FCA Disappointed SA Government Ignores Objections to De-Facto Franchising Bill

The Franchise Council of Australia (FCA) is disappointed by the South Australian Government’s intent on introducing their back-door franchising legislation, especially since the 57 public submissions to the Bill has never been made publicly available.

The FCA has made clear objects to the Small Business Commissioner Bill 2011 for its undeclared franchising-related elements, which is currently being pushed by Small Business Minister, Tom Kousantonis.

“Yet Mr Kousantonis says today that the sector wants this legislation,” says FCA Executive Director, Steve Wright.

“The Commonwealth and other States have considered and rejected the franchising-related moves Mr Koutsantonis intends to implement. The Bill in its current form is disconcerting news for the $9 billion South Australian franchise sector and the thousands of franchisees and employees who work in it.”

According to Write, the Bill mirrors the Victorian Small Business Commissioner model, however further details have shown the Small Business Commissioner Bill to be a de-facto franchising bill, which contains new heavy penalties and differing regulations to those which currently exist.

“If Mr Koustantonis thinks this will inspire franchising small business growth in SA, he is mistaken. He needs to pull back from this anti-franchising approach and return to what the Victorian, NSW and WA Governments have recognised is the sensible approach – a Small Business Commissioner Office which focuses on quick affordable dispute resolution, not one which sets up an expensive quasi-tribunal,” says Wright.

“Small business needs reduced red tape, not a new big-stick bureaucracy which the WA Government estimates would cost taxpayers millions of dollars a year to run. SA already trails the rest of the nation in terms of business confident. Mr Koutsantonis’ Bill will make the situation worse, not better.”