FCA cautions risks of conflict in SA Small Business Commissioner Bill

Franchise Council of Australia ’s legal symposium recommends offices of small business commissioners should be coordinated to ensure a lack of conflict or overlap with the national law.

Steve Wright, Executive Director of Franchise Council of Australia said it was interesting to hear the views of ACCC Deputy Chair, Dr Michael Shaper. According to Shaper, the risk of conflict in the SA Small Business Commissioner Bill was of significant importance to franchise systems, especially for those operating nationally.

Dr Shaper said dispute resolution services needed to be integrated and seamless. Other aspects of small business commissioner powers should avoid conflict with national regulations and statutes.

Mr Wright had found Shaper’s comments very timely, especially towards the upcoming debate on the SA Small Business Commissioner Bill 2011 that is being pushed through parliament by SA Small Business Minister Tom Koutsantonis.

“FCA supports the concept of a small business commissioner, based on the Victorian model, which Mr Koutsantonis told Parliament he was introducing,” says Wright.

“However what he actually brought before parliament is very different and means SA will be out of step with other SBC offices around the country and will be taking SA business into the past by introducing back-door franchising legislation where a comprehensive national regime already exists.”

According to Mr Wright, the ACCC’s view is consistent with the federal government, other state governments, leading national trade practices experts, business associations and local SA lawyers, and as well as franchisors and franchisees.

“SA business confidence already lags behind the rest of the country; this is going to make matters worse, not better,” says Wright.

The Franchise Council of Australia has called upon the SA Parliament to create an examination enquiry on the bill or to amend it to prevent it from interfering with existing national laws.