Business News Releases

Retailers question whether steady cash rate is enough to support growth

THE Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold today at 2.25 percent will support the retail industry for the time being but additional cuts are likely to be necessary.

The Australian Retailers Association (ARA)  Executive Director Russell Zimmerman said the current period of stable interest rates is a positive sign for both business and consumers.

“While the stable cash rate has positively impacted consumer spending, both the Federal Government and RBA must now do all that they can to ensure that retail trade is fully supported.

“Unfortunately, we have seen some concerning data lately including low wages growth and a weak international environment which has left consumers and businesses feeling a little nervous. The ARA therefore encourages the government to prioritise real productive reforms and for the RBA to consider further rate cuts next month to maintain consumer confidence,” 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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Balancing personal freedom and community protection

KEEPING  the community safe and maintaining personal privacy and freedoms will be canvassed at a public hearing on Wednesday, as part of an Inquiry into the use of section 313 of the Telecommunications Act 1997.

The House Standing Committee on Communications will hear evidence from two organisations that question the need for section 313 of the Act, which gives Australian government agencies the ability to obtain assistance from the telecommunications industry when upholding Australian laws.

Electronic Frontiers Australia (EFA) regards section 313 as a “dangerous impediment to Internet freedoms” and recommends that it be struck out completely, or, if retained, be restricted to law enforcement, national security agencies, and possibly oversight agencies such as ASIC.

The Australian Privacy Foundation (APF) is opposed to section 313 in its current form and believes its misuse has an adverse impact on Australians’ privacy. The APF says the section should be re-written to establish due process and appeal rights, and to remove conflicts and confusion between the diverse subject matter comprising law enforcement, crime prevention and national security.

Committee Chairman, Jane Prentice said, “The Committee is conscious of the wide range of views within the community about the need for balance between personal freedom and community protection—especially in the internet age. The Committee expects that by testing a range of views on the use of section 313, we will be able to find the right balance between the rights of citizens and the responsibilities of government agencies.”

Details of the hearing are as follows:

Date: Wednesday, 4 March 2015

Time :8:00 am

Venue:Committee Room 1R3, Parliament House, Canberra

Further information about the Inquiry, including the full terms of reference and how to prepare a submission can be obtained from the Committee’s website at www.aph.gov.au/section313 or from the Secretariat on (02) 6277 2352.

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VECCI: Back to Work Bill must be passed by parliament as a priority

 

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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Peak retail industry body launches Queensland division and office

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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Retailers pay tribute to industry leader Bernie Brookes

THE Australian Retailers Association (ARA) Executive Director Russell Zimmerman paid tribute to outgoing Myer CEO Bernie Brookes following the announcement of his retirement today.

“I have had the privilege of working alongside Bernie and Myer throughout my time leading the retail industry’s peak body. Bernie has always been a strong team player in the retail industry and has dedicated much of his time to benefit the retail sector within his role,” Mr Zimmerman said.

“Bernie is an outstanding individual at both a professional and personal level and I thank him for his commitments."

The ARA also congratulated incoming Myer CEO Richard Umbers who has had a long relationship with the ARA dealing with key industry issues.

“Richard Umbers has already been an outstanding leader within the retail sector and I look forward to working closely with him and Myer to deliver the exciting opportunities our sector can bring,” 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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Rate cut risks confidence dip

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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Report calls for improved public administration and security

FEDERAL PARLIAMENT’s Public Accounts Committee has presented its report on five Australian National Audit Office reports from 2013-14:

• Audit Report No. 42, Screening of International Mail
• Audit Report No. 43, Managing Compliance with Environment Protection and   Biodiversity Conservation Act 1999 Conditions of Approval
• Audit Report No. 48, Administration of the Australian Business Register
• Audit Report No. 50, Cyber Attacks: Securing Agencies’ ICT Systems
• Audit Report No. 52, Multi-Role Helicopter Program

Committee Chair Dr Andrew Southcott MP said that these are significant areas of public administration where the public and the Parliament want to see improved outcomes. They also involve important issues of public safety and security.

“Two key themes emerging from these reports were the importance of agencies taking an appropriate risk based approach and also, where appropriate, working cooperatively with other agencies and stakeholders to achieve common objectives,” Dr Southcott said.

The Committee’s report includes recommendations directed at:

• Australian Customs and the Department of Agriculture reviewing methods of screening international mail to ensure Australia conforms to international best practice, and strengthening cooperative arrangements with other countries regarding identification of illicit firearm shipments
• Commonwealth agencies achieving full compliance with required strategies and controls in the Australian Signal Directorate’s Information Security Manual, and increased scrutiny of this area
• increased scrutiny of the Department of Environment’s management of the EPBC Act compliance framework and new one-stop-shop arrangements, and improved performance reporting in this area
• the Department of Defence and the Defence Materiel Organisation publishing annual figures on Australian industry content in their acquisition and sustainment contracts
• the Australian Taxation Office and partner agencies working more closely together to reduce entry points for business interactions with government through the Australian Business Register, and providing more efficient registration and reporting mechanisms

Copies of the report and further information about the inquiry can be accessed via the Committee’s website at: www.aph.gov.au/jcpaa.

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Retailers support NSW Government’s move to deal with ridiculous Boxing Day trading laws

 

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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Public Hearing into the Defence Major Projects Report

PARLIAMENT's Joint Public Accounts and Audit Committee (JCPAA) will conduct a public hearing to examine the joint Australian National Audit Office (ANAO) and Defence Materiel Organisation (DMO) Major Projects Report (MPR) 2013-14.

Having opened the inquiry into the MPR on 18 December 2014, the Committee will now examine witnesses from the Department of Defence, the DMO and the ANAO in order to investigate further the issues raised by the report.

Committee Chair, Dr Andrew Southcott MP, said that major Defence equipment projects remain the subject of considerable parliamentary and public interest, in view of their high cost, contribution to national security and the challenges involved in completing them within budget, on time and to the required level of capability.

“This is the seventh MPR produced by the ANAO and DMO and the Committee remains committed to seeing that, when it comes to Defence procurement, Australian tax-payers’ money is being spent wisely,” Dr Southcott said.

“The JCPAA’s on-going work has been very important in the MPR’s development.  Our efforts actively contribute to greater efficiencies in terms of current Defence projects as well as helping inform government on the best way to approach new Defence acquisitions, such as the Future Submarine project.”

Further information about the Committee’s inquiry, including details on how to lodge a submission, are available on the Committee’s website at: www.aph.gov.au/jcpaa.

Details for the hearings are as follows:
Date and time Friday, 27 February 2015, 9.30am – 11.30am
Venue:  Committee Room 1R2, Parliament House, Canberra.

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Breaking down trade barriers

BREAKING down trade barriers and improving opportunities for Australian industry and business will be on the agenda when two treaties are examined today.

The Treaties Committee will investigate the World Trade Organization (WTO) Agreement on Trade Facilitation, which aims to help Australian businesses better connect to the global economy by removing red tape and simplifying customs procedures.

The agreement was adopted by the 159 Members of the WTO in December 2013. It is the first major agreement concluded since the establishment of the WTO in 1995 and is seen as a significant milestone in the development of a multilateral trading system.

A number of administrative requirements have hindered businesses from taking full advantage of the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA), Australia’s largest existing free trade agreement. The committee will investigate the First Protocol to Amend AANZFTA designed to make it simpler to complete the paperwork required to do business in the two countries.

Committee Chair Wyatt Roy MP says these two treaties will open up opportunities for Australian businesses and industry.

“It is not just tariff barriers that inhibit businesses from looking for global marketing opportunities. Often red tape and complicated customs processes prove too difficult to negotiate,” Mr Roy said.

The committee will also examine a treaty on mutual legal assistance on criminal matters with Viet Nam which will pave the way for Australia and Viet Nam to exchange information and evidence for investigating and prosecuting serious crimes.

Public Hearing: Monday 2 March, Committee Room 2R1, Parliament House, Canberra

11.10am 

World Trade Organization (WTO) Protocol Amending the Marrakesh Agreement Establishing the World Trade Organization

WTO Agreement on Trade Facilitation

11.50am

First Protocol to Amend the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area (AANZFTA)

12.30pm

Treaty on Mutual Legal Assistance in Criminal Matters between Australia and the Socialist Republic of Viet Nam

1.00pm

Close

The hearings will be broadcast through: www.aph.gov.au/live

Copies of the treaties and submissions received can be found at: http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties

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NSW retailers concerned about hit and miss high business tax policies from NSW Labor

 

THE Australian Retailers Association (ARA) Executive Director Russell Zimmerman today said NSW retailers were worried about higher taxes and underdevelopment of infrastructure proposed by State Labor.

Today NSW ARA member Judith McDonald met with NSW Treasurer Andrew Constance in her Parramatta store to tell the Treasurer small retailers wanted tax cuts and better infrastructure.

“Our NSW members appreciate NSW Labor is trying to come up with policies however, the rushed unconsidered announcements we are see being made weeks before the election will only damage small business and retailers in NSW through higher business taxes and less infrastructure being built,” Mr Zimmerman said.

“I am relieved we have a state government cutting business taxes and building better roads,” Judith McDonald said while at her Parramatta dive store.

“I have worked with NSW retailers for years trying to get taxes cut and better roads, now we could see that all reversed”, Ms McDonald said.

Meanwhile Russell Zimmerman said he would be encouraging small business and retailers to vote for any party who stood for lower business taxes, better roads and better trains.

“We have more happening in NSW since the early 2000s along with better retail sales in NSW than any other State and I would hate to see all of that go by the wayside,” Mr Zimmerman said.

The NSW ARA would be asking Mr Foley’s NSW Labor to reverse these bad announcements and explain what they will do to help business.

“The ARA has met with Treasurer Constance and Premier Baird whom have explained their pro business and retail policies, we are now waiting for NSW Labor to do the same," 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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