for relief may be refused.

www.asic.gov.au

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iBosses set to list on ASX today, ready to help Aussie start-ups shine

ENTREPRENEURIAL training specialists, iBosses Corporation Limited (ASX: IB8) (“iBosses” and “Company”) is pleased to announce that the Company is set to list the Company’s securities on the Australian Securities Exchange (ASX) today, Wednesday, 30 September 2015 at 11:00am.

The Company has raised $2.7 million by the issuing of 13.5 million new ordinary shares at an issue price of $0.20 cents to achieve a market cap on listing of AUD $22.74 million.

In commenting on iBosses’ preparation for listing on the ASX, Founder and Group Chief Executive Officer of iBosses, Dr Patrick Khor, said:

“iBosses is delighted to be listing on the ASX and to be able to assist time-poor Australian entrepreneurs and may others around the world achieve their dreams of starting-up a new business.

“We are excited as this listing brings us closer to our aim of expanding operations to include 2,000 centres covering major cities of diverse regions in Malaysia, Indonesia, China, Australia, Philippines, Cambodia, Germany and America.”

iBosses employs the eight-level entrepreneurship acceleration process: Passion, Ideation, Validation, Implementation, Commercialisation, Replication, Fruition and Actualisation, to mentor entrepreneurs whose businesses presently focus on regional markets but have high potential and readiness to venture globally.

To assist start-up businesses in preparation for success, iBosses offers four business revenue models:

  • Entrepreneurship Training
  • Entrepreneurship Mentoring
  • Entrepreneurship Digital Channel
  • Entrepreneurship Licensing

iBosses’ e-system on Cloud is a digital platform that showcases start-ups from all over the world to investors, customers and other entrepreneurs allowing for convenient connections with potential members, co-founders, and crowd source.

In commenting on the imminent ASX listing, Mr Steven Lau, Deputy Chairman of iBosses Corporation Limited, said:

“iBosses is committed to listing on the ASX as it offers a sophisticated capital market, an internationally recognised and sustainable corporate governance environment, and a suitable platform for the Group’s expansion.”

ABOUT IBOSSES

iBosses is an internationally recognised corporation that is dedicated to inspiring and leading potential entrepreneurs in their pursuit of success through individually-tailored training programs.

With a vision to be the global leading provider of Entrepreneurship Training and Development, iBosses’ services include Entrepreneurship Training, Entrepreneurship Mentorship, Entrepreneurship Licensing and an Entrepreneurship Digital Platform. These services are intended to nurture, groom and grow successful entrepreneurs via iBosses Global Platform.

Established in 2014, iBosses Corporation Limited is based in Australia, and has expanded to include multiple centres located in Singapore (iBosses Private Limited), Hong Kong (iBosses Hong Kong Limited) and Malaysia (YES Academy Licensee). iBosses has been registered as a member of the Franchising and Licensing Association (Singapore) – FLA Singapore – iBosses.

www.ibosses.com

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ACCC authorises Solar Retailer Code of Conduct

The Australian Competition and Consumer Commission has granted re-authorisation to the Clean Energy Council for its revised Solar Retailer Code of Conduct for five years.

The Council represents Australia’s renewable energy and energy efficiency industries. The Code is a voluntary system that solar retailers can sign up to and meet best practice standards that will benefit consumers and the industry.

"Ensuring that solar retailers, as well as other industry participants, strive to improve standards of practice is important for consumers as household solar panels are a significant purchase,” ACCC deputy chair Delia Rickard said.

"Achieving higher standards in the industry will increase consumer confidence, enable consumers to make better decisions and enhance compliance as the industry grows."

The Code enhances consumer protection by requiring ethical sales practices, increases disclosure to consumers about the costs of entering into agreements and reduces safety risk by requiring Code signatories to use accredited installers.

"The solar panel market is evolving, which has led to different business models emerging. While this could lead to greater confusion for customers, signatories to the Code will be required to provide important information to consumers about the nature of the agreement they are entering into," Ms Rickard said.

Authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010.

Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.

Further information is available at Clean Energy Council Limited - Revocation and Substitution - A91495 & A91496.

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Victorian perspectives on chronic disease prevention and management

THE VICTORIAN experience of prevention and management of chronic disease in primary health care will be the focus of a House of Representatives Health Committee hearing to be held in Melbourne on Thursday.

The committee will hear from witnesses including the Victorian Health Department, chronic disease advocacy groups, bodies representing medical practitioners and allied health workers, research bodies, a health consumer group, private health insurers, and Primary Health Networks.

Discussion is expected to include methods used to treat chronic disease in primary health care, as well as ways in which patient care can be better coordinated, supported and improved.

Committee Chair Steve Irons MP said, "Hearing more about innovative models of care being delivered in Victoria, including the CarePoint partnership delivered by the Victorian Department of Health and Medibank Private, will provide a perspective on the ways in which the challenges of chronic disease can be addressed on a local and state-wide scale.

"Collaborative partnerships, and information sharing between research bodies and primary health care organisations, including Primary Health Networks, may find efficiencies and lead to better implementation of best practice treatment for patients living with chronic disease."

Details of the hearing are:
Thursday, 1 October – 9.00 am to 5.30 pm
Meeting Room G1, 55 St Andrews Place, Melbourne, Victoria

A program and further information about the inquiry is available at: www.aph.gov.au/chronicdisease

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ACCC concerned over implementation of the Food and Grocery code

The Australian Competition and Consumer Commission is investigating reports about the approach supermarket retailers are taking to implement the Food and Grocery Code of Conduct (Code).

ACCC Chairman Rod Sims said, “The aim of the Code is to redress the imbalance in bargaining power that can exist between suppliers and large grocery retailers by prohibiting certain types of unfair conduct.

“The Code imposes a duty to deal with suppliers in good faith and we are concerned by reports we have received from suppliers that suggest that some retailers have not got off to a good start when it comes to implementing the Code,” Mr Sims said.

“The ACCC has concerns as to the manner in which some retailers, in particular Woolworths and Aldi, are presenting new Grocery Supply Agreements (GSAs), which might give the impression that the supplier is not able to negotiate the terms of the GSA.

“The ACCC is also concerned about the low level of detail provided in some GSAs about the circumstances in which certain payments may arise.”

The Code sets out a number of prohibitions on, for example, requiring a payment for wastage that occurs at the premises of the retailer.

While it is possible for retailers and suppliers to opt out of such prohibitions, this can only occur if the opt outs are agreed, if the agreement sets out the circumstances in which the opt out applies and if the payment is reasonable in the circumstances.

“One of the purposes of the Code is to provide certainty to suppliers, who are often in a much weaker bargaining position when dealing with retailers. In order to provide that certainty, the ACCC expects retailers to set out the circumstances in which they will seek payments from suppliers,” Mr Sims said.

The Code requires that retailers offer code-compliant GSAs. Suppliers should not feel compelled to sign these agreements and should seek advice before signing them. In particular, the Code will confer protections on suppliers 12 months after a retailer has signed up to the Code, regardless of whether a supplier has accepted a code-compliant GSA.

The ACCC has written to retailers about the manner in which they purport to be giving effect to the Code. The retailers have responded providing their new GSAs and the correspondence they have sent to suppliers offering the new GSAs. The ACCC will continue to monitor compliance with the code.

Background

The ACCC is responsible for enforcing the Code and has developed guidance material, which is available at Food and Grocery Code of Conduct.

Coles, Woolworths, Aldi and Sydney-based retailer About Life have signed up to the Code.

The Code has rules about GSAs, payments, termination of agreements, dispute resolution and a range of other matters.

It is a voluntary code which complements existing protections under theCompetition and Consumer Act 2010, including the unconscionable conduct provisions.

The Code requires retailers and wholesalers to deal with suppliers in good faith during the bargaining stages of establishing GSAs, during the term of the agreement, and in dealing with any disputes.

Under the Code, retailers are required to offer suppliers code-compliant GSAs – whether the agreements are new, or variations to existing ones.

www.accc.gov.au

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ChAFTA an urgent test for the Opposition - AMMA

NATIONAL resource industry employer group, AMMA (Australian Mines and Metals Association), calls on the Labor Opposition to heed the clear message from the Chinese Ambassador to Australia, His Excellency Mr Ma Zhaoxu, that our country needs to act quickly to secure the significant economic and employment opportunities of the China-Australia Free Trade Agreement (ChAFTA).

AMMA executive director, policy and public affairs, Scott Barklamb says Australia must not waste its opportunity to steal a substantial march on our global competitors, and to lock in preferential trading arrangements with our most important trading partner.

“Ambassador Ma is correct in describing the ChAFTA as a win-win for both nations. As the Chinese leadership, the Australian Government and the Opposition are well aware, this is an excellent deal which will allow Australia to secure the highest levels of access to this massive market for our exports, goods and services,” Mr Barklamb says.

“It will create jobs for Australians, including our children and grandchildren, and increase our living standards for decades to come - but only if the negotiated agreement is rapidly ratified when parliament resumes.”

As Ambassador Ma delivers his address on the 100th day since the ChAFTA was signed, Mr Barklamb says the enormity of what Labor is risking should not be underestimated.

“The Chinese leadership must be incredulous that Australia is not seizing with both hands the opportunities ChAFTA promises. As a nation we should be embarrassed that our alternative government needs to be reminded of what is at stake if we let this opportunity slip through our fingers,” he says.

“If ChAFTA does not proceed, our competitors will be only too quick to take up the preferential opportunities we have negotiated.”

With legislation to ratify the ChAFTA expected to be considered in parliament next month, Mr Barklamb says Opposition leader Bill Shorten will be tested on his economic leadership credentials.

“The CHAFTA legislation is where national economic leadership starts to get very real for Mr Shorten,” he says.

“This is a test of his capacity to make decisions for all Australians, rather than for the vested interests of the union movement. It is a test of actions rather than spin.

“The Opposition must decide whether they want to take instructions from the CFMEU and thereby become complicit in a fundamentally xenophobic campaign singling out Chinese labour, or instead demonstrate maturity and vision, act in the national interest, and help deliver more jobs and better living standards for generations of Australians.”

AMMA’s comments follow Mr Ma Zhaoxu’s address to the Australia China Business Council/ China Chamber of Commerce in Australia on the evening of 29 September. 

www.amma.org.au

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COSBOA slams secret big business letter to Government

COUNCIL of Small Business of Australia (COSBOA) has expressed deep concern at the existence of a confidential briefing letter provided to the Federal Cabinet from the Business Council of Australia (BCA), arguing against an effects test in competition regulation.

The fact that this letter is confidential and unavailable to the public and other industry groups is highly concerning and COSBOA calls on the BCA to immediately release this letter for scrutiny and comment from other interest groups.

Paul Nielsen, Chairman of COSBOA said, “We note, as reported in the AFR (24 Sept 15), that the Chairman of the BCA, Catherine Livingstone has provided a confidential eight page briefing letter on 25 August to the Federal Cabinet that spells out the BCA’s case against an effects test, including an attachment containing their views on unintended consequences.

“Whilst we understand the need for secret inter-governmental briefings from departments such as Defence on security matters, the BCA and its members are public companies and competition policy affects the whole business community – not just the big businesses that make up the BCA,” said Mr Nielsen.

Mr Nielsen further questioned whether the clandestine document was provided at the behest of the Government. “If that is the case, has the Government requested a similar briefing letter from organisations with a different view?  So far all anyone has seen from the BCA are assumptions to ‘protect their patch’ and fly in the face of organisations and regulators like the ACCC, who are chartered with protecting and preserving the rights of the whole community, not just big business.

“Given that Competition Policy and the proposed changes to the effects test by the Government’s own Harper Review will affect all businesses in Australia, we are dismayed that the BCA should try and unduly influence Government policy under a sinister cloak of secrecy. What do they have to hide?” asked Mr Nielsen.

Peter Strong, CEO of COSBOA added: “The only comment that we have seen from the confidential briefing from the BCA is that an effects test will ‘put at risk developments such as the iPhone’. The iPhone was developed in a country that has an effects test, the USA. There is an argument that it was because of the effects test that innovators were able to prosper and grow in that country. What other pieces of misinformation are in the BCA’s submission?

“COSBOA, and its members, as well as many regulators, noted economists and the broader community, know the power and influence held by this small number of big businesses is having a hugely negative effect on innovation and productivity in Australia. An effects test will aid the ACCC to make informed assessment of competition and ensure any dominance is good for the economy and not just for a few big businesses,” said Mr Strong.

http://www.cosboa.org.au/

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